Budget Stabilization
Description: The economic recovery bill creates a State Fiscal Stabilization Fund to help state and local governments avert budget cuts amid the growing state fiscal crisis. The Stabilization Fund provides two block grants for states — a $39.5-billion grant earmarked for education and an $8.8-billion grant to help fund other key services. Together, these provisions provide about $48.3 billion in fiscal relief for state and local governments. The Stabilization Fund also includes about $5 billion for incentive grants and other purposes, for a total of $53.6 billion.
The $48 billion in block grants is allocated among states through a combination of two population measures. Sixty-one percent of the funds are allocated by each state’s population aged 5 to 24. The remaining 39 percent of funds are allocated based on total state population. Out of each state’s allocation based on these measures, 81.8 percent is reserved for the education block grant, and 18.2 percent is considered the “flexible” grant.
States can use the $8.8 billion in flexible block grants to avert budget cuts in education or in other basic state services, such as public safety and law enforcement, services for the elderly and people with disabilities, or child care. These funds can also be used for school modernization, renovation, or repair. The funds are available to states immediately, and must be spent within 2 years of receipt of the grant.
Oklahoma Estimated Funding
Description: It is currently estimated Oklahoma will receive $472.8 million dollars in the Education Block Grant and another $105.2 million in the Flexible Block Grant.
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