AT $26.5 BILLION, California sits at the top of the heap among the first wave of state allocations for the American Recovery and Reinvestment Act (ARRA) funds.

In a state wrestling with a ballooning budget deficit dependent on a series of unpopular ballot propositions in the May 19 special election, the federal stimulus money is being eyed with great interest.

Gov. Arnold Schwarzenegger wasted no time in being one of the first governors to ask for education dollars. Early last week he applied for nearly $1.2 billion in funding for schools with large numbers of poor and disabled students as well as for improvements in lunch program facilities. On Thursday, he applied for $5 billion more which would come with more flexibility. All told, the state is expected to receive $85 billion in federal money over the next two years.

"We've taken steps to protect our schools from the full brunt of our economic situation, and this funding will restore many of the difficult cuts that had to be made to education," the governor said. "I'm committed to passing it directly onto schools as quickly as possible."

This is in contrast to Alaska Gov. Sarah Palin, who recently irritated school officials in her state by declining to accept some stimulus money because she was afraid it would permanently swell the budget.

Locally, Ventura Unified School District Superintendent Trudy Arriaga said she remains hopeful the federal money could help offset a few of the $10 million in cuts the district will need to make in the next two years. "We did not balance our budget on it, but we are absolutely counting on it," she said.

OUR CITIES ARE jockeying for a piece of the pie as well. Last month Ventura Mayor Christy Weir and Council member Neal Andrews joined hundreds of city leaders nationwide in lobbying for funds for key projects during the National League of Cities Congressional City Conference. Our city has secured $4.6 million in ARRA funding and is applying for $30 million more in competitive grants.

"We met with Senators Boxer and Feinstein and Congresswoman Capps and Congressman Gallegly," Weir said. "They or their staff were all willing to listen and take the materials we brought. No promises were made, but they responded positively to the importance of our Surfers' Point renovation project, which was the priority for funding that we brought to their attention."

Money may also be available for the Museum of Ventura County, Weir said. The city also plans on submitting the $10 million U.S. 101/Victoria Ave. northbound offramp project for funding when application details are provided.

Most of the ARRA funding available to cities, Weir said, will be in the areas of public safety (COPS grants could prevent cuts to our police force), transportation (street paving and traffic signals) and energy (weatherization programs, renewable energy systems, etc). Money is also available to buy foreclosed properties to use for affordable housing. "The city will use our money to buy houses and turn them over to the Housing Authority for low-income rentals," Weir said.

Ventura also hopes to receive federal money available through the National Endowment for the Arts to maintain a key position in the Cultural Affairs staff and shore up our arts grants program, which will be cut nearly in half. A grant is also being sought for homeless prevention issues.

Other California cities have also been intent on using these funds in creative ways. Six cities up north are pooling their funds. Still others, like Westlake Village and Agoura Hills, sought to swap funds with other cities until they were told the deals were improper.

This one-time money will not keep any local budgets from bleeding red ink. But a band-aid feels sure good right now.