Stimulating Exaggeration in Jobs Numbers Report

Posted on November 11, 2009
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Authorities continue to overestimate the number of jobs “created or saved” by the stimulus package, according to an independent review conducted by the the Boston Globe.

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 review saw some agencies that had reported creating dozens of jobs created recant their stories.

“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.’’

Massachusetts has received about $4 billion dollars from the $787 billion stimulus package and has another $1 billion on the way. But the Globe reports that it will be difficult, if not impossible, to discern whether or not the cash influx is stimulating anything other than exaggeration.

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.

The situation in Massachusetts is not unique. Reports have been filed from other media sources outlining misleading job numbers and some outright storytelling. An AP report about the White House claims last month that the stimulus was responsible for 30,000 jobs, showed that that was not at all the case:

“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.”

The study highlighted some of the more egregious errors in the White House report:

- A company working with the Federal Communications Commission 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.

After these reports were first filed, Vice President Joe Biden acknowledged that the claims were not “100 percent accurate.” The vice president went on to pledge that “further updates and corrections are going to be needed.” A timetable for such corrections has not yet been established.

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