The Government Accountability Office, in a report to be released today, says the stimulus is keeping teachers off the unemployment lines, helping states make greater Medicaid payments and providing a desperately needed cushion to state budgets.

But investigators found repeated examples in which, either out of desperation or convenience, states favored short-term spending over long-term efforts such as education reform.

Also, the GAO said about half the money set aside for road and bridge repairs is being used to repave highways, rather than building new infrastructure. And state officials aren't steering the money toward counties that need jobs the most, auditors found.

President Obama pitched the stimulus as more than just a lifeline to states. Yes, it would save teaching jobs, he said, but it would also lead to lasting education reform. Old schools would be replaced, new science labs would be constructed.

"We can use a crisis and turn it into an opportunity," Obama said while promoting the stimulus in February. "Because if we use this moment to address some things that we probably should have been doing over the last 10, 15, 20 years, then when we emerge from the crisis, the economy is going to be that much stronger." *