Saturday, July 2, 2011

Bedford Beauty School Received Stimulus Funds

August 24, 2009 by Shawn Millerick  
Filed under News & Politics

Michael's abandoned Manchester studio

Michael's abandoned Manchester studio

Arguing in favor of President Barack Obama’s American Recovery and Reinvestment Act in January Democratic Congressman and senate candidate Paul Hodes claimed the stimulus act would “Reduce Soaring Unemployment.”

It hasn’t worked out that way.

Instead, according to a report issued by the New Hampshire Office of Economic Stimulus, the stimulus act has created only 96 private sector jobs and has “saved” a little over 700 state government jobs. Meanwhile unemployment has climbed to 6.8% since the stimulus became law.

The reason for the low level of job creation is easily gleaned from the so-called Progress Report issued on August 19th: At least $175,000,000 of the first $336 million of stimulus money spent in the New Hampshire has replaced existing state spending on education, housing and safety programs which may have been cut due to state budget constraints.

A NowHampshire.com investigation reveals almost $37,000 of that money went to a Bedford beauty school that does not grant degrees.

The Office of Economic Stimulus granted Coiffures by Michael, Inc. $35,088 in a “direct payment for specified use,” and another $1,571 in “student financial assistance.”

Coiffures by Michael runs Michael’s School of Hair Design and Esthetics. The school promises “no learner is left behind.” Guest speakers at the school include Dean Banowetz, the self-proclaimed “Hair Ho.”

Michael's new studio in Bedford

Micchael's new studio in Bedford

While the stimulus report lists the school’s location to be in Manchester, NowHampshire.com has learned that the Manchester studio has been shuttered and the new studio is in a strip mall in nearby Bedford.

We contacted the Office of Economic Stimulus for further explanation as to the meaning of “direct payment for specified use,” but the state’s “Stimulus Czar” could provide no definitive information because the funds were distributed by the federal government, not the state.

“These are funds directly from the federal government, so I do not have access to as much information as I do for State managed programs,” said Orville “Bud” Fitch, who runs the Office of Economic Stimulus for Gov. John Lynch. “With that qualification, if ‘Coiffures by Michael, Inc.’ is a school that teaches barbering, cosmetology, hair dressing, etc., then my expectation is that these are federal student loan program payments. To determine this for certain you would need to speak with the federal authorities for this program.”

Other stimulus funded programs may raise eyebrows, as well, including $68,590 for youth theater in Henniker, $35,008 for a pot washer at Manchester’s Beech Street School and $293,100 for the New Hampshire State Council on the Arts.

The issue is certain to be a major topic of discussion during the 2010 race to replace the retiring Senator Judd Gregg (R-N.H.).

The National Republican Senatorial Committee has criticized Hodes for the state’s anemic job creation. “The people of New Hampshire are looking to elect a U.S. Senator who will safeguard, not recklessly spend, their hard-earned tax dollars. Unfortunately, Paul Hodes rubberstamp record in Washington demonstrates that he has embraced the opposite approach alongside Nancy Pelosi and Harry Reid,” said National Republican Senatorial Committee (NRSC) spokeswoman Amber Wilkerson in a statement.

Hodes’ office did not respond to our request for comment.

Read the full “Progress Report” from the Office of Economic Stimulus:

Jobs Contracts Approved 081909

Comments

10 Responses to “Bedford Beauty School Received Stimulus Funds”
  1. Not Surprised says:

    And we have another winner! $29,261 to the Continental Academie of Hair Design in Manchester/Derry. When I tighten our family budget, my $$ cut/color gets reduced to twice a year and I cut my son’s hair with a dog clipper. How is this money creating jobs if there is a reduced market for the service? I guess it’s only a recession-proof industry (according to the beauty school ads) if you’re the beauty school.

  2. blogo says:

    Fascinating, as Hodes is mentioned 5 times in your -article- er, hit piece I mean, but both Bedford and Manchester are in NH-01.

    Not one mention of Shea-Porter.

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  1. [...] nowhampshire.com Arguing in favor of President Barack Obama’s American Recovery and Reinvestment Act in January [...]

  2. [...] investigation by NowHampire.com reveals that $37,000 in porkulus money went to a beauty school that doesn’t even grant degrees. The Office of Economic Stimulus granted Coiffures by Michael, Inc. $35,088 in a “direct payment [...]

  3. [...] Bedford Beauty School Received Stimulus Funds : Now! Hampshire [...]

  4. [...] Beauty School Received Stimulus Funds Bedford Beauty School Received Stimulus Funds [...]

  5. [...] read the whole thing at MM’s place: …A NowHampshire.com investigation reveals almost $37,000 of that money went to a Bedford beauty school that does not grant [...]

  6. [...] may have finally found a useful program for John Edwards and his $500 hair cuts!  A NowHampshire.com investigation reveals almost $37,000 of that money went to a Bedford beauty school that does not even grant [...]

  7. [...] NowHampshire.com investigation reveals almost $37,000 of that money went to a Bedford beauty school that does not grant [...]



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