1) As part of California’s attempt to balance its budget earlier this year there was an agreement to reduce some union labor rates that work for the government. Now the federal government (Obama administration) is telling California that unless it recedes the wage cuts, California will loose $6.8 Billion dollars in federal stimulus plan money.
California Officials Question Union’s Role in Federal Stimulus Ruling
Lawmaker angry over federal stimulus money decision
2) Spending the U.S. stimulus: states can’t afford it
WASHINGTON (Reuters) – One of the greatest challenges U.S. states face in spending federal stimulus money is funding the burst in bureaucracy that accompanies the funds, a government watchdog said on Thursday, as the Obama administration pledged to give states more help.
Revenue has been dropping in most U.S. states for a year, and many governments have cut staff. But the $787 billion American Recovery and Reinvestment Act flooded states with money for programs and required them to keep the public and federal government apprised of their spending, all of which requires more workers, said the Government Accountability Office.
“Due to fiscal constraints, many states reported significant declines in the number of oversight staff — limiting their ability to ensure proper implementation and management of Recovery Act funds,” the GAO’s nearly 300-page report on the stimulus plan said.
…………
3) STIMULUS WATCH: Jobs, but not where needed most
WASHINGTON – The billions in transportation stimulus dollars that President Barack Obama promoted as a way to create jobs shortchange counties that need the work the most, an Associated Press analysis has found.
The AP’s review of more than 5,500 planned transportation projects nationwide is the most complete picture available of where states plan to spend the first wave of highway money. It reveals that states are planning to spend 50 percent more per person in areas with the lowest unemployment than in communities with the highest. The Transportation Department said it will attempt to replicate the AP’s analysis as it continues pressing states to dole out money fairly.
……
Results of the stimulus plan, direct political payback to unions that supported the Obama campaign, creating jobs where there is low unemployment and states can’t spend the money due to lack of resources.
As usual, the government is trying to help and puts resources in the wrong spots and the controls decisions which have nothing to do with the original area of concern.
Yup, just the new business as usual from the hopeychange administration.
Don's Conservative Politics 