The federal stimulus funds the state is preparing to receive in hopes of alleviating the more than $5 billion deficit may actually do more harm than good, according to some Republican lawmakers.

Gov. Jim Doyle said last week in his annual State of the State address, many of the state’s programs will likely be dependent on the expected billions the state is slated to receive in the coming months from the federal government as part of a nationwide stimulus package currently making its way through the U.S. Congress.

The package passed the House of Representatives last week, despite the fact that no Republican voted for the measure, and the Senate is expected to vote on the bill later this week. The bill approved $146 billion to help with economic recovery throughout the nation.

There have been various numbers circulating regarding the amount of money the state may receive. Current estimates vary from $2 billion to $9 billion.

Once the state receives the funds, they will travel through the newly created Wisconsin Office of Recovery and Reinvestment that is charged with ensuring the funds reach the areas of the state that are most in need.

According to Jim Bender, spokesperson for Assembly Minority Leader Jeff Fitzgerald, R-Horicon, transparency in the spending is the most important part of the process.

“All the potential use of tax payers’ money must be closely monitored,” Bender said. “Paying off the state budget deficit is not the point.”

Bender added creating more jobs in the private sector is the key to ensure the state’s economic recovery. To secure long-term economic benefits as a result of the stimulus funds, Bender said the state should free up capital in both the banking and private sectors.

Rep. Tamara Grigsby, D-Milwaukee, however, spoke optimistically about the federal recovery funds, saying their ability to immediately generate more jobs while positively affect Wisconsin residents and families.

“There are a lot of different aspects of the stimulus fund, but it will foremost stimulate the economy by helping to create jobs,” Grigsby said.

Grigsby added the federal funds may reduce the budget shortfall if the money is handled correctly, and will help the state government avoid raising taxes and cutting valuable programs.

“There will still be pains and sacrifices, but it will place us in a much better position,” Grigsby said.

University of Wisconsin economist Andrew Reschovsky said the use of federal stimulus funds in a recession is very appropriate.

“It’s called counter-cyclical funding. To argue that more harm [would be done] doesn’t seem to make any sense,” Reschovsky said.

However, he pointed out Wisconsin needs a structural reform of the tax system in face of massive spending cuts.

“Over 2000-2006, taxes have declined in the state relative to personal income. That suggests to me that we need to think about ways to increase the revenues to make our tax system more sufficient,” Reschovsky said. “The underlying problem is a structural deficit. The question is whether we solve our structural imbalance.”