Stimulus benefits unclear
Fuzzy data make job count elusive
Federal stimulus money is finding its way into the region, but the impact on jobs and the economy is difficult to measure.
Information released by the federal government, through Recovery.gov, paints a picture of billions of dollars statewide going to cities, nonprofits, and private companies for projects that range from schools to new siding for buildings, with thousands of jobs being created.
But much of the money, such as millions in rental subsidies, would have been paid anyway, even if there were no stimulus package, said recipients of the cash. Some projects appear to have counted money paid in past years, while some awards were double-counted. And some local companies are spending the money elsewhere or have held back spending for various reasons.
Federal data released at the end of October show nearly $4 billion in stimulus money statewide, with more than 12,000 jobs created or saved. But only about $600 million has been received so far, and the job numbers appear to have been exaggerated.
Part of the problem appears to have been the complex paperwork, which confused some recipients, leading to mistakes.
Still, at least some businesses are benefiting, and jobs are being created or saved. Count Jack McGrail among those whose company was helped.
The owner of Jack’s Machine Co. in Hanson said a contract for about $150,000 saved the jobs of two of his eight machinists, who earn about $50,000 a year. He got the contract just as the economy slowed.
“I probably would have survived, but it definitely helped,’’ he said. The contract represents a quarter of his work. “Without that, I would have had to lay off people.’’
Others benefited as well: South Shore Community Action Council Inc. used $260,000 to fill four and a half jobs for new Head Start classes for infants and toddlers in Marshfield, while Lighthouse Electrical Contracting in Rockland hired five electricians, at $41 an hour, as part of a $100,000 contract to upgrade electrical work at a downtown Boston federal building.
Some said they had no idea payments to their organization were classified as stimulus money.
“I don’t know why that would be labeled stimulus money,’’ said Jo Ann Simons, president of the Cardinal Cushing Center in Hanover, regarding $216,000 in rental assistance money. “We would have been getting that anyway.’’
The money helps subsidize about 150 affordable units at the Cushing Residence. The Obama administration has since said that rental subsidies do not need to be reported as stimulus money.
The stimulus bill, signed into law by the president in February, consists of $787 billion in tax breaks, expanded government benefits, and capital improvements. The idea was to spur the economy and create jobs.
Some numbers in the federal data are suspect. For instance, the most expensive stimulus item in the region was $21.9 million for the cleanup of an eight-acre toxic site called the Shpack landfill on the Norton and Attleboro town lines.
But Tim Beauchemin, the project manager with the Army Corps of Engineers, said that figure must include several years’ worth of work, since the current work is budgeted at roughly a quarter of that amount. The work, which began in 2005, has cost about $40 million so far, with another year or two to go, he said.
One award for just short of $1 million in rental subsidies in Quincy appears to have been entered twice into the data.
Other money has been awarded but not spent. The Manet Community Health Center received about $719,000 for extensive renovations to its clinic and offices at 110 West Squantum St., Quincy, but is holding off doing the work, said Henry Tuttle, chief executive officer.
The center is waiting to hear if it will receive $7 million for a 30,000-square-foot center. If it gets that money, the other money will be rolled into that work. If not, the renovations, which would add exam rooms and a sprinkler system, will start.
Brockton-based Self Help Inc., a nonprofit that helps people find jobs, health coverage, and housing, has used $875,000 to hire 11 new staffers, including a housing specialist to help people at risk of becoming homeless, said Jonathan Carlson, executive director. Foreclosures have hit the city harder than most other local communities.
“Those folks wouldn’t be there without stimulus money,’’ said Carlson. “The trick is, how to maintain these positions once the [federal] funding is done.’’
Matt Carroll can be reached at mcarroll@globe.com. ![]()



