Labor chief: Stimulus funds a major factor in state’s recovery

Though federal stimulus money won’t solve all of Georgia’s problems, one agency is getting a major boost in financing water and energy projects.

Georgia Labor Commissioner Michael Thurmond said Wednesday that federal stimulus money will pay huge dividends in Georgia’s economic recovery — but that won’t happen unless the state takes steps to retrain its work force.

This is because the nearly 6 million U.S. jobs that have gone away since December likely aren’t coming back when the economy turns around, Thurmond said at a media briefing on tracking Georgia’s stimulus dollars. What’s more, it may take until 2010 until the state sees significant job creation.

Even if the economy pulls out of the tank in the latter part of this year, unemployment rates may still climb for another six to 12 months, he said.

“You just can’t listen to what economists say about economic recovery,” Thurmond said. “In some ways, it’s counter-intuitive.”

Meanwhile, federal stimulus money going to the Georgia Environmental Facilities Authority has increased its ability to help finance water and energy projects tenfold.

But Greg Mason, the agency’s chief operating officer , said at the briefing that GEFA knows a number of federal and state auditors are watching how those dollars are spent.

“There are a number of separate eyes not just on this program but any program,” Mason said. “The bottom line is how do we just not do it right, but how do we get money that the other states haven’t spent.”

GEFA currently budgets about $38 million for water, sewer and energy projects. With stimulus money, the agency now has about $380 million to work with, Mason said.

The agency has broken down how it plans to spend those dollars, which will be allocated in the form of grants and loans. They will mostly go toward energy conservation projects as well as ones for clean water, he said.

The money must lead to the creation of jobs, economic development and promotion of innovation, among other things, Mason said.