Stimulus Aided Teachers, Laborers: Report

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MATT APUZZO | 10/12/09 04:30 PM | AP

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WASHINGTON — President Barack Obama's stimulus plan spared tens of thousands of teachers from losing their jobs, state officials said Monday amid a nationwide effort to calculate the effect of Washington's $787 billion recovery package.

State officials around the U.S. worked to meet a Saturday reporting deadline as part of the most ambitious effort to calculate in real time the effect of a government spending program. From 11 jobs repaving a road in Caldwell, Texas, to one job at Utah food banks, to two forensic scientist positions in North Dakota, states were required to say exactly what became of billions in government aid.

The national data won't be available until later this month. But based on preliminary information obtained by The Associated Press from a handful of states, teachers appear to have benefited most from early spending. That's because the stimulus sent billions of dollars to help stabilize state budgets, sparing what officials said would have teacher layoffs.

In California, the stimulus was credited with saving or creating 62,000 jobs in public schools and state universities. Utah reported saving about 2,600 teaching jobs. In both states, education jobs represented about two-thirds of the total stimulus job number. Missouri reported more than 8,500 school jobs, Minnesota more than 5,900. In Michigan, where officials said 19,500 jobs have been saved or created, three out of four were in education.

"They're going to be the biggest driver of jobs from the state side," said Chris Whatley, who tracks stimulus programs for the Council of State Governments.

Construction companies also are expected to report strong job numbers thanks to billions of dollars in highway money, but those figures will vary because some states have spent that money faster than others. Unlike construction jobs, which require bidding and contracting, teaching jobs were relatively quick to save once billions of dollars in aid arrived from Washington.

"This early data confirms that the Recovery Act is working across the country to keep tens of thousands of teachers in the classroom and construction workers on the job during these tough economic times," said Elizabeth Oxhorn, a spokeswoman for the White House recovery office.

Job estimates have become political chips in the debate on whether the stimulus was worth its hefty price tag, particularly since many of the jobs created are temporary contract positions. Since the president signed the bill in February, millions of jobs have been lost and unemployment has climbed higher than White House aides predicted.

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The Obama administration, bolstered by some economists and anecdotal evidence, has said things would have been far worse without the stimulus. The White House says more than 1 million jobs have been saved or created so far, a figure that is so murky it can never be verified. That's because the White House estimate is based on economic models that try to calculate the effect of tax cuts and the ripple effect of government spending.

The numbers being collected by contractors and states are expected to provide a much more accurate count of workers employed by stimulus money. The job count will not tally jobs created by Obama's $288 billion tax cuts or attempt to quantify the ripple effect of stimulus spending.

Many states had little information to make public. In some states, government agencies and contractors reported their data separately and governors were still getting a handle on what the job picture looked like. In other states, officials were still reviewing the data for errors.

"I don't want to give you data and have it change as it gets corrected," said Tom Evslin, whom Gov. Jim Douglas appointed as Vermont's top recovery officer. Evslin said before the public could see the data, state lawmakers would receive a briefing Thursday.

Other states that refused to make information public feared getting ahead of the release in Washington.

"We are still awaiting word from the federal government to see if this is data we ought to be releasing," said Tasya Peterson, spokeswoman for Arizona Gov. Jan Brewer's recovery office.

States were told to keep their counting simple: A job means a full-time, full-year position. So a 40-hour-a-week summer job will be counted as one-fourth of a job. A part-time researcher who works all year is half a job. And the full-time construction engineer who works all year is one job.

The Recovery Accountability and Transparency Board, the independent body set up by Congress to monitor recovery act spending, will release job data in two batches. On Thursday, the board will release data on direct spending from federal agencies. That will include jobs such as repairing military bases and improving national parks.

Later this month, the board will release grant data, which will include jobs such as construction workers hired to repair local highways using federal money.

Officials have said the unprecedented accounting could become standard for government programs in the future, and this week's data release will offer the first indication of how it's working.

___

Associated Press writers David Gram in Montpelier, Vt.; Brock Vergakis in Salt Lake City; David Lieb in Jefferson City, Mo.; Jacques Billeaud in Phoenix; Juliet Williams in Sacramento, Calif.; Martiga Lohn in St. Paul, Minn.; Tim Martin in Lansing, Mich.; and April Castro in Austin, Texas, contributed to this report.

WASHINGTON — President Barack Obama's stimulus plan spared tens of thousands of teachers from losing their jobs, state officials said Monday amid a nationwide effort to calculate the effect of W...
WASHINGTON — President Barack Obama's stimulus plan spared tens of thousands of teachers from losing their jobs, state officials said Monday amid a nationwide effort to calculate the effect of W...
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- olephart I'm a Fan of olephart 109 fans permalink

The unfocused stimulus has had some good effects. The payroll tax cut was a broad boost to earnings. Careful examination of income data last Spring will indicate that. Extended unemployment benefits have likewise helped the unemployed and the economy by maintaining demand. It is difficult to quantitate these efforts in terms of jobs but it is intrinsically obvious that things would be worse without them.

In his futile quest for bipartisanship, Obama allowed the stimulus funding for the States to be cut to satisfy three Republicans. These monies were targeted to save State and local jobs. The September jobs report indicated that 53,000 Government positions were lost including thousands of teachers.

The stimulus was too small to effectively combat the onslaught of the collapse. It was further hampered by appeasing Republicans in keeping the useless Bush tax cuts for the wealthy on the books and targeting $75 billion in tax cuts to those earning over $100,000 per year (AMT patch). These coupled with the misguided efforts to bailout Wall Street risks a second even more serious downturn next year. Worse still is the continuance of Bush's illegal War in Iraq and his phony War in Afghanistan. The drain on the economy from the Wars and boondoggle military spending will act as a concrete life jacket to a drowning man. Until the Wars, tax policies and Wall Street giveaways are ended we will not see a meaningful recovery.

    Reply    Favorite    Flag as abusive Posted 12:18 PM on 10/13/2009

The government has put the same punch bowl out that got us into the mess in the first place. More debt and consumption and don't worry about paying it back. (Berbnanke= Greenspan II)

Good articles: http://pie.im/af30

If this is change we can believe in, count me out in 2012. Obama should not have reappointed bernanke.

    Reply    Favorite    Flag as abusive Posted 10:48 AM on 10/13/2009
- trinity I'm a Fan of trinity 9 fans permalink

All the districts around here used most of the the money for extra special education staff, as well as hiring extra reading specialists to assist those students who are struggling­...yeah I know, just terrible..­..

    Reply    Favorite    Flag as abusive Posted 10:11 PM on 10/12/2009
- desertman I'm a Fan of desertman 15 fans permalink

Another money pit for taxpayer's $$.

    Reply    Favorite    Flag as abusive Posted 07:43 PM on 10/13/2009
- Gernuser I'm a Fan of Gernuser 2 fans permalink
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Congratulations to to Obama for winning the Nobel Peace Prize and inspiring billions of people around the world.

If you like finance & econ news you'll like: http://pie.im/af30

Now that you have everyone's trust it's time to carry out actual heath care & financial reform. Time to get things done instead of just talking and planning.

    Reply    Favorite    Flag as abusive Posted 06:39 PM on 10/12/2009
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Didn't the stimulus do any of the "doing"?

    Reply    Favorite    Flag as abusive Posted 07:10 PM on 10/12/2009
- HST I'm a Fan of HST 50 fans permalink
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What's funny (in a pathetic sort of way) is that these same crybabies about the stimulus money going to union workers and/or government ones are the same crybabies that would be howling if all these jobs disappeared. D@mned if you do and d@mned if you don't . I guess they're are going to squeal anyway just as they did when the stock market was down and now it's up. The only alternative these critics have is more tax cuts -yeah and look where that got us. They were wrong for the last 8 years and they are wrong now.

    Reply    Favorite    Flag as abusive Posted 05:16 PM on 10/12/2009

Its all politics. Money to labor unions, teachers unions and government worker unions. Everyone else left out in the cold. Everyone else will have to help pay back the borrowed money.

    Reply    Favorite    Flag as abusive Posted 05:08 PM on 10/12/2009
- MJinCanada I'm a Fan of MJinCanada 108 fans permalink

How myopic can you get? It's jobs for teachers so that kids get a decent education and jobs for construction so highways and bridges don't fall to bits.

    Reply    Favorite    Flag as abusive Posted 05:42 PM on 10/12/2009
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And for every one of those people who got a job or kept a job, 2 or 3 others didn't lose their job in other related areas. When workers are laying new asphalt, they get that asphalt from a company that makes it, which keeps their workers working. Or when they buy food or go to a movie or a restaurant to eat, it keeps those in the service industry working.

In Washington state, they figured for every Boeing worker, there were at least 3 others who were kept working to support the Boeing worker.

Get a clue, please.

    Reply    Favorite    Flag as abusive Posted 10:59 PM on 10/12/2009
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Don't be sad. You can get a G.E.D. There are resources. Then you can get a job. Then you can support yourself. Just like Everyone Else.

Time to grow up. You're going to end up paying for Bush's debt first. And it's huge.

    Reply    Favorite    Flag as abusive Posted 03:34 AM on 10/13/2009
- desertman I'm a Fan of desertman 15 fans permalink

This did not start with Bush. Get over the Bush bashing even though it feels good. George Soros asserts that a “superbubble has been growing for at least 25 years,” periodically manifested by the international banking crisis and Latin debt in the early ’80s; 1997’s emerging market crisis; the Internet technology explosion; overleveraging that created the housing bubble; and escalating oil and commodity prices. He also faults financial innovation and securitization of debt. “People became very loose in their lending habits” and increased risk “by separating agent from principal.­”

    Reply    Favorite    Flag as abusive Posted 07:41 PM on 10/13/2009
- tuberider I'm a Fan of tuberider 12 fans permalink
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They say schools aren't doing too well; just like the banks. Let's give them money! Wait, you know what? I don't feel so well either...

    Reply    Favorite    Flag as abusive Posted 04:42 PM on 10/12/2009
- mjtaylor22 I'm a Fan of mjtaylor22 39 fans permalink
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OH WOW THE MASSIVE GOVT SPENDING ACTUALLY HELPED.
WOW WHO WOULD OF THOUGHT THAT GOVT COULD HELP WITH THE ILLS OF SOCIETY.
LIKE GIVING PEOPLE THE RIGHT TO VOTE ENDING CHILD LABOR,

    Reply    Favorite    Flag as abusive Posted 04:39 PM on 10/12/2009
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Government related employment is the only sector that has gone up in the past two years. It is no wonder that the people in Washington DC and their corporate welfare buddies on Wall Street, think that the recession is over. They're doing just fine with all of that tax money.

    Reply    Favorite    Flag as abusive Posted 04:34 PM on 10/12/2009
- Gretel1or2 I'm a Fan of Gretel1or2 137 fans permalink

This story should be in the main instead of that non-story by Harwood on the WH "ridiculing" bloggers.

    Reply    Favorite    Flag as abusive Posted 04:25 PM on 10/12/2009
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HP is going all TMZ on us so that'll be up for awhile since they know that all of the "outraged" bloggers are currently blogging their outrage on that story.

    Reply    Favorite    Flag as abusive Posted 07:11 PM on 10/12/2009
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What, no housing jobs saved? How can the 100-year neocon reign come into being if we don't have more unneeded housing construction? Homeowners vote Republican. That was the plan.

I know, how about lowering lending standards for prospective home buyers. That ought to rekindle neocon hopes.

    Reply    Favorite    Flag as abusive Posted 03:33 PM on 10/12/2009

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