Beaver County Blue

Progressive Democrats of America – PA 12th CD Chapter

US Senate Millionaires Refuse to Renew Emergency Jobs Program: 12,000 Jobs Lost in PA

Posted by randyshannon on September 28, 2010

Stimulus Jobs Program’s End ‘Totally Unbelievable’

Siobhan Kolar can’t believe that thousands of jobs, including her own with an unemployment advocacy nonprofit called Chicago Jobs with Justice, are on the Senate’s fiscal chopping block.

“They’re completely not tuned in and not connected. They’re totally out of touch with what’s going on,” said Kolar, 42, in an interview with Huffpost. Most of Kolar’s $14 per hour salary comes from an Emergency Fund created to subsidize jobs through the Temporary Assistance for Needy Families program (formerly known as welfare).

The Emergency Fund, a $5 billion product of the stimulus bill, created some 240,000 jobs in 37 states and is all set to expire on Thursday. The Senate has rejected several opportunities to extend the program for another year at a cost of $1.5 billion — too much for deficit hawks to spare.

But jobs created by the Put Illinois to Work program have been granted a stay of execution: Illinois governor Pat Quinn announced Tuesday that he would extend the program in Illinois for an additional two months (though it was not immediately clear how the extension would be funded).

“The best way to make our economy stronger is to put people to work — that is why we are temporarily continuing this successful program until Congress acts to extend the program,” Quinn said in a statement. “We cannot afford to lose momentum as we continue our economic recovery. Quick action by Congress will keep thousands of people at work in Illinois and will continue to build on the progress we have already made.”

In Illinois, the program has put an 26,000 people to work, according to the Center on Budget and Policy Priorities, which estimated that the fund created more than 240,000 jobs nationwide. The program is even popular with some conservatives, such as Mississippi Republican Gov. Haley Barbour, but since summer the Senate has gridlocked repeatedly over deficit spending. Despite Quinn’s hopes, there’s no indication that the Senate will take up the fund in December after it allows it to lapse as expected this week.

States have taken different approaches to the program, and in some places workers whose jobs will end on Friday will not be eligible for unemployment benefits. “Generally, when a state sets up a transitional jobs or subsidized employment program, the worker should be treated as a paid employee covered by minimum wage protections and state unemployment insurance law,” said George Wentworth of the National Employment Law Project. “However, some states have structured their programs as work experience or training with payments made through a third party and exempt from coverage under the state’s unemployment insurance law.”

Participants in the Put Illinois to Work program “will likely not be eligible for unemployment benefits at the conclusion of the program,” according to the program’s website.

“It’s totally unbelievable that 26,000 people won’t be getting unemployment in Illinois and will be hitting the pantry line,” said Kolar, who lives in Downers Grove, Ill. She said she worked at nonprofits for the past several years before losing her job in May. “My kids are 15, 14, 12, and 8. When my 14-year-old heard I was going to get laid off, he said, ‘Oh, not again.'”

“It’s awful,” said Kolar’s boss, Susan Hurley. “We’re going lose an organizer — but it’s not really so much about the organizer as it is about the people we’re able to help. We are currently organizing the unemployed. We have someone on-hand to help them navigate the sometimes complicated and frustrated system for unemployment compensation. The folks on unemployment are going to lose that. She’ll go from helping the unemployed to being unemployed.”

NYT: With stimulus expiring, thousands face losing new jobs

Michael Cooper / The New York Times

Tens of thousands of people will lose their jobs within weeks unless Congress extends one of the more effective job-creating programs in the $787 billion stimulus act: a $1 billion New Deal-style program that directly paid the salaries of unemployed people so they could get jobs in government, at nonprofit organizations and at many small businesses.

While the Obama administration and Democrats in Congress want to extend the program, they are meeting stiff resistance from Republicans, many of whom oppose all things stimulus.

But despite hostility from Republicans on Capitol Hill, the program has been embraced by some Republican governors who have used it to create jobs in their states.

In Mississippi, an innovative program used the money to pay private companies to hire nearly 3,200 workers, and to pay their salaries on a sliding scale so that the employers would end up paying the entire amount after six months.

Gov. Haley Barbour, a Republican, described the initiative there as “welfare to work.” Barbour, the chairman of the Republican Governors Association, said in an interview last winter that he hoped the program would be extended past this month, since it took so long for the state’s program to get federal approval.

The federal program has helped employ nearly 130,000 adults and has paid for nearly an equal number of summer jobs for young people, according to an analysis by the Center for Budget and Policy Priorities, a liberal policy institute in Washington.

If the program is allowed to lapse, up to 26,000 workers in Illinois will lose their jobs in the coming weeks, along with 12,000 workers in Pennsylvania and thousands more in other states, according to LaDonna Pavetti, the director of the center’s welfare reform and income support division.

The money came from a pot of $5 billion that was included in the stimulus package as an emergency fund for the Temporary Assistance for Needy Families program, the main cash welfare program for families with children. Of the $4.3 billion that has been approved so far, $1.4 billion has gone toward basic assistance, $1.8 billion has been used to help families pay one-time emergency expenses like rent and utility bills, and a little over $1 billion has been used to subsidize jobs.

Some economists consider subsidized jobs one of the most cost-effective ways to stimulate employment: There is no overhead or profit, as there is when firms win bids to perform work for the government.

But if the program was supposed to act as a bridge to keep people working until the economy started adding jobs in large numbers again, officials in Tennessee said that it was ending a bit early.

“It was very much a Band-Aid,” said Mayor Robby J. Moore of Lobelville, Tenn. “And now the Band-Aid is coming off
From The Detroit News: http://detnews.com/article/20100926/NATION/9260311/NYT–With-stimulus-expiring–thousands-face-losing-new-jobs#ixzz10t4EiY5I

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