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STABILIZATION |
| The American Recovery and Reinvestment Act (ARRA) provides federal funding for “fiscal stabilization,” which is to assist States suffering from severe budget shortfalls to maintain adequate funding for critical government services. The ARRA includes additional funding for education and for Governors to address unique fiscal stabilization concerns not specifically contemplated by Congress. The act temporarily increases the federal medical assistance percentage (FMAP) to provide additional federal funds to finance the State administered Medicaid program and temporarily reduce state appropriations needed to continue financing these services. |
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Distribution of
Federal Funds
$518 million* |
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State Fiscal Stabilization Fund - Education
The ARRA includes additional funding to help states restore K-12 school funding to the greater of fiscal year 2008 or 2009 levels, and if applicable, to fund existing State formula increases to support elementary and secondary education for fiscal years 2010 and 2011. After funding the K-12 formula, remaining funds in this category may be used to restore state support for higher education to the greater of fiscal years 2008 or 2009 levels. Any remaining funds shall be distributed to K-12 schools on the basis of their relative shares of funding under Title I of the Elementary and Secondary Education Act of 1965. |
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Federal Medical Assistance Percentage (FMAP)
The ARRA increases the federal share of support for Nebraska's Medicaid program and for Title IV-E foster care and adoption assistance, which decreases the financial burden on the state budget allowing the state to maintain services. |
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State Fiscal Stabilization Fund - General Purpose
The ARRA provides the Governor funding to relieve fiscal burden and distress. This funding is intended to support government services, including but not limited to, public safety, K-12 and higher education modernization, renovation or repair. |
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*The dollar values displayed on this Website are primarily derived from estimates of projected Federal distributions to the States.
Actual amounts cannot be determined until all Federal appropriations are made available. |
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