Two L.A. agencies get $111 million in stimulus funds but have created only 55 jobs

[Freddie Stubbs]

Source: Los Angeles Times

Controller Wendy Greuel, who audited the Public Works and Transportation departments, says the city needs to move more quickly to spend the federal money. The city's budget director disputes figures.

Two Los Angeles departments have received $111 million in federal stimulus funds yet have created only 55 jobs so far, according to a pair of reports issued Thursday by City Controller Wendy Greuel.

The reports conclude that the agencies, Public Works and Transportation, moved too slowly in spending the federal money, in part because of the time it takes to secure approval of government contracts. The two agencies plan to create or retain a combined 264 jobs once all the money is spent, according to the reports.

With unemployment above 12%, city officials should move more urgently to cut red tape and spend the money, Greuel said. "The process needs to be changed to make sure we get these projects out as quickly as possible," she said.

Read more: http://www.latimes.com/news/local/la-me-stimulus-audit-20100917,0,3706864.story

[fasttense]

1. For $111 million I could put 1,233 people to work for 3 years.

What a waste.

[lapfog_1]

2. Sounds like the typical bullshit analysis posted on some right wing website.

Another way to look at it:

a) Money was probably allocated for specific projects for the city

b) Quite likely the vast majority of the money hasn't been spent yet (ok, that's bad, but typical when there are all of the regulations imposed on government to insure "fairness" in contracting, etc, etc).

c) Quite likely, the money is being used to buy "stuff" (materials, rental or purchase of equipment, etc, all of which CREATE JOBS in the private sector). Not just the direct labor involved in the project.
It will create many new jobs all the way up the supply chain. The effect of which is hard to translate into X number of jobs, but manufacturing companies and supply companies will see increased business, and will hire people to handle it. The 55 people in the report are likely those HIRED by the city to actually oversee these projects (I bet that there are a number of projects, and each will have some additional staff hired in each department to manage it).

[Coyote_Bandit]

3. That's what happens

when the idiots in Washington rely on fucking trickle down economics.

All that stimulus money was supposed to trickle down through the economy to create jobs. Didn't happen. But then all that stimulus money wasn't given with a requirement that it actually create jobs - much less local jobs and employment. Stimulus dollars here are being used for road projects - and the crews contracted to do the work are from another state. The Washington idiots didn't account for the human factors of greed and fear which keep that money from actually trickling down to those who supposedly were intended to indirectly benefit.

But perception is more important than reality. Throw a bunch of money at the big guys that have some political influence. Tell everybody else that they should benefit indirectly. It doesn't matter whether or not they actually benefit as long as they think they should have and government did something to make that possible.

Our government is broken.

[thereismore]

4. Direct job creation by the government works better. nt

[niceypoo]

5. Still, probabally more stimulative than tax cuts for the rich

[OnlinePoker]

6. And once the tap is turned off, those employees will be laid off. n/t

[joeglow3]

7. Approval time IS a big problem

We had a street widening project here that was "shovel ready." The stimulus bill was passed and funds were earmarked for the project. Unfortunately, this shovel ready project took almost 2 years to get everything in order to go ahead with work.