Where has all the money gone?

By Dr. Richard Swier | 11/06/09 | 08:29 PM EDT | 0 Comments

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I have written several articles about how American Recovery and Reinvestment Act (ARRA), a.k.a. federal stimulus, dollars are being spent in Florida.

In two previous articles I found that overall the State of Florida created no jobs but "saved" jobs according to the Recovery.gov web site. Each of the jobs saved cost $232,295.51 (read the article here). After contacting the Florida Department of Education I learned that 67% of the jobs "saved" were in education (government) positions (read article here).

Today I learned the Florida Agency for Workforce Innovation recieved $43 million in ARRA funds for "summer youth programs". According to Denishia Robinson, Public Information Specialist, Agency for Workforce Innovation:

The following is information we reported on job creation using American Recovery and Reinvestment Act funds.

  • Full-time Equivalent count – 3,770
  • Actual workers – 13,002

    • Summer Youth – 10,267
    • Workforce System - 1,128 
    • School Readiness Providers – 1,599      
    • Early Learning Coalition staff - 8 

More than10,000 jobs were short-term, summer jobs for youth in various occupations. Florida’s 24 regional workforce boards employed teens and young adults ages 14-24 in the Summer Youth Program. Summer Youth participants were compensated while learning valuable, “real world” workplace skills and making great business contacts. Florida's workforce system hired more than 1,100 new workers in One-Stop Career Centers, in the agency and at the Regional Workforce Boards using Recovery funds to assist Floridians and businesses with job placement/job training services. Additionally, more than 1,600 people were hired to provide childcare through Florida’s Early Learning System so parents can find or maintain employment. [Emphasis added]

That equates to $11,405.83 per job "saved". But note that of the FTE workers in this program 2,735 are government or government related jobs.

I looked at ARRA funds spent for this "summer program" in my area - Sarasota and Manatee Counties. According to the Agency for Workforce Innovation website:

Region 18 – Suncoast Workforce Board (Manatee, Sarasota)

The Suncoast Workforce Board program will provide work experience for 400 young adults ages 16 to 21 in local jobs starting June 15. Participants will earn a training incentive equivalent to $7.25 per hour for up to 20 hours a week for a maximum of five weeks.

This program, funded by federal stimulus dollars, will help distribute an estimated $700,000 to the local economy. For more information, visit www.swdb.org.

So, my local Suncoast Workforce Board got $700,000 to employ 400 young adults at $7.25 per hour for up to 20 hours a week for five weeks. Doing the math with my trusty calculator that works out to $290,000 in total compensation to the young adults. What happened to the remaining $410,000? It went to compensate government staff. So, 58% of the Suncoast Workforce Board money went to sustain government.

To do your own analysis of your county go here and run the numbers.

This is a failed way to "save" jobs, it only redistributes wealth, the program provides only temporary work for our young adults but keeps the bureaucracy whole. A very poor, if not wasteful, use of our tax dollars, don't you think?

TAGS: stimulus, Florida, Crist, jobs

 

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0 Comments | Related Topics »Sarasota County (FL)

 

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