If States issue retention bonuses or provide cost of living increases with ARRA funding, are those counted as jobs retained?
A. In general, it is important to emphasize that the purpose of the Recovery Act is to create new job opportunities or retain positions which would have otherwise been eliminated due to the unprecedented downturn in the economy. We do not advocate the use of Recovery Act funds for cost of living increases or retention bonuses, except where required by law. While maintaining emphasis on the guidance above, the previously published FAQ on cost of living increases and retention bonuses went on to allow the flexibility to include estimates of such forms of compensation to be included in the total estimates of jobs created and retained by the Recovery Act. Since the time that FAQ was published, OMB has determined that any Recovery funds used for cost of living increases or retention bonuses are to be excluded from the total number of jobs created and retained calculation.
Related Questions
- This FAQ has been superseded by FAQ #7 below, "If States issue retention bonuses or provide cost of living increases with ARRA funding, are those counted as jobs retained?
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