We anticipated, waited, and listened intently to President Obama’s State of the Union address to Congress. There is no question the President inherited a recession and near economic disaster. But he has been in office for over a year now and we all expected some positive results on employment – especially when the administration promised a net increase of 3.5 million jobs for $787,000,000,000 – the cost of the American Recovery and Reinvestment Act (ARRA). The fact is, according to the Bureau of Labor Statistics, we have 5.2 million fewer people working at the beginning of 2010 compared to the beginning of 2009.
The administration’s own report towards the end of last year (before they stopped issuing monthly reports) stated that 640,000 jobs were added or saved last year because of ARRA. If that was correct, then it cost the taxpayers a little over $1.2 million per job. To be fair, many ARRA projects are just getting underway, so if the projected 3.5 million jobs are actually added or saved then those jobs would “only” cost $225,000 a piece. Still an outrageous amount (if they materialize)!
Yet even the smaller jobs created/saved number for last year is suspect. Here in Colorado, for an example, Teletech reported last year that they added 4,231 new jobs from an ARRA contract award. That number was subsequently reduced to 635 full-time jobs because the rest of the jobs were temporary – less than two month – jobs. It was further reduced to only 34, because 601 jobs were actually added in other states. This places all of the administration’s jobs numbers in question.
The government is very good at creating jobs for one (industry) in particular – the government, both federal and local. But this is exactly where we do not want jobs added, since our national debt is sky-high and rising, and most states are running massive deficits. We need jobs added in private tax-paying enterprises – hiring tax paying citizens.
So how do we start the new (meaningful) jobs engine? Like most Americans, I what our President to succeed – because as noted in the State of the Union address, it’s not an I win, you lose – you win, I lose game we want to play. If the administration gets it right we all benefit. The President is correct to focus on small businesses, which have accounted for two-thirds of our job growth over the past 15 years and contribute one-half of our gross domestic product. His plans for tax credits and a shift of $30 billion to community banks for small business financing seem to be on track, but this should not have taken a year of pain and citizen uproar to enact. His freeze on all budgets of the executive branch (excluding Medicare, Medicaid, Social Security, Defense, and Education) amounts to nothing more than a pinprick in the massive federal deficit.
What the President was spot on in his address, is the need for more and better education. We must bring back an emphasis on math and science to maintain our position vis-
Posts Tagged ‘Reinvestment Act’
Jobs, Jobs, Jobs – Where Do We Find Them? Is President Obama on Track?
March 3rd, 2010Key Provisions in the Economic Stimulus Law Make Payroll Outsourcing Services More Attractive
February 28th, 2010
Recent changes in benefits administration law have made outsourcing payroll even more attractive to companies.
The American Recovery and Reinvestment Act of 2009, commonly referred to as the Economic Stimulus Bill, was signed into law on February 17, 2009 by President Obama This law contains several significant changes which will directly affect employers and how their benefits are administered.
First, a Temporary COBRA Premium Assistance has been included in The American Recovery and Reinvestment Act. This COBRA Premium Assistance provides a subsidy of 65% of the cost of COBRA coverage for nine months to certain individuals. The subsidy’s provisions are effective immediately and plan sponsors must comply with them now. The number of participants in COBRA plans will dramatically increase over the next 24 months for the following reasons: 1) Unemployment rates are now at 7.6% and growing 2) The new stimulus act helps pay a significant portion of the employee COBRA contributions. The IRS has made reacting to the much more onerous COBRA provision contained in the new law a top priority. As the number of participants grow, more businesses may be interested in choosing to outsource this as the work and liability tied to it will increase exponentially.
Some larger national payroll processing services companies administer COBRA, while most local ones don’t. Utilizing your payroll services COBRA administration has certain advantages over using your health carrier’s: a health care provider may just provide COBRA for their specific health plan, but not include other eligible services, such as Dental. By choosing your payroll outsourcing services provider to administer your COBRA benefits, you will eliminate the burden of administering ALL eligible COBRA benefits, not simply health. In addition, some larger or multi-state companies may have several health insurance choices; relying on your payroll outsourcing services provider to administer COBRA eliminates this conflict.
Second, The American Recovery and Reinvestment Act contains a “Making Work Pay” Tax Credit, which will be achieved through payroll deductions: 1) The credit amount will be the lesser of $400 for an individual worker ($800 for married couples) or 6.2% of earned income 2) The credit would phase out for taxpayers with adjusted gross incomes in excess of $75,000 ($150,000 for married couples filing jointly) 3) The IRS indicates that the credit will be achieved via a early to mid year change to withholding tax tables 4)The credit will be in effect for tax years 2009 and 2010
By: Suzanne Burnham
The Equal Employment Opportunity Commission Gets a $23 Million Boost
October 18th, 2009
On December 13th the Senate passed the 2010 omnibus appropriations bill. Under the new funding bill an additional $23 million dollars will be directed to the Equal Employment Opportunity Commission to help tackle a growing backlog of discrimination complaints. The perennially cash-strapped employment enforcer will use the much needed budget to boost staffing levels and beef up on litigation attorneys. With more EEOC representatives attacking the standing cases, companies can expect a more agile organization with shorter response times for equal opportunity complaints.
Over the years the Equal Employment Opportunity Commission has suffered consistent staffing and funding cutbacks with an increasing rate of complaints being filed year to year. From 2007 to 2008 the complaint backlog jumped over 30 percent. The chronic underfunding has held up from the Clinton administration through to the recent Bush Administration. With some active cases standing at over 3 years old, both government litigators and corporate lawyers agree that the situation has reached an untenable state.
A key piece of the economic revival strategy, equal employment opportunities are being targeted as a means of leveling the job market playing field. From the President down to the house of representative EEO enforcement sends a clear message to constituents that Law Makers are vying to protect the entire spectrum of voters during the slow revival.
While many corporate lawyers see the funding boost as a positive sign, companies are gearing up for an increasing number of EEOC Audits. Ultimately, reducing the 3 year backlog only helps bring the case to judgment. It is preferential to both side to minimize the length of time between complaints and resolutions. In addition to reducing the standing backlog, new EEOC resources will be utilized for new regulations concerning bailout recipients. Under the terms of the American Recovery and Reinvestment Act of 2009 all government contractors who received bailout funds will be flagged in the Federal Contractor Selection System for potential future audits.
With a boost in EEOC resources companies need to be more stringent in their enforcement of equal opportunity practices and their record keeping for equal opportunity compliance data. On the positive side, average Equal Employment Opportunity case length should shrink. Given the funding implications, applicant tracking software companies have developed built-in EEO tracking features to automate the data capture process and provide push button EEOC compliance reports. Companies that maintain best practices when hiring, stay up to date on EEOC guidelines and take advantage of technology should stand to benefit from a reinvigorate Equal Employment Opportunity Commission.
By: Byron Mackelroy
