Stabilization Spending Speculation Rampant As States, LEAs Await Details

Washington, Feb. 20 — Now that President Barack Obama has signed the $787 billion federal economic stimulus bill into law, many eyes are turning to state governors and legislatures to gauge how they’ll allocate billions of dollars in new education funding coming to them through a $53.6 billion state fiscal stabilization fund.

"I think one of the really interesting things is seeing how states are going to get their head around all of this," said Michael Griffith, senior school finance analyst for the Education Commission of the States (ECS). "And how are they going to adjust their funding formulas to take all this new money into account."