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Gov. Schwarzenegger Announces More Jobs Saved or Created in California Through Recovery Act Spending Than in Any Other State in Nation

(SACRAMENTO) Governor Arnold Schwarzenegger yesterday joined Vice President Joe Biden at the White House for the Obama Administration’s release of the federal government’s first quarter American Recovery and Reinvestment Act (Recovery Act) data. State-by-state data released by the federal government after the event confirms that over 110,000 direct jobs have been saved or created in California through Recovery Act spending – more jobs than in any other state in the nation – and approximately 17 percent of the over 640,000 direct jobs reported to be saved or created nationwide. Federally released data includes Recovery Act funds administered directly from the federal government to local governments, non-profits and other organizations in addition to funding routed through state government entities. The White House made this data available yesterday on the federal Recovery Act website. Once provided to states, this information will also be uploaded and made available on the California Recovery Act Web site.

“This is not a Republican or Democrat issue – it’s about people, their jobs and our economy,” said Governor Schwarzenegger. “While Californians are still feeling the effects of the national economic downturn, the Recovery Act has slowed job loss and stimulated economic growth – important steps in helping drive our economy down the road to recovery. We are working hand-in-hand with the Obama Administration to pump this funding into California quickly and responsibly to not only save and create jobs, but help heal our economy as a whole.”

Under Governor Schwarzenegger’s leadership, California was the first state in the nation to be approved for billions of Recovery Act education funding aimed at preventing the need for laying off teachers, professors and other school employees – and to protect education funding and reform efforts in this difficult economic time. Through September 30, state education agencies (higher education and K-12) self-reported saving or creating over 62,000 education related jobs in the state of California – over 27,000 of which were in K-12 education.

Additionally, more than 1,800 state-government related infrastructure jobs (transportation, water etc.) were saved or created through September 30. The California Department of Transportation has obligated funds for over 600 transportation infrastructure projects alone – which will save or create more jobs in the coming weeks and months as additional construction jobs break ground throughout the state.

Recipients of Recovery Act funding – which include local governments, non-profits and other organizations that receive funds directly from Washington, as well as state government entities – are required to report directly to the federal government on the status of their funding on a quarterly basis. The federal government provided reporting requirements that specify how Recovery Act funding recipients must report the number of jobs saved and created through Recovery Act spending. Overarching federal requirements were provided by the White House Office of Management and Budget and issue-specific reporting requirements were provided by each individual federal agency overseeing specific funding.

Federal guidelines mandate that Recovery Act funding recipients report only direct jobs saved or created through the spending of Recovery Act funds. Examples include a local education authority using Recovery Act education funds to retain teachers, a Public Housing Authority employing workers to weatherize a housing development or a University receives an NIH grant and uses it to hire lab technicians. Funding recipient jobs reports do notinclude indirect or “ripple effect” jobs saved or created through Recovery Act spending, like jobs created when a Recovery Act funded contractor hires a supplier to provide materials for a construction project –causing the supplier to hire additional full or part time staff.

Federal government reports also do not include information on Recovery Act spending on direct payments to individuals (such as increased Unemployment Compensation and Pell Grants), grants and awards under $25,000 per recipient, Federal Medicaid Assistance Program funding or tax cuts provided by the Recovery Act. Billions of dollars have been pumped into the California economy from these federal programs.