Millions in Education Stimulus Still Available

An education advocacy group charges that state lawmakers failed to use all of the federal stimulus money available for education.

The Southern Education Foundation says that the state legislature did not allocate $178 million available federal dollars for education.

Money the group says is desperately needed as schools and universities struggle through the recession.

“The money should be used to reduce the school funding cutbacks in 2009 and 2010 budget,” says Steve Suitts, vice president of the SEF.

But the governor’s office says the $178 million is not lost.

Chris Schrimpf, a spokesman for Governor Sonny Perdue, says the money will be spent, but just not now.

“I hope that groups that are focused on education do their homework first,” says Schrimpf.

“The money that they say is being left on the table is going to be applied to 2011,” he says.

That, however, argues the SEF, might be against the law.

The group has written a letter to U.S. Secretary of Education Arne Duncan, asking him for an investigation into whether the state is required to spend the $178 million stimulus dollars now.

Perdue: FY 09 Budget Focuses on 'Core Services'

Governor Sonny Perdue's signing of an $18.9 billion budget that includes property tax break funding already promised to Georgia homeowners, slashes about two billion dollars in state spending to close a huge budget hole.

"This is a budget that focuses on the core services of government," Governor Perdue said in a statement released from the Governor's Office Friday.

"We have made effective use of federal stimulus dollars and the state’s rainy day fund, which we worked so hard to build up, to lessen the impact of this economic downturn and plan for next year’s budget. Through sound management by our agency leaders and wise decisions by lawmakers, Georgia will endure a challenging economy and emerge ready to prosper."

The budget contains $625 million in federal stimulus dollars for Medicaid and education. That federal cash helped the state fund some $428 million in homeowner tax relief grants, which translates into about $200 to $300 per household. That money was already included in property tax bills. But the relief could disappear next year because a new law will link future grants to the state's economy.

The budget covers the fiscal year that ends June 30th.

Click here for more details on the budget: www.legis.ga.gov

(AP)

Georgia Labor Commissioner Urges Governor to Accept All Stimulus Funds

State Labor Commissioner Michael Thurmond is urging Governor Sonny Perdue to accept about $220 million dollars in federal stimulus funds for the state's unemployment trust fund.

Governor Perdue has signaled that he might turn down some of the money.

Thurmond said today at the state capitol Georgia's unemployment trust fund is fine - for now.

But as unemployment in Georgia rises, Thurmond is worried that it might not last.

"If this economy continues to deteriorate, I am concerned about the future solvency of our trust fund in 2009 and I'm committed to and I believe we need the $220 million dollars..."

Governor Perdue says if the state accepts the money, Georgia will be forced to expand its unemployment benefits long term.

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