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.

USA Today provided an interactive map reflecting the White House’s analysis of the economic stimulus plan being debated in the Senate. The map shows a state-by-state analysis of jobs created and schools to be modernized as well as workers eligible for tax credits. Click here to see the map.