Boxer Urges Extension of Job-Creation Program

Washington, D.C. – U.S. Senator Barbara Boxer (D-CA) today urged Senate leadership to ensure the upcoming jobs legislation includes a no-cost extension of a successful Recovery Act program that has helped state and local governments generate thousands of jobs in California.

The American Recovery and Reinvestment Act included $5 billion for the Temporary Assistance for Needy Families program – funds that may be used to support subsidized employment programs. By the end of February, 15,000 job positions will have been created in California thanks to this funding, including about 3,100 in Los Angeles and 1,300 in San Francisco.

So far, California, 21 other states and the District of Columbia have been able to use a portion of these funds for job-creation programs, according to the Department of Health and Human Services.

Currently, the funding is due to expire at the end of September. Senator Boxer seeks a one-year extension of the program so that these funds will be devoted to job creation.

The full text of the letter is below:

January 26, 2010

The Honorable Harry Reid

Senate Majority Leader

The Capitol, S-221

Washington, DC 20510

The Honorable Richard J. Durbin

Assistant Majority Leader

The Capitol, S-321

Washington, DC 20510

The Honorable Byron L. Dorgan

Chairman, Democratic Policy Committee

173 Hart Senate Office Building

Washington, DC 20510

The Honorable Max Baucus

Chairman, Senate Finance Committee

219 Dirksen Senate Office Building

Washington, DC 20510

Dear Majority Leader Reid, Asst. Majority Leader Durbin, Chairman Dorgan, and Chairman Baucus:

As we continue to work together to create jobs and achieve a full economic recovery, I write to request that you include in the “jobs bill” a no-cost extension of a program created in the American Recovery and Reinvestment Act (ARRA) that has helped state and local governments create thousands of jobs.

As you know, ARRA dedicated $5 billion in funds toward the Temporary Assistance for Needy Families (TANF) for an Emergency Contingency Fund (ECF). TANF-ECF funds provide states with 80 percent federal funding for increases in TANF basic assistance, non-recurrent short-term benefits, and subsidized employment programs. States have used these funds to support a wide-range of subsidized employment programs, including public and private jobs, transitional jobs, summer jobs and work programs for individuals with disabilities.

Unfortunately, as a result of delays in the implementation of program rules, state and local governments have only had access to TANF-EFC funds for a few months. Yet according to the Department of Health and Human Services, in this short time California, 21 other states and the District of Columbia have accessed $94.7 million in TANF-ECF funds to create thousands of jobs. By the end of February, 15,000 job positions will be operational in California utilizing TANF-ECF subsidized employment funds, indicating the cost-effectiveness of this program. In the six months the County of San Francisco has had access to program funding it has placed over 1,300 out-of-work individuals into subsidized employment.

State and local governments are just now beginning to implement subsidized employment programs, but regrettably, ARRA terminates TANF-ECF at the end of September 2010. If the ARRA provision is not extended, a significant portion of unspent funds will be diverted away from a proven job creation tool.

The County of Los Angeles, which has already created over 3,100 jobs, has told me it will be unable to maintain its program for more than a few more months if the program is not extended. According to the non-profit group CLASP, many other states have decided not to pursue subsidized employment programs because the authorization is set to expire so soon, but would develop programs if the authorization were extended.

So that our states and counties can continue to access TANF-ECF funds to create new jobs, I request that job-creation legislation include a one-year extension of this program. Helping parents in need find a job not only strengthens local economies and communities, it helps individuals develop the critical work skills and on-the-job experiences they need to support their families and remain employed in the future.

Our entire nation is struggling with record high unemployment rates, and we must do all we can to continue to support proven job creation programs. Including a one-year extension of the TANF-ECF at no additional cost would create thousands of new jobs in states across the country.

Thank you for your consideration.

Sincerely,

Barbara Boxer

United States Senator

###