If the stimulus works it will provide extra income via added state taxes that would increase state revenue and then the programs could be paid for on their own.
and this is where the divergence occurs in the current economic models.... one projects low consumer confidence and the other projects high consumer confidence.
this is theory that Obama is betting history and his presidency on, is that he spends now,and in targetted ways, that promote growth in the overlying areas that cause the micro ones to heal instead of fail..
For example... He is willing to spend large amounts of money on these state projects because they directly inject money into the local economies, and they have a dividend of recollecting money through income taxes. SO they can appear to be more generous than they may actually being

....... consumer confidence rises on this.
the teachers are going to need books and the students are going to need paper and new clothes, and school supplies. one of the biggest buying retail seasons is back to school. all sales steps up and the retail sector surges which is an indicator in consumer confidence levels.
This is all wrapped up in drawing a line as to where he as president thinks america needs to be to maintain our quality of life. This is also HUGE to consumer confidence. Americans expect certain things out of habit, and when they disappear it makes people scared about money, and then they tend to start hoarding cash.
step in republicans and yell about how bad the economy is and people should be afraid that granny is going to loose her foodstamps. She then goes and hides the extra cash under the mattress. So she is hoarding money out of fear when she may make her personal situation better if she had just gone and bought something new for her house.
these small actions they are taking are like a biker sitting on his bike trying to kick start the engine.
If consumer confidence is low, then the economy can't recover and no amount of cash makes people feel safer.
The national dialogue is stuck and the media focus is on tea party activists, Sarah Palin, oil spills, 14th amendment repeal, legalization of gay marriage, The birth certificate of the president, the socialists are in power, the Black predident uses his AG to abuse white voters... the list is endless and reading the last two pages shows what the national mood and dialogue is... HEATED.
as long as that is happening consumer confidence is never going to raise, so Obama keeps enticing republicans with ellements within bills that barely pass, and he is gambling that he will excite his opponents constituents into feeling more financially confident. The republicans have NOTHING to gain from this happening so close to an ellection. low consumer confidence will win them extra seats in the house of reps.
Stimulus spending only works in concert with a positive consumer confidence and although we have the spending, we don't have the consumer confidence index rising... BAD NEWS for the president and the democrats.
so we have that diverging path.... who will dominate the national dialogue and affect the consumer confidence index in a way that will benefit their cause, the election, and the nation?