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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 09:53 AM
Original message
Weatherization stimulus off to cold start
NEW YORK (CNNMoney.com) -- It was supposed to be fast and easy: Pay a bunch of out-of-work contractors to outfit old homes with new furnaces or insulation. It would put people back to work right away, and at the same time cut energy use and save people money.

So as part of the stimulus program, Congress gave the Energy Department's Weatherization Assistance Program a big funding boost. The program, which fixes up homes for low-income people and usually has a budget of around $200 million a year, got a $5 billion injection.

Yet a year later, just $441 million has been spent, raising questions as to just how effective the program is at stimulating the economy.

"It's an example of good intentions that weren't really thought through," said Kevin Plexico, a researcher at Input, a firm that tracks spending in the public sector. "You just don't have the capacity to absorb that amount on the local level."

http://money.cnn.com/2010/01/24/news/economy/stimulus_w...
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Nederland Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 10:35 AM
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1. The first question the comes to mind is this:
How many low income people have their own homes? Can a "rich" landlord of a low income tenant get money to insulate one of his rental units? If not, it's not surprising that the department is having a hard time spending all the money it has been allocated...
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phantom power Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 10:36 AM
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2. Dunno. Interesting question.
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raynjulsks Donating Member (12 posts) Send PM | Profile | Ignore Tue Jan-26-10 01:02 PM
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4. yes, landlords are eligible...
at least for the program in Kansas. The problem is that the ARRA bill was poorly crafted, requires huge hoops for the applicants, and all contractors have to abide by all provisions of the Davis-Bacon Act. This includes weekly payrolls that almost no one does anymore. Typical of the entire stimulus package I'm afraid....
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earth mom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-25-10 05:34 PM
Response to Original message
3. 5 billion and they refuse to help the middle class too?
Man that sucks! :thumbsdown:
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