Two years later, a look at how the stimulus bill has impacted Santa Cruz
It’s been almost two years since President Barack Obama signed the American Recovery and Reinvestment Act (ARRA) on Feb. 17, 2009, pumping $787 billion of federal funds into the economy. But where has that money gone and what was the impact?
In Santa Cruz County—where there were 198 grants and seven contracts awarded for a total of $120 million—the consensus seems to be that the stimulus was a double-edged sword. On one hand, jobs were saved, programs were created, and start-up businesses had better chances of securing loans. But, at the same time, new levels of bureaucracy, limited funds and a distorted public image of ARRA had a crippling effect on some local agencies.
“It was meant to stimulate growth, not to sustain it,” says Rep. Sam Farr (D-17th District). “But public financing is very difficult and with cuts coming down [from the government] people don’t necessarily know where the money is coming from.”