The recently enacted federal stimulus package has significant potential for California, with billions in funding projected to be potentially made available for education, infrastructure, energy, and public safety works. ARRA is intended not only to jumpstart the economy but also to provide support to individuals who have lost jobs and health coverage and fiscal relief to state governments.

"This package will pump up our economy by putting more money into the hands of hard-working families through tax relief," said Governor Schwarzenegger in a statement following House passage of the stimulus bill. "In addition, by raising limits on federal loan programs we can stimulate California's slumping housing market by giving more Californians the opportunity for homeownership and helping homeowners refinance into these secure loans to avoid foreclosure."

California, which is struggling to overcome a projected budget deficit of over $24 billion, is looking closely at opportunities within the stimulus package, which, by one estimate, could have an impact of over 396,000 jobs in California.

Education

Education is a particular focus of ARRA, with over $100 billion in funding being made available nationwide and a potential of $8 billion for California programs.

"In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity - it is a pre-requisite," said President Obama upon signing the bill in February. "The countries that out-teach us today will out-compete us tomorrow."

ARRA funding guidelines support the implementation of data systems following the principles of the America COMPETES Act, which was intended to provide a significant boost to education, science and technology spending. COMPETES was responding to the concerns raised by the National Academies in the 2005 report, Rising Above the Gathering Storm. However, despite strong bipartisan support, funding for the COMPETES Act was not appropriated in the final FY 2008 budget.

About $4.8 billion of the education funding comes in the form of the Fiscal Stabilization Fund, allocated to states by formula based on population and - intended to restore gaps in state support for K-12, public higher education (IHE) and as applicable early childhood education.

Energy

ARRA appropriates a total of $42 billion nationally for energy programs, which includes $11.3 billion in formula-based funding (efficiency programs, renewables, and green community plans) and $30.7 billion in competitive and direct grant, loan and loan guarantee funds (transportation, power transmission, renewables, and research).

Overall, ARRA is designed to fund the expansion of existing energy efficiency programs, support and expand renewable energy projects and deployment activities, and increase cooperation and joint activities between states.

The California Energy Commission is projected to receive $226 million under the State Energy Program, with California local governments receiving hundreds of millions under the Energy Efficiency and Conservation Block Grant Program; the CEC is expected to receive $56 million from this program, as well as $30 million from the Energy Star rebate program. The Community Services and Development Department is expected to receive $185 million under the Low Income Home Weatherization program.

Healthcare

ARRA health care provisions include addressing immediate health services needs, providing health care coverage assistance to individuals, and increasing the quality of health care and its long-term economic efficiency through investments in health-related science and technology.

Programs specifically impacted are projected to include:

• Medi-Cal - State spending for California's Medicaid program, which provides healthcare coverage to over 6.7 million low-income individuals, is currently matched at 50% by the federal government. Under ARRA, this rate is expected to increase to over 61%, resulting in an additional $10 - $11 billion for California.
  
  
• COBRA Health Insurance Coverage subsidies - ARRA will provide a 65% premium subsidy.
  
  
• Community Health Center Grant Opportunities - over $2 billion are provided by ARRA, of which $500 million has already been disbursed nationwide.
  
  
• Public Health Services - programs including immunization, clinical and community prevention and wellness, etc. Over $1 billion is allocated through ARRA under the rubric of a Prevention and Wellness Fund. Specific funding impact on California is still indeterminate.