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House stimulus plan looks to allocate $150 billion for educational expenses

Jillian Engel

The American Recovery Act of 2009-the $825 economic stimulus plan passed by the U.S. House of Representatives Wednesday- could provide nearly $150 billion for educational expenses, including funding for colleges and student aid.

But before universities and students exhale billion-dollar sighs of relief, they should hold their breath.

The Senate Appropriations Committee is currently revising its version of the stimulus package, which provides less money to higher education than the House's version.

According to the Senate appropriation committee's summary of the American Recovery and Reinvestment Plan, released Jan. 23, the Senate bill would provide $1.7 billion less to Pell Grants than the House. The Senate is also proposing $3.5 billion to improve energy efficient college facilities, compared to the House's $6 billion for "higher education modernization, renovation, repair." The House and the Senate plans also differed in funding for higher education scientific research.

Richard Vedder, director of the Center of College Affordability and Productivity, said the House's proposed spending on education in the stimulus package should help state colleges overcome huge deficits.

During the recession, Vedder said colleges have been forced to consolidate departments and determine where money is best spent.

"The stimulus package allows universities to delay making these types of choices," Vedder said.

However, until the Senate and the House agree on a plan, states won't receive any federal funding and universities can't plan how to disseminate funds.

Randi Thomas, Miami University's director of Institutional Relations, said Congress has yet to determine how the money from the stimulus plan will be sorted by the state and flow to universities, such as Miami.

"(Congress) has to write the bill broadly enough so we can use it for a number of things, but narrowly enough so it can't be abused," Thomas said.

The impact on Miami's infrastructure and students will be substantial if the bill is passed, even with the Senate's revisions, Thomas said.

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"If the money doesn't come, the ramifications to the university are great," Thomas said. "Higher education will be hit by that budget deficit. But (the bill is) moving and it's a good thing. I think the fact that the House passed it is good and whatever the final plan is will be good."

The final passing of the bill could help Miami use the designated infrastructure spending toward construction projects like the Bicentennial Student Center.

"We've got things that we would love the money to be available for, we just don't know how that money is going to flow yet," Thomas said.