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Audit: Millions Spent on Failed Job Projects

By Becky Ogann

Story Created: May 20, 2009 at 11:41 AM CDT

Story Updated: May 20, 2009 at 11:41 AM CDT

DES MOINES (AP) - State auditors say a taxpayer-funded program that pays job training costs for new companies put millions of dollars into projects that failed.

State auditors released a report on Tuesday on the Iowa Industrial New Jobs Training Program, which is run by the state's community colleges.

The program has borrowed $38.5 million on behalf of businesses who promised to move to Iowa or expand their operations in the state.

The audit shows that the companies either closed, went bankrupt or failed to create more than 15,000 planned jobs.

Community college officials dispute some of the findings and question their accuracy.

The audit linked the problems to poor oversight.

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