$300 million in spending reductions

Federally provided "economic stimulus" money presumably is intended to fund needed projects that state budgets otherwise could not support.  That is the only way it will create jobs and spur economic activity.  It should not be used to fund state budget shortfalls and support ongoing state government programs and operations.

If the $1 billion in state operations to be covered by stimulus funds really is/are needed, then an increase in tax revenues is in order.  Otherwise, those operations should be trimmed back to reduce the cost of operating state government.  

The "new health bill" under discussion in Washington will include massive funding for Medicaid from the states' budgets. Are there any state legislators paying attention?