Recovery Watch Maryland: Loss of Federal Funds Throws State Budget, Education and Public Safety Off a 'Cliff'

Estimated 2500 Jobs at Risk in Schools, State and Local Governments

BALTIMORE, July 22 /PRNewswire-USNewswire/ -- Recovery Watch Maryland is releasing its July Monthly Monitor this week concerning the detrimental impact of the cutoff of federal recovery aid provided under the 2009 American Recovery and Reinvestment Act. The report includes data and charts and graphs as well as real live Marylanders who have been helped by the Recovery Act and who would be personally affected if it suddenly disappears.

The full report is available at www.recoverywatchmaryland.org.

State and local budgets in Maryland will be hit hard if Congress fails to extend a temporary increase in Federal aid that reduces the burden on states of funding Medicaid.  This additional support is scheduled to expire at the end of this calendar year.  An analysis prepared by the Center on Budget and Policy Priorities has concluded that Maryland would receive $273 million from a 6-month extension of the program.  

Further on down the road, State Fiscal Stabilization Funds authorized by the Recovery Act, which have played a major role in helping states to plug their gaping budget shortfalls, are scheduled to expire on September 30, 2011.  Unless Congress extends this assistance, states would be forced to cut other spending designed to counteract the effects of the recession in FY 2012 in order to make up the resulting shortfall.  For Maryland, the direct impact could approximate 2500 jobs in schools and state and local governments.

Real People Impacted: Deric Richardson

Programs funded by the Recovery Act have helped real people cope with the damaged economy. Deric Richardson of Baltimore was working as a fast food manager, and wanted to move on to a completely different, better career opportunity. He went to a Baltimore career center looking for training, and applied to three programs. He started training in a 9-week course this March, funded with Recovery Act dollars. The program helped him with job placement, and he was contacted for a hiring interview while still finishing his internship.  He was hired by a technology firm and has been on the job two weeks, and seems excited about the new direction.

Real People Impacted: Caleche Arrington

Caleche had been working as an equipment operator, but the business she worked for shut down and she was laid off. She went to the Mayor's Office of Employment Development in Baltimore, where she was told about training opportunities funded with Recovery Act resources.  She was accepted into a program, but had a long way to go in getting up to speed with the bio-technology industry and with rusty math skills.  She completed 12 weeks of Monday-Saturday basic skills prep, followed by 9 weeks of a full-time Laboratory Associates program, while also balancing a family of 4 kids.  Caleche went straight into the field and has been on the job for about a month.  She says the program gave her confidence, and she is now considering college at some point in the future.

(Journalists should contact Recovery Watch Maryland to arrange interviews with Deric or Caleche.)

Recovery Watch Maryland is a coalition of advocacy and research groups dedicated to promoting the effective, equitable and transparent use of funds from the American Recovery and Reinvestment Act. The members of Recovery Watch Maryland are Casa de Maryland, Job Opportunities Task Force, Maryland Budget and Tax Policy Institute, Progressive Maryland Education Fund, and the Safe and Sound Campaign. More information is available at www.recoverywatchmaryland.org.

SOURCE Recovery Watch Maryland