10/10/2009 GAAS:595:09 FOR IMMEDIATE RELEASE Print Version |
Recovery Task Force: Preliminary Report Shows Recovery Act Funds Managed By State Government Saved or Created Over 100,000 Direct Jobs Through Sept. 30
State Government Entities to Manage Approximately 50 Percent of Recovery Act Funds
Distributed by the Federal Government in California
The California Recovery Task Force today announced that preliminary first quarter reports show American Recovery and Reinvestment Act (Recovery Act) funds managed by state government entities have cumulatively saved or created over 100,000 jobs in California through September 30, 2009. Midnight, October 10 is the federal deadline for preliminary reports, which will be reviewed and audited by federal and state authorities and finalized on October 31, 2009. During this review period funding recipients can and will amend data – correcting miscalculations, technical errors and adding additional information about activities occurring at the end of the quarter that was not yet available.
State government entities are, by law, required to self-report to the federal government on the Recovery Act funding they manage for federally determined purposes, including the number of direct jobs they each have saved or created through September 30, 2009. Local governments, non-profits, businesses and other entities awarded Recovery Act funding directly by the federal government are required to report directly to the federal government on the same timeline – and are therefore not included in state government reports. It is estimated state government entities will manage approximately 50 percent of funding over the two-year course of the Recovery Act.
“My Administration is working around the clock with President Obama’s team to pump Recovery Act funding into the California economy quickly and responsibly and it’s very encouraging to see preliminary reports show efforts have saved or created around 100,000 direct California jobs so far,” said Governor Schwarzenegger. “This funding will not only save and create jobs, but it will also help stimulate our overall economy, improve our transportation infrastructure and help us reach our environmental goals.”
As of September 30, 2009, preliminary reports show state government entities in California that are required to report to the federal government have been awarded (publicly announced by the federal government, may not yet be available to spend) $12,714,000,000 and have expended $5,268,000,000 Recovery Act funds. Through the $5,268,000,000 expended, state government entities self-reported saving or creating a cumulative total of over 100,000 jobs. The federal government did not request reports on Federal Medicaid Assistance Program funding, unemployment insurance funding and other funds that come through state government and have brought billions into the California economy to date.
State government entities in California submitted 747 separate preliminary recipient reports and over 5,000 sub-recipient reports. These reports will be reviewed by federal and state authorities and finalized by October 31, when the federal government will make them available publicly. The California Recovery Task Force will make each of the preliminary reports available early next week at www.Recovery.ca.gov.
“I’d like to thank the countless number of staff who worked to ensure preliminary reporting went successfully in California. We are seeing rapid deployment of funds, which will only increase over the next couple of months as the federal government releases more money and some of our larger projects get underway,” said Cynthia Bryant, Director of the Governor’s California Recovery Task Force. “While this preliminary jobs number will fluctuate through the data review period, we’re very pleased to see the positive effects of our actions. Organizations that received Recovery funding straight from the federal government are reporting to the Obama Administration directly and when that information becomes available, we’ll have a complete picture of the full effects of Recovery Act spending in California to date.”
How the Federal Government Requires Recipients to Report Jobs:
Federal guidelines mandate that Recovery Act funding recipients report ONLY direct jobs saved or created through the spending of Recovery Act funds. Examples include: a local education authority (sub recipient of the state Department of Education) uses State Fiscal Stabilization funds to retain teachers, a Public Housing Authority employs workers to weatherize a housing development, or a University receives an NIH grant and uses it to hire lab technicians.
Recipient jobs reports do NOT include indirect or “ripple effect” jobs saved or created through Recovery spending, which are included in White House Council of Economic Affairs job estimates. Examples of indirect jobs not included in recipient reporting include: a funding sub recipient (contractor) hires a supplier to provide materials for a construction project, causing the supplier to hire addition full or part time staff.
Reporting Turnaround Statistics
· Recipients of Recovery Act funding produced and submitted preliminary quarterly reports to the federal government in 10 days.
· Federal government agencies now publish their financial reports approximately 45 days after the end of the fiscal year. As recently as 2004, it was 150 days after the end of the fiscal year - and that acceleration from 150 to 45 days was years in the making.
· Private sector corporations have 40 days after the end of the fiscal quarter and 60 days after the end of the fiscal year to publish their financial reports.
· Charities and nonprofits have 135 days after the end of their accounting period to report to the IRS.
To view a breakout of information self-reported by state government entities receiving Recovery Act funding to date, please see the attached document. For questions about specifics within a state government agency’s report, please call the press office of that state agency.
To view the reporting guidelines, which differ by type of funding received, please visit: http://www.recovery.gov/FAQ/recipient/Pages/Recipient_Reporting.aspx
