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NEWS

Stimulus slow to show gains

Sunday, February 21, 2010
(Updated Monday, February 22 - 5:27 am)

GREENSBORO — Gene Brown extended a job offer on Thursday to someone he hopes will be a member of Housing Greensboro’s tiny full-time staff.

This person would oversee the nonprofit’s newest program — making minor repairs to the homes of the elderly or infirm.

It was a job Brown might not have been able to create if not for federal stimulus funding and other donations.

It’s a small — but concrete — example of a new job created with the help of the $700 billion-plus federal American Recovery and Reinvestment Act, signed by President Barack Obama a year ago last week.

Where’s all that federal cash gone? And, perhaps more important, has it reached the wallets of Guilford County’s 27,000 unemployed?

Signs of the stimulus package’s effectiveness, or lack thereof, in Greensboro have been difficult to decipher.

In many cases, local projects haven’t gotten off the ground. The economy likely will get a boost. It’s just taking longer than federal leaders predicted.

“It’s starting to, but the big stuff for us, and I guess for a lot of folks, is still coming,” said Dan Curry, acting director of Greensboro Housing and Community Development.

“But,” he said, “we don’t have hardly any of the money in hand yet.”

The stimulus act has funded a range of programs, such as new trains and extended unemployment benefits. All were meant to boost the slumping economy and get Americans back to work.

The Obama administration says the recovery act has created or saved about 2 million jobs in the past year. But that figure might not be accurate, according to the Congressional Budget Office.

As of the end of September, projects funded under the stimulus bill had created or saved 640,000 jobs, the budget office said.

Up-to-date numbers are not yet available. But more folks are out of work locally and nationally every month.

In Greensboro, the city has drawn in about $23 million under the stimulus bill.

How many jobs has that created or saved? A grand total of 6.9, according to city accounting. Why so little to show for so much money?

For one, tracking jobs created is complicated. Federal tracking requirements require the city to calculate how many “full-time equivalent” jobs were created. For instance, the city staff says that 22 people put to work part-time preparing a construction site last July is the full-time equivalent of 2.34 jobs created or saved.

“You count pieces of jobs and you put them together,” Curry said. “Whatever that ends up being, that is what you report.”

Then there is the more obvious issue: Money from the federal government isn’t that easy to spend quickly.

Some of the projects thought to have the quickest and most direct job impact were in construction. Yet the Greensboro construction projects — accounting for $12 million in stimulus money — have not gotten off the ground yet, as the city works to comply with all the act’s requirements.

The City Council recently signed off on some of the funds to be paid to the Raleigh-based J.M. Thompson Company to build the new Greensboro Transit Authority maintenance facility.

That might save or create some local jobs among the subcontractors whom they plan to hire for tasks such as the plumbing and electrical work.

“Anytime you can start a construction project in the middle of a recession, it stimulates the economy,” City Councilman Robbie Perkins said.

But J.M. Thompson won’t hire anybody until the paperwork goes through, and the money starts flowing.

Other projects also are in the pipeline, including a variety of community renovation projects, but they won’t count as new jobs until they start.

The stimulus act has helped in other ways.

“If you think about what we’ve actually spent versus received, the real spending has been through the Workforce Development grants,” Assistant City Manager Denise Turner said.

Hundreds of local young people were put to work through a stimulus-funded Workforce Development Board program over the summer. The board also hired full-time, seasonal workers to run those programs and others.

And there was that bright spot in the job arena over at Housing Greensboro.

The burgeoning nonprofit has received more than $100,000 in stimulus funds to put toward renovations on local homes.

Although much of the work will be done by volunteers, the increased workload means director Brown will need a new person to fill out his staff of four full-time, one part-time and two Americorps staff members.

“It’s almost like it’s providing dual benefits,” Brown said. “It’s creating a job and in our case ... we’re serving those in the community with these home repairs.”

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

Accompanying Photos

Nelson Kepley

Photo Caption: The Greensboro skyline.

Comments

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Jeremiah

February 21, 2010 - 8:50 am EST

Whether federally or locally funded, city council is sitting on numerous construction projects right now that need to start as soon as possible. Putting people to work NOW and building attractions that will draw more people to Greensboro should be the priorities.

tonymo

February 21, 2010 - 9:05 am EST

You're looking in the wronmg place for that stimulus money. You should begin in the non-existent congressional districts, and Zip Codes! Also, look into the bank accounts of the unions. Also look into the districts that supported the community organizer that reveived nearly twice as much as the districts that supported McCain regardless of the economic need.

dcolin

February 21, 2010 - 12:33 pm EST

"districts that supported the community organizer that reveived nearly twice as much as the districts that supported McCain "

Thats usually the way politics works.

So.

tonymo

February 21, 2010 - 12:52 pm EST

I'm sorry. I thought the INEPT community organizer was going to "change the way things are done in Washington!" That was simply another of the myriad of lies we heard from the "new kind of politician!" Besides, I thought the Patronage (stimulus) package wa supposed to create jobs for everyone, not just one group of voters! Guess I was wrong again. But of course, dcolin, you and those like you will support him to the end! Then of course, you'll say "that's politics."

dcolin

February 21, 2010 - 1:32 pm EST

"I'm sorry. I thought "

That will get us in trouble every time.

Sawdust

February 21, 2010 - 2:44 pm EST

Especially if you think that B-plus is anything but another crooked politician.

rightwingnemesis

February 21, 2010 - 5:08 pm EST

Mr. tonymo,
I'll bet your family runs as far away from you as possible at Christmas gatherings. Your glass is always half empty and your world view consists of thinking anyone who agrees with President Obama is a Bolshevik.
Guess you did not hear the Governor of California calling out Mr. Romney for his blatant hypocrisy? And if anyone thinks the conservative movement has any credibility, why did they let the John Birch Society co-sponsor their Winter meeting? Where is the William F. Buckley of today to run the fear mongers out? It certainly is not you Mr. Tonymo. You have no sense of history in your own party.
As to the effect of the stimulus, we will not know for quite some time. It is much like the fact that Economists declare the recession over months after it actually occurs. Mr. Tonymo, like your friends, you are not very bright.

hugh

February 21, 2010 - 9:16 am EST

23 million for 6.9 jobs thus far? Where is the outrage? Zero's Administration claims a total of 2 million jobs created or saved as a result of the 870+Billion dollar stimulus. That somewhere around $390,000 per job. What a bunch of pathetic, wasteful, incompetent, bureaucratic jackasses.

holland4

February 21, 2010 - 10:31 am EST

Remember when "shovel-ready" was the catch phrase of the day?

I've been wondering where the N&R coverage was on the local stimulus efforts. This article confirms what we've all suspected: the federal government's multi-billion dollar stimulus program has failed to live up to the hype. We would have been better off cutting federal income taxes by the equivalent amount.

Anytime you use the fed's money, you're required to go through mounds of paperwork and compliance documentation: public notices, environmental impacts, wage certifications, etc. The entire process gets bogged down in public meetings, staff meetings, filling out forms, sending them, waiting for a reply, more meetings, and more waiting. Much of the federal stimulus simply gave additional funding to government programs that were already in existence and only had a marginal economic impact anyway.

Within local and state governments - including Greensboro - you have a network of vested interests that personally benefit from these types of public handouts. They know each other. They scratch each others' backs. They convince themselves that they are doing God's work because the alternative would mean that they had to find a private sector job.

The entrenched bureaucracies in DC, Raleigh, and Greensboro (both public and nonprofit) need to be shaken up, but I'm not holding my breath for that to happen soon.

Sawdust

February 21, 2010 - 10:07 am EST

When will we finally rid ourselves of the insane notion that government can create prosperity by taking money from someone and giving it to someone else? That's like trying to equalize the water depth in a swimming pool by taking water from the deep end and pouring it into the shallow end. What we need to do is to create wealth, and government cannot do that. All that government can do is to create an atmosphere in which it is easier for businesses to create wealth, or one that makes it more difficult, or they can spread the wealth around. That's pretty much it. The first is the only one that will improve our lot, but the last two are policies of this administration, none of whom know beans about creating jobs. They've never done it, they don't have the first clue about how it's done. None of them.

They lied to us about the old "jobs created or saved" b.s. They lied. They created jobs in fictional Congressional districts, and they created fictional jobs in real places. Is it any wonder to anyone with a brain that it is not working as well as we were assured that it would? Any wonder at all? If there is, write 8% on a stick and hit yourself in the head. Hard. Knock some sense into that hollow space between your ears.

Sawdust

February 21, 2010 - 10:14 am EST

I meant to include a link to Beck's speech last night. http://townhall.com/blog/g/fe1f3498-dc74-4c6d-8336-d4cd26916cbb?comments...

If you didn't see it, it is worth an hour. dcolin; you can learn more in one hour from Beck than a semester of history in school.

dcolin

February 21, 2010 - 3:47 pm EST

"If you didn't see it, it is worth an hour. dcolin; you can learn more in one hour from Beck than a semester of history in school."

Beck is hardly a recognized authority on anything.

Great entertainer.

Says all the snow in Washington debunks global warming.
You are welcome to enjoy him.

dcolin

February 21, 2010 - 12:37 pm EST

Why do many noted economists disagree with you?

The bottom line is you simply have no economic training.
That is a fact isn't it. Your opinion is based on politics.

Which is fine but of little use in actually solving the problem.

Surely you can't pretend to have a grasp of global economics
because you ran a small business.

ravencottage

February 21, 2010 - 12:58 pm EST

So tell us, dcolin, is the world beating a path to your door to hear your solutions?

dcolin

February 21, 2010 - 1:26 pm EST

No

Absolutely not.
What is your point?
Sawdust has simply decided that he knows.
I'm just pointing out that most of us layman aren't qualified to advise.

Sawdust

February 21, 2010 - 2:52 pm EST

And a lot of noted economists agree with me. Art Laffer, for one, who is no slouch. Which ones disagree, and what is their solution?

dcolin

February 21, 2010 - 3:16 pm EST

Stiglitz and Krugman for two.
More Stimulus.
Are they correct?
I don't know?

How can you and I reach a conclusion/be so sure when the economists can't.
You just seem so sure.
Everyone that does not agree with you is is a fool

Oh,
"And a lot of noted economists agree with me."

See it is how you look at things.

They agree with you?
No
You agree with them. Very different.

None of them call Obama a dumb SOB,
$h^t between his shoes, etc.

tonymo

February 21, 2010 - 12:58 pm EST

do you mean global economics like in Greece, Spain, Italy, and the UK, the kind of economics the community organizer want to bring here. Why wait, why not move to Greece, or Spain with all of their wonderful "green jobs" that have landed them a 19.5% unemployment rate.

You should enjoy it there with all of the "Collectivists" waiting for corrupt governments to give them things!

dcolin

February 21, 2010 - 1:29 pm EST

Are you calling me a Communist?
If so have the balls to say it.

dcolin

February 21, 2010 - 1:39 pm EST

What are you ranting at me about.
I worked all my life. Private industry.

America love it or leave it.
Is that your message?

You are strange person.

holland4

February 21, 2010 - 1:22 pm EST

That's $3,333,333.33 per job. "Government efficiency" is an oxymoron.

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