ThinkSouth -- a weblog of the Center for a Better South

11.04.2009

11/4: Stimulus funds used to give raises in some cases

New York Times: Stimulus funds used to give raises in some cases

Errors in the government's latest effort to track the effectiveness of the $787 billion stimulus plan are showing that funds were used not just to create or save jobs, but to fund raises or benefits for existing employees.

In Georgia, a nonprofit, the Southwest Georgia Community Action Counciil, reported saving 935 jobs -- however, there are only 508 people working there.

The latest stimulus report, released Friday, significantly overstates the number of jobs spared with money from programs serving families and children, mostly the Head Start preschool program. The report shows hundreds of the programs used nearly $323 million to provide pay raises and other benefits to their existing employees.

The raises themselves were appropriate -- the stimulus law set aside money for Head Start salary increases -- but converting that number into jobs proved difficult. The Obama administration told Head Start officials to consider a fraction of each employee as a job saved.

Also in the South:

ALABAMA: Tea Party rally scheduled for today in Huntsville

ARKANSAS: State's tax revenue is again less than expected

FLORIDA: Sex offender restrictions in state may be flawed, says analyst

GEORGIA: Why a white woman may win the Atlanta mayoral race

KENTUCKY: State should budget $64 million more a year for college aid, says study

LOUISIANA: Gov. Jindal says resignation of justice who refused interracial marriage 'long overdue'

MISSISSIPPI: More prison cuts planned for 2010 budget

NORTH CAROLINA: New rules proposed to help homeowners avoid foreclosure

SOUTH CAROLINA: Ten candidates in running for governor's post talk energy, environment

TENNESSEE: State departments face up to 9% cuts

VIRGINIA: Analyst says policies, not parties, key to GOP win in Virginia


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