Spending gobs of money quickly turns out to be something of a chore.
The recently enacted $787 billion federal stimulus package resulted in previously austere programs suddenly being flooded with cash, including an estimated $135 million to weatherize low-income homes in Minnesota. The money is almost universally lauded — it puts people back to work, cuts energy bills for needy families and reduces the state’s carbon footprint.
But the program also demonstrates some of the unforeseen stumbling blocks inherent in trying to shock the economy back to life by spending massive amounts of money in a short time: Right now, there simply aren’t enough qualified personnel to do the job.
“To deliver the weatherization dollars as quickly and effectively as we can and put people to work as quickly we can, we’re going to have to deal with a couple of bottlenecks,” said Rep. Jeremy Kalin, DFL-North Branch, sponsor of a bill that would prioritize the spending of energy-related stimulus funds.
“First, we’re going to have to hire and train hundreds more home-energy auditors, and the other piece is, we want to make sure we’re not bloating administration so we (end up) slowing (spending) down.”
It is not a minor issue; President Barack Obama’s stimulus bill provides $5 billion nationally for weatherization for seniors, the disabled and low-income families that make less than 50 percent of a state’s median income. But in order to help create jobs quickly, the money must be spent within two years.
The problem is, the program previously received just $10 million annually, enough for 3,500 to 4,000 Minnesota homes every year. That number now is expected to zoom to 35,000.
So officials are looking for ways to dramatically increase the numbers of home-energy auditors, as well as identify contractors who can do the job — in the shortest time possible.
The state already partners with Dunwoody College of Technology to train home-energy auditors, but those courses are packed. The school recently added new courses, but the earliest openings aren’t until June. So the state is looking to replicate the training elsewhere.
“Now that program’s going to be a model,” said Bill Walsh, a spokesman for the Minnesota Department of Commerce.
It is a problem likely to be faced by other state agencies that see federal stimulus dollars come their way.
The bill was written in a way that pumped massive infusions of money into existing programs. Over the years, administrators of those funds might have expected shifts of a few million dollars here and there, but the stimulus package is a whole new ballgame — the weatherizing program alone increases prior funding levels by a factor of 13.
For the most part, that has Bill Foley rubbing his hands together. Foley’s job is to insulate homes, mostly by shooting cellulose — a paper product that looks like rough, grey cotton — into walls to make homes more energy-efficient. Foley calls the process “tightening the envelope.”
Foley runs a small company based in Mahtomedi called Maple Tree Insulation. It’s one of scores of small, one- or two-person operations that specialize in such work. With the help of the federal weatherization program, he makes a modest living and is happy to have steady work.
Some of the local organizations that administer energy programs have suggested — even before the stimulus package but especially now — that Foley expand his business. But he’s not sure he can afford to, and that raises questions about whether private contractors can meet the demand — especially since the jobs may disappear once the stimulus dollars evaporate.
“They want us to increase. They want us to put on people; they want us to put on more trucks. But we (small operators) don’t have enough money for that,” Foley said.
Even if he were to hire more staff, Foley said, it might take three to four months to train them. It’s the same problem faced by stepping up training for energy auditors: The more time it takes to get the personnel up to speed, the less time there is to spend the stimulus money.
It’s not a problem that is lost on Kalin. He said he’s in talks with local unions to put out-of-work laborers back to work by having them work on stimulus-related jobs, such as weatherization.
The 28 regional organizations that administer the weatherization program through contracts with the state also are aware of the logistical puzzle that comes with growing at light speed.
“No one in this business would lie to you and say this isn’t a challenge ahead of us; we know that it is. But no one in this business thinks they can’t do it,” said Cynthia Webster, who oversees the weatherization program for the Community Action Partnership of Ramsey & Washington Counties.
The $135 million for statewide weatherization is only an estimate, and only one part of the energy funds flowing into Minnesota. The state expects another $55 million for its state energy fund and $14 million in block grants, much of which likely will be distributed to smaller communities.
Larger cities and counties will get their own funds. For example, St. Paul expects to receive about $4.2 million in energy and conservation block grants.
They, too, are in the early stages of figuring out what to do with the money.
WARMING UP
To qualify for Minnesota’s weatherization program, a family of four can earn no more than $41,000 a year.
The program in the past has received just $10 million annually, enough to pay for weatherizing 3,500 to 4,000 homes. With the stimulus boost, that number is expected to climb to 35,000 over the next year.
To learn if you qualify for home weatherization help, contact: