Mass to recieve much less in federal stimulus money for 2012 fiscal year

Massachusetts has received more than $7 billion in federal stimulus
money over the past two years, state officials said Tuesday. However
the money, which has been used to help balance state and municipal
budgets and create thousands of temporary jobs, is running out.

While the stimulus money helped to revive the state after the
recession, budgets for the 2012 fiscal year will need to be balanced
without extra help from Washington, according to the Associated Press.

The stimulus provided the state with money that prevented
“catastrophic cuts” in state benefits, said Michael Widmer, president
of the Massachusetts Taxpayers Foundation.

“The stimulus dollars were very helpful in avoiding deeper cuts over
the last three fiscal years, but now the state has to pay the price,”
Widmer said in a statement.

The state must find a way to balance the budget without additional
money fast, as 88 percent of the $7.1 billion has already been set
aside.

The money supported highway restoration and weather-proofing of
thousands of homes, among other things. However, the bulk of the
stimulus was used to for Medicaid and education, according to the AP.

Massachusetts received Medicaid reimbursements of $3 billion more than
the usual federal allotment as Medicaid spending continued to grow.

Medicaid enrollment is expected to increase 5 percent, with benefits
rising to $800 million in the next fiscal year, said Widmer. However,

Gov. Deval Patrick’s fiscal year budget for 2012 proposes to bring
Medicaid costs down to $100 million.

The state contributed an additional $2 billion in stimulus money
toward education.

The majority of the money has been used to prevent teacher layoffs and
special education cuts in areas outside of Boston.

Worcester, Springfield, Brockton, Lowell, Lynn and New Bedford have
spent more than $10 million in stimulus funds towards elementary and
secondary education.

“The federal stimulus program did its job,” said Natick Representative
David Linsky, chairman of the Post Audit committee, in the Boston
Herald. “It plugged a hole, but more importantly, it stimulated the
economy.”

Many cities that received large amounts of stimulus money towards
education will face challenges as the money is used up, Linsky said.
To curb the prospective challenges, legislators are looking to pass
bills providing relief from health care and pension costs for local
cities.

Massachusetts also received non-federal grants totaling $1 billion
from the National Institutes of Health and $45 million toward
improvement of high-speed internet access in rural areas.