Local Jobs for America Act: Invests Billions in Restoring & Creating Jobs

$52.5 billion directly to communities with at least 50,000 residents – Mayors, County Officials and Governors would submit a statement to the need for the specific positions to the Department of Labor. The department would then distribute funding to communities based on the Community Development Block Grant formula.

Half of the funding will go to positions that would be eliminated due to ongoing budget shortfalls. Up to 25 percent of the funding can go to non-profit community organizations that provide services not customarily provided by local government employees. The remaining 25 percent may be used for creation of new jobs in local government.

$22.5 billion directly to governors to distribute to communities with fewer than 50,000 residents – Job creation funding will sent to towns, counties, or private non-profits outside of those communities eligible for the funding above. Local governments will apply to the governor for the funding.

Like support to larger communities, half of the funding may be spent on retention of positions slated for elimination, up to 25 percent of the funding can go to non-profit community organizations that provide services not customarily provided by local government employees. The remaining 25 percent may be used for creation of new jobs in local government. The governor must fairly distribute the funding among congressional districts, in proportion to each district’s rural population.

Funds may only be used for compensation of full-time, full-year positions.  “Full-year” defined to include school year positions. Local governments may expand existing services or restore services cut in the past five years. Positions are federally funded for two years.

Jobs are regular government or local community organization jobs. These jobs will be in pre-existing job titles, covered by union contracts, etc. Mayors and County Officials are not required to continue funding these positions once federal funding expires. Priority will be given to hire workers laid off from city positions, current unemployment insurance recipients and the long-term unemployed whose benefits have been exhausted.

These funds will be allocated by states to school districts and public institutions of higher education to retain or create jobs to provide educational services and to modernize, renovate, and repair public education facilities. Funding will be distributed the state fiscal stabilization fund formula as passed in the Recovery Act. States would then distribute funding to school districts based on each state’s education funding formula.

These funds will enable workers to acquire core job skills and important work experience for private employers.  Individuals will be able to earn a salary and learn a new job through the Workforce Investment Act.  Participants will gain core job skills and experience through training and close supervision by their employer.