Funds Plug Budget Holes, But Some Ask if They Were Spent Wisely

Washington, Feb. 22 – Congress enacted the American Recovery and Reinvestment Act in February 2009 as a stimulus to boost economic growth and create jobs. A year later, opinions are mixed on the success of the law. One state financial official, however, said the Recovery Act in some ways has simply kept some entities afloat and questions whether the funds could have gone to more worthwhile programs.

Maryland Comptroller Peter Franchot recently told attendees at the Association of Government Accountants’ National Leadership Conference that although the state appreciates the almost $1.2 billion in Recovery Act funding it has received through 2009, the dollars often have not been used for programs that stimulate job creation.