[POTUS Barack] Obama Wants Stimulus Projects To Hire More Minorities, Women.
Obama wants stimulus projects to hire more minorities, women
Tony Pugh
WASHINGTON — Amid mounting criticism that minorities, women and low-income workers are missing out on business opportunities and jobs under the stimulus bill, the Obama administration is urging the nation's governors to work harder to ensure that these groups participate fully in state transportation projects that receive federal funding.
The issue of equity has cast a cloud over the American Reinvestment and Recovery Act in recent weeks as various reports appear to confirm what minority advocates and some economists have been saying: that the fruits of the stimulus bill may not be reaching groups who are suffering the most in the worst recession in decades.
While the unemployment rate is 9.3 percent for whites, the jobless rate for blacks is 15.6 percent and 12.7 percent for Hispanics. Nationally, it's 10 percent.
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Related Story Black lawmakers, Obama split on minority job help
The Congressional Black Caucus has criticized President Barack Obama for not providing more direct assistance to African Americans during the recession.
"Behind virtually every economic indicator you will find gross racial disparities. We believe that tackling systemic inequality requires specific, concrete and targeted action," said Rep. Barbara Lee, D-Calif., the chairwoman of the black caucus.
A survey of registered voters by the Hart Research Group reported that less than 30 percent of Hispanics saw any benefit from federal recovery efforts in their neighborhoods, including the creation or retention of any jobs.
Last month, the Kirwan Institute for the Study of Race and Ethnicity at Ohio State University found that of $25 billion in federal stimulus funds distributed directly to private firms, only $1.6 billion went to black-, Hispanic- or women-owned businesses as of Oct. 11.
The Kirwan study didn't include stimulus funds disseminated through the state agencies, but recent news accounts suggest similar disparities involving state transportation projects.
For example, Chicago Public Radio found that less than 10 percent of stimulus funds awarded by the Illinois Department of Transportation went to businesses owned by minorities and women. The state had set a goal of 22.7 percent.
In advance of a proposed new jobs bill that could include more than $69 billion for state transportation projects, U.S. Secretary of Transportation Ray LaHood sent a letter this week to governors, urging them to do a better job of spreading the wealth in their transportation contracting efforts.
LaHood called for state officials to break up large individual contracts into several pieces so that smaller women- and minority-owned companies can better compete for them.
He wants states to set goals for awarding more transportation contracts to these so-called "disadvantaged business enterprises" and is offering lending and bonding assistance to help make it happen.
LaHood also asked large contractors to consider joint ventures with minority and women-owned companies and to provide technical expertise to help these companies prosper.
"I believe it is vital that we work together to provide small disadvantaged businesses and female and minority workers a fair chance to participate in transportation projects," LaHood wrote. "Existing programs may not be sufficient to ensure the broadest possible participation in Recovery Act projects, but I encourage you, along with your state and local leaders, to consider innovative approaches to these challenges."
These include using a portion of federal highway project funds for job training. The Missouri Department of Transportation is a pioneer in the concept.
The department recently agreed that low-income construction apprentices would make up 30 percent of the work force on a $500 million highway project that was just completed. Working with trade unions and community groups, the department also agreed to use $2.5 million of the project's federal funding to train low-income residents in construction work.
A similar agreement in Wisconsin resulted in 22 percent minority labor participation on an $810 million highway project in Milwaukee, said John Horsley, the executive director of the American Association of State Highway and Transportation Officials.
Tony Pugh
WASHINGTON — Amid mounting criticism that minorities, women and low-income workers are missing out on business opportunities and jobs under the stimulus bill, the Obama administration is urging the nation's governors to work harder to ensure that these groups participate fully in state transportation projects that receive federal funding.
The issue of equity has cast a cloud over the American Reinvestment and Recovery Act in recent weeks as various reports appear to confirm what minority advocates and some economists have been saying: that the fruits of the stimulus bill may not be reaching groups who are suffering the most in the worst recession in decades.
While the unemployment rate is 9.3 percent for whites, the jobless rate for blacks is 15.6 percent and 12.7 percent for Hispanics. Nationally, it's 10 percent.
*
Related Story Black lawmakers, Obama split on minority job help
The Congressional Black Caucus has criticized President Barack Obama for not providing more direct assistance to African Americans during the recession.
"Behind virtually every economic indicator you will find gross racial disparities. We believe that tackling systemic inequality requires specific, concrete and targeted action," said Rep. Barbara Lee, D-Calif., the chairwoman of the black caucus.
A survey of registered voters by the Hart Research Group reported that less than 30 percent of Hispanics saw any benefit from federal recovery efforts in their neighborhoods, including the creation or retention of any jobs.
Last month, the Kirwan Institute for the Study of Race and Ethnicity at Ohio State University found that of $25 billion in federal stimulus funds distributed directly to private firms, only $1.6 billion went to black-, Hispanic- or women-owned businesses as of Oct. 11.
The Kirwan study didn't include stimulus funds disseminated through the state agencies, but recent news accounts suggest similar disparities involving state transportation projects.
For example, Chicago Public Radio found that less than 10 percent of stimulus funds awarded by the Illinois Department of Transportation went to businesses owned by minorities and women. The state had set a goal of 22.7 percent.
In advance of a proposed new jobs bill that could include more than $69 billion for state transportation projects, U.S. Secretary of Transportation Ray LaHood sent a letter this week to governors, urging them to do a better job of spreading the wealth in their transportation contracting efforts.
LaHood called for state officials to break up large individual contracts into several pieces so that smaller women- and minority-owned companies can better compete for them.
He wants states to set goals for awarding more transportation contracts to these so-called "disadvantaged business enterprises" and is offering lending and bonding assistance to help make it happen.
LaHood also asked large contractors to consider joint ventures with minority and women-owned companies and to provide technical expertise to help these companies prosper.
"I believe it is vital that we work together to provide small disadvantaged businesses and female and minority workers a fair chance to participate in transportation projects," LaHood wrote. "Existing programs may not be sufficient to ensure the broadest possible participation in Recovery Act projects, but I encourage you, along with your state and local leaders, to consider innovative approaches to these challenges."
These include using a portion of federal highway project funds for job training. The Missouri Department of Transportation is a pioneer in the concept.
The department recently agreed that low-income construction apprentices would make up 30 percent of the work force on a $500 million highway project that was just completed. Working with trade unions and community groups, the department also agreed to use $2.5 million of the project's federal funding to train low-income residents in construction work.
A similar agreement in Wisconsin resulted in 22 percent minority labor participation on an $810 million highway project in Milwaukee, said John Horsley, the executive director of the American Association of State Highway and Transportation Officials.
Labels: General information, POTUS Barack Obama
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