
11-02-2009, 05:02 PM
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Kiss The Ring
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Join Date: Jan 16, 2003
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Oregon Uses Stimulus Funds to Create Government Jobs, Provide Social Services
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The latest figures indicate that Oregon has saved or created more than 9,600 jobs with money from the federal stimulus, but three out of four are government positions.
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As debate continues over whether the $787 billion stimulus package is creating jobs, Oregon is providing the first glimpse into how states are spending the federal money to keep citizens employed.
Oregon announced that it has saved or created more than 9,600 jobs with the federal funds -- but three out of four are government positions, raising questions about the lasting impact of the stimulus funds.
The Beaver State was the first to report on where its share of the stimulus funds are being spent. So far Oregon has paid out nearly $1.1 billion. Of that, the majority of the funds -- more than $700 million -- has not gone into job creation, but rather social services such as unemployment insurance, food stamps and Medicaid.
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One state economist agrees. Art Ayre says it generally costs more to create a public sector job than one in the private sector. That's because the government job has an additional 35 percent in cost above salary. Most of that comes in the form of health and retirement benefits.
"Stimulus spending lessens the pain of a recession, but slows the recovery process because it causes companies and the government to delay hard decisions," Ayre said.
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Oregon Uses Stimulus Funds to Create Government Jobs, Provide Social Services - FOXNews.com
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