Poor or Poorer, but for Federal Recovery Act

Chuck Sheketoff

The federal recovery act signed into law earlier this year has protected about 84,000 Oregonians from living in poverty, according to a report released this week by the Washington, D.C.-based Center on Budget and Policy Priorities.

The recovery act is delivering vital assistance to Oregon at a time of great need. It’s kept the recession from getting worse and helped struggling Oregon families.

If the 84,000 Oregonians estimated to have been kept out of poverty as a result of the federal recovery act all lived in one place, it would constitute the seventh-largest city in the state, more populous than Bend.

That figure, moreover, likely understates the total number of Oregonians being kept off the poverty rolls. That’s because the CBPP study, State-Level Data Show Recovery Act Protecting Millions from Poverty, examined the impact of only seven provisions of the American Recovery and Reinvestment Act (ARRA) of 2009, which account for about one-fourth of the act’s total funding.

The CBPP report examined the impact of ARRA’s increase in Supplemental Nutrition Assistance Program (SNAP or food stamp) benefits, its expansions of the Child Tax Credit and the Earned Income Tax Credit, the newly created Making Work Pay tax credit, the extension of unemployment insurance benefits, the additional $25 per week in unemployment insurance benefits and a one-time payment to seniors, veterans, and people with disabilities.

The report did not calculate the impact of other ARRA provisions, such as funding for health care, child care and direct assistance to states to help them deal with budget deficits caused by the recession.

Those other provisions not included in the report have also benefited Oregon. By helping lawmakers avoid even deeper cuts to essential public structures such as schools and public safety, federal dollars kept Oregon’s economy from contracting further.

Oregon lawmakers used ARRA and other federal funds to close about one-quarter of the $4 billion budget gap that opened up as a result of the recession. In doing so, they maximized use of federal matching funds for services such as health care and support for children in need.

Those federal matching funds are hanging in the balance until the January vote on Measures 66 and 67. If the measures fail to pass, Oregon will not be able to put up its share of money to trigger the receipt of all the federal ARRA and matching dollars.

Losing those federal dollars would further shrink Oregon’s economy, according to 36 Oregon economists who issued a joint letter in October backing the tax measures.

Besides highlighting a key issue related to the importance of voting “yes” on Measures 66 and 67, today’s report also underscores the importance of congressional action to extend some of ARRA’s provisions.

Although Congress has agreed to extend ARRA’s unemployment provisions through February, they will need further extension because unemployment is expected to remain high for some time. She also pointed to extending refundable tax credits for low- and moderate-income families.

OCPP is taking the lead in bringing together leaders in Oregon to urge Congress to extend the ARRA provisions offering fiscal relief to states and additional food stamp administrative funds. In a letter to Oregon’s congressional delegation presented this week, several Oregon organizations and elected leaders said such provisions “are some of the best ways to strengthen the job market, and their premature expiration is certain to place a drag on the economy.”

  • karenmarkel (unverified)
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    Thanks for updating the status on Medical Insurance industry today. But there Low cost medical coverage on group, family, or individual available at http://bit.ly/7bwEx2

  • Edward I. O'Hannity (unverified)
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    There you go! Kill "Rich-Tweaking Taxes" and impose "Job-Killing Cuts."

    ~EIO

  • alcatross (unverified)
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    Well, I hope these statistics are more reliable than some of the the 'jobs created or saved' data reported by the Obama Administration as shown here - falling into the sample categories below:

    1. Raises = jobs: This one turns out to be pretty common. For example, the Associated Press reported that one nonprofit in Georgia used stimulus money to give its employees raises, then multiplied its total number of employees (508) by the percentage points of the raises (1.84) and told the White House that the stimulus had saved 935 jobs. (Its directors said they were just following instructions they received from the White House.) Other nonprofits did the same. According to the AP, this fraud exaggerated the number of jobs created or saved by 9,300.

    2. Number of people who might benefit = jobs: According to the AP, East Central Technical College in Georgia used more than $200,000 in stimulus money to buy “trucks and trailers for commercial driving instruction, and a modular classroom and bathroom for a health education program.” Officials at the college reported that the spending created or saved 280 jobs, at a cost of $715 for each one. That’s miraculous — and impossible. As it turns out, “The 280 were not jobs, but the number of students who would benefit” from the spending.

    3. Stimulus Money/Average Salary = jobs: The number of jobs the stimulus allegedly saved or created in Nevada was overstated by at least 4,000, according to a report in the Las Vegas Sun. The report states that local-government officials were told to “take the amount of stimulus money they received and divide it by $92,000, the theoretical average wage and benefits of a job.” As if this weren’t sketchy enough, officials actually divided by lower numbers — $66,681 for K–12 employees and $45,000 for higher-ed workers. In fact, the teachers’ jobs were probably secure — “I don’t for a moment believe that 4,000 teachers would have been laid off if not for the stimulus,” said Republican state senator Bill Raggio. The money allowed the state to avoid making cuts elsewhere.

    4. Jobs funded by other federal programs = jobs: The Boston Globe reported that it found several cases in which “federal money that recipients already receive annually — subsidies for affordable housing, for example — was reclassified this year as stimulus spending.” Property companies in Massachusetts reported that such spending saved approximately 430 jobs, but an official at one of these companies admitted, “There were no jobs created. It was just shuffling around of the funds.” USA Today discovered that the Teach for America program misattributed 1,300 jobs to the stimulus; in fact, an unrelated government grant had funded the positions. And the Wall Street Journal found that “some low-income housing landlords whose decades-old contracts with the federal government were funded by the stimulus this year reported a total of 6,463 employees as having jobs linked to the stimulus package.” Those three examples alone account for over 8,000 phony jobs.

    5. Whoops! = jobs: Many of the jobs reported as created or saved are nothing more than paperwork errors. In Blooming Grove, Texas, a local housing authority reported that “it created 450 jobs with a $26,174 grant to repair roofs on five apartment buildings,” according to the Dallas Morning News. The project actually involved six workers. And the AP reported that a company in Ohio used the same workers for two stimulus contracts and counted the workers twice. The AP found numerous other instances of double-counting, accounting for 1,350 phony jobs.

    6. Summer jobs = jobs: The Dallas Morning News also found about 5,100 jobs that were summer positions for people 24 and younger. A spokesman for the program that placed the workers said that “a couple of handfuls, maybe 25” saw their summer jobs turn into permanent employment. Similarly, around 3,000 “jobs” in Michigan were seasonal. And the AP found a company that claimed to have created 4,300 jobs using stimulus money, 3,000 of which lasted about a month.

    7. Phantom layoffs = jobs: State education departments proved to be the biggest source of exaggerated stimulus jobs. As mentioned above, some simply divided the amount of stimulus money they received by some number representing an average teacher salary. Other cases were even more egregious: In Washington State, government officials said that stimulus money saved the jobs of 24,000 teachers who were already under contract to finish out the school year. And in California, the California State University system reported that stimulus funds saved 26,000 jobs — over half of its work force. A CSU spokesman admitted, “This is not really a real number of people. It’s like a budget number.”

  • JJ Ferguson (unverified)
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    • you have, on the other side of the ledger the chronically unemployed that don't count.

    If alcie takes his argument all the way, it supports Chuck's contention. Yes, not as many jobs have been created as claimed, and the need is greater than the numbers show. All the more impact a failure of M67/M68 will have.

  • Rick Hickey (unverified)
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    I can see you far lefties smiling, now even more people who can't survive without government handouts, just as you all have worked so hard to promote/support/encourage.

    Your let's "Change" America to the land of the can't get by without Big Brother is working.

    But many more are now seeing thru it and will go the origianl American don't want Big Brother controlling my life way in 2010. As my Dad used too say-"give'em enough rope and they'll hang themselves".

  • Sportland (unverified)
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    Hey Dick Hickey - Are you still the vice-chair of the Marion County Teabaggers....er, I mean Republicans?

  • Jim (unverified)
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    Who knew Dick Hickey's dad was Charles II?

  • Lord Beaverbrook (unverified)
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    Posted by: Rick Hickey | Dec 18, 2009 10:48:12 AM

    I can see you far lefties smiling, now even more people who can't survive without government handouts, just as you all have worked so hard to promote/support/encourage.

    It's really nauseating hearing dittoheads confuse tepid liberals with true radicals. All this talk of socialism, etc., merely indicates that they've not encountered enough of the real thing.

    You want to hear far left? We wish they had never been born, along with 90% of the world. In fact, it's time to call for a cull. Let's start with those with too many kids and lets render climate change deniers for their body fat!

    You've been debating with milk sops so long you've grown flabby! Oh, and #bringbackdueling ! You want to talk about character? Let's work together to make the necessary legislative changes where we can once again settle these issues on the Field of Honour!

    And by my count this makes it official. The number of M66/67 posts now exceed the environmental posts, (over the life of the blog). Tell me, would those employees standing "around the water cooler" tolerate the United Sway rep taking over every conversation they have? Would pretty much kill the conversation, if it happened constantly, no? Ditto, here.

  • nulwee (unverified)
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    "6. Summer jobs = jobs: The Dallas Morning News also found about 5,100 jobs that were summer positions for people 24 and younger."

    I love alcatross' implication that people younger than 24 don't deserve jobs/money. These are the same people these neaderthals kick out of the house at 18, who also have a 50% unemployment rate.

  • alcatross (unverified)
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    Nulwee commented: I love alcatross' implication that people younger than 24 don't deserve jobs/money.

    Nulwee, that's not at all what was said or even implied. There's absolutely nothing wrong with summer jobs for people 24 and younger. Just don't count them in your estimates of the number of permanent, full-time jobs 'created or saved' by the stimulus program.

    And re: these are the same people these neanderthals kick out of the house at 18, who also have a 50% unemployment rate

    fyi, the % of 18-24 year old males living at home is about the same today as it was 50 years ago. The % of 18-24 year old females living at home is actually 10 points higher than it was 50 years ago - and hasn't changed that much in the last 25 years.

    Also, please note that while the employment rate for 18-24 year is definitely low at only 50% - this DOES NOT mean that the unemployment rate is ~50%... because ~40% of 18-24 year olds are pursuing higher education with some percentage not in the job market at all. The more commonly quoted unemployment rate for all 18 to 24 year olds is ~20% - still higher than we'd like, of course.

    <h2>So from above, regardless the unemployment rate, today's neanderthals aren't much different than the neanderthals of 50 years ago when it comes to 18 to 24 year olds living at home.</h2>

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