From: "Saved by Windows Internet Explorer 8" Subject: Stimulus money may save more jobs in Texas than it creates | Fort Worth | Star-Telegram.com Date: Tue, 7 Jul 2009 11:47:02 -0500 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0051_01C9FEF8.A4D72F00" X-MimeOLE: Produced By Microsoft MimeOLE V6.0.6001.18049 This is a multi-part message in MIME format. ------=_NextPart_000_0051_01C9FEF8.A4D72F00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.star-telegram.com/metro_news/story/1458808.html
Texans will see the federal stimulus package in action this summer as = state=20 agencies gear up to start work on hundreds of millions of dollars worth = of=20 projects.
But the impact of the $787 billion economic shot in the arm may be = more about=20 saving jobs than creating new ones, according to several public = officials and=20 businesses receiving stimulus money.
Officials with several state agencies say the direct job impact from = their=20 slice of the stimulus will depend on how private contractors handle the = extra=20 business they receive that is funded by taxpayer dollars.
"Some people will get hired. A lot of people will basically avoid = getting=20 laid off," said Chris Lippincott, a spokesman for the Texas Department = of=20 Transportation.
President Barack Obama signed his stimulus package in February, = predicting it=20 would save or create 3.5 million jobs. Earlier this month, he said the = stimulus=20 had created or saved 150,000 jobs so far and would create or save = 600,000 more=20 this summer as spending ramps up.
"It=92s mainly a political number. It=92s a guesstimate," said = Bernard Weinstein,=20 director of the Center for Economic Development and Research at the = University=20 of North Texas.
Weinstein said the stimulus wasn=92t perfect but is necessary to = avoid a=20 depression. Critics argue that the stimulus will hurt the economy in the = long=20 run. A recent report from the fiscally conservative Texas Public Policy=20 Foundation predicted it would lead to the loss of 1.7 million jobs=20 nationally.
"Obviously you have a short-term benefit anytime you plug money in, = but it=20 delays or stymies the ability of the private sector to grow," said = former Rep.=20 Talmadge Heflin, director of the Foundation=92s Center for Fiscal = Policy.
Few jobs expected
Stimulus money will eventually reach every level of Texas government. = Large=20 portions are aimed at cushioning the blow from the recession and are = expected to=20 create few, if any, government jobs. For instance, Tarrant County will = receive=20 $3.3 million to stabilize neighborhoods by acquiring and redeveloping = foreclosed=20 properties. The county plans to hire one person to manage the program = for 18=20 months.
The largest piece of Texas=92 cut of the stimulus is going to = education =97 $5.3=20 billion. Most of it is going toward shoring up widespread budget = shortfalls. The=20 Fort Worth school district has said that layoffs are inescapable but = that the=20 $40 million it is receiving from the stimulus will keep them from being=20 deeper.
Stimulus projects that improve infrastructure are expected to be the = most=20 effective job creators.
"It creates more business for the contractors, but more business for = the=20 contractors means more spending and more supplies and job creation," = Weinstein=20 said. "So it=92s a multiplier effect."
Transportation = projects
The Texas Transportation Department received $2.6 billion in stimulus = money=20 for projects that the agency expects will create 69,000 new jobs. The = money is=20 going to projects that have already been designed and are just waiting = for the=20 funds to be built.
"The orange barrels are starting to show up in communities across the = state,=20 and you will see more of them this summer," Lippincott said.
Next month, $134 million in stimulus funds will allow the North Texas = Tollway=20 Authority to request bids from contractors for the first work on the=20 long-delayed Southwest Parkway from downtown Fort Worth to Cleburne, = Chairman=20 Paul Wageman said. Construction is slated to begin in the fall.
Several construction companies contacted by the Star-Telegram = said=20 the stimulus work allows them to avoid layoffs and hire a small number = of=20 temporary workers.
San Angelo-based Reece Albert saved the jobs of over 100 employees by = securing 11 stimulus contracts in West Texas and South Texas, according = to=20 President Jack Albert.
"Without this stimulus money, we would have been in trouble," he = said.
The stimulus impact on the North Texas construction industry has been = minimal=20 so far, according to Raleigh Roussell, president of TEXO, an association = representing commercial contractors in North Texas and East Texas. He = said some=20 firms are wary of the extra reporting requirements as well as "Buy = American"=20 provisions that come with stimulus jobs.
Join the discussion
The Fort Worth Star-Telegram is pleased to provide this opportunity = for you=20 to share your thoughts and observations about news topics. We enjoy = lively=20 debate on the issues of the day, but we ask that you refrain from using=20 profanity, racist or hate speech, making personal attacks, posting = advertising=20 or including remarks that are off topic. To post comments, you must be a = registered user of Star-Telegram.com. Your username will show along with = the=20 comments you post. Thank you for taking the time to offer your = thoughts.
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