Archive | Stimulus

Officials Praise Impact Of Stimulus Funding On State

By Peter Marcus, DENVER DAILY NEWS
State officials Wednesday highlighted positive impacts the federal economic stimulus package is having on Colorado, especially in creating jobs through construction projects.
But critics remain skeptical of President Obama’s recovery plan, arguing that government control is not a long-term fix for fiscal woes, but will instead come back to haunt future generations of Americans. Opponents would rather see the free market system fix itself through citizens doing the spending.
But Gov. Bill Ritter Wednesday pointed out that the American Recovery and Reinvestment Act has put people back to work through construction projects. Since money started trickling in in May, Colorado has seen the creation of 1,685 jobs related to transportation projects, according to data as of July 31st.
The spike has resulted in an additional 86,332 payroll hours, or $2.14 million in payroll expenses, according to the governor’s office.
“Saving jobs and creating jobs are key elements of the Recovery Act — and we’re starting to see measurable benefits of that in Colorado with dozens of transportation construction projects now underway across the state,” said Ritter in a statement. “Millions of dollars have been paid to hard-working Coloradans statewide, and that amount is increasing every day.”
But Jeff Crank, state director for the conservative think tank Americans For Prosperity, recently told the Denver Daily News that a better way to stimulate the economy is to filter dollars into the hands of ordinary citizens and let them improve the economy through sales and property tax revenues.
He added that massive government spending will only come back to haunt Americans down the road.
“We’ve got every state in America, every community, every family right now is having to make tough choices, and this state’s no different — it should be making tough choices,” said Crank. “But this stimulus is exactly the opposite of that. It’s just saying, ‘We don’t have to make tough choices; let’s just spend it now and pass it along to our kids.’”
Still, state officials are praising the Obama administration’s stimulus efforts, arguing that without the infusion of cash the state would be in worse shape.
Transportation chief Russ George added that the state has done a good job of getting stimulus-funded projects rolling to maximize benefits.
“Colorado gets much-needed transportation projects,” he said. “But it’s the people on the ground who do the real work that really deserve the credit.”

Distributed by Colorado Capitol Reporters

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NREL Grant Gets Finalized

By Peter Marcus, DENVER DAILY NEWS
Federal officials Thursday completed approving a $20 million grant to advance solar energy research at the National Renewable Energy Laboratory in Golden.
The initial announcement was made back in May, but Energy Secretary Steven Chu Thursday announced that $377 million has been finalized for 46 Energy Frontier Research Centers, including NREL.
The majority of the funding comes from the federal economic stimulus package, while the rest will come from the Department of Energy’s budget. Funding will come over five years.
Gov. Bill Ritter — a champion of renewable energy, having coined the term “New Energy Economy” — was fast to applaud the finalization of funding for NREL.
“NREL is a critical component of Colorado’s energy sector and this grant is the latest example of how the state is being recognized for its work to create jobs and advance energy technologies,” he said.
NREL’s Center for Inverse Design will benefit from the $20 million, using the funding to replace trial-and-error methods used in the development of materials for solar energy conversion. Researchers will use quantum theory and high performance computers to design the new materials.
“This could usher in a new era of materials science — not only in renewable energy — but in other technology areas where specialized key materials are needed,” Dr. Alex Zunger, NREL research fellow, said in May when the funding was first mentioned.
Blake Jones — who founded Namasté Solar, a successful Boulder-based solar energy company — said he is looking forward to what research will do for his industry.
“The solar technology that we see today has been around for at least 50 years, and in that time there have been tremendous improvements in the technology, its efficiency and its cost,” said Jones. “That being said, I think we’re still just scratching the surface for the potential that solar has and for the potential improvement we still have yet to make.”

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Not Stimulating Much?

By Joshua Wolpe, DENVER DAILY NEWS
A construction industry analysis of the federal government’s economic stimulus package released Thursday shows “little influence” on companies’ ability to expand payrolls, according to the Associated General Contractors of America.
The stimulus analysis was based in part of a survey of nearly 1,000 construction firms nationwide conducted by AGC over the past three weeks.
Stephen Sandherr, CEO of the contractors association, said that five months into a federal stimulus program that has approximately $135 billion dedicated for construction projects is showing little difference in hiring and purchasing patterns between companies doing stimulus-funding work and companies that are not.
“Unsustainably high expectations can bring down good policy and great programs,” he said. “The stimulus will keep our industry alive, but it will not turn around a trillion dollar construction industry overnight.”
One of the more interesting results of the survey is the number of firms planning significant purchases of equipment and supplies in the near future.
Forty-three percent of the firms that do not expect to do stimulus work said they plan to purchase new equipment or supplies in the next two years, versus 36 percent of firms that have won stimulus work.
However, far fewer estimate they will spend $500,000 or more – 18 percent, compared to the 42 percent of firms that have already won stimulus-funded work.
The Colorado Department of Transportation, which is overseeing many American Recovery and Reinvestment projects, says that the industry needs to be patient.
“What is difficult right now is that it takes a while to get a project under construction — it’s never going to be an immediate project,” said Stacey Stegman, public relations director for CDOT. “We’re just now starting to see impacts from the bill — we have seen an 89 percent increase from May to June in the number of people working on projects for CDOT.”
Stegman went on to say that perhaps the biggest influence of the stimulus package on construction has been on companies’ abilities to avoid firing employees.
“You have to understand that departments are facing significant cuts. We didn’t hit the cliff like many other industries, and the stimulus bill has allowed contractors not to lay people off. They’ve done some hiring, but more than anything, they’ve been able to maintain their workforce.”
Sandherr agreed with that notion, saying that 60 percent of construction firms nationwide with stimulus-funded work have saved or retained jobs because of the ARRA.

Spend, spend, spend
AGC maintains that the stimulus is working in some areas but expressed disappointment that money is not moving as fast as it should.
One reason the stimulus is having a limited impact on construction hiring and purchasing patterns, Sandherr said, is that outside of the transportation arena, little of the stimulus’ authorized construction dollars have resulted in actual construction work.
He noted that while the Army Corps of Engineers is responsible for $4.6 billion in stimulus construction funds, the agency has only obligated $715 million and paid out $84 million.
While CDOT says that the construction industry has not “hit the cliff,” the national unemployment figures do not paint a rosy picture. Construction unemployment is at 17.4 percent, which is nearly double the national rate of 9.7 percent as of June, according to the U.S. Bureau of Labor Statistics.
“The stimulus is clearly working,” Sandherr said. “It just isn’t working fast enough for many construction workers in many communities.”

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Guv: Stimulus Working

By Peter Marcus, DENVER DAILY NEWS
Gov. Bill Ritter Wednesday defended President Obama’s $787 billion economic stimulus plan, arguing that if it weren’t for the funding, Colorado would be in even worse shape.
Speaking at the Downtown Denver Partnership’s Board of Directors meeting, Ritter said it is absurd to dismiss the stimulus plan only five months into the process. He said if it weren’t for the estimated $7 billion Colorado is expected to receive in direct funding and tax relief, the state would be struggling to close much more than the $384 million budget shortfall anticipated for next year.
In fact, Ritter said lawmakers would need to come up with another $500-$600 million to close the shortfall, and more than $1 billion over the next two years.
“Without the recovery act dollars, by now we would have had to throw in the white flag,” he said. But Jeff Crank, state director for the conservative think tank Americans For Prosperity, said a better way to stimulate the economy is to filter dollars into the hands of ordinary citizens and let them improve the economy through sales and property tax revenues.
He added that massive government spending will only come back to haunt Americans down the road.
“We’ve got every state in America, every community, every family right now is having to make tough choices, and this state’s no different — it should be making tough choices,” said Crank. “But this stimulus is exactly the opposite of that. It’s just saying, ‘We don’t have to make tough choices; let’s just spend it now and pass it along to our kids.’”
Ritter Wednesday added that Colorado is in better economic shape than other states because of its booming green sectors, including creating green jobs through work with alternative energies. He said the state’s New Energy Economy is why it is a full two percentage points below the national unemployment rate. Colorado stood at 7.6 percent for June. The national unemployment rate climbed to 9.5 percent.
The governor added that work done in the Legislature last year will also contribute to the state pulling itself out of fiscal woes. He pointed to a new funding stream for transportation through increased vehicle registration fees; a bill allowing students to earn a diploma while simultaneously completing a college associate’s degree; and health care reform legislation that created a hospital provider fee that is expected to cover more than 100,000 additional Coloradans who do not have insurance.
Ritter is also hopeful that Colorado will earn a share of more than $4 billion in federal funding for education. He said Colorado is poised better than other states to receive a portion of Obama’s Race to the Top grant money.
While some lawmakers are suggesting eliminating or lowering tax breaks and incentives to businesses, Ritter said incentives and breaks that lure companies to Colorado are necessary for the overall long-term well-being of the state. All told, however, the governor reaffirmed that significant budget cuts will be necessary to balance next year’s budget.
“Cuts will be painful … virtually every service we offer to the public will be impacted,” said Ritter. “But we will have a balanced budget.”

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Board Of Education Republicans Grouse About Stimulus Terms

By Todd Engdahl, EDUCATION NEWS COLORADO
An otherwise-routine State Board of Education teleconference this week was highlighted by a brief partisan gripe session about the strings attached to one federal stimulus program.
“Just another example of extortion by our Congress,” complained board Chair Bob Schaffer, R-4th District.
Board members got on the phone for half an hour Tuesday afternoon to approve a funding recommendation by the Capital Construction Assistance Board and do a little other routine business.
The assistance board had recommended changes in the financing of $62.6 million in construction projects for three San Luis Valley school districts to take advantage of the federal Quality Zone Construction Bonds program, which eliminates interest costs for the state. The state treasurer’s office estimates the interest savings on the three projects at $45 million. Instead of interest payments, investors in such bonds receive federal tax credits.
But, the federal program requires that prevailing union wages be paid on the projects and also may require use of American-made materials.
So, the state board had to approve additional funding authority of up to $5.4 million on the three projects – up to $3.6 million for prevailing wages required by the federal Davis-Bacon law and up to $1.8 million for American-made materials. (Hughes said federal stimulus law is unclear whether the buy-American provision applies to the Quality Zone bonds, and his office is seeking legal clarification. The $1.8 million won’t be spent if it isn’t required, he added.)
The whole business didn’t sit well with Schaffer, a conservative Republican and former U.S. House member.
Readily agreeing that “0 interest is a remarkable savings,” Schaffer said he still felt that the $5.4 million could be better spent on additional construction projects or other education uses.
Schaffer’s comments, in turn, didn’t sit will with Elaine Gantz Berman, a liberal Democrat who represents the 1st District on the board.
“Let’s try to focus our energies on what we have control over,” she said, adding, “You (Schaffer) had your chance in Congress.”
Schaffer responded, “I think clearly that the board ought to state a preference … for children in Colorado. We have no choice, [but] I think we do have a duty to try to fight back.”
Berman said, “Mr. Schaffer, that is not a fair representation” of the board’s thinking.
A few minutes later, Marcia Neal, R-3rd District, said, “Mr. Schaffer, I appreciate your comments,” adding that she has “great objections” to such federal restrictions. Thank you for bringing that up.”
The board unanimously approved the extra funding.
The three construction projects, approved in their original form by the state board on March 19, include two new elementary schools in Alamosa, a new P-12 school in the Sangre de Cristo district and a new junior-senior high plus an elementary school renovation in Sargent.
Those projects are part of the new Build Excellent Schools Today program, under which state funds and, in some cases, local matching money are used to pay off lease-purchase agreements that are used to school renovation and construction. The program, created last year, is designed particularly to help smaller districts that lack sufficient tax bases to fund their own construction programs.
The construction board meets next on July 22-23, when it will consider 91 applications requesting $231.3 million. Some of the applications contain matching funds adding up to an additional $163.8 million. About 20 of the applications are for lease-purchase arrangements. The remained seek direct cash grants.
A statewide assessment of all schools – about 1,850 schools and 4,900 buildings – is being done by a contractor, Parson Technology. The assessment will be used to create a priority list that will help guide future funding decisions. The fieldwork is supposed to be done by November, with a report ready by Jan. 16, 2010.

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Not Very Stimulating?


Video: 9News

By Gene Davis, DENVER DAILY NEWS
Gov. Bill Ritter Tuesday reaffirmed his commitment to helping lead Colorado small businesses out of the recession, a move several local small business owners hope will amount to more than lip service.
Ritter spoke on the importance of the small business community before signing an executive order aimed at improving the transparency and effectiveness of stimulus dollars that are funneled into Colorado. Ritter signed the executive order during a “Procurement Connections” business fair held at the Tivoli Student Union Tuesday. The event allowed small business owners and representatives to meet directly with state procurement officials to receive help on bidding for contracts through the American Recovery and Reinvestment Act (ARRA).
“There’s nothing more important to this state or this country right now than you, the business owners and the representatives who are here today,” Ritter told the crowd. “I am fully committed to leading Colorado forward.”

Where’s the money?
Multiple small business owners at Tuesday’s event said they are still waiting to see stimulus dollars trickle down to the small business community.
Deborah Ferraro, owner of the Denver-based A Creative Environment, said most of the stimulus money so far has gone to big firms because the small firms don’t have the capability to bid on projects with a multi-million-dollar price tag.
Madeline Martinez-Svendsen, owner of SCInc., echoed Ferraro’s comments, adding that only time will tell if small businesses will directly benefit from stimulus funding.
“Honestly, in the past it seems that this has been more lip service for small businesses,” she said. “I really hope that this time is different.”
For his part, Ritter pointed out the ways in which his administration has attempted to help the Colorado small business community. The governor said he personally talked with Chairman of the Federal Reserve Ben Bernanke about how small businesses in Colorado need access to credit, helped start the Colorado Credit Reserve Program for small business owners and added a director of minority and small business outreach position in his cabinet.
Additionally, the executive order signed by Ritter Tuesday will post all of the private-sector job openings created through recovery act-funded contracts online at ConnectingColorado.com, encourage aggressive outreach to connect small and minority-owned businesses with recovery act contracts, and outline protections for reports on waste, fraud and abuse in regards to stimulus funds.
“Colorado will receive more than $3.5 billion in direct funding from the act (and) it’s vital that businesses like those here today are part of that recovery,” he said. “It’s vital that your businesses not only survive this downturn but find a way to thrive coming out of it.”

Hurt businesses
Five Colorado small business owners interviewed Tuesday said the recession has hurt their companies.
Randy Stewart of Stewart Concrete said business has been “very difficult in recent months.”
The business owner was hoping to make some connections at Tuesday’s event that would lead to a job.
The procurement coordinators for the Colorado Department of Natural Resources said they were surprised by the high turnout at the event Tuesday, adding, “There’s a lot of people out there looking for work.”
However, most of the Colorado small business owners maintained a hopeful and optimistic attitude throughout the day.
“It’s all about building relationships, so you do have to show up and show up to these events,” Ferraro said. “I still have a very positive outlook, even though I’ve been doing this for four years and still haven’t gotten a contract.”

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Stimulus Helps Revive Summer Youth Jobs Programs

Stimulus Helps Revive Summer Youth Jobs Programs

By Christine Vestal, STATELINE.OLG
School’s out and young job seekers across the country have a less-than-30-percent chance of finding work. For disadvantaged youths – high school dropouts, teen parents and minors with a criminal record – the odds are worse.
“We’re talking about young adults whose lives are pretty screwed up. They have a tough time finding work even in the best times,” said James M. Golembeski, director of Wisconsin’s Bay Area Workforce Development Board.
In this recession, college graduates, senior citizens and dislocated workers of all ages are snatching up so many low-wage jobs that few are left for youths. On top of that, many of the retail outlets and restaurants that normally hire students during the summer are cutting back or have gone out of business.
But thanks to a $1.2 billion federal stimulus fund, states are revitalizing summer youth programs that have languished over the past decade because of declining federal funding. Allocated to states over a two-year period and then distributed through local workforce agencies, the stimulus program allows states to subsidize jobs and create training programs for 14-to-24-year-olds who come from low-income families and have one or more risk factors, such as foster care, homelessness or teen pregnancy.
Starting this month, states are using the new money to hire young people for jobs as varied as cleaning state parks, scrubbing the decks of docked battleships, assisting in underwater environmental studies and working in offices and hospitals. In addition, most programs squeeze in time for academic assistance, particularly for kids struggling to finish high school.
Despite severe budget gaps, Massachusetts Gov. Deval Patrick (D) added more than $8 million in state money to $21.1 million in stimulus funds to create a wide variety of summer jobs for 10,000 youths over the next two years. In Wisconsin, Golembeski plans to use his region’s share of stimulus funding to train older youths on interviewing techniques and general workplace skills so they can find permanent work when the economy begins to recover. And in rural Oregon, $3 million in stimulus funding is slated for an innovative engineering project that will employ 1,200 disadvantage youths.
Wisconsin’s youth program starts with a three-week, intensive work-readiness training program. Dubbed Work Certified, the program is the brainchild of Florida’s workforce agency, but Wisconsin is the first to try it out on youths. Those who complete the program will get a certificate that is widely recognized by local businesses and should help them land a permanent job. They also get a $650 stipend – minimum wage for the three weeks they spent in class. After that, youths can pursue a variety of subsidized summer jobs.
According to the U.S. Department of Labor, nearly half of all youths ages 14 to 21 had jobs in 2000. Now fewer than one in three can find work – the lowest youth employment rate since the federal government started tracking youth jobs in 1948.
For every year that teens work, their income in their twenties rises 14 percent to 16 percent, said youth employment expert Andrew Sum of Northeastern University. In addition, research shows that girls who have jobs are much less likely to become pregnant and boys are less likely to get involved in property crimes and drug use. High school graduation rates also go up for kids with work experience.
Research also shows that increased youth joblessness can contribute to flare-ups in crime and gang activity during the summer months. “I figure if we keep even one youth from being incarcerated, we’ve saved the state at least $90,000. That’s a pretty good return on investment,” Golembeski said.
In rural parts of the country, kids have the added problem of isolation. “They have no grasp of career possibilities. They need to experience something outside of their little towns,” said Kris Latimer, chief of Oregon Workforce Alliance.
Eighty percent of Oregon is sparsely populated and public transportation is non-existent, making it nearly impossible for kids to travel to and from a work program. So Latimer’s group created a sleepover work camp in the Cascade Mountains where 1,200 youths will work on a research team building a remote-operated vehicle for underwater and volcanic exploration.
This summer, because thousands of middle-income teens and their families have been hit hard by the recession, critics in many communities are arguing the stimulus money should not be reserved just for low-income kids with problems.
“There are a lot of questions about why middle-class kids can’t be part of the program,” said Nancy Snyder, president of Massachusetts’ Commonwealth Corporation, which administers the state’s youth jobs program. “I’m really sensitive to that and try to give guidance to non-eligibles on how to look for a summer job.” Although the stimulus money is welcomed, advocates say that the $1.2 billion will help only a fraction of at-risk youths and that because summer programs have been dormant for so long, states will be hard-pressed to quickly create high-quality programs because most of their business contacts are no longer available.
“We’re encouraging folks to think of the stimulus as a building block for the future,” said Mala Thakur, director of the National Youth Employment Coalition. For the fiscal year that ended in June, states received $950 million for youth job creation under the Workforce Investment Act; next year the federal budget proposal is $924 million, in addition to the stimulus funding.
The severity and duration of this recession does not bode well for youth job creation, which Sum said has lagged several years behind adult jobs in previous economic downturns. “Don’t expect any growth in teen jobs until 2012,” he said.

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Energy Stimulus Could See Lower Returns

By Tony Romm, STATELINE.ORG
When Congress agreed earlier this year to shell out $3.1 billion in stimulus dollars to help states reduce energy consumption, it expected a major return on its investment. Since the 1970s, every federal dollar sent to states through the U.S. Department of Energy’s State Energy Program has produced more than $7 in energy savings — a perfect opportunity for quick stimulus results.
While Congress anticipates this nearly 70-fold funding increase, up from just $44 million last fiscal year, to save governments, consumers and businesses about $22.3 billion, experts are beginning to doubt that math. They argue that the new State Energy Program money, more than $964 million of which has been sent to the states since May, is likely to generate much lower returns because of the program’s historically loose enforcement and oversight.
At issue is a condition in the recovery act that asks governors to guarantee their states will adopt the latest building energy standards in 90 percent of new and renovated buildings by 2017. Although every state governor except one has submitted a letter assuring compliance, the codes are typically the responsibility of state lawmakers or local officials, so governors cannot promise their states will approve the new rules.
Neither can the federal government. While states have eight years to upgrade their codes, the Department of Energy has only until September 2010 to distribute its stimulus money. That means most, if not all, of the State Energy Program’s recovery funds could reach states long before any of them actually revise their building standards.
“Punishments are not appropriate in the stimulus because you need to use the funds right away,” said Jeff Genzer, general counsel at the National Association of State Energy Offices, adding that states have every intention of following federal rules. “Compliance is going to be a tough thing; there’s no question about it.”
Already, the code upgrade requirements have triggered serious political debates in a number of states. On one hand, builders insist the codes — which govern the kinds of insulation, heating and cooling systems and light bulbs they install — raise construction costs, and thus, a building’s market price. Yet, conservationists and energy officials counter that the upgrades actually combat the sticker shock. Buildings account for 40 percent of all energy use, so tightening the standards would lower consumers’ monthly bills while helping the environment — two of the Obama administration’s top goals.
“Building codes are one piece of the energy efficiency puzzle,” Genzer said. “If the average market family spends a few thousand a year (on energy bills), and you can reduce that a few hundred each year, you’re essentially giving people a second stimulus.”
But states have been lukewarm to the proposed upgrades. Although every state except Alaska has submitted the required assurance letter, only California has implemented commercial and residential standards on par with what the stimulus mandates, according to the Building Codes Assistance Project (BCAP), an advocacy organization. The state made the revisions in April 2008 — long before the recovery act called for it.
Other states lag behind, many by several code versions. Eight states have yet to implement commercial energy rules, and 11 have declined to do so for residential buildings, leaving local jurisdictions in charge. And one of those states — Alaska — has altogether refused to make any such changes. There, Gov. Sarah Palin (R) declined almost $29 million in stimulus cash because she believed the code mandate constituted a tax on homeowners, she said in a letter to the Department of Energy.
Even for those states that have assured swift code revisions, the outcome is far from guaranteed. In Arizona, for instance, home rule allows local governments to set their own residential energy standards. Nineteen of the state’s 32 jurisdictions have the 2006 residential code in place, the most recent precursor to the 2009 code the recovery act specifies. The rest require the 2003 version, and one jurisdiction relies on the 2000 guidelines, according to Charlie Gohman, manager of the Building Science and Efficiency Program at the state’s Commerce Department.
Colorado, too, gives local governments the power to set their own building codes. However, the state legislature can set a baseline standard— currently a 2006 code for residential buildings, which went into effect last year. Whether the state’s General Assembly intends to raise its standard and force its locales to comply with the recovery act remains unclear.
“The (Governor’s Energy Office) plans to work with local jurisdictions providing the resources and incentives to move them forward in regards to energy codes,” said Todd Hartman, the office’s spokesperson. “Although (energy efficiency) is a top priority of Gov. (Bill) Ritter, he also respects the rights of local jurisdictions.”
In these states, and others facing similar struggles, the federal government is unlikely to compel local governments to act swiftly. For one thing, the Department of Energy’s stimulus timetable is ambiguous. The first two checkpoints, which states must pass to receive the first half of their new green-energy greenbacks, include no mention of building codes, beyond requiring the governors’ letters promising compliance. The Department of Energy has yet to publish its second set of funding criteria.
“From the Department of Energy’s perspective, the key for states receiving money is the governor assurance letters that they are working to implement the new codes,” said Jen Stutsman, the department’s deputy press secretary.
Yet, tepid enforcement is hardly new to the State Energy Program. A 2006 audit of the federal government’s yearly program grants found that regional offices were not regularly monitoring whether states were spending their money appropriately, according to the inspector general’s report. Worse yet, auditors added that regional offices “had not established or collected meaningful performance metrics to determine the cost benefit of the Program in meeting its goals.”
A follow-up report issued in March 2009 echoed those concerns, identifying the State Energy Program as a stimulus risk area — one of many Department of Energy programs that have been previously scrutinized for lax accountability or management. The Inspector General recommended at the time that the department establish better metrics for success and means of enforcement.
Despite these oversights, state energy departments are working closely with local officials on code upgrades, and they have every intention of complying with the recovery act, Genzer said. States are also anticipating $5 billion additional stimulus dollars by way of the weatherization program, which offers energy assistance to low-income families to insulate their homes, and $3.2 billion through the Energy Efficiency and Conservation Block Grant program, which offers competitive awards to states and locales to decrease their energy consumption, he added.
Still, while these stimulus programs are likely to reduce energy use even in states that keep their archaic building standards, experts say that the level of savings promised by the Department of Energy is impossible unless states make the tough code revisions required by the recovery act.
“States are very far behind, especially with compliance, and offering them funding to get it together is an excellent strategy,” said Aleisha Khan, BCAP’s executive director. “But there does need to be follow up and accountability.”
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Targeting Jobs

By Peter Marcus, DENVER DAILY NEWS
The federal government is behind two programs that aims at infusing workers into the market.
President Barack Obama’s $787 billion economic stimulus package has provided $1.9 million to target youth employment and training in Denver. City officials announced Tuesday that they have awarded three contracts — worth $753,070 — to community groups charged with the task of overseeing the city’s summer Youth Employment Program.

Gender balance
And thanks to the Carl D. Perkins Career and Technical Education Act of 2006, Colorado will receive $60,000 annually to launch programs that aim at increasing the gender balance of occupations in Colorado that are currently dominated by one sex or the other.
“Despite the current unemployment level, Colorado is facing a chronic shortage of skilled workers for critical workforce needs,” said Dr. Geri Anderson, vice president of the Colorado Community College System. “These jobs can be filled, in part, with men and women who have not traditionally entered a career due to gender stereotypes.”
Anderson points to several fields, including science, technology, engineering and mathematics, which are typically dominated by men. On the flipside, women dominate child education, paralegal and occupations assisting doctors and dentists.
Women also earn only 25 percent of all information technology degrees in America.

‘Community Action Plans’
Nineteen state colleges are charged with the task of establishing so-called “Community Action Plans.” This fall, CCCS will award grants up to $20,000 to institutions that “formulate feasible plans for increasing the balance in their gender-disproportionate CTE programs,” states CCCS.

Finding jobs for at-risk kids
Meanwhile, Denver officials are hoping to place 600 at-risk kids with summer jobs. The program will be administered by the Denver Housing Authority, Goodwill Industries of Denver and Servicios de La Raza.
“The program provides an important resource for businesses to fill jobs while helping youth gain workforce knowledge, skills and abilities that will lead to rewarding, successful and sustainable employment,” said André Pettigrew, executive director of the Office of Economic Development.
The program is designed to provide kids ages 14 to 24 with up to 160 hours of employment, ranging in fields from health care to construction. Some kids will even be placed with “green collar” jobs, performing residential energy audits and weatherization.
All of the positions have already been filled, but contractors are maintaining wait lists.
For more information, call 303-607-9216; 303-430-5319; 303-953-5950; or visit Denvergov.org/Stimulus.

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Weekly Wrap: Report Questions States’ Use Of Stimulus Road Funds

By John Gramlich, STATELINE.ORG
State governments so far are using almost all of their stimulus transportation dollars to build and improve roads and highways, while devoting only about 6 percent to public transit systems, according to a 50-state study released this week by a group seeking to improve urban planning.
Smart Growth America criticized the $6.6 billion that states have allocated for building new roads while providing relatively little for public transit projects that could create 31 percent more jobs than new road construction, according to the group.
“Given our huge road and bridge repair backlog and inadequate public transportation system, $6.6 billion for new highway capacity just doesn’t make sense,” Geoff Anderson, president of Smart Growth America, told Reuters in a statement. “It’s like adding a new wing to your house when the roof is falling in.”
Reuters noted that Kentucky will spending the biggest share of its stimulus transportation money — 86 percent — to build new roads, while Delaware will spend the biggest share — 16 percent — on public transit projects.
Some state officials said the report provided a skewed picture of states’ stimulus spending.
In Colorado, a spokeswoman for Gov. Bill Ritter (D) noted that the study looked at only one pot of transportation money included in the stimulus plan — the discretionary dollars included in the Surface Transportation Program — and failed to include the more than $100 million the state will receive from a separate pot earmarked specifically for public transit, the Denver Business Journal reported.
In Virginia, Transportation Secretary Pierce R. Homer told The Washington Post that the report — which was released on the same day that states were required to have allocated at least 50 percent of their stimulus transportation dollars — may be premature, and that state spending patterns still could change.

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A letter sent by Michigan Gov. Jennifer Granholm (D) to her Republican counterpart in California, Arnold Schwarzenegger, provided another glimpse of the grim fiscal conditions facing state corrections departments.
In the letter, which was obtained by Reuters, Granholm offered Schwarzenegger a quid-pro-quo to ease both states’ prison problems, “perhaps in one fell swoop.”
California, Granholm wrote, could ease the strain on its severely overcrowded prison system by transferring inmates to Michigan, which recently announced it would close eight facilities to save $120 million. The deal would benefit Michigan — which has the nation’s highest unemployment rate — by allowing some state prison workers to keep their jobs.
“I believe this opportunity has great potential and could be mutually beneficial at a time when states need to rely on each other like never before,” Granholm wrote, according to Reuters.
She did not say how much Michigan would charge California for use of the prison space. California corrections officials expressed interest in the offer.

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While cash-starved states increasingly are trying to generate new revenue by imposing taxes on online goods and services, Amazon.com is fighting back.
The world’s largest Internet retailer has resisted plans in North Carolina and Rhode Island that require it to collect sales taxes from consumers even though it does not have a physical presence in either state, The Wall Street Journal reported.
Amazon.com was working with marketing affiliates in both states — making it fair game in the eyes of state lawmakers — but the retailer responded to the legislation by cutting all ties with those affiliates.

Distributed by Colorado Capitol Reporters

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