"Follow the Money" -- Tracking Stimulus Spending

Recently, I joined ethnic media representatives from Southern California at a workshop designed to teach ethnic journalists how to track and investigate Recovery Act spending.

The event, called “The Stimulus Package and the Recession” was co-hosted by New America Media and Investigative Reporters and Editors.

This was timely for me, as I have been attempting to track stimulus funding in the Inland area. I have read about specific actions that claimed to have used stimulus funds – such as saving teacher jobs in Corona, and funding summer youth jobs in Riverside, however, I’ve had a hard time determining who decides how funds are spent, and how much goes to various geographic areas.

Our first presenter was Jennifer LaFleur, the Director of Computer Assisted Reporting with ProPublica a non-profit organization that bills itself as an “independent newsroom that produces investigative journalism in the public interest.”

Jennifer introduced us to several tracking databases on the ProPublica site which track Recovery Act money, including a database with spending by state and county. She stated that one of the first findings when researchers analyzed the data, is that “there is no relationship between where Stimulus funds are spent, and where there are areas of high unemployment and poverty.”

So what are the determining factors for spending the $787 Billion dollars in the Recovery Act? Who determines how funds are spent?

I think that summer youth employment programs and saving teacher jobs are good uses of stimulus funds..but still I questioned: “How is spending determined and where do I find this information?

Jennifer suggested several online recovery databases created by the Administration, various agencies, and state governments. Some are more complete than others, and most only give top level information.

Another tip from Jennifer is --when all else fails--simply google the word Recovery after the agency or locale name. (I thinks she means “recovery act.” I googled Riverside Recovery and got a listing of substance abuse centers…however, when I googled Riverside Recovery Act -- I was led to a page on the city’s website with a summary of Recovery Act funding by categories.)

I’m still not sure who decides how the funds are to be distributed, but at least I can “assume” that the funding listing under Workforce Training is for the summer youth program (or can I?).

Food Stamps or Economic Development?

Next up, Jean Ross from the California Budget Project reminded us of the goal of the Recovery Act when it was enacted. “Let’s remember the purpose of the stimulus, “she said. “The goal was to jump start the economy by moving money to people as quickly as possible.” She suggested the purpose of the stimulus was not to remake society, but to get the economy moving. She stated the bill had “no specific policy goals.”

Diego Alvarez, Deputy Mayor for Legislative and Intergovernmental Relations for the City of Los Angeles, said there are many federal programs that were expanded as the result of the Recovery Act…such as the Food Stamp Program, the Earned Income Tax Credit, and unemployment benefits. “Many eligible people just aren't applying” he stated, suggesting “people might be embarrassed to apply or just don’t know they are now eligible.”

The ethnic journalists, who represented, Latino, Asian, Caribbean, and African-American communities in Southern California, were especially interested in learning ways to track stimulus spending in their respective areas.

Kokayi Kwa Jitahid, from the Community Coalition of South LA, said the questions he hears from residents of South LA concern economic development and health care. “The needs in our community are great,” he said, as he discussed the desire for Recovery Act dollars to reach the empty lots and struggling health clinics of his community.

Jean Ross stated the “the biggest chunk of the stimulus money, almost one-third, is going directly to the people” citing a government study that determined the best way to get the money moving is “to give it to a poor person.” Diego agreed saying the two highest returns on investment are funds spend on unemployment and food stamps, “For every $1.00 you spend on these programs, you get $1.73 back into the economy.”

Ruben Guerra, Chairman and CEO of the Latin Business Association, took issue with the way Recovery Act contracts are awarded. He said small businesses are not being included. He described an effort by California State Senator Gil Cedillo to create a resolution requiring 25% of stimulus funding to go to small business.

Another issue of paramount concern in a state with high unemployment rates is jobs. Nick Sifuentes, from the Los Angeles Alliance for a New Economy (LANNE) said his organization is monitoring “quality of jobs, not just the quantity.” He talked of the need for ‘job accountability’ to make sure newly created jobs aren’t temporary or low end in terms of pay..

Perhaps the understatement of the day came from Guerra who said the stimulus bill “didn’t shift the paradigm” for ethnic communities. We must still fight for our piece of the pie.

Sarah Binder of the Brookings Institution, an expert on how government responds to financial crisis, summed it up back in February in an interview with NPR:

"Because there is so much money here, and in so many different forms, there is no single pathway for the money to go out to states and localities…When this bill passes, a Niagara Falls of money will flow out of Washington and into the accounts of state highway commissioners, governors and legislatures, local school boards, county executives — even mayors."

Even with the best of intentions, the Recovery Act seems destined to leave ethnic communities behind unless they can access the funding. To do that, we have to know where to look.