Federal Stimulus

February 17, 2009

As you no doubt know, yesterday President Obama signed into law The American Recovery and Reinvestment Act of 2009 (the “federal stimulus” or “stimulus”). Wisconsin is projected to received $3.5 billion from the stimulus, which includes potential funding for counties, municipalities and school districts. Last night, Governor Doyle earmarked $2.1 billion of Wisconsin’s projected monies to protect existing education and health care programs. A list of the federal expenditures is provided below.

Counties and Municipalities

  • $27.5 billion for highway construction. Wisconsin is projected to receive $550 million for
       roads, bridges and other infrastructure projects. The Governor’s proposed
       Wisconsin-specific stimulus will use the first $300 million of that money toward
       pre-approved “shovel ready” projects.
  • $16.5 billion to modernize federal and other public infrastructure that lead to long-term
       energy costs savings.
  • $4 billion for state and local law enforcement funding.
  • $1.5 billion for competitive grants to state and local governments for transportation
  • $210 million for competitive grants to modify, upgrade and construct fire stations.

School Districts

  • $13 billion for Title I, $42.1 million of which would target additional Title 1-A school
       improvement grants in Wisconsin and an additional $138.7 million for Title 1-A Targeted
       and Education Finance Incentive Grants.
  • $12.2 billion for IDEA, $208.2 million of which would target IDEA Part B funding in
  • $650 million for the Education Technology program to create “21st Century” classrooms.
  • $39.5 billion to local school districts and public colleges and universities through existing
       state and federal formulas.
  • $5 billion to states as bonus grants as a reward for meeting key performance measures.
  • $2.1 billion for Head Start and Early Head Start programs.
  • $300 million in competitive grants to provide financial incentives for teachers and principals
       to raise student achievement and to address teacher shortages and modernize the teaching
  • $100 million for the school lunch program to assist in purchasing equipment, with priority
       for low-income schools.

Weld, Riley, Prenn & Ricci, S.C. will continue to monitor the state and federal economic stimulus plans and their effect on counties, municipalities and school districts. If you have any questions regarding this or its potential effects, please do not hesitate to contact us. In addition, if you believe you have a project which may qualify for stimulus funds, please do not hesitate to let us know if you need assistance in preparing a proposal to be submitted to Wisconsin’s Office of Recovery Reinvestment.