Recovery Blog
"It Made for Good Sound Bytes"
Posted by on February 2, 2010 at 10:09 PM ESTLast week, we told you how CNN had fact-checked the top ten items in a report issued by two opponents of the Recovery Act and found that nine of their top ten claims were false.
- “We took a closer look at the Senators’ top ten examples of so-called waste. We found that nine of the ten did not tell the whole story and in some cases were inaccurate.” [CNN, 1/25/10]
But recently, CNN and others in the press have taken a look at #11 on the Senators’ list: which they call the “The Napa Wine Train” project, but is really a job creating flood protection project that will make the city of Napa safer while putting up to 600 people on the job.
In their report, the Senators’ titled the project “All Aboard The Wine Train!,“ and imply that the Recovery Act is frivolously funding a three hour Napa Valley train tour:
- “The Napa Wine Train has proven to be a popular tourist attraction, providing, ― a relaxing three hour journey along the thirty six-mile round-trip… through one of the world's most famous wine valleys. One of the most popular meals on the train is the $124 Vista Dome Lunch, where guests enjoy ―a complimentary glass of California sparkling wine [that] continues with a four course lunch of their choice.”
Thankfully, CNN and others have recently corrected this report:
- CNN said: “In fact, the money is not being spent on the wine train. The stimulus money is for a massive flood control project for the valley.” [CNN, 1/28/10]
- A spokesperson for the Napa River Flood Control Project agreed, “This is perfectly fitting into what stimulus was intend to do. As you see here, people are on the job working today who may not be otherwise.” [CNN, 1/28/10]
- And you can check with the Napa Wine Train folks, “The person who did the research for the senators didn't do a thorough job and I think if they had done a thorough job we wouldn't have been on the list at all.” [CNN, 1/28/10]
Even the San Francisco Chronicle posted a blog calling out Senators’ McCain and Coburn:
- “It made for good sound bytes: Obama's handing money to the rich liberals in California! (Lunch on the train runs into three figures.) But it turns out that's not what happened at all. The stimulus is actually funding the Napa River Flood Project's efforts to elevate the train's tracks and build a flood wall at the depot. These projects are just a small part of an overall plan to manage flooding in the area.” [SF CHRONICLE]
Here’s what’s really going on:
- “Supporters of the project say the stimulus fund will create at least 600 jobs and those jobs are expected to last two to three years until the project is done. But that's for the whole flood project. The contractor expects the track work will employ some 200 people. Once complete it should mean Napa won't flood every few years.” [CNN, 1/28/10]
As the President puts forward new measures to ensure every American who wants a job can get one, here’s what we know: 2 million jobs already funded by the Recovery Act, two quarters of GDP growth helping pave the road to recovery, and a flood protection project in Napa Valley is creating jobs while protecting a community against flooding.
Here’s what we expect moving forward: as the President introduces new jobs measures like he did today, we hope that the Administration’s opponents get off the sidelines and engage in meaningful dialogue that will help rebuild America’s middle class.
Jim Gilio is White House Spokesperson for the Recovery Act
Learn more about EconomyNew Reports from Recovery Act Recipients
Posted by on January 30, 2010 at 11:07 PM ESTA short time ago, the independent Recovery and Transparency Board posted the latest round of reports from recipients of Recovery Act dollars on Recovery.gov. These reports provide a detailed look at how a portion of Recovery Act spending was put to work in the last three months of last year creating jobs and boosting local economies.
If you visit Recovery.gov, you will see how you can pull up the latest map, type in your zip code and zoom in to get a closer look at how some Recovery Act projects are unfolding right in your own backyard. Take for example my hometown, the great city of Philadelphia. If I zoom in on the map, I can see details on Recovery Act projects - including who the dollars went to, when they got them and how many workers were funded last quarter through them. And if you zoom back out to look at all of last quarter’s reports, you’ll see the total number or workers these recipients reported paying in that three month period using this small portion of Recovery dollars.
Now, you’ll notice I keep saying “some projects” and a “portion of spending” – that’s key here. While these reports provide an extraordinary level of detail about Recovery Act projects, they only cover about $50 billion – or one fifth- of Recovery Act spending and tax relief through the end of last year. Congress asked that these reports only be filed by a portion of Recovery Act recipients – specifically those putting the dollars to work in areas like infrastructure projects and education spending.
So that gives you a pretty good sense of what the reports and related jobs numbers do include: the number of workers recipients of a small pool of Recovery Act funds report they funded in the last three months of 2009 with Recovery Act dollars. That’s an informative sample that tells us a lot about the kinds of projects underway, how far along they are and what sort of direct employment impact they may be having. But here is what they don’t show us:
- Jobs funded by those dollars from previous or future quarters. Remember, that $50 billion may have also funded jobs before October 1, 2009 – and may fund more jobs in the future.
- The job impact of the other 80 percent of Recovery Act spending last quarter which includes things like small business loans, tax credits, and financial assistance for individuals and families – all of which are job-creators.
- Any jobs where the salary was not directly paid with Recovery Act dollars like the worker hired by the subcontractor for a government contract. Or the worker hired by the asphalt quarry supplying asphalt for a half dozen Recovery Act projects. Or the fast food worker hired because of the growing lunch rush due to a Recovery Act project underway across the street.
It’s also important to keep in mind that posting this level of information about a Federal Government program in full public view like this is quite simply unprecedented -- it’s never been done before in the entire history of our government. And these reports are no ordinary government-released reports. They come directly from the recipients of Recovery dollars themselves -- people like local government employees, community organization administrators and small business owners who don’t count jobs for a living. While these are honest efforts to be as accurate as possible, we know they’re not perfect.
With all of that in mind – just how many jobs has the Recovery Act created? Is it the 599,108 number for this quarter posted on Recovery.gov? Nope – remember, that represents just a portion of the job impact in the fourth quarter. Is it that 599,108 number this quarter plus last quarter’s number? No – both just account for a portion of spending and, since the method for counting was changed slightly this quarter to make it easier for recipients, the two numbers are pretty much apples and oranges. The good news is that we already know the overall estimated job impact of the Recovery Act. The Council of Economic Advisers recently released analysis that found the Recovery Act is already responsible for about 2 million jobs and the independent, non-partisan Congressional Budget Office agrees, putting the number at as many as 2.4 million jobs.
So what exactly does the roughly 600,000 jobs number tell us? Well, that small portion of Recovery spending recipients say yielded about 600,000 jobs funded is right in line with our goal to create or save 3.5 million jobs through the Recovery Act by the end of 2010. That’s good news for the millions of Americans across the country that have or will bring home a paycheck thanks to the Recovery Act.
Ed DeSeve is Special Advisor to the President
Learn more about EconomyMore Faces of Recovery
Posted by on January 27, 2010 at 9:21 AM ESTYesterday, we introduced you to some of the many people CNN has met through their Stimulus Project who are finding work, growing their businesses, buying their first homes and receiving needed financial assistance thanks to the Recovery Act. Here are even more Americans who have told CNN the Recovery Act is making a difference for their families and their communities.
Kitty Schaller, the head of MANNA Food Bank in Asheville, North Carolina says the Recovery Act has helped "provide for the most basic needs for people who are truly in need." "The economic stimulus package has helped us to provide for the most basic needs for people who are truly in need.” [CNN, 1/26/10]
Peter Wilf, a researcher at Penn State University, says his Recovery Act research grant is "stimulating the economy." “I want to mention this [funding] was not just for me, this is for 17 investigators and their students. It's not just for Penn State but many institutions. We are stimulating the economy. We have numerous people working under this grant. The money is circulating, a percentage of it, back into the US economy and we also feel that exciting science is good for the US economy. So, yes, I’m proud now that we are in this program. I’m proud of it and I'm happy to wear the badge.” [CNN, 1/26/10
Mayor John Fetterman, of Braddock, PA says the Recovery Act has "helped a great deal" and is "very beneficial." “It has helped a great deal. We have got about $250,000 to upgrade our sewer system to be in compliance with the Environmental Protection Agency. And not sexy kind of things, or head-line grabbing but still necessary in a community like Braddock where we are having to raise taxes because of revenue loss. We also got a smaller grant that allowed us to hire 30 young people, very beneficial.” [CNN, 1/26/10]
Steven Kyle, an economics professor at Cornell University, says the Recovery Act is "stimulating the economy." “Sure it's stimulating the economy. That food is produced here in the United States. That stimulates the U.S. economy. Those farmers then end up with more money and they turn around and buy more equipment, hire more laborers, maybe they buy themselves a new caterpillar tractor. Who knows?” [CNN, 1/26/10]
Mayor Kasim Reed of Atlanta says "the stimulus definitely saved jobs"and helped "avert furloughs of teachers, firefighters and state patrolmen." “The stimulus definitely saved jobs. Were it not for the stimulus, thousands of state employees ran the risk of being furloughed or laid off... I was in the state senate at the time and we had a large hole in our budget. Those stimulus dollars did help to avert furloughs of teachers, firefighters and state patrolmen.” [CNN, 1/26/10]
Mayor Phil Gordon, of Phoenix, says that because of the Recovery Act, "thousands of people are going back to work." "The picture in Phoenix, Arizona, is clear: Because of ARRA, key projects are under way, our environment is improving -- and thousands of people are going back to work." [CNN.com, 1/25/10]
James Ceaton, a construction worker from Phoenix, said he "would still be out of a job" if it weren't for the Recovery Act. "Without the stimulus I would still be out of a job." [CNN.com, 1/25/10]
Jeanne Simons, a seventh- and eighth-grade teacher in Phoenix, AZ says without the Recovery Act, she would have lost her teaching position. "Last year, she was told that if ARRA funds were not approved, she would lose her teaching position. If her position had been eliminated, the remaining teachers would have faced class sizes of between 40 and 50 students -- a daunting task for any educator to face.” [CNN.com, 1/25/10]
Liz Oxhorn is Recovery Act Communications Director
Learn more about EconomyA Closer Look
Posted by on January 26, 2010 at 12:11 PM ESTThis week, CNN has been taking a good, hard look at the Recovery Act and examining some of the projects being funded across the country to create jobs and drive economic growth. As they do this, they’re asking some questions about how Recovery dollars are being spent. We wanted to provide the full set of facts about some of the projects featured. For example:
On the big picture, one report claims that the Recovery Act's weatherization program, part of an unprecedented investment in energy retrofits, is moving too slowly. A closer examination shows something different:
- After starting a little slower than we'd hoped, the program has picked up steam and we are now on a path to reach our target of weatherizing 20,000-30,000 homes a month.
- Grantees have now spent over $445 million in the weatherization program, and the pace of spending continues to accelerate. The states and local agencies spent the summer gearing up - training and hiring new workers and putting in place the accountability and transparency mechanisms that are central to the Recovery Act. In the fall, the local agencies began to weatherize homes in earnest and are continuing to increase the pace of weatherization every month.
- And states are already able to put to work the first 50 percent of their Recovery funds. As part of the oversight and management process under the weatherization program, states are required to weatherize 30 percent of their estimated units and demonstrate they are meeting the accountability, transparency and job creation goals of the Recovery Act before they can access the remaining 50 percent of obligated funds.
Learn more about Economy, Fiscal ResponsibilityThe Winds of Recovery are Blowing Across the Nation
Posted by on January 26, 2010 at 11:15 AM ESTThe American Wind Energy Association (AWEA) released their 4th Quarter 2009 industry assessment, in which they credited the American Recovery and Reinvestment Act (ARRA) with almost solely turning a potential decline into historic growth in the U.S. wind industry. According to their press release:
Early last year, before [ARRA], the industry anticipated that in 2009 wind power development might drop by as much as 50% from 2008 levels, with equivalent job losses. The clear commitment by the President to create clean energy jobs and the swift implementation of ARRA incentives by the Administration in mid-summer reversed the situation. Recovery Act incentives spurred the growth of construction, operations and maintenance, and management jobs, helping the industry to save and create jobs in those sectors and shine as a bright spot in the economy.
ARRA included more than $80 billion in clean energy investments. Through these investments, American companies and American workers are involved in unprecedented growth in the generation of renewable energy, expanding manufacturing capacity for clean energy, advancing vehicle and fuel technologies, and building a bigger, better, smarter electric grid... all while saving and creating jobs here at home. Some of the direct benefits this report identifies include:
- The nation's fleet of wind plants grew by 39% last year alone.
- America's wind power fleet will avoid an estimated 62 million tons of greenhouse gases annually, equivalent to taking 10.5 million cars off the road.
This report is good news, and it is consistent with the clean energy jobs numbers recently released by the President's Council of Economic Advisors. Across the country, communities are beginning to establish the clean energy industries that will power the 21st century global economy. Just last week, President Obama got to see firsthand how clean energy investments are putting people to work during his visit to the Wind Turbine Manufacturing and Fab Lab facilities at Lorain County Community College (LCCC) in Elyria, Ohio. LCCC is offering the first associate's degree credit program in Ohio in the burgeoning field of wind turbine power generation. This program will train students to become installation and maintenance professionals in the wind energy sector. The new associate's degree program will cover an overview of alternative energy sources, with specialized training in electronics, electronic controls, mechanical systems and more.
During the visit, the President spoke on the undertapped potential for clean energy jobs:
That's why I'm calling on Congress to pass a jobs bill to put more Americans to work building off our Recovery Act; put more Americans back to work rebuilding roads and railways; provide tax breaks to small businesses for hiring people; offer families incentives to make their homes more energy-efficient, saving them money while creating jobs.
That's why we enacted initiatives that are beginning to give rise to a clean energy economy. That's part of what's going on in this community college. If we hadn't done anything with the Recovery Act, talk to the people who are building wind turbines and solar panels. They would have told you their industry was about to collapse because credit had completely frozen. And now you're seeing all across Ohio some of the -- this state has received more funds than just about anybody in order to build on that clean energy economy -- new cutting-edge wind turbines and batteries that are going to be going into energy-efficient cars.
Almost $25 million of our investment went to a plant right here in Elyria that's helping produce the car batteries of the future. That's what we're going to keep on doing for the rest of 2010 and 2011 and 2012, until we've got this country working again.
The AWEA assessment shows the solid progress made over the last year, but there is still more to be done to both ensure a long-term market signal for renewables and to ensure the U.S. is the global leader in clean energy technology. To achieve this goal, Congress must pass comprehensive energy and climate legislation to make renewable energy the profitable kind of energy and provide business with the certainty and predictability they need. The House of Representatives has already passed such legislation and the Senate is working to do the same. The President will continue to make passage of legislation a top priority given its benefits for our economy, our security and the environment.
Heather Zichal is Deputy Assistant to the President for Energy and Climate Change
Learn more about Economy, Energy & EnvironmentFaces of Recovery
Posted by on January 26, 2010 at 8:57 AM ESTAs we’ve been following CNN’s Stimulus Project coverage this week, we’ve noticed that, like us, they’re meeting Americans across the country who are finding work, growing their businesses, buying their first homes and receiving needed financial assistance thanks to the Recovery Act. Here is just a sampling of some of the people who have told CNN the Recovery Act is making a difference for their families and their communities.
Michael Johnson of Orlando, FL said the Recovery Act's Homelessness Prevention and Rapid Re-housing Program is “truly is an impactful program.” “This truly is an impactful program. That my kids could wake up in their own rooms on Christmas morning and walk out to the Christmas tree. I mean we never thought we’d have a place to put a Christmas tree.” [CNN, 1/25/10]
Bobby Jones, a general foreman from Aiken, SC said the Recovery Act is "keeping [him] employed.” “I'm working on the DUO project (depleted uranium oxide), I was in D&D (deactivation and decommissioning) and I moved over here [to DOE’s Savannah River Site] in October. They needed someone to run the night shift so I came over. It's still stimulus funded and it's keeping me employed.” [CNNMoney.com, 1/25/10]
Wellington Hall a traffic engineer from Providence, RI said “none of this would be possible without the stimulus and I’m very grateful for that.” “I just got assigned as a project manager of a highway safety improvement project -- the goal is to identify intersections with high crash rates and work with consultants to mitigate accidents and make them safer. It feels good to know that these are some of the roads I drive on and that my coworkers and friends drive on. It feels good to know I'm making an impact. Right now I'm working on other things too, like using renewable energy to save on electrical costs. There are always things to keep me busy. This job has definitely helped me. I bought a house in august with my fiancé, got engaged in November and graduated last week. None of this would be possible without the stimulus and I'm very grateful for that. We're planning on getting married sometime in 2011.” [CNNMoney.com, 1/25/10]
Officer Patrick Dunn of Englewood, CO said that “If it wasn’t for the stimulus I probably wouldn’t have been hired.” “If it wasn’t for the stimulus, I probably wouldn’t have been hired. We had one income. My wife has been supporting the whole income. We have three kids. I have a 6, 5 1/2-year-old daughter and 20-month-old twins. There was a lot of pressure put on her.” [CNN, 1/25/10]
Officer Eddie Blackwell of Englewood, CO says the Recovery Act “gave [him] a golden opportunity to become a police officer.” “The stimulus package opened the opportunity, gave me a golden opportunity to become a police officer. I jumped on it.” [CNN, 1/25/10]
Chief Tom Vandermee of Englewood, CO believes the Recovery Act “has been extremely rewarding for [his] community.” “Our slice of this stimulus package, I can tell you, has been extremely rewarding for this community.” [CNN, 1/25/10]
Troy Cooper, an electrician from Coatesville, PA says the Recovery Act is “definitely going to help” him re-hire workers he was forced to lay off last year. “What we're doing has some of the incentive money built into it, so I say, yeah it's definitely going to help. Hopefully within the next month or so I'll be able to start bringing people back on from layoff.” [CNN, 1/25/10]
Richard Bennett an Iraq War veteran and the President Fidelias Design and Construction from Coatesville, PA says the opportunity he now has because of the Recovery Act “feels amazing, almost surreal.” “Now I'm president of a multimillion dollar construction company. It feels amazing, almost surreal.” [CNN, 1/25/10]
Patricia Dunn, a nurse practitioner from Mount Kisco, NY says the Recovery Act “made it possible for [her] to have this job.” “I had wanted to work for this organization six months prior to being offered my current position. They had a part-time opening but I needed full-time. When the [stimulus] funding came through, they offered me a position. Without a doubt, the funding made it possible for me to have this job. We've also, through stimulus, been able to hire more employees and that's great. The organization has hired several new physicians who started a few months ago.” [CNNMoney.com, 1/25/10]
Valatisha Jacinto, a school teacher from Waco, TX, “never thought anything that good would ever happen to her” before she was able to buy a house with an $8,000 Recovery Act tax credit through the first-time homebuyers program. "Thanks to the $8,000 tax credit for first-time homebuyers, in March, Valatisha bought a three-bedroom, two-bath home for $105,000. She took out a 4.9% FHA-insured 30-year loan, putting her monthly expenses, including property taxes and insurance, at just $830. She says, 'I never thought anything that good would happen to me.'" [CNNMoney.com, 1/25/10]
Rob Logan from Ypsilanti, MI “wouldn’t have been able to afford [his] house” without the Recovery Act.
Rob bought his Ypsilanti, Mich., house for $71,000 in October because of the $8,000 tax credit for first-time homebuyers. "I wouldn't have been able to afford my house without it. It was one of the main reasons I started looking." [CNNMoney.com, 1/25/10]
Chris Saliture from St. Paul, MN says the Recovery Act is “what got [him] started” looking for a house. "For Chris, the $8,000 tax credit for first-time homebuyers credit was vital. 'That's what got me started. I knew the incentive program was going on. I may still have looked, but this had an impact on what I could afford." [CNNMoney.com, 1/25/10]
Liz Oxhorn is Recovery Act Communications Director
Learn more about Economy
THE RECOVERY BILL
The American Recovery and Reinvestment Act is a strategic and significant investment in our country’s future. The Act will save and create jobs immediately while also laying the foundation for a robust and sustainable 21st century economy by modernizing our health care, improving our schools, modernizing our infrastructure, and investing in the clean energy technologies of the future.
ROADMAP TO RECOVERY
On June 8th, 2009, the President and Vice President announced the Roadmap to Recovery – a summer initiative designed to accelerate the Administration’s recovery efforts. Ten major projects – from job creation to increasing health care access to natural park restoration – were announced. To learn more about the recovery projects happening this summer in your neighborhood, click below.
RECOVERY STORIES
What does recovery look like in your community? Share your photos, videos or stories about recovery projects happening in your area and show us how the Recovery Act is impacting your community.
