Research Briefing

Stimulus Funds Wasted In South Dakota As Jobs Continue To Be Lost 

JOBS CONTINUE TO BE LOST IN MOUNT RUSHMORE STATE 

Since Stimulus Was Passed Last February, Nearly 4,000 Jobs Have Been Lost In South Dakota. (U.S. Bureau Of Labor Statistics Website, www.bls.gov, Accessed 2/12/10) 

AND SOUTH DAKOTA IS NO STRANGER TO STIMULUS WASTE, FRAUD AND ABUSE

South Dakota Companies “Admit There Is A Great Deal Of Latitude” In How They Report Stimulus Jobs. “In pitching the massive federal spending package late last winter, the Obama administration offered state breakdowns in jobs expected to be saved and created… In South Dakota, it was 10,000. But the state is well short of that goal and is clearly behind track to achieve it over two years… According to a running total on the federal Recovery and Reinvestment Act Web site, 2,200 jobs in South Dakota have been created or saved. But even that figure is difficult to assess, since it doesn’t distinguish between new and preserved jobs. In addition, companies reporting the job numbers admit there is a great deal of latitude in the way they report the numbers.” (Kevin Woster, “State Falls Short On Job Creation Goals,” Rapid City Journal, 12/6/09)

Business Manager Says Listing “Entire Workforce” Would Have Met “Reporting Guidelines” For Stimulus Jobs. “J&J operations manager Melissa Austin said she wasn’t saying in her report that all of those jobs would be lost without the stimulus money. But she believed that essentially listing the company’s entire work force met the reporting guidelines… ‘It’s the verbage,’ she said. ‘It’s a perplexing form that you fill out.’” (Kevin Woster, “State Falls Short On Job Creation Goals,” Rapid City Journal, 12/6/09)

Some Stimulus Projects In South Dakota Only Generated “0.37 Of A Job.” “The timing of the work affects how jobs are reported, said Brad Kurtz, president of Dean Kurtz Construction Co. in Rapid City, which has a number of contracts through the stimulus. They include a joint project with FourFront Design, for lighting upgrades in Ellsworth Air Force Base buildings, worth $1.7 million… That project is listed as creating .37 of a job. Other projects by Kurtz show similar job creation or none at all… ‘It’s pretty subjective, really, because you just have to give them a number if you’ve actually hired,’ he said. ‘Otherwise, you kind of estimate if you’re keeping some of your existing shop busy.’” (Kevin Woster, “State Falls Short On Job Creation Goals,” Rapid City Journal, 12/6/09)

Recovery.gov Reveals “An Inconsistent Mix Of Money And Jobs” In South Dakota. “A quick look at the stimulus awards and projects listed for South Dakota online at www.recovery.gov reveals an inconsistent mix of money and jobs. A $500,000 stimulus award might be listed as saving or creating 10, 20, or even 40 jobs, while an award of $3 million or $4 million may create none.” (Kevin Woster, “State Falls Short On Job Creation Goals,” Rapid City Journal, 12/6/09)