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Home Front: Politix
Stimulus job boost in Mass. exaggerated, review finds
2009-11-12
While Massachusetts recipients of federal stimulus money collectively report 12,374 jobs saved or created, a Globe review shows that number is wildly exaggerated. Organizations that received stimulus money miscounted jobs, filed erroneous figures, or claimed jobs for work that has not yet started.

The Globe's finding is based on the federal government's just-released accounts of stimulus spending at the end of October. It lists the nearly $4 billion in stimulus awards made to an array of Massachusetts government agencies, universities, hospitals, private businesses, and nonprofit organizations, and notes how many jobs each created or saved.

But in interviews with recipients, the Globe found that several openly acknowledged creating far fewer jobs than they have been credited for.

One of the largest reported jobs figures comes from Bridgewater State College, which is listed as using $77,181 in stimulus money for 160 full-time work-study jobs for students. But Bridgewater State spokesman Bryan Baldwin said the college made a mistake and the actual number of new jobs was "almost nothing.'' Bridgewater has submitted a correction, but it is not yet reflected in the report.

In other cases, federal money that recipients already receive annually - subsidies for affordable housing, for example - was reclassified this year as stimulus spending, and the existing jobs already supported by those programs were credited to stimulus spending. Some of these recipients said they did not even know the money they were getting was classified as stimulus funds until September, when federal officials told them they had to file reports.

"There were no jobs created. It was just shuffling around of the funds,'' said Susan Kelly, director of property management for Boston Land Co., which reported retaining 26 jobs with $2.7 million in rental subsidies for its affordable housing developments in Waltham. "It's hard to figure out if you did the paperwork right. We never asked for this.''

The federal stimulus report for Massachusetts has so many errors, missing data, or estimates instead of actual job counts that it may be impossible to accurately tally how many people have been employed by the massive infusion of federal money. Massachusetts is expected to receive an estimated $1 billion more in stimulus contracts, grants, and loans.

The stimulus bill - a $787 billion package of tax breaks, expanded government benefits, and infrastructure improvements - was signed into law in February by President Obama, who said it would create and save jobs by preserving local government services and spurring short- and long-term economic development.

To be sure, the legislation has accomplished an important goal: funding public services facing the ax after the recession created gaping shortfalls in state and local government budgets. So Worcester and Lynn, for example, were able to keep police officers targeted for layoffs, schools across the state lost far fewer teachers, and community agencies preserved staff in the face of mounting demands for social services.

The president also said the legislation demanded an unprecedented level of accounting from recipients, who report on the uses of the money and the jobs via a massive online system, www.Recovery.gov.

Clearly, the first comprehensive accounting had shortcomings.

Recipients said they found the reporting system confusing, leading them to submit information erroneously, and leaving them unable to correct mistakes in their reports. Additionally, the government files are massive and unwieldy. Reports do not distinguish between newly created positions and those that were "retained.''

Posted by:Fred

#1  Â“Some people are going to be confused. Some people are manually entering data. We figured there would be innocent mistakes,Â’Â’ Arvidson said. “We anticipate that as we go forward . . . the data quality will be increasingly improved. We knew there was going to be a shake-out.Â’Â’

SureÂ…we figured all along stimulus checks could possibly be sent to convicts and dead people. And remember when we promised that unemployment wouldnÂ’t rise higher then 8% if we quickly passed the stimulus bill? WhatÂ…you thought that was a hard number? No no, noÂ…we knew from the beginning that number was going to fluctuate. LookÂ…thereÂ’s a boat load of money here and itÂ’s going in every which direction. Of course we anticipate there will be some glitches from time to time. DonÂ’t worry rubesÂ…itÂ’ll all shake out. Oh, and BTW, did I forget to mentionÂ…we inherited this mess.
Posted by: DepotGuy   2009-11-12 09:32  

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