In states, stimulus aid favors social programs

The reality of how the vast majority of the stimulus money will be spent is quite different, and that raises questions about how much help the recovery legislation achieved by President Obama will be to the economy in the long run.

Most of the roughly $300 billion going directly to the states is being funneled through existing government programs for healthcare, education, unemployment benefits, food stamps, and other social services.

"We all talked about 'shovel-ready' since September and assumed it was a whole lot of paving and building when, in fact, that's not the case," said Chris Whatley, Washington director of the Council of State Governments, a trade group for state governments. He estimates that states will get three times more money for education than for transportation.

Two-thirds of recovery money that flows directly to states will go toward healthcare.

By comparison, about 15 percent of the money is for transportation, including airports, highways, and rail projects, according to Federal Funds Information for States, a service of the National Governors Association and the National Conference of State Legislatures.

Overall, two-thirds of the stimulus program will go toward tax cuts, relief for state budgets, and direct payments to the unemployed and others hurt by the recession, part of the administration's desire to provide immediate fiscal relief. Much smaller pieces of the pie will be allocated for weatherization, affordable housing, and other projects designed to create jobs.

John Husing, a Southern California economist, said keeping teachers and police officers employed should help prevent the recession from getting worse. But he said the stimulus package would have improved communities' ability to grow over the long haul if it had dedicated more money to public works.