Since Democrats in the U.S. House of Representatives released a draft of the economic stimulus package last week, there has been increasing speculation regarding its potential effect on Wisconsin and higher education.
The American Recovery and Reinvestment Bill of 2009 is an attempt to keep the recession from turning into a depression,"" said Ellis Brachman, spokesperson for U.S. Rep. David Obey, D-Wis. Obey is the chairman of the House Appropriations Committee, which released the stimulus proposal.
State Budget Director Dave Schmiedicke estimated Tuesday that Wisconsin could receive about $2.5 billion of the stimulus money.
The House's bill would include total spending of $825 billion.
""We will see some changes [to the bill], but it will probably stay mostly the same,"" Brachman said.
In the draft, $79 billion is included in the package as state fiscal relief to prevent ""cutbacks to key services,"" $39 billion of which will go to school districts and public colleges and universities.
In addition, the package includes $15.6 billion to increase the maximum Pell Grant, a form of need-based financial aid, by $500 and includes $6 billion to improve infrastructure at universities.
Any specifics attached to the bill by the federal government will alter exactly how the package will affect the UW System.
UW System spokesperson David Giroux said it is too soon to speculate exactly how much money the system will receive, but added, ""The most important news for students is people are talking seriously about financial aid.""
Although there is no denying the stimulus will help fill in the projected $5.4 billion state budget deficit for the 2009-'11 biennium, the bill is not in its final form, and the question of exactly how much money Wisconsin will receive remains open.
""I think the most important part of the package is the level of money being spread across the states,"" said state Rep. Mark Pocan, D-Madison, co-chair of the Joint Committee on Finance.
Jim Bender, spokesperson for state Rep. Jeff Fitzgerald, R-Horicon, said a problem with the bill is it is simply postponing the budget problem.
""The downside is that it's a one time influx of cash,"" Bender said. ""If we don't adjust spending, we will be creating a hole in the next budget.
