Stimulus: Jobs Created and Saved Overstated by Thousands, AP Says

An Associated Press article from October 29 reports that White House claims about the number of jobs created or saved as a result of this year's $787 billion stimulus plan overstates the true number by at least 5,000 jobs. According to the article, the White House has promised to correct the problem in the future.

The AP says, "The government's first accounting of jobs tied to the $787 billion stimulus program claimed more than 30,000 positions paid for with recovery money. But that figure is overstated by least 5,000 jobs, according to an Associated Press review of a sample of stimulus contracts. The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none was produced."

Some examples cited by the Associated Press:

*A company working with the FCC reported that stimulus money paid for 4,231 jobs, when about 1,000 were produced.

*A Georgia community college reported creating 280 jobs with recovery money, but none was created from stimulus spending.

*A Florida child care center said its stimulus money saved 129 jobs but used the money on raises for existing employees.

This is important to note: the AP says there is no evidence that the White House purposefully inflated numbers, and I suspect that's true. But doesn't the administration have an obligation to verify the numbers submitted to it?

Some additional findings from the AP:

*Colorado-based Teletech Government Solutions on a $28.3 million contract with the Federal Communications Commission for creation of a call center, reported creating 4,231 jobs, although 3,000 of those workers were paid for five weeks or less.

*The Toledo, Ohio-based Koring Group received two FCC contracts, again for call centers. It reported hiring 26 people for each contract, or a total of 52 jobs, but cited the same workers for both contracts. The jobs only lasted about two months.

*Barbara Moore, executive director of the Child Care Association of Brevard County in Cocoa, Fla., reported that the $98,669 she received in stimulus money saved 129 jobs at her center, though the cash was used to give her 129 employees a 3.9 percent cost-of-living raise.

*Officials at East Central Technical College in Douglas, Ga., said they now know they shouldn't have claimed 280 stimulus jobs linked to more than $200,000 to buy trucks and trailers for commercial driving instruction, and a modular classroom and bathroom for a health education program.

*The San Joaquin, Calif., Regional Rail Commission reported creating or saving 125 jobs as part of a stimulus project to lay railroad track. Because the project drew from two pools of money, the commission reported the jobs figure twice, bringing the total to 250 on the government report.

http://apnews.myway.com/article/20091029/D9BKMVMG0.html