Education Stabilization

The Department of Education recently approved the State Fiscal Stabilization Fund (SFSF) applications of four more states - Iowa, Maryland, Kansas and Michigan - and Puerto Rico. These states join the 21 that have already begun to receive funds. As of May 29th, nearly $3.4 billion in SFSF monies have been disbursed to states. (Previous posts analyzing the applications of the first 21 states can be found here and here and here.)

These four additional states and one territory make up another $3.3 billion in Education Stabilization funds and $735 million in Government Services funds. Relative to most other states with approved applications, these states are expected to face relatively low 2009 budget deficits as a percent of total state spending. According to the Center for Budget and Policy Priorities, Michigan is expected to face the largest budget deficit- 6.5 percent - while Iowa will experience the smallest - 2.1 percent. Budget deficit information on Puerto Rico is not available.