State officials began to draw battles lines yesterday over how to spend Rhode Island’s share of a $790-billion federal economic repair bill that, according to the White House, will eventually put 12,000 Rhode Islanders to work and bring the state new spending and tax breaks worth a total of $825 million.

Much of the package is designated for things such as increased unemployment benefits, food stamps, highway construction and special education. But a huge chunk will be turned over to state and local leaders to use largely as they wish.

Roughly $425 million will go to Rhode Island Medicaid programs over the 27-month life of the emergency bill, which will free up hundreds of millions of dollars for other causes. And the state could get another $400 million over two years for local school districts, with few restrictions on how it is spent.

“We are putting more money into the hands of families and also relieving pressure on state and local budgets,” said Sen. Jack Reed, a member of the Senate Appropriations Committee, whose office estimated some of Rhode Island’s share of the spending bill.

Even though the package hasn’t yet cleared Congress or been signed by President Obama, whispers have already begun to fill State House hallways about who will control Rhode Island’s share and where it will go.

Governor Carcieri has suggested using the stimulus to cut taxes. Assembly leaders have yet to outline a plan, but acknowledged yesterday tremendous pressure to restore proposed cuts to municipalities, hospitals and nursing homes.

“I think there’s an acceptance that there’s a possibility that some of the money could go to restoration,” House Finance Committee Chairman Steven M. Costantino said, adding that he would proceed cautiously. “At the end of the day we want to stimulate jobs, but we don’t want to enhance the state’s structural deficit problem.”

And while the stimulus was the topic of conversation on Smith Hill yesterday, officials were frustrated by the lack of detail coming out of Washington, a day after Congressional leaders announced there was agreement on a final package.

It’s unclear exactly how much Rhode Island will receive and how soon it can be used.

“To me, that’s the $100-million question,” said Dan Beardsley, executive director of the League of Cities and Towns.

Municipalities are among the hardest hit in Carcieri’s budget-repair plan being debated by the Assembly. Cities and towns face a potential loss of $74 million in state aid over the next five months.

“If either the governor’s office or the legislature is going to use stimulus money to help balance the budget … that may have a profound impact on the proposed cuts to aid,” Beardsley said. “The deficit situation is growing by leaps and bounds.”But it’s unclear who will make those decisions.

The makings of a constitutional showdown emerged yesterday as both the governor’s office and the legislature said it had legal responsibility over the money.

Carcieri signed an executive order this week establishing an Office of Economic Recovery and Reinvestment to manage the stimulus funds. The governor’s deputy chief of staff, Beverly Najarian, is already leading a team of three devoted to the subject.

“I don’t want people just deciding in an office, without public scrutiny, that’s there’s going to be allocations of money to x, y and z and then you get some report after,” House Majority Leader Gordon D. Fox said. “You need to present to the legislature and you need to have it appropriated … . With checks and balances in government, the legislature is the appropriating authority, not the executive.”

Carcieri spokeswoman Amy Kempe didn’t agree.

“Our initial understanding is that the governor must accept responsibility and certify that it is an appropriate use of taxpayer dollars,” she said, noting that it was unclear if the authority covered infrastructure projects or all federal funds coming to the state. “We are still looking at the language.”

Meanwhile, among the highlights of the federal package:

•Rhode Island could get about $400 million over two years as its share of a $53.6-billion “State Fiscal Stabilization Fund.” Most of that money must go to local school districts. According to a congressional summary, the money “can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes.”

•Rhode Island school districts appear to be slated for a total approaching $100 million in new funds for special education students with learning disabilities and impoverished schools and their students.

•A provision that will prevent millions of Americans — and an estimated 100,000 Rhode Islanders — from falling under the alternative minimum tax. The levy originally meant to cover wealthy people who would otherwise pay little or no tax has gradually crept deeper into the ranks of taxpayers who consider themselves middle class.

jmulligan@belo-dc.com