Friday, September 03, 2010
   
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Federal stimulus dollars have created new jobs; exact number not known

Don Heinzman Editorial -- With a billion of the $4.7 billion in federal stimulus dollars spent in Minnesota so far, new jobs are being created, but the exact number in this first phase won’t be known until later this year.

By Oct. 10, the federal government is requiring the state to send in reports on where jobs have been created or preserved with federal stimulus dollars.

While Minnesota Gov. Tim Pawlenty is cool toward the American Recovery and Reinvestment Act, his administration is moving the dollars to 15 agencies to create jobs in education, transportation, and through Medicaid and the Minnesota Department of Employment and Economic Development.

Some Republicans are critical of the stimulus dollars outlay and question how many jobs it’s creating in Minnesota.  They readily say only a fourth of those dollars have been spent.

The Federal Highway Administration estimates that the Greater Minnesota state and local projects will create approximately 5,000 Jobs.  One measure is that $1 million will create 27 jobs.

Recently, Minnesota Commisioner of Finance, Tom Hanson announced that the state has spent $1 billion in American Recovery and Reinvestment Act money. In addition $440 million in contracts and grants have been awarded.

Fifteen state agencies are spending the stimulus funds, with the most in Medicaid and transportation services.

The Minnesota Department of Transportation has completed 24 construction projects with stimulus funds and has another 100 under way.  Some of these projects are resurfacing a highway, new alignment for four-lane roadway in Waite  Park, replacing a three-span bridge in Aitkin County and building a new interchange and eliminating an at-grade railroad crossing near Mankato.

The department and the Metropolitan Council have funds available for metro-area road and bridge project for $168 million -- $70.6 million for metro area transit projects and purchasing of buses, $212,000 for public housing facility improvements and funding for five wastewater projects.

One agency is ahead of the others in commitments to spend $287 million of the $311 million it’s received under the Stimulus funding act.

The Minnesota Department of Employment and Economic Development (DEED) is using  $94.8 million to help build  40 wastewater, sanitary sewer projects.

Not all of that funding, however, is directly related to job creation.

DEED is spending $130,000 for unemployment insurance and benefits.  It also is using the money to give a $25 supplemental payment to all unemployment insurance recipients.

In addition, the stimulus funds are paying for all of the state extended benefits, typically paid half by the state and half by the federal government.

A total of $5.1 million will be used for public roads and bridges, multi-family housing and rehab projects in 15 communities.

Some of the other expenditures are: $20.6 million for the Dislocated Worker Program; $16.1 for Youth employment (6,500 youth found employment this past summer)$6.9 million to hire 200 to help staff Work ForceCenters; $6.3 million to help people get jobs and  $4.2 million for services to people with disabilities

While many of these are worthy programs, the real answer to the success of the stimulus funding will come next year when new and preserved jobs are accounted for accurately.  – DON HEINZMAN

 

 

 

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