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.

The current thinking on the stimulus program is clearly to provide insititutions with a huge amount of new funding to spend with American businesses. The highlights of last week’s House version of the bill points this out. We’ve grouped the major funding amounts below according to their institutional areas.

This list of funding possibilities is not complete; there will be changes to the legislation. It’s being debated in the Senate now and then must return to be reconciled with the House version. We’ll continue to track these funds, and drill deeper beneath the strings that will be attached to them in future posts.

House Appropriations Committee Stimulus Proposal
Most funds to be released over a two-year period

Local Government

• $32 billion to transform energy transmission, distribution and production
• $16 billion to repair public housing and improve energy efficiency
• $6 billion to expand broadband internet to rural and underserved areas
• $19 billion for clean water, flood control, etc.
• $10 billion for transit and rail systems
• $3.1 billion for improvements to infrastructure on public land including parks.
• $100 million to remove lead paint hazards In public housing

Police, Sheriff, Fire

• $4.1 billion for state and local law enforcement funding
• $25 billion in aid to states for “other high priority needs such as public safety
• $550 million for state and local volunteer programs related to wildfire control

K-12 Education

• $14 billion for renovation and modernization of facilities
• $1 billion for education technology
• $13 billion for IDEA special education
• $13 billion for Title I
• $250 million for states to develop data systems that track student achievement
• $726 million for after school meal programs

Early Childhood

• $2 billion child care development block grant for low-income families
• $2.1 billion for Head Start programs
• $600 million for early childhood IDEA special education
• $360 million for new child development centers in the Department of Defense

Healthcare

• $20 billion for health information technology
• $4.1 billion for preventative care (public health)
• $3.75 billion for the construction of new hospitals and ambulatory surgery centers in the Department of Defense
• $950 million for improvements to Veterans Affairs medical facilities
• $1.5 billion for Primary Care programs

Social Services

• $66 million for programs for homeless child and youth
• $500 million for construction of rehabilitation centers
• $1.5 billion for homeless shelters
• $200 million for senior nutrition programs
• $200 million for independent living services for disabled