Topeka ? State officials Thursday said the federal stimulus package has improved Kansas’ dire budget situation.

“We know that certain things will help the budget,” said Gov. Kathleen Sebelius’ budget director Duane Goossen.

Goossen said state officials are trying to assess as soon as possible the full effect of the $787 billion economic recovery bill signed into law by President Obama.

In several areas, the bill will have an almost immediate positive impact, officials said.

Kansas Health Policy Authority Executive Director Marcia Nielsen said the Kansas Medicaid program, which provides health care for low-income residents, will receive $440 million over three years under the stimulus package.

Nielsen issued a statement urging lawmakers to delay proposed state budget cuts because those stimulus funds are on the way.

Because of dropping state tax revenues, Sebelius and lawmakers have been working on reducing the budget all year. Earlier this week, Sebelius signed into law a deficit reduction package worth $300 million in the current fiscal year.

For the next fiscal year, which starts July 1, state Senate budget leaders have directed agencies to prepare for further budget cuts in the 10 percent to 18 percent range.

But Nielsen said such a reduction would “have a deleterious and long-standing consequence of reducing access for Medicaid enrollees because providers will either cease to participate in the Medicaid program or will greatly reduce the number of Medicaid clients they see.”

And, she said, in light of the stimulus package, the cut is unnecessary.

There are other areas of state government that will benefit from the stimulus plan.

The Kansas Department of Transportation will announce today approximately $350 million in road and bridge projects financed with federal stimulus dollars.

In addition, some federal funds will go toward public schools, but officials haven’t determined an exact amount yet.

Goossen, however, cautioned of relying too heavily on the federal funds.

“It spends over a couple of fiscal years, but it will eventually go away. We have to be careful,” he said.