Thousands employed locally through federal jobs program could be out of work by week's end

Tens of thousands could be suddenly jobless Friday if the U.S. Senate does not extend a federal program that pays businesses, community groups and local governments to employ low-income people, officials said Monday.

In Los Angeles County, 6,000 to 7,000 could be unemployed by the end of the week, said Philip Browning, director of the Los Angeles County Department of Public Social Services. One of them is Danny Mariscal,of Los Angeles, an eager 19-year-old in his first job stuffing day-bed cushions into covers and inspecting finished furniture at Modernica Furniture, a factory in downtown Los Angeles near the L.A. River.

“I’ve been eager to find out. Hopefully, I do,” said Mariscal. He said his family was proud of him for getting his first job.

Mariscal said he spent half a year looking for a job, and it was hard to find entry-level work. “You had to have experience. Here, they were willing to show me,” Mariscal said.

Jobs like Mariscal’s are funded by $1 billion in federal money contained in the $787-billion American Recovery and Reinvestment Act of 2009 championed by President Obama. But the funds for the subsidized employment program will expire Thursday, at the end of the fiscal year, unless the U.S. Senate acts to extend the program.

Federal officials arrived at Mariscal’s workplace Monday to tour the facility and drum up support for extending the program, which has stalled in the Senate amid concerns about the rising deficit. The Obama administration is seeking a one-year extension of the program.

David Hansell, acting assistant secretary of the Administration for Children and Families, a division of the U.S. Department of Health and Human Services, said that since the federal jobs program went into effect in July 2009, about 250,000 jobs have been created in 38 states, with 35,000 of them in California.

“This program has succeeded beyond our wildest expectations,” Hansell said. He said three objectives have been achieved: employing low-income people who otherwise would have been on welfare, supplying small businesses with more help and keeping local economies humming.

“It would be a tragedy if we had to end this program after the end of the week,” Hansell said.

Anyone being laid off this week would face a tough job market, with California’s unemployment rate at 12.4%, well above the national rate of 9.6%.

Los Angeles County Supervisor Don Knabe, a Republican, urged the Senate to act.

“Policymakers in Washington have told me that this program has been the most effective use of the stimulus dollars they have seen,” Knabe said in a statement. “Business owners have told me that, without this program, they wouldn’t have been able to stay open. People who have gotten jobs have told me that earning a paycheck and taking care of their family has been much better than collecting a welfare check. In fact, many adults employed through this program have transitioned to permanent, unsubsidized jobs.

“To me that is proof alone that this program is a success. We just need Congress to take action and extend this program,” Knabe said.

Frank Novak, one of the owners of Modernica, known for selling its tables to Pinkberry, said the federally funded jobs have enabled him to increase furniture production –- a big help because the company is typically cautious about hiring.

 “It’s a win-win. We needed the help and they needed the jobs,” said Nohemi Castro, human relations director at Modernica.

Already, the program has helped one worker, Tikowa Rhodes, a human resources employee and receptionist, land a permanent job at Modernica.

Rhodes, 31, said she lost her previous job as a preschool coordinator in September after being injured in a car accident. She said it was difficult finding ways to make ends meet as she cares for her 6-year-old son. Rhodes said she was overjoyed when she landed her new job in April and was exhilarated when she become a permanent employee Friday.

“Now, I can continue to pay my bills. It was a feeling of independence,” Rhodes said.

But Modernica can’t afford to hire all eight of the workers subsidized by the federal program and may have to lay off several by the end of the week if federal money doesn’t continue flowing.

Among the workers is Jeff Amaya, 31, who has been working at Modernica for six months, trained to assemble beds.

“It opened up a whole new avenue for me,” said Amaya, who had been out of work for two years and is raising a 5-year-old son. He said the job has taught him new lessons in life: “Here, it has to be the best it can,” he said, and he has learned to make “sure  when you do something, you do it right, instead of doing it fast.”

“This saved me. It’s been a real lifesaver,” Amaya said.

Standing next to him was Gerardo Diaz, 39, who before having a job at Modernica struggled to make ends meet through self-employment. He is raising three children: a 7-year-old son and two daughters, ages 2 and 3.

“This is a great opportunity to sharpen my skills,” Diaz said.

-- Rong-Gong Lin II in downtown Los Angeles

Photo: Carpenter George Colmenares works at the Modernica furniture factory in Los Angeles on Sept. 27, 2010. Credit: Genaro Molina /Los Angeles Times

Comments

[Greg Maragos]

If a portion of your paycheck comes from the government, then you are, in a certain sense, a government worker, even if you work for a private business.

The government needs to get out of the business of offering direct employment, and more into the business of creating an environment in which entrepreneurs can succeed and provide employment--and, therefore, tax revenue, upon which the government depends for its existence.

When you talk to somebody who has spent their entire working life as a civil servant, they often are completely oblivious of where their paycheck actually comes from. You are working for the government, true, but it is the taxpayer who butters your bread.

The government that gets out of the way is the government most likely to succeed in creating jobs. Obama never got that memo, unfortunately, so onward and downward we blindly stagger...toward what, nobody can say--but whatever it is, it ain't gonna be good.

[Jesse]

Oh c'mon, it should be money for Wall St., not Main St.....

[Rocco]

I'm sure Rep Boner will have a very good reason why these people should lose their jobs. Otherwise, maybe you can have Carly Fiorina tell them 'maybe your job should go somewhere else, like China'.

[CaliHATER]

So, are Danny Mariscal, Gerardo Diaz, Jeff Amaya, Nohemi Castro, Tikowa Rhodes, Don Knabe, and Rong-Gong Lin II all legal residents or illegal aliens??

Since the State of California and the L A Times so adamantly advocates "sanctuary" for illegal aliens (mostly latino), I feel it necessary to question the immigration status of all California residents who are not identified or who have foreign sounding names. I will have no reason to continue this practice when the State of California and the L A Times begins to advocate upholding the laws of this country.

[jopsjennings]

Let's see, judging from the names mentioned in your story, this funding helps Latinos. Let me look that up in the Republican handbook -- hmm... sponsored by Washington and helps Latinos = stupid wasteful deficit spending.

OK, now let's look up extending tax breaks for the wealthy...hmm... the Republican handbook says that extending tax breaks for the wealthy = smart spending and brilliant economic policy.

[Mina Brown]

Could you please provide the name of the program so people can tell their Senators to support it? Thanks for the article.

[madsircool]

This is a waste of money. These businesses should be hiring and [aying for its employees itself. But the government should provide a healthy business climate so all those that need to work can. I fear things will get far worse economically in Cali if Prop 23 passes. Who will provide the millions of jobs needed it a toxic business climate?

[Andy K]

Total waste of government (our) money. If the business was viable they could surrive without handouts, shut them down. Time for Obama to go back to teach or whatever he was doing and stop screwing up the country.

[kuruc]

i'm willing to have my taxes pay for this, rather than sit on your behind and get fat welfare!

[GoSpursGo]

Good things for all.

[Bee Gomez]

Modernica has a retail store, supplies Design Within Reach, and owns most of the block of E. 7th Place. Not a little mom n' pop outfit. Why this place needs government handouts to employ workers seems pretty far-fetched. And yes, of course, some "undocumented" workers are probably employed, because if they have SS cards, they've got a job.

Isn't everyone "low-income" until they get jobs?

[Nohemi Castro]

Dear CALI-HATER,

FYI. We are all U.S. Citizens with "foreign-sounding names". I'm a U.S Army vet too!!

[US VETERAN MWB]

I look at it this way what is the difference between them working this program at a real job producing money for the economy and they get paid by the gov't than that of city/state/gov't/ workers that sit at their desks drinking their coffee also collecting Gov't(our) money??? if your going to blast the small people you better blast the top also I say good for them doing what they can to earn the honest wage. Shame on those who blast them for it your the one who needs to look into the mirror and re-evaluate your self Nobody in this world is better than the other we are all here in this country for the same reasons. LIFE LIBERTY AND THE PURSUIT OF HAPPINESS!without those we are nothing
MWB US ARMY VETERAN (Dessert Storm)

[Ramona G]

Wouldn't it make much more sense to stop taxing these small businesses to death, so that they can function and hire personnel WITHOUT the "help" of the governement? How backasswards can we get?

[Dustin]

@Mina Brown
The program is funded by the TANF Emergency Contingency Fund. If Congress extends this fund, subsidized employment will continue for fiscal year 2011.
More info here: http://www.clasp.org/admin/site/publications/files/Emergency-Fund-Extension.pdf

@Bee Gomez
It's not a matter of Modernica or any other business 'needing' a handout. This program provides the opportunity for small and mid-sized businesses to be innovative and ambitious in a down economy, rather than hunkering down and not thinking about hiring until the climate is kinder. It is only by encouraging small businesses to take risks that the economy will recover. That's why the conservative American Enterprise Institute supports subsidized employment. It HELPS businesses:
http://www.bloomberg.com/news/2010-02-21/stimulus-tab-of-41-800-waits-for-wall-streeters-kevin-hassett.html

[Herman]

I had an interview with this weak ass excuse for a company. they treated me like they were superior and when I said I wanted 16 hr for the shipping potition they thought it it was a joke I was making 18 hr at my last job plus I have 15 years experience. the wanna hire minimum wage temp positions till the government money runs out then lay then off. they just want a hand out, this is like welfare abuse. This stupid company is only trying to get government help but they dont make enough money to stay obove water without the government they should just let them go out of business.