The Virginian-Pilot
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CHESAPEAKE
The city spent only 4 percent of nearly $12 million in federal stimulus grants awarded in 2009, according to an internal audit released Tuesday.
Only two jobs were created or retained last year as a result of money awarded to Chesapeake city government under the American Recovery and Reinvestment Act, President Barack Obama's $787 billion plan to jump-start the country's economy.
"The overwhelming majority of the money has not been spent yet," said Chesapeake City Auditor Jay Poole. "We still had 95 percent of the stimulus money to spend."
He said that was the audit's most surprising part.
The Chesapeake audit mirrors what some see as the stimulus program's slow start nationwide. About $179 billion in stimulus funds were paid out last year, The Wall Street Journal reported in February, and the bulk of it went to plug holes in school budgets across the country. Supporters say infrastructure spending will pick up this year, leading to more jobs in the private sector.
South Hampton Roads cities, schools and agencies have been awarded more than $193 million in federal stimulus money since the program began about a year ago, according to www.
stimulus.virginia.gov, a state Web site dedicated to stimulus funds. Much of that money has gone to schools.
Chesapeake is the only local city to have an internal auditor look into stimulus spending so far, although others are planning on it. Virginia Beach's auditor said he is waiting for more money to be spent before taking a closer look.
Chesapeake Councilman C.E. "Cliff" Hayes Jr. said the city audit did not paint a full picture of the stimulus plan's effect. The audit does not cover $37 million in stimulus money that went to Chesapeake schools, resulting in the retention of 239 jobs, officials said.
Poole said he looked only at federal stimulus money that flowed into city government - not money that was awarded to the schools.
"I don't have the authority to audit the schools," Poole said. "We audited the money that came to the city. The schools have their own internal audit shop."
While the audit certainly questioned the stimulus program's effectiveness in terms of creating and retaining jobs, Poole said it was not his intention to cast the program in a negative light.
As of Dec. 31, one new position had been created within the victim witness program, his audit noted. And more than 150 youths had participated in a summer youth employment program funded by stimulus money.
In January, after the audit's cut-off date, the City Council appropriated about $6.6 million in stimulus funds for transportation projects.
Millions of dollars in federal stimulus grants have been awarded to Chesapeake for matters including homeless prevention, police technology and energy-efficiency projects.
Hayes said the city is working hard to make sure the federal money is put toward its best use and that more projects will get under way this year.
"Just because you've got the money, that doesn't mean you have to run out and spend it," he said.
It has also been "very difficult to get the money out the door immediately," Poole said, because of federal rules and requirements tied to the stimulus program.
"Because of all the requirements and rules you have to follow, it takes a while to expend the money," he said. "It takes time to jump through all of those hoops."
Pilot writers Harry Minium, Aaron Applegate, Dave Forster and Alicia P.Q. Wittmeyer contributed to this report.
Mike Saewitz, (757) 222-5207, mike.saewitz@pilotonline.com
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No new jobs is the correct way!
The city of Chesapeake should not be creating new jobs with a one time offer of money. Who will pay for those jobs once the stimulus money is gone? The city should be spending that money on projects that can create short term jobs, but leave no extended "maintenance tail" once the stimulus money is gone.
What happened???
According to Obama's web site, recovery.org, the City of Chesapeake has reported 54.55 jobs from the stiumuls bill as of January. So which is lying? Take your guess, but you should only need one.
Here's a question on audits
How come Poole doesn't have the authority to audit the School System? I don't see an auditor under the CPS site, so who does it?
AUDIT the school dept?????
What a novel idea!! Why didn't the city think of that? Again, want to save some money? Cut the top 50 earners in the school system...watch the savings mount up from those who are left. Take out the top 50 and leave the bottom 200 (or whatever the number is) or so that represent the same $ as those 50. Those 200 will find big savings
Really
It amazes me how so many so-called smart people think the stimulus money (I call it printed money) was going to save this economy. I'm not the sharpest knife in the drawer, however, even I know that the government doesn’t create jobs, the economy does. If the government would grant tax breaks to people like me, that my friends will stimulate the economy. And while I’m at it, do you really believe that government health care will save the economy? No sir/ma’am, it’s all about government control over our lives. With this administration, it’s only going to get worse before it gets better.
Trust me.
Why do I feel that most business people are like ENRON and Burnie Madoff? They are always hidding something, fast talking, got all the answers, everyone else is stupid and wrong, they always say "I got you back", trust us, all that kinda stuff. But there seems to be something slimie amd putrid about entrepreneurs that I think we should be cautious of.
"Why do I feel that most business people are like ENRON?"
Lack of understanding of how business works.
If you or anyone you know has a non-government job it's because of an entrepreneur. Even government jobs are possible because the taxes collected to pay for them came as a result because of entrepreneurs.
Dull knives
Look, I know many people like you will take any opportunity to bash Obama or the federal government, but in reality it is the people in your back yard that sat on the money, not Washington. These folks could have created jobs but instead ignored the need and now are scrambling for excuses. As to other fed programs like health insurance try talking to people like me, who are retired, about the Republican plan to get rid of medicare and give retirees a voucher to shop on the open market for health insurance. Or we could get rid of federal subsidies for interstates..... just give people a special pot hole tax break and let them fix their own pot holes. Or get rid of the local library which receives assistance from the federal government. Come to think of it why should we pay state taxes. That's big government too. The stated conservative goal is to kill big government of all kinds.... state and federal. Course, none of them has figured out exactly how to manage without it.
No one is obligated to
No one is obligated to create jobs. No one has a right to a job. Sorry, no one has a right to health care. Nor is the prosperity we have enjoyed our right. It was a consequence of productivity and a favorable private business environment. If you think the masses of federal and state spending go to libraries and pot holes, you're sadly mistaken. We spend billions of dollars in entitlement programs and to support people temporarily... support and entitlement which runs out as soon as the money runs out, and cannot continue without greater taxation. Just have a look at all the government programs that are deep in debt; half of them could never survive as now operated if they had to exist in the private sector. Small government allowed our prosperity. Big government is destroying it. Defense and infrastructure. Not all these other foolish ideals.
Well, you summed up the
Well, you summed up the Republican and conservative position rather well. We are all in this alone...... not together. Very 19th century robber baronish. Hope you keep building your castle's walls higher and higher. You may need to defend them as the 21st century wears on.