The former state Cabinet secretary for the Department of Workforce Solutions is back at the agency under a $49,200 contract, less than two months after leaving.

Betty Sparrow Doris, whose contract became effective in late October, had resigned as the head of the department in late August. At the time, she said she wanted to spend more time in Denver with her family.

The contract, good through September 2010, calls for Sparrow Doris to help the New Mexico Office of Recovery and Reinvestment on federal stimulus projects related to the Department of Workforce Solutions, "including partnering with DWS to provide services to enhance statewide workforce development efforts," a spokeswoman said.

Sparrow Doris signed the contract in late September; the department's general counsel and Cabinet secretary signed it in late October, a copy shows.

A review of the contract by the Attorney General's Office found that Sparrow Doris didn't seek the contract during her employment with the department and "took no official act which could be construed to directly result in the formation of the contract while she was an employee of the department."

The contract is paid for by both state and federal funds, DWS spokeswoman Carrie Moritomo said. A breakdown of the spending by source won't be available until the money is spent, she said.

The contract comes as the state faces a budget deficit, a hiring freeze and five days of furloughs for nearly every state employee. The Gov. Bill Richardson administration also is preparing to eliminate at least 84 exempt state government positions, some of which are vacant.

That hiring freeze — started last November — doesn't apply to contract work.

It also comes as Sparrow Doris leaves behind a series of problems at the department, which has been plagued by various delays in getting unemployment payments made on time.

The department, formerly known as the Labor Department, has faced public and legislative outcry over waiting times that unemployment recipients have had to endure on the phone and in person. At one point earlier this year, some callers trying to access the department's phone system repeatedly got busy signals, while others faced problems trying to use the department's Web site.

Officials have said that as unemployment numbers have risen, so has the load on its system.

In September, the state's seasonally adjusted unemployment rate was 7.7 percent, up from 7.4 percent in August and from 4.4 percent a year ago. Nationally, the unemployment rate is 9.8 percent.

"The scope of this contract includes providing outreach initiatives to New Mexico's institutes of higher education to communicate directly with potential students so that the additional $190 million of (American Recovery and Reinvestment Act) funds available through Pell Grants can be utilized to move New Mexicans into and up the workforce ladder," Moritomo said.

In addition, Sparrow Doris, who still lives in Albuquerque, will assist the New Mexico Office of Recovery and Reinvestment with American Recovery and Reinvestment Act competitive grants; "track grant applications and management upon award; and work with local governments to ensure accurate reporting of grant expenditures."

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog at www.greenchilechatter.com.