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Stimulus Aid's Pace Still Slow

States Aim to Plug Holes, Application Review Shows

The flow of K-12 economic-stimulus money to states and local school districts remains slow, as governors and state legislators face the practical challenge of absorbing billions of dollars aimed at stabilizing their budgets, while satisfying the U.S. Department of Education’s requirements for that aid.

Already clear, however, is how states plan to use the federal money—once they get it.

According to an Education Week review of the 31 applications approved as of late last week for the State Fiscal Stabilization Fund —the largest piece of the education stimulus pie—nearly 90 percent of that money seems destined to backfill state cuts to education funding, with little left over. And, in general, K-12 education is winning big...