The American Recovery and Reinvestment Act of 2009: A Review of Stimulus Spending in New York and New Jersey

11 Pages Posted: 18 Sep 2012

See all articles by James Orr

James Orr

Federal Reserve Bank of New York

John Sporn

Federal Reserve Bank of New York

Date Written: 2012

Abstract

The ARRA stimulus package was designed to spur economic and employment growth in response to a deepening U.S. recession and the weakened fiscal conditions of many state governments. An analysis of the local allocation of ARRA funds shows that the $35 billion of stimulus spending in New York was relatively concentrated in expanded funding for Medicaid, while a large share of the $12 billion allocated to New Jersey went to extending unemployment insurance benefits. While ARRA funding supplemented tax revenues in both states in fiscal years 2010 and 2011, the program's spending components are winding down, and New York and New Jersey can no longer rely on these federal transfers when preparing their budgets.

Keywords: economic stimulus package, fiscal policy, New York, New Jersey

JEL Classification: R10, R50, E62

Suggested Citation

Orr, James and Sporn, John, The American Recovery and Reinvestment Act of 2009: A Review of Stimulus Spending in New York and New Jersey (2012). Current Issues in Economics and Finance, Vol. 18, No. 6. Available at SSRN: https://ssrn.com/abstract=2148459 or http://dx.doi.org/10.2139/ssrn.2148459

James Orr (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

John Sporn

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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