Gov. Martin O'Malley, left, and Lt. Gov. Anthony G. Brown hold a news conference at P. Flanigan and Sons' asphalt plant in West Baltimore to announce the results of federal stimulus spending in Maryland. (Baltimore Sun photo by Barbara Haddock Taylor / October 29, 2009) |
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More than 4,460 jobs have been created or saved with the infusion of federal stimulus dollars into Maryland, according to an initial accounting that Gov. Martin O'Malley released Thursday showing how some of the money has been spent.
That level of job creation is far smaller than the 25,800 jobs lost in Maryland during the same time frame, but state officials caution that they have spent only 6 percent of more than $4 billion in anticipated federal funding. They also note that while the state was the first to funnel money into roads projects, many grants for health care programs and home weatherization have only recently been received.
The state report and a national one to be released Friday are expected to reignite the debate over the $787 billion in recovery dollars aimed at averting a longer and deeper recession. As unemployment continues to rise, Republicans have argued that the stimulus program failed. But Democrats are seizing on a just-released report that the economy is officially growing again.
"Our hope is that as recovery dollars run out, so will the recession," O'Malley said.
O'Malley, a Democrat, touted the jobs report during an event at P. Flanigan and Sons Inc.'s asphalt plant in Baltimore, which is working on three projects funded by stimulus dollars. Company officials say the money has allowed them to retain about one-third of their 300 employees.
"It has kept a lot of people working," said Steve Whitecotton, vice president of Flanigan. The jobs report was the product of an effort coordinated through Maryland's StateStat office. O'Malley acknowledged that the data might not be "perfect" but said Maryland tracks the funding it receives under the American Recovery and Reinvestment Act "better than any other state in the union."
The accuracy of jobs statistics has been questioned after media reports showed some recipients of federal funding overstated the number of jobs created or saved in data released earlier this month. Michael R. Enright, senior adviser to O'Malley, said that the state has hired auditors and is verifying numbers against payroll information, but acknowledged that mistakes might be made.
Some Republicans have questioned whether the government spending is the appropriate way to juice the economy, favoring tax breaks and other ways to stimulate the private sector. State Sen. David R. Brinkley, a Frederick County Republican on the Budget and Taxation Committee, said most of the stimulus-created jobs aren't permanent. He also criticized the inclusion of jobs that were "saved" because they weren't eliminated.
"It's Monopoly money, and these are Monopoly jobs," Brinkley said.
According to the Maryland data that covers February through September, transportation funding led to the creation of nearly 800 jobs through the start of 84 construction projects at a cost of $184 million. Education funding has supported 1,810 teachers, and $34 million in work force grants were used in part to hire hundreds of students in part-time summer jobs.
While some of the information comes from contractors reporting how many jobs were supported by the federal funding, some is based on a formulaic accounting.
"We have not yet begun to see the real wave of recovery act dollars. The big numbers are still coming," Enright said. "Next quarter is when we're going to see a lot more job creation and a lot more dollars out the door."
The administration also calculated that 1,450 jobs were indirectly created by the federal funding through subcontracting, for example, and another 8,170 jobs were "induced" or created by the ripple effect of more money in the economy. Medicaid rolls were expanded, for example, so that doctors and their support staff also benefited. Those jobs numbers were not reported to the federal government.
The 4,460 figure does not include 965 private-sector jobs that were created or saved through federal contracting that wasn't handled through the state. The over-reporting errors were found in that data, and the White House said in a statement Thursday that many of the problems have been fixed and that the errors do not significantly affect the total job count.
Administration officials said they can't pinpoint how many jobs were created versus saved, though Enright said the number includes 700 state employee layoffs that O'Malley had threatened before the recovery act was enacted. While the governor was able to avoid mass layoffs when crafting the budget at the beginning of the year, he recently laid off 200 state workers as tax revenues continued to decline.
Some analysts said the stimulus money is making a real impact. Josh Bivens, an economist at the Economic Policy Institute, a liberal think tank, credits the funding with fueling a 3.5 percent economic growth rate in the third quarter, the best showing in two years. Bivens said without the stimulus, gross domestic product expansion would have been only 0.8 percent.
Others questioned the usefulness of the data. J.D. Foster, a senior fellow at the Heritage Foundation, a conservative think tank, said it is "virtually impossible in any scientific way to determine gross job creation from federal or state spending." He criticized states for putting out specific numbers when government officials readily acknowledge the jobs figures are a best guess.
But even Foster credited state and federal efforts to make the information public. "There is much about the data that can be criticized, but you have to acknowledge that it is the most extensive reporting and presentation of data, probably in the history of man," he said.
Baltimore Sun reporters Jamie Smith Hopkins | The Baltimore Sun and Paul West contributed to this article.
That level of job creation is far smaller than the 25,800 jobs lost in Maryland during the same time frame, but state officials caution that they have spent only 6 percent of more than $4 billion in anticipated federal funding. They also note that while the state was the first to funnel money into roads projects, many grants for health care programs and home weatherization have only recently been received.
The state report and a national one to be released Friday are expected to reignite the debate over the $787 billion in recovery dollars aimed at averting a longer and deeper recession. As unemployment continues to rise, Republicans have argued that the stimulus program failed. But Democrats are seizing on a just-released report that the economy is officially growing again.
"Our hope is that as recovery dollars run out, so will the recession," O'Malley said.
O'Malley, a Democrat, touted the jobs report during an event at P. Flanigan and Sons Inc.'s asphalt plant in Baltimore, which is working on three projects funded by stimulus dollars. Company officials say the money has allowed them to retain about one-third of their 300 employees.
"It has kept a lot of people working," said Steve Whitecotton, vice president of Flanigan. The jobs report was the product of an effort coordinated through Maryland's StateStat office. O'Malley acknowledged that the data might not be "perfect" but said Maryland tracks the funding it receives under the American Recovery and Reinvestment Act "better than any other state in the union."
The accuracy of jobs statistics has been questioned after media reports showed some recipients of federal funding overstated the number of jobs created or saved in data released earlier this month. Michael R. Enright, senior adviser to O'Malley, said that the state has hired auditors and is verifying numbers against payroll information, but acknowledged that mistakes might be made.
Some Republicans have questioned whether the government spending is the appropriate way to juice the economy, favoring tax breaks and other ways to stimulate the private sector. State Sen. David R. Brinkley, a Frederick County Republican on the Budget and Taxation Committee, said most of the stimulus-created jobs aren't permanent. He also criticized the inclusion of jobs that were "saved" because they weren't eliminated.
"It's Monopoly money, and these are Monopoly jobs," Brinkley said.
According to the Maryland data that covers February through September, transportation funding led to the creation of nearly 800 jobs through the start of 84 construction projects at a cost of $184 million. Education funding has supported 1,810 teachers, and $34 million in work force grants were used in part to hire hundreds of students in part-time summer jobs.
While some of the information comes from contractors reporting how many jobs were supported by the federal funding, some is based on a formulaic accounting.
More progress
Enright defended the pace at which the state has been able to deploy the federal dollars and said future reports will show more dramatic progress."We have not yet begun to see the real wave of recovery act dollars. The big numbers are still coming," Enright said. "Next quarter is when we're going to see a lot more job creation and a lot more dollars out the door."
The administration also calculated that 1,450 jobs were indirectly created by the federal funding through subcontracting, for example, and another 8,170 jobs were "induced" or created by the ripple effect of more money in the economy. Medicaid rolls were expanded, for example, so that doctors and their support staff also benefited. Those jobs numbers were not reported to the federal government.
The 4,460 figure does not include 965 private-sector jobs that were created or saved through federal contracting that wasn't handled through the state. The over-reporting errors were found in that data, and the White House said in a statement Thursday that many of the problems have been fixed and that the errors do not significantly affect the total job count.
Administration officials said they can't pinpoint how many jobs were created versus saved, though Enright said the number includes 700 state employee layoffs that O'Malley had threatened before the recovery act was enacted. While the governor was able to avoid mass layoffs when crafting the budget at the beginning of the year, he recently laid off 200 state workers as tax revenues continued to decline.
Some analysts said the stimulus money is making a real impact. Josh Bivens, an economist at the Economic Policy Institute, a liberal think tank, credits the funding with fueling a 3.5 percent economic growth rate in the third quarter, the best showing in two years. Bivens said without the stimulus, gross domestic product expansion would have been only 0.8 percent.
Others questioned the usefulness of the data. J.D. Foster, a senior fellow at the Heritage Foundation, a conservative think tank, said it is "virtually impossible in any scientific way to determine gross job creation from federal or state spending." He criticized states for putting out specific numbers when government officials readily acknowledge the jobs figures are a best guess.
'False precision'
"The data are spotty," Foster said. "That kind of false precision is misleading."But even Foster credited state and federal efforts to make the information public. "There is much about the data that can be criticized, but you have to acknowledge that it is the most extensive reporting and presentation of data, probably in the history of man," he said.
Baltimore Sun reporters Jamie Smith Hopkins | The Baltimore Sun and Paul West contributed to this article.
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What a load of hoey. How in the world can you quantify jobs saved? Unemployment is even worse than stated because it includes so many more that have quit looking for work. Taxes on the wealthy won't pay for the continuing increase in more gifts to the freeloaders, it will come on the backs of what is left of the middle class. If I was O'Malley I would start fluffing up my resume.
Billinsalisbury (10/30/2009, 8:44 PM )