Research Briefing

Stimulus Funds Wasted In The Great Lakes State As Jobs Loss Continues

Since Stimulus Was Passed Last February, 162,000 Jobs Have Been Lost In Michigan. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

Unemployment In Michigan Has Increased By Over 21 Percent. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

Unemployment Rate Has Jumped From 12 Percent To 14.6 Percent. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10)

AND MICHIGAN IS NO STRANGER TO STIMULUS WASTE, FRAUD AND ABUSE

Stimulus Funds In Michigan Used To Provide Yoga Classes. “It was a good Friday in Ypsilanti last week as Gov. Jennifer Granholm dropped off a $500,000 check for the Ypsilanti Freighthouse. … The grant is part of $47.3 million in transportation enhancement funds given to the state through the federal Recovery Act. …   We envision in our business plan a full-time tourist information and hospitality center where neighbors, as well as commuters and visitors arriving or departing on the rails, can grab a bite or a cup of coffee," Penet said. "At the same time a yoga or children's movement class may be in progress in the great hall, giving way to a catered event in the evening.” (“Freighthouse Awarded Federal Stimulus Grant,” The Ypsilanti Courier, 4/16/09)

Stimulus Money Going To A Project People In A Michigan Town Do Not Want. “Last year, the Michigan Department of Environmental Quality rejected plans to construct a sewage treatment plant in the unincorporated village of Cedar in Solon Township, primarily because of design issues and the fact that too many residents indicated they didn’t want or need it to be hooked up to a sewer system – or pay for it. This month, however, Michigan Gov. Jennifer Granholm announced that Solon Township will be the recipient of a low-interest loan of more than 1.3 million, including a grant of around $300,000 to help pay for construction of a wastewater treatment plant.” (“’Dead’ Project Gets Stimulus Aid,” Leelanau Enterprise, 3/25/09)

Detroit Spends $1.5 Million On Sidewalks In Front Of Casino, Getting Around Ban On Stimulus Funds Going To Casinos. “Congress specifically prohibited spending stimulus funds on casinos. But in Detroit, they got around that. They're building $1.5 million worth of decorative sidewalks, streetscapes and bike racks on the four roads that happen to surround a casino.” (Sheryl Attkisson, “Banner Year For Wasteful Spending?” CBS News, 12/10/09)

Detroit Reports Saving 342 Jobs On Stimulus Project, Despite Fact That Detroit Had Not Received Stimulus Funds Yet. “Detroit reported on a grant award -- $10 million for work on 14 improvement projects in the city -- saying 342 jobs had been saved or created, despite none of the money actually reaching the city yet. Last week, city officials told the Free Press those were only projections ...” (Todd Spangler, “Flawed Reports Raise Questions About How Stimulus Has Helped,” Detroit Free Press, 9/15/09)

99 Jobs Reported Saved By Stimulus In Sault Ste. Marie, Although “No Jobs Would Have Been Lost Without The Government Money.” “The Inter-Tribal Council of Michigan in Sault Ste. Marie, which provides services to member American Indian tribes, reported 99 jobs created or saved thanks to $46,000 in cost-of-living adjustments for Head Start employees. An official with the tribal council said she believes no jobs would have been lost without the government money.” (Todd Spangler, “Flawed Reports Raise Questions About How Stimulus Has Helped,” Detroit Free Press, 9/15/09)

NBC’s Lisa Myers Reported That Stimulus Infrastructure Funds Aren’t Going To Areas With High Unemployment, Like Lapeer County, Michigan. Lisa Myers: “An Associated Press analysis of $18.9 billion in road and bridge stimulus projects, announced by states so far, found that areas that need jobs most are getting the least help. Counties with high unemployment above 11.5 percent so far are getting an average of only $59 per person. Those with low jobless rates received considerably more – $89 dollars per person.  Lapeer County, Michigan, where unemployment is above seventeen percent did get some stimulus money, $93,000 to pave two small parking lots.  Part of the problem is the requirement is that stimulus projects be shovel ready so funds could be spent immediately, officials say that works against poor counties where costly engineering and environmental studies are luxuries.” (NBC’s “Nightly News,” 5/12/09)