The Journal Times from Racine, Wisconsin • 19

Vl'fci thelournalHines Sunday, July 1971 1 II ttMlnft Wit, I Id- 110(0)011 OEM mm See story Page.lA "1 si By Dennis Hetzel JourMlTlmw Staff If you drive on a major highway, pick up your mail, get unemployment benefits, have a child with a learning problem or make use of a sewer system you are Involved with the federal government. Those acts represent only some of the areas In which the following federal programs operate. And each program had impact on the local economy because each brought more than $1 million In funds from Washington D.C. to Racine: i w-'-Vt imp imii mr tr-rr Civil Service Retirement and ------r' Disability Fund Former federal employes both retired and disabled, received $3,429,000 in benefits In Racine County during the 1977 federal fiscal year, according to a government report. But how many retired and disabled federal employes are Involved is unknown.

In fact, it isn't known whether that much, or possibly more, actually came Into Racine County: The reason Is because Civil Service retirement and disability funds totals are kept only on a statewide basis. Retirement and disability benefits vary In relation to the pay level of the Job held by a federal employe and how long the employe was on the job. Civil Service retirement takes 7 percent of the employee's pay, and the employer the federal government throws in another 7 per cent. Federal Civil Service employes aren't covered by Social Security. Nancy Klchak of the Civil Service Commission's retirement benefit office in Washington, DC, said the national average retirement payment is $654 monthly, or $7,848 a year, and the average survivor benefit is $268 monthly or $3,216 a year.

Retirees receiving benefits make up about 73 percent of all journal Times Photo by William Ltzdas Federal community development funds built the Project Breakthru Center. possible that privates scrub walls and swab floors with products supplied by S.C, Johnson Son Inc. And when the commander of an M-113 armored personnel carrier puts his machine through slick manuevers, little does he realize-that a system built by Young Radiator Co. In Ra- persons receiving benefits, she said. If the just oyer $3,4 million designated as coming to ji keeprng the big engine cool.

In all, 31 firms received contracts worth "more than $5.3 County were actually, coming to Racine County, and all recip There were 360 children participating in the program during 1976-77 and 200 during 1977-78. Area schools purchasing services from CESA-18, (Cooperative Educational Service Agency), an educational service provider based. "Burlington, spent approxinv' of Title 1 money during4 fiscal year 1977, estimates ibert CESA-18 Title 1 director. CESA-18' operated a school-year Title 1 migrant education program in eight Unified district schools for approximately 300 former' migrants, ran a summer migrant program at two Unified schools for about 150 pre-schoolers through high school students, and ran a migrant education program at. North Cape Elementary School for 30 migrant children.

Dale Jensen, CESA-18 administrator, says the migrant programs' major emphasis is language arts. CESA-18 also offered Title 1 programs during the school year to 250-300 students performing below grade level In the Union Grove Grade School, Union Grove High School, Raymond Grade School, Waterford Grade School, Waterford High School, Washington-Caldwell Grade School, North Cape Consolidated Grade School and Yorkville Grade School Districts. The Burlington School District spent $57,562 in Title 1 money during fiscal year 1977, according to DPI. The 'programs served 180 kindergarteners through second graders in year-round programs in six Burlington elementary providing supplementary language Instruction. Information on the amount of Title 1 money spent at' private schools in the county isn't readily accessible, according to Frank Brown, a DPI Title 1 coordinator.

But statewide estimates applied locally show a possible 150 Racine County private school students might have been enrolled In Title 1 programs at a possible cost of $73,500. Cook adds that $42,000 in Title 4 money is spent to provide books and materials to educationally deprived children in Racine County classrooms. It should be noted that local figures for Title 1 money spent differed in most cases by several thousand dollars from DPI figures. DPI figures also were $202,000 more than the listed In a federal expenditures report. Economic Development Administration The Economic Development Administration made in grants for public works projects in Racine County; Payments, of $801,783 went to the City of Racine for a storm and sanitary sewer project in the Shoreland Drive area, while payments totaled $747,317 for the Chicory Road storm sewer.

County government received $252,000 for parks development, the money going to several projects at, Cliffside Park on the lakeshore north of Crestview. Environmental Protection Agency Racine's new $15 million wastewater treatment plant addition was the major beneficiary in fiscal '77 of federal Environmental Protection Agency construction grants. The EPA grants covered 70 percent of the project's costs, with of the payments coming in fiscal '77. Most of the remaining $252,000 in EPA grants went to the city as part of the 75 percent federal share of a $1.4 million, federally-required study of surface water Infiltration and in flow Into the city's sanitary sewer system. Federal Highway Administration Computer printouts from the Federal Highway Administration show $1,136,015 In federal highway project funds came into Racine County during fiscal 1977.

The largest single allocation was $651,140 which was divided between the improvement and rebuilding of County Trunk MM and widening of the Mount Pleasant portions of 16th Street east of Highway 31 and Ohio Street to Spring Street. Another large allocation, $295,985, was the federal share of Improving and repavlng 1.7 miles of County Trunk northeast of Waterford. Remaining funds were for intersection work In the City of Racine, preliminary engineering work on bridge reconstruction west of Union Grove and on the Im-provement of Highway 31 north of Highway 20, and Installa- tlon of flashing signals St a Soo Line crossing in Burlington. Total cost of the projects was $1,567,645, of which federal funds made up 72.5 percent. Housni and Urban Devel- opment The U.S.

Department of Housing and Urban Development (HUD) subsidizes rent for the poor, helps" develop housing projects, funds residential improvements and provides large chunks of "Community Development Block Grant Funds" to urban areas. It cost about $3.3 million in 1977 to do those things In Racine County. Carol Reynosa, special assistant to the director of HUD's Milwaukee office, said HUD allocated Its fiscal year 1977 funds for Racine County in the following manner: In Racine, HUD earmarked rent subsidies for the poor and elderly at Regency Apartments, a 65-unlt complex for the elderly; $277,992 at Oakview Manor, which contains 78 units of elderly $192,768 at Chateau Apartments, a 44-unlt family development and $698,112 in funds "were reserved for Washington Court Apartments, which will have 15 family and 78 elderly units. In Sturtevant, $69,120 was allocated for Westrldge Apartments, a complex of 24 family In Racine County, $67,104 was earmarked for a 24-unlt elderly complex under construction in Waterford. In another HUD program, eligible people are allowed to find their own housing and HUD helps pay the rent.

Reynosa said $337,620 was used for subsidies to 81 family units and 78 elderly residences in Racine County. HUD also spent $60,250 In a grant to the City of Racine its "Section 312" program, which is aimed at subsidizing low-interest loans for housing rehabilitation. The City of Racine was allocated nearly $1.28 million In community development funds, which went toward a variety of projects aimed at upgrading the city. Racine County received a special grant of $156,000 in community development funds. job Service the federal government loads a gun with extra money and pulls the trigger in times of high unemployment.

Such a time was late 1976 and early 1977 when special unemployment benefits were in effect. Roughly 18,000 checks worth about $1.4 million in extra benefits were issued In fiscal year 1977 through the Racine County office of Wisconsin Job Service, 618 Sixth St. Normally, explained Robert Brandl, district director of the office, unemployment benefits come strictly from taxes paid by most employers. Eligible persons get about 50 percent of their average wage up to a set figure for a maximum of 34 weeks. When the local unemployment rate reaches a level above the four percent mark, the federal government takes over, using general tax revenue with employer contributions to pay benefits for as many as 35 extra weeks.

Except for those occassions, the system Is designed to paj its own way, Brandl said. The tax on employers supports unemployment compensation, administrative costs of Job Service offices and Other services Job Service performs, such as job placement, Interviewing, counseling and testing. A federal expenditures report estimated it cost $339,000 to administer Job Service operations here in fiscal year 1977. "We encourage employers to use us when they have Jobs available," Brandl paying for It." Brandl's figures for calendar year 1977 different from the federal fiscal year showed his office Issuing 99,231 checks worth $9.2 million in benefits in regular programs. The average weekly benefit is $92.19, which Brandl said may not be a lot but is better than nothing.

Military Retirement Pay Retired military officers who live in Racine County received benefits worth $1:23 million in fiscal year 1977, according to the Defense Department. Determining how many persons received' those benefits Is more difficult. Spokesmen said such statistics are only kept on a statewide basis. In Wisconsin, $53 5 million in benefits were paid to 8.871 military retirees In 1977, A rough estimate of how many of those are in Racine County is 300. The average annual benefit in the stale was about $6,000, but officials said amounts vary widely, depending on, the rank, years of service and any disability of the retiree.

ients received the average payments, there would be about 380 retired federal civil service personnel in Racine County, and another 140 survivors. Commodity Loans Commodity loans are the Department of Agriculture's system of maintaining farm price supports. Operated through the Agricultural Stabilization and Conservation Service office in Union Grove, the program during the period from last July 1 to this past May 31, made 162 such loans totaling $3,442,224 on corn, wheat, barley, and soybeans, representing a total of 1,675,503 bushels of the four commodities, according to Donna Oliver, acting director of the office. Federal reports say $1,336,000 came Into Racine County, but that represents the federal fiscal year, October, 1976, through September, 1977. Oliver said the local office doesn't keep its records on the basis of the federal fiscal year.

Racine County office figures represent loans on 1,371,976 bushels of corn; 156,069 bushels of wheat, 4,140 bushels of barley and 143,318 bushels of soybeans. Interest rate on the loans is six percent and the loans reach maturity In nine months, she said. 'At any time during that period, the loan may be paid off, and at the end of nine months the farmer may either pay back the loan, "gr if the price for the commodity isn't good, he can turn the product over to the Commodity Credit Corporation and not repay the i The 162 loans don't represent Individual farmers, since some take as many as three loans on three different commodities and at different times of the year, Oliver said. Significantly fewer loans were made during the previous loan period, when only 74 commodity loans were made. Comprehensive Employment and Training Act If a new business entered the area, started from scratch and had 4,200 employees within three years, it would be considered a major employer with growing pains.

There is such a business in the area. It Is run by the federal government and called the Comprehensive Employment and Training Act (CETA). CETA programs, which provide jobs and job training to the disadvantaged and the unemployed, are administered In Ra--clne, Kenosha and Walworth counties by the Trl-County Employment Training Consortium. 5 The consortium was allocated $15.7 million In fiscal year 1977, although much of it was earmarked for use in 1978. Actual expenditures were $5,783,773.

According to consortium figures, the 4,200 participants served In 1977 Included 1,068 youths who were given summer jobs In the three counties. About 820 of those 4,200 left CETA for permanent employment. CETA legislation is aimed at giving extensive local control over programs, although programs are monitored by the Chicago office of the U.S. Employment and Training Administration, which is part of the U.S. Labor Department.

A variety of torumulas based on population, unemployment rates and poverty levels are used to decide who gets CETA money and how much. The consortium. Itself Is administered by a Policy Board-made up of two county supervisors from each of the three counties. Generally, the consortium allocates CETA funds to nonprofit agencies, educational Insltutlons, municipalities and county governments, who all compete for available money. CETA's huge growth was indicated by a recent announcement by Sen, Gaylord Nelson, who said Wisconsin CETA programs are receiving 93 percent more money in fiscal year 1978 than they did in fiscal year 1977.

Nelson, who was the principal author of CETA legislation, said that equals $160 million, up from $83 million In 1877. Defense Contracts million for Defense Department work or services that were performed in Racine County during fiscal year 1977. Heading the list, by far, were S.C, Johnson Son Inc. with $1.45 million and Young Radiator CO. with $1.49 million worth of defense contracts.

Louis Schenck, a Washington-based program analyst for the Defense Department, supplied the statistics. Johnson spokesman E.O. Jones Jr. said the firm's military business is primarily in direct sales of Johnson's maintenance products for cleaning and polishing floors, walls and vehicles, Jones said Johnson sold about $500,000 vorth of household products to U.S. embassies and makes similar product sales to federal agencies such as the General Services Administration and the Veterans Administration for use in other govern-, ment Installations and hospitals.

Fred Young Jr. of Young Radiator said his firm's jargest chunk of military business involves the M-113, which is primarily built by FMC Corp. in San Jose, Calif. Young said the M-113 radiator "may look tike a passehger car radiator to a layman, but It Isn't." He added his firm does other business with the military, including direct contracts to supply replacement parts. Schenck explained that defense contracts are of two basic types: supply contracts in which a product is manufactured, and service contracts that include things like janitorial services, research work, engineering and construction.

Contractors are required to say in what location the bulk of their work will be performed, but subcontracted work is not always specified. "We estimate about 50 percent of work is subcontracted," Schenck said. The Racine County figures showed $967,000 worth of jobs were performed by firms that have no listing in either local manufacturing guides, the telephone directory or other sources. Presumably, most of those firms subcontracted to local firms, Schenck said. The 13 firms that are Identiflably In Racine County, and the amount they received In defense contracts, are as follows: Bucyrus-Erie J.I.

Case Jacobsen Manufacturing S.C. Johnson Son $1.45 million; Moxness Products Qualheim Ralnfair Rex Systems Corp. EX. Styberg Engineering Toledo Scale Division of Reliance Electric Franksville, Troy Plastics Burlington and Waterford, Vulcan Materials $31,000 and Young Radiator $1.49 million. Educationally Deprived Children Little Johnny can't read and Sister Susy can't write and their Uncle Sam is worried about them; The federal government spent approximately $1.2 million on supplemental language, math, tutorial and migrant education programs during federal fiscal year 1977 In Racine County to help approximately 2,500 "educationally deprived" children.

The money is appropriated under Title 1 of the Elementary and Secondary Education Act of 1965. Educationally deprived children are' defined by the Wisconsin Department of Public Instruction (DPI) as those kids who perform at 30 percent or below grade level on achievement tests, says Doris Cook, Title 1 supervisor with DPI. There are no Income requirements. Racine Unified School District was allotted $876,502 for Title 1 programs during fiscal year 1977, according to DPI figures. The money was spent for Individual Instruction In reading and language arts for 1248 Racine Unified kindergarteners through sixth graders during school year 1976-77 and for 1500 kindergarteners through sixth graders during school year 1977-78.

A portion of Unlfled's Title 1 funds was used for a preschool program at Hilltop School In which parents and children attend school together. The parents learn how to provide home instruction to their kids. it's When It's time for white-glove inspection in the Army. How federal Postal Service specifically define where It came from. In tome cases, the figures were found to be inaccurate.

The Journal Times took the 26 programs In which the report showed $1 million or more was allocated In fiscal year 1977 (OcL 1, 1976, through Sept. 30, 1977), and also examined 16 smaller programs that appeared Interesting. The federal figure of $169 million appears to be a reasonable estimate, but ft should be accepted with thesVcautloos: Some figures are omitted from the federal report "due to security reasons," The report only details spending through the executive branch of the government, which Includes the bulk of federal spending because all cabinet-level departments are under the President. The smaller expenditures of the legislative and Judicial branches are omitted. In the cases of contracted services, there are no provisions for Finding subcontractors.

For example, huge defense contracts ve routinely subcontracted to many other firms, but what those other firms got is not documented. In some federal programs, money comes Into the county but it leaves quickly. For example, the local CETA agency Is based in Racine but also serves Kenosha and Walworth counties, Conversely, some federal money goes to the state government in Madison before coming to Racine County Some of the figures are simply estimates based on total amounts coming into Wisconsin and the populations of individual counties. No attempt is made in the report to Include feder ern-ploye salaries paid to Racine County residents wbo.woriuf another county. It cost $6,350,000 to run Racine County operations of the U.S Postal Service in fiscal 1977.

The lion's share of that figure was for the City of Racine, according to Richard Trameri, Management Sectional Center director of finance in Milwaukee. Trameri said there are nine post offices operating in Racine County. Most of the funds received by these offices are used lor 'personnel salaries' and benefits, while the smaller amounts are used, for rent, vehicle maintenance, utilities, supples and other operating expenses. The breakdown by community: City of Racine Salaries. Other, Total, $4,830,000.

Burlington Salaries, Other, (Turn to MILLION Page JB) By Dennis Hetzel journal Tlnm 1 The U.S. government Is so huge there Is virtually no way to determine precisely how much money it spends In a given state, county or municipality. Even some officials who run the programs admitted repeatedly they don't know for sure. For the Journal Times' series on where federal money went in Racine County, the starting point was an annual report issued by the U.S. Community Services Administration that details the distribution of federal funds In Wisconsin.

The figures snow dollar amounts allocated by various federal departments, agencies, commissions and boards In all counties as well as major cities, Hoever, the figures don't show where the money went, or 9.