A 'Vital Investment' "Increased public outlays for education should be viewed as a necessary and vital investment," the report said.

According to the Dentsu Institute, total public outlay for the arts each year is $2.6 billion, of which $2.25 billion is spent by local governments.

"This project was conceived as a means of accomplishing a major public purpose at the same time as not having the city and public liable for a tremendous cash outlay up front," Mr. Weisbrod said.

Across many parts of the U.S. and the industrialized Western nations, steep declines in public outlays occur in housing, schools, social welfare, education, job training, job creation, child care, recreation, and open space.

He said public outlays last year were the lowest in the last 10 years, but that the fiscal deficit remained at 2 percent.

Residential, nonresidential and public outlays all posted sharp gains.

This public outlay has grown to $5.3 billion annually from just over $2 billion in 1998.

And in a reversal of recent trends, they said, private spending will grow faster than public outlays.

"That money should be going to schools and roads and other public outlays that would make states truly more competitive."

Though the Government has repeatedly tried to lift the Tokyo stock market, both by talking it up with hints at spending and propping it up with some actual public outlays, investors dumped stocks today.