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State Fiscal Stabilization Fund Dollars Now Available to Nine States

On April 17, California became the first state to have its application for initial funding under the State Fiscal Stabilization Fund (member login required) approved by the U.S. Department of Education, becoming eligible for nearly $4 billion. Since then, eight other states have had their applications approved.

As I blogged earlier, these states are required to use 81.8% of this funding to support education. However, 18.2% may be used for other government purposes.

California, Illinois, Maine, Minnesota, Mississippi, Oregon, South Dakota, Utah and Wisconsin plan to use that 18.2% in the following ways:

Elementary and Secondary Education 0% 79% 0% 48% 0% 0% 0% 0% 46%
Medicaid 0% 0% 0% 0% 9.8% 0% 0% 0% 0%
Modernization, Renovation or Repair of Public Colleges and Universities 0% 0% 0% 5% 0% 0% 0% 0% 0%
Modernization, Renovation or Repair of Public School Facilities 0% 0% 0% 5% 0% 0% 0% 0% 0%
Other 0% 0% 0% 0% 56.4% 0% 0% 76.5% 13%
Public Colleges and Universities 0% 21% 0% 42% 33.8% 0% 0% 0% 0%
Public Safety 100% 0% 0% 0% 0% 0% 100% 0% 40%
Undetermined 0% 0% 100% 0% 0% 100% 0% 23.5% 1%

Source: State Fiscal Stabilization Fund Applications

Mississippi will use its "Other" funds to partially restore government services and Wisconsin will do so as well and use some of the funds for local government aid. Utah intends to spend:

  • $33 million for the Utah Science and Research Initiative
  • $15 million for Motion Picture Industry Incentives
  • $10 million for the Home Purchase Grant Program
  • $5 million for Alternative Energy Project Incentives
  • $2 million for Engineering Initiatives at Public Colleges and Universities
  • $1.8 million for the Foreclosure Prevention Program

GovWin's Take

  • States that have not determined how they will use their funds present prime opportunities for vendors as they will be open to using the money to gain efficiencies in government operations and/or create or retain jobs. Companies should review the recent budget recommendations and gubernatorial state of the state speeches (fee required for some GovWin members and all non-members) for Maine, Oregon, Utah and Wisconsin to determine those states' greatest areas of pain. Having solutions for those areas, will give your company the inside track.

  • Vendors that serve the public safety market should be going back to prospects that have put projects on hold due to revenue shortfalls and seek to revive those projects. In addition to funding from the State Fiscal Stabilization Fund, an additional $2.7 billion is available from the U.S. Department of Justice to support state and local law enforcement projects. But California, South Dakota, and Wisconsin should be at the top of your list of states on which to focus.

  • There is opportunity for architecture, engineering and construction firms in Minnesota as the state will be using 10% of its funding reserved for general government purposes to modernize, renovate or repair college, university and school facilities across the state. These are also opportunities for communications infrastructure companies.

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