The White House has released details about the state-level impact of the newly signed economic recovery package. The report estimates that the combination of tax relief, safety net enhancements, and discretionary government spending will “create or save 3.5 million jobs over the next two years,” adding that the “Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector.”

• OVERVIEW ON AMERICAN RECOVERY AND REINVESTMENT ACT
• IMPACT OF AMERICAN RECOVERY AND REINVESTMENT ACT ON WORKING FAMILIES
• EMPLOYMENT NUMBERS BY STATE
• EMPLOYMENT NUMBERS BY CONGRESSIONAL DISTRICT
• EDUCATION FACT SHEET
• ENERGY FACT SHEET
• HEALTH CARE FACT SHEET
• INFRASTRUCTURE FACT SHEET

NPR’s Martin Kaste reports on Washington state’s stimulus czar Dick Thompson, and the frustrations felt by some state governments that much of the stimulus funds are directed to existing funding mechanisms. This means that the states don’t get to use discretion to pick from their laundry list of possible projects.

Kaste reports: “What people don’t understand, Thompson says, is just how little control the state will have over the money. Instead,… Congress seems to be channeling most of the money into specific uses — K-12 education, Medicaid, transportation — following pre-established guidelines. The money almost spends itself, and the states are left with control over a lot less money.”

In other words, much of the money is flowing down to school administrators, library boards, city and county directors, and other local decision makers to support their objectives. The piece points out that many firms are lobbying the state governments to get their project supported, but in fact there will be little flexibility at the state level.

MCH recommends targeting your marketing efforts to the local administrators who will decide how to spend their increased funding. We are currently drafting our recommendations related to the major funding areas. If you would like recommendations from MCH on marketing data related to your line of business, you can request a quote using this form.

Kirk Chritton, Marketing Director
MCH, Inc.
kirkc@mailings.com

The stimulus bill has — as expected — changed in many ways in its trip through the Senate. Because the support of a small handful of moderate Republican senators will be required for final passage, the version of the bill that becomes law is likely to look much more like the Senate version than the House version. The Senate’s changes may have significant importance for marketers who are trying to align their product development and promotional strategies to the emerging legislation.

• The largest cut, $40 billion, was in the fund to stabilize state budgets. Had this money remained intact, many states with substantial budget gaps would have been made whole, and the state budget crisis that MCH tracks in our BudgetAware reports would have been greatly reduced in importance. Without the original funding, many states will still struggle to meet the requirements of their balanced budget requirements. MCH is currently developing the next release of the BudgetAware Bulletin, which will measure the current and expected budget pressure in each state.
• Preventative health initiatives had been targeted to receive $5.8 billion in the House bill. This money was likely to funnel down to a wide variety of public health agencies, clinics, and social service agencies.
• School construction funds totaling $16 billion were removed from the bill. That will reduce the potential opportunities for construction contractors and for the marketers who provide the furniture, fittings, and other products that are needed to stock new classrooms.

The list of items cut is long, but the overall scope of the spending is still large (more than $280 billion), leaving many opportunities for marketers who can align their offers with the initiatives of the bill.

On February 18th, I’ll join MCH President John F. Hood to present a free webinar (register here) in which we’ll review the final legislation. We will present an overview the opportunities and urgent action items for companies who hope to benefit from the stimulus spending. If you have questions about the funding, you can reach me at kirkc@mailings.com.

CNN obtained a list of the items that were either partially or fully eliminated from the stimulus package by the bipartisan committee. Highlighted below are the cuts that will negatively impact healthcare, education, and technology. In addition to the listed funds, institutions will also be impacted by the $40 billion cut from the proposal for state fiscal stabilization.

• $19.5 Billion – School & Higher Ed Construction
• $2 Billion – Broadband
• $2 Billion – Health Information Technology Grants
• $1 Billion – Head Start
• $600 Million – Title I (NCLB)
• $100 Million – Distance Learning
• $98 Million – School Nutrition

After the Senate votes on the bill, it will go to committee to iron out the differences.

In a town hall meeting in Indiana today, the President discussed the economic stimulus plan, saying “You know, look, it’s not perfect…But it is the right size, it is the right scope…it has the right priorities to create jobs that will jump-start our economy.”

President Obama will address the nation from the White House tonight.