Economists question impact of IJOBS plan

An article in today’s Des Moines Register questions the economic impact of the Governor’s I-Jobs plan. In fact Raymond Keating, chief economist for the Small Business and Entrepreneurship Council, says,

“The bottom line for Iowa is this: In the best-case scenario, it won’t make any difference. In the worst case, it’s going to make things worse.”

You can view where the money is going by clicking here: I-JOBS road funding amounts and bridge projects. One thing to note is that according to the Iowa Department of Transportation’s 2008 Factbook, it costs $3.2 million for a mile of new two lane highway. None of cities or counties receiving funding will receive that much for roads according to the documents released by the Governor.

Also worth noting is cities hit hard by job losses aren’t being targeted by the I-Jobs program. Ottumwa which has experienced 700 lay-offs at John Deere is receiving $242,226 or $346 for each job lost. Webster City which experienced 150 layoffs at Electrolux is receiving $79,220 or $528 for each job lost.