Los Angeles city controller disappointed with city's use of federal stimulus funds

Los Angeles City Controller Wendy Greuel says she’s “disappointed” in the way the city’s used its federal stimulus money to create jobs.

The city controller said the federal government awarded Los Angeles nearly $600 million in stimulus money. Her audit examined the two departments that have received the biggest chunks of cash.

She found that the Department of Public Work’s received more than $70 million in American Recovery and Reinvestment Act money – but it’s created or retained just 45 jobs. She said that grant was supposed to create 238 jobs.

L.A.’s Department of Transportation has been awarded 40 million federal recovery dollars, and created or retained nine jobs. The number was supposed to be 26.

In the Department of Public Works' case, Greuel faulted the agency’s slow process of awarding contracts and starting construction. While the controller said it did not appear that the utility misspent the money, it needs a process for more transparent and accurate tracking of stimulus funds.