Successes of Pa.'s subsidized-jobs program

September 06, 2010|By Jane M. Von Bergen, Inquirer Staff Writer
  • At Mugshots coffee shop in Brewerytown, worker Rosangela DelCampo (right) chats with owner Angela Vendetti. She wants to hire 10 more whose wages are paid by the government. "We're . . . on the cusp," Vendetti says. "If I can't get beyond that hump, those 10 jobs won't be there."

On Labor Day, Barbara Izquierdo, 22, will be enjoying a day off from her new job as a case manager and bilingual advocate for Philadelphia's hungry.

It's an opportunity that she hardly would have imagined a year ago, when she got in an accident, lost her job, and had to go on welfare to support her two children.

"This job has given me stability," she said. "I'm living proof that Way to Work actually works."

Way to Work is the name Pennsylvania gave to its version of a national, stimulus-funded welfare and subsidized-jobs program that will end Sept. 30, unless Congress extends it. So far, bills have passed the House, but not the Senate.

Story continues below.

Many states, including New Jersey and Delaware, also have versions.

"We're seeing signs of economic recovery," said Pennsylvania Labor Secretary Sandy Vito, who spoke last week at a rally in North Philadelphia.

"But the recovery isn't strong enough or fast enough to get everyone back to work," she said.

Vito and other proponents say that the program helps people like Izquierdo while helping employers as the economy remains shaky and unemployment is at 9.6 percent on Labor Day 2010.

Proponents hope companies will keep people on their payrolls when the program ends. If not, they still get experience to list on a resume.

Opponents say the program's national $2.5 billion price adds to the deficit without addressing underlying problems.

"I don't object to a subsidized-job program," said Robert Rector, a policy expert with the Heritage Foundation, a conservative think-tank in Washington. "But the deficit is itself operating as a huge drag on employment.

"With this deficit, the future isn't looking good for our society, so employers are less likely to invest in expanding their business and hiring."

Rector may be right on a macroscale, but Angela Vendetti is making a different bet on the 2800 block of Girard Avenue, where she will employ 10 people at a soon-to-open sister coffee shop to Mugshots, her cafe at 21st Street and Fairmount Avenue.

Rosangela DelCampo, 33, and Dorothy Jones, 47, both from South Philadelphia and formerly unemployed, are among a handful of Way to Work people Vendetti has hired at Mugshots. Their $8-an-hour wages are paid for by the government.

With wages covered, Vendetti has more cash, making it more likely that her bet will succeed in Brewerytown. The longer the program lasts, the better her chances.

1 | 2 | Next »
|
|
|
|
|