Stimulus, Recovery Act - California Funding and Jobs


California expects to receive an estimated $85 billion in federal economic stimulus over the next two years. This article outlines how the American Recovery and Reinvestment Act will affect Californians.

How the Federal Economic Stimulus Will Be Allocated in California

The federal Recovery Act will invest an estimated $85 billion in various sectors throughout California. Health and human services and education receive the largest portions of the funding, followed by labor, transportation, energy, and other areas. Additionally, Californians wiil receive an estimated $30.2 billion in tax relief.

Tax Relief - $30.2 Billion


The Recovery Act includes provides tax relief to California residents with over 50 modifications to state tax codes and bonds.  These adjustments to California's tax codes and state bonds include changes to the Health Insurance Tax Credit, the Making Work Pay Credit, Recovery Zone Bonds, School Construction Bonds, and many others.

Health & Human Services - $19.5 Billion


Californians will receive billions to enable people to remain in their homes and support the costs of caring for California’s adopted and foster youth by increasing Federal Medical Assistance Percentages (FMAP) funding for Medicaid/Medi-Cal services.

Funds will also go to food stamp benefits, elderly nutrition services, the Women Infant Children (WIC) program, assisted employment for persons with disabilities. Also slated is a one-time emergency payment to Social Security, Supplemental Security Income, and other compensation or pension benefit recipients.

The Recovery Act also invests in health information technology infrastructure to enable electronic health information exchange, prevention, and wellness opportunities.

Education - $11.8 Billion


Recovery Act funds will bolster California's schools and universities.

These funds will protect education funding and important preparatory programs such as Head Start and Work Study, as well as help prevent the layoffs of educators and other school employees.

Recovery money will also go to help improve performance in struggling schools, further development of data bases that will accurately manage and analyze individual student data and improve teacher preparation and recruitment.

Labor & Employment - $5.2 Billion


California will receive billions in Recovery Act dollars to enhance assistance and services to unemployed Californians. Funds will expand job search assistance and training opportunities in high demand occupations like health care, as well as help create summer employment opportunities for youth. Funds will also extend benefits and provide an additional $25 a week to unemployed Californians.

In addition, Recovery Act dollars will go to upgrading computer systems and developing automated options to make it easier for the unemployed to start and manage their Unemployment Insurance (UI) claims.

Transportation - $4.7 Billion


Billions in Recovery Act funds are allocated to repair and improve the state's transportation system, create jobs and stimulate economic growth. California will receive funds to rebuild and repair highways, local streets and roads, as well as numerous transit projects.

California is also eligible to apply for billions in competitive funding for high speed and intercity rail, surface transportation projects, aviation and AMTRAK, new starts, transit, ferries and other programs. California is positioning itself to receive a large portion of funds for high speed rail, which will supplement the $10 billion California voters approved in November 2008.

Other State Programs - $3.3 Billion


Over 75 state programs and departments are slated to receive Recovery Act funds, including the Departmant of Defense, Department of the Interior, Department of Agriculture, the Small Business Administration, and many others.

Energy & Conservation - $3.0 Billion


California will receive Recovery Act funds to support existing energy efficiency and renewable energy programs including the State Energy Program and the Energy Efficiency and Conservation Block Program.

Funding will also go to modernize the state’s electric grid, or "Smart Grid," which will enhance energy infrastructure security and ensure reliable electricity delivery. A portion of this funding will be allocated for projects and programs to reduce total energy use, make buildings more energy efficient, weatherize buildings and support renewable energy projects and climate change-related programs.

Water & Environment - $2.5 Billion


Recovery Act funds will be directed to complete natural resource protection projects throughout the state. This funding will help complete flood control projects in the Central Valley, improve water supply reliability and habitat in the Sacramento - San Joaquin Delta, and restore fisheries that support thousands of jobs in northern California.

Recovery Act money will also be used for abandoned mine reclamation, earthquake science, forest fuels reduction, and trail maintenance.

Science & Technology - $19.5 Billion


California will receive Recovery Act dollars to further the state's technology infrastructure and scientific research. A portion of the funds will be used to invest in California's broadband infrastructure to help bring broadband service to rural and underserved communities, create jobs, and stimulate economic growth.

Funds will be used to improve health information technology, which will facilitate statewide electronic health data exchange. Funds will also be used to construct, modernize, and repair research facilities, update research equipment, and further research and related activities.

Housing - $19.5 Billion


Recovery Act funds will help thousands of Californians facing foreclosure, provide new resources to increase housing supply, and help prevent homelessness.

Millions of dollars will be allocated for Community Development Block Grants (CDBG) to help create jobs and support local businesses, as well as for Homeless Prevention and Rapid Re-housing to facilitate homelessness prevention projects. Funds are also available for competitive distribution to build and rehabilitate low‐income housing using green technologies.

In addition, California is eligible to compete for a share of $2 billion to purchase abandoned and foreclosed homes, helping neighborhoods and communities hit by the foreclosure crisis.

Public Safety - $19.5 Billion


California will receive Recovery Act dollars to help sustain and enhance funding for law enforcement and victims services.

Funding will go to state, local, and tribal law enforcement and community based organizations to support hiring to combat violence against women, fight internet crimes against children, assist crime victims and support youth mentoring.

Recovery Act Opportunities and Jobs in California

The funding from federal Recovery Act creates opportunities for state contracts, jobs, benefits, and grants. California leads the country in the estimated creation of 396,000 jobs.

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The California Department of General Services (DGS) offers opportunities for small and large business that wish to bid on Recovery Act funded state contracts. DGS is hosting eProcurement Supplier / Vendor Webinar trainings to help suppliers navigate the registration and certification processes. There is no fee for any supplier to register, get certified, receive email or fax notifications, download or respond to State of California bid solicitations, or for being awarded a State contract.

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The California Employment Development Department (EDD) is one of the largest state departments with employees at hundreds of service locations throughout the state. EDD is working directly with the Department of General Services and the California Recovery Task Force to connect job seekers with employment opportunities.

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The Recovery Act creates many job opportunities in departments throughout the state of California. The California State Personnel Board offers a searchable database of positions ready to be filled.

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The Recovery Act Taskforce is working with the Employment Development Department and the Unemployemnt Insurance Program to manage the modifications made to unemployment benefits.

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The Recovery Act Taskforce is working with, a central storehouse for information on over 1,000 grant programs providing access to approximately $500 billion in annual awards.

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Source: State of California
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