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Public Sector Got The Most From Stimulus

From the Milwaukee Journal-Sentinel:

State public-sector jobs benefit most from stimulus

By Dave Umhoefer and Patrick Marley of the Journal Sentinel

Oct. 13, 2009

Madison — The first solid – if still incomplete – employment numbers for federal stimulus spending by Wisconsin state government show that retaining government positions was job one.

Three-fourths of 8,284 stimulus-related jobs accounted for so far were public-sector posts protected by the federal infusion into state and local government coffers, Gov. Jim Doyle’s office reported.

That included teachers, police officers and other government workers.

Of the remaining one-fourth, it’s not clear how many are private-sector jobs, and whether the jobs were retained or newly created.

Predictably, the report touched off partisan disagreement, with Democrats calling the figures a good start and Republicans questioning the success of the hotly debated federal package approved in February, especially in light of recent record job losses…

The Doyle administration said that $680 million of the state-controlled funds has been spent so far – nearly all of the $701 million received. Another $1.2 billion has been awarded but has not yet landed in Wisconsin, Doyle’s office said…

The $1.92 billion state-controlled chunk eventually should directly save or create some 25,000 jobs over the next couple of years, said Chris Patton, director of Wisconsin’s Office of Recovery and Reinvestment.

"This is money well-spent," Patton told reporters at the Capitol. The rough per-job cost of $82,000 is below original federal estimates, he said.

The stimulus package was designed to spread spending mainly over two years. Many of the funds dedicated for road construction won’t be spent until 2010

The main effect of the stimulus money that went to state and local governments was to prop up health care and education spending so the state could balance its budget without huge tax increases, Koskinen said.

Republicans on the Assembly Committee on Jobs, the Economy and Small Business noted that taxes were in fact raised in the last budget despite the aid from Washington

The report from Doyle’s office also found that under the federal stimulus funding:

240 homes are having lead paint removed.

• More than 89,500 meals have been provided to 9,175 homebound seniors.

• 476 people have received services meant to prevent homelessness.

• Almost 4,000 young people received summer jobs.

•175 AmeriCorps members provided services at 139 locations.

The state used $632 million of the federal funds to help fill a giant budget hole. Supporters said that helped the overall economy by keeping people employed and saving essential government services; critics said it allowed the state to avoid making tough spending decisions…

Mind you, something like this or worse is going on in all 57 states.

(Thanks to BillK for the heads up.)

This article was posted by Steve on Wednesday, October 14th, 2009. Comments are currently closed.

9 Responses to “Public Sector Got The Most From Stimulus”

  1. BillK says:

    Is there anyone so stupid to have thought this would not be the case?

    From the Milwaukee Journal Sentinel:

    State creates or retains 8,284 jobs with stimulus funds

    By Patrick Marley

    Madison — Wisconsin state government has used federal economic stimulus money to create or retain 8,284 jobs in Wisconsin, mostly by saving public-sector jobs.

    A brief report released Tuesday by Gov. Jim Doyle provided details on money spent by state government, but did not cover funds awarded directly to local governments and the University of Wisconsin System. Those numbers will be made public later.

    More than 6,100 jobs for police officers, teachers and other government workers were retained through state stimulus spending, the report said. That accounts for nearly three-quarters of the jobs that were retained or created by the state.

    http://www.jsonline.com/news/statepolitics/64116527.html

    Then one wonders why these jobs are so heavily staffed with liberals?

    They know very well they are voting in their own job security.

    • joeblough says:

      There is indeed class warfare in America … just not between the old fashioned classes that the Europeans are accustomed to squawking about.

      It’s between the Political Class, or perhaps the Government Class and everybody else.

      It is a large population with distinct economic and political interests that distinguish and separate it from the rest of the population.

      The rest of the population all share common interests distinct from those of the Political or Government Class regardless of where they fit in the antique European concepts of “class” warfare … aristocrat, bourgeoise, proletarian, blah, blah, blah.

      Those distinctions don’t mean much in a volatile and fluid society like America.

      But the distinction between those who depend for their paychecks on other people’s taxes and those who don’t does apply. And those people are the Political or Government Class.

      And guess who’s side Obama is playing for …

  2. joeblough says:

    There’s no such thing as the “public sector” or the “private sector” … these are academic terms, meaningful only in academic macroeconomic analysis.

    The “public sector” is the government.

    The “private sector” is the people.

    It’s just that simple.

    That headline should read “Government Gets Most From Stimulus“.

    And what a surprise that is indeed.

  3. MinnesotaRush says:

    Wait a minute .. wait a minute ..

    “This is money well-spent,” Patton told reporters at the Capitol. The rough per-job cost of $82,000 is below original federal estimates, he said.”

    The “rough” PER JOB COST OF $82,000 … you gotta be kidding me! The rough PER JOB COST is $82 grand! And that’s LOWER than federal estimates?!?! Good gawd!!!

    Will the thieving ever stop? How many layers of bureaucratic bullsh_t and payoffs is in this thing?!? So where’s Joe (Biden)? Right in the front of the line!

    Lunacy! Absolute lunacy!

    Ya gotta be a mindless nimwit to utter this crap, a bigger one to report it unchallenged, and every bit as bad to pay no attention to it!

    Hey Patton at the Capitol .. This is NOT money well spent!

  4. Reality Bytes says:

    Wow! They sure found a disproportionate share of white women for that photo op didn’t they? Staged?! Nooo!

    BTW – here in NY we’re being flooded with 10’s – a hundred maybe protestors who are converging on the city’s Insurance company headquarters. Their sign says it all

    ONE NATION – ONE HEALTH PLAN!!!

    You shoulda seen it, 4 – 5 short school buses were lined up! What a scene it was….underwhelming.

  5. Oguhselbor says:

    “Mind you, something like this or worse is going on in all 57 states.”

    57 States? I thought there were only 50? When did the District of Columbia, Puerto Rico, US Virgin Island, Guam, American Samoas, Iraq and Afghanistan become States?

  6. joeblough says:

    Must be thinking of the Heinz/Kerry USA.


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