7.76 jobs for the bargain price: 70 mil

iVillage Member
Registered: 08-16-2005
7.76 jobs for the bargain price: 70 mil
13
Fri, 09-17-2010 - 6:06pm

Report: Los Angeles spent $70 million in stimulus funds to create 7.76 jobs



A new piece of evidence has emerged in the debate over the effectiveness of President Obama's 2009 stimulus package, and it's not good for Democrats. According to two newly released audits performed by the Los Angeles controller, L.A. spent enormous portions of the $594 million in stimulus funds it received on projects that created or saved just a handful of jobs. All told, the audits — available here and here — examined $111 million in stimulus spending by the city's Department of Transportation and Department of Public Works, and found that the money went to projects that created or retained just 54 jobs. That works out to roughly $2 million per job.



The $71 million that went to the Department of Public Works, which funded 15 road-surfacing and similar projects, was projected to save or create 238 jobs. But according to the audit, the money created just 7.76 jobs — or slightly more than $10 million per new job — and saved 37.7 (the fractions are a result of calculating the number of jobs by hours worked). The Department of Transportation's $40 million created or retained just nine jobs, the audit found.



In a press release accompanying the audits , L.A. Controller Wendy Greuel said the job numbers were underwhelming. "I'm disappointed that we've only created or retained 55 jobs after receiving $111 million in funds," Greuel said. "With our local unemployment rate over 12 percent, we need to do a better job cutting the red tape and putting Angelenos back to work."



The audit didn't find any misspent funds or waste. But the breakdown of how some of the money was spent seems to indicate efficiency was not exactly the order of the day for project managers. The Department of Transportation, for instance, spent $9 million to install new LED lightbulbs in traffic lights at 1,800 intersections. Less the $228,000 in labor costs associated with the project, that's nearly $5,000 per location to change lightbulbs. Another project spent $4 million to install 65 new left-turn arrows, averaging more than $61,500 per arrow.



http://news.yahoo.com/s/yblog_upshot/20100917/bs_yblog_upshot/report-los-angeles-spent-70-million-in-stimulus-funds-to-create-7-76-jobs








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iVillage Member
Registered: 10-30-2003
Fri, 09-17-2010 - 6:10pm

I don't know about the jobs, but the road next to my daughter's school is much more pleasant to drive on.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 08-16-2005
Fri, 09-17-2010 - 6:18pm

Our road improvements have been great but none from the fed stimulus.


iVillage Member
Registered: 10-30-2003
Fri, 09-17-2010 - 6:25pm

I actually don't know if the repaving of that particular road was paid for be stimulus money, I just know the timing was right. I really can't comment on how the successful the road construction in my part of the county in terms of stimulating anything. Much of the construction was sorely needed though. I'm afraid that means I'm adding very little of substance to the conversation.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 08-16-2005
Fri, 09-17-2010 - 6:31pm
We live in town limits, but it is country roads, so we are happy with just filling potholes.


iVillage Member
Registered: 10-30-2003
Fri, 09-17-2010 - 6:51pm

We vacationed in Zion and the North Rim Grand Canyon this summer. The "short" road between the two was closed for construction during the week between the hours of nine and four PM. The long way takes about an extra hour. When we came back from they had reversed the construction time to night, so we were able to take the short way, but you still had to wait for an escort through the Zion Tunnel, so it probably took us even longer. It's hard to tell exactly how much, because we stopped for a hike. My husband really wanted to drive through the tunnel.

I don't know if that was federal stimulus funded, though since it is a National Park it's probably a good guess. Apparently it was work that has been needed for years. But not fun when you are on vacation.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 11-13-2009
Sat, 09-18-2010 - 10:38am

I read this last night.. and I'm not clear on things.



Are these jobs just saved or created within the DOT?



Cause around here, there would be tons of cement/steel/and what-not

 

iVillage Member
Registered: 07-15-2010
Sat, 09-18-2010 - 10:59am

Why isn't that special?

I guess the inefficiency and waste is all worthwhile then because it's certainly not unexpected or surprising.

It's completely what was expected.

>>Luck is what you call it when preparation meets opportunity<<
iVillage Member
Registered: 09-01-2010
Sat, 09-18-2010 - 11:02am

When you read the controller's reports that were linked within the article, it seems that the problem is that contracting officers, at the time of the audit in March, hadn't even decided who would get the contracts. If no decision was made on specific projects, then there were no workers working on the projects. Much of the problem is that the money is allocated, and LA's contracting process is inefficient in moving along.

http://tinyurl.com/24orn95

http://tinyurl.com/2btl58z

~Opal~
~Opal~    
iVillage Member
Registered: 10-30-2003
Sat, 09-18-2010 - 11:04am

That's not what I said, but your condescension is noted.

Anne

I have no need for anger
With intimate strangers
And I got nothing to hide



- Amy Ray

I have no need for anger
With intimate strangers
And I got nothing to hide


- Amy Ray

iVillage Member
Registered: 07-15-2010
Sat, 09-18-2010 - 1:47pm

I wouldn't be too concerned with noting the invisible.

Because I never claimed you "said" anything.

Your reply does however tell me that I wasn't clear enough in my point.

That being that it's very typical for a wasteful and inefficient government plan/program to benefit someone along the way. That in no way justifies it as being good, valuable or efficient.

I have learned from this board though that some people think that anyone receiving value from a government program no matter how God-awful that program is who complains about it is just shooting themselves in the foot.....you know, why complain about he who is buttering your bread? I find that rather ridiculous. I believe the person who is able to do that is simply the more honest one.

>>Luck is what you call it when preparation meets opportunity<<

>>Luck is what you call it when preparation meets opportunity<<

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