Gov. Mitch Daniels on Friday formally applied for Indiana's share of federal stimulus funds — about $407 million.
Of that amount, $207 would be for K-12 education and $200 million would go to Medicaid — the state and federal health care program for the poor, elderly and disabled.
The stimulus funds for education would offset some of the nearly $300 million in cuts Daniels announced for Indiana schools last winter. Some of those cuts resulted in teacher layoffs.
Evansville's public school district managed to retain its teachers and student programs as it reduced its budget by more than $8 million.
If Indiana's request for stimulus funds is granted, the Evansville Vanderburgh School Corp. would stand to receive about $4.4 million.
The school district would be "extremely conservative with that one-time revenue source" until it becomes clear how K-12 education will be funded in Indiana's next two-year budget, said David Smith, the EVSC's assistant superintendent for business affairs.
"We've seen that levels of education funding are extremely dependent on the economy of Indiana," Smith said.
The Warrick County School Corp. would receive about $1.7 million in stimulus funding if the state's request is granted.
Indiana plans to distribute the education dollars through the state's primary school funding formula instead of basing shares on the number of students eligible for free and reduced-price lunches.
Lauren Auld, spokeswoman for the state Department of Education, said distribution through the school funding formula would ensure consistency with how state funds are allocated to school districts.
Dennis Costerison, executive director of the Indiana Association of School Business Officials, said any new money was welcome. He noted that the state's teacher layoffs were in the hundreds.
"Anytime that we can find additional dollars that can keep folks in the classroom — teachers or aides — is extremely important," he said.
Daniels has been a critic of the federal government's stimulus spending. He said Tuesday that he still questioned whether the new package was wise, but since the money was available, Indiana would ask for it.
Democrats have denounced Daniels for criticizing the stimulus package after signing a letter in February asking Congress to extend enhanced payments to fund Medicaid.
"Whether it's governors or whether it's members of Congress who vote against and bash the stimulus but then show up at the ribbon cuttings and ask for it — we are going to make it very plain when people are talking out of both sides of their mouth," Tim Kaine, chairman of the Democratic National Committee, said Friday in a telephone interview.
Daniels spokeswoman Jane Jankowski declined to comment on Kaine's remarks.
Marcus Barlow, spokesman for the state's Family and Social Services Administration, has said that getting the Medicaid money was contingent on the state not making changes to its Medicaid program for six months starting Jan. 1.
The Associated Press contributed to this report.