Stimulus program paid for nearly 10,700 jobs in Kentucky | News | Kentucky Roofing Contractors Association

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Stimulus program paid for nearly 10,700 jobs in Kentucky

During the last three months of 2009, the federal government's economic stimulus program reportedly paid for nearly 10,700 jobs in Kentucky, according to Cincinnati.Com. Since the stimulus bill was passed almost a year ago, Kentucky has received about $797 million of the $2.5 billion awarded.

The most recent data are from the second quarterly report of spending from the American Recovery and Reinvestment Act; in October 2009, the federal government's first quarterly report showed 4,170 jobs in Kentucky were created or saved.

However, tangible economic benefits have been difficult to link to stimulus spending as Kentucky's unemployment rate reached 10.7 percent in December 2009. New federal guidelines calculate the total hours worked that are funded by stimulus money instead of distinguishing between new jobs and jobs retained.

The White House has estimated the stimulus program would save or create 48,000 jobs in Kentucky. Gov. Steve Beshear (D-Ky.) says state stimulus grants supported nearly 9,000 jobs in Kentucky during the final quarter of 2009, which he believes is a sign the stimulus program is working.

"We have been aggressive in getting the stimulus money to work quickly by putting it into needed projects and programs that will have an immediate impact on improving our state," Beshear says.

About 7,375 of those jobs were in schools, and much of the funds were used to retain teachers who may have faced layoffs. The funding also allowed Jefferson County Public Schools to hire 50 special education teachers during the past nine months. However, University of Louisville economist Paul Coomes is skeptical of the stimulus program's effect in education.

"What they preserved was local taxpayers having to come up with some other funds to keep teachers' salaries the same as they were and give people raises," he says. "So they've used federal money to pay for something that's basically a local, public good."

The first stimulus reports in October 2009 contained many errors and inaccuracies, and federal officials say they are taking steps to improve the data's reliability. Corrected data will be posted on www.recovery.gov starting Feb. 10.

"Not unexpectedly, recipients have made errors when reporting," says Earl Devaney, chairman of the Recovery Accountability and Transparency Board. "By giving recipients the ability to correct mistakes on a continuing basis, we believe the quality of their reports will improve."

2/2/2010