More than $2 million in state grant money seized from the embattled Atlanta Workforce Development Agency earlier this year has been returned with a pledge from the new director that the funds will be put to proper use.
State officials took back $2.2 million in workforce development funds this summer because the agency hadn’t spent the money — awarded in 2012 — as intended. The seizure came weeks after a massive shake-up at the agency.
Former director Deborah Lum abruptly retired in May, just days after an investigation by The Atlanta Journal-Constitution revealed that the agency had squandered hundreds of thousands of dollars on little or worthless training. Mayor Kasim Reed quickly appointed his senior adviser Michael Sterling to lead the organization. Sterling was named Lum's permanent replacement in August.
Sterling says he asked state officials to return the funds because he has instituted new policies and strategies at the agency. Last week, Ben Hames, the deputy commissioner of the Georgia Department of Economic Development’s Workforce Division agreed.
In an Oct. 2 email provided to The AJC, Hames said AWDA has “taken great steps to ensure the integrity of their system and this will allow these monies to be invested toward training the un- and underemployed in Atlanta.”
Sterling said the funds will help train nearly 400 workers by providing services such as GED preparation, work experience opportunities, job training, career advice and placement in technical college programs.
He cautioned that more work remains in reforming the troubled agency. AWDA is still under a federal investigation for its spending.
“While I’m pleased the state sees the progress we’re making, we still have a very long way to go,” he said. “I remain committed to making the organization stronger and stronger.”
The AWDA has an annual budget between $15 million and $20 million, he said.
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