9/22/2012

Federal government program to subsidize hiring costs so much to run that states aren't taking the Federal money

Boy, this is a surprise.  A Federal government program is so costly that despite the subsidies states don't want to touch it.  From the WSJ:
Under the federal law, states were invited to submit ideas for "re-employment demonstration projects"—initiatives that motivate companies to hire people who are collecting unemployment checks. The government plans to initially pick 10 winners and reward those states with waivers to federal unemployment-insurance and labor allows, allowing them for the first time to fund programs out of their own unemployment-insurance trust funds. 
But seven months after the federal law was passed—with bipartisan support as part of the tax relief act—many states say they won't apply because they don't have the funding to set up and comply. This situation has surprised some original sponsors and frustrated some employers. . . . 
But Larry Temple, executive director of the Texas Workforce Commission, says the state isn't planning to pursue the program, because the cost has since become clear—hundreds of thousands of dollars, he estimates, compared with $100-per-job seeker it spends now. "We're going to have to shut down our program," Mr. Temple says. "We have run out of money." . . . .

Labels: ,

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home