If We Can’t Save Jobs, We’ll Give Out Raises. That Counts, Right?

November 7, 2009 · carl · Print This Article

This weekend we will be bringing you a series of articles that may escape your notice otherwise, but that we feel are important enough that you should know about them.
I know that I paid attention in math class, yet I can’t figure out how giving someone a raise counts as a saved job.
Maybe Charlie Rangel could explain it to me, he’s good with numbers.
As long as they aren’t his own.

 WASHINGTON (AP) – The government’s latest count of stimulus jobs significantly overstates the effects of the $787 billion program under a popular federal preschool program, raising fresh questions about the process the Obama administration is using to tout the success of its economic recovery plan.

An Associated Press review of the latest stimulus reports – which the White House promised would undergo extensive reviews to ensure accuracy – found that more than two-thirds of 14,506 jobs credited to the recovery act under spending by just one federal office were overstated because they counted pay increases for existing workers as jobs saved.

The inflated job count is at least partly the product of the administration instructing local community agencies that received money to count the raises as jobs saved.

“That’s more than ridiculous,” said Antonia Ferrier, a spokeswoman for Republican House Minority Leader John Boehner.

 

Most of the inflated figures were like those cited in the 935 saved jobs reported by the Southwest Georgia Community Action in Moultrie, Ga. The agency, like hundreds of others collecting Head Start money, claimed all its existing employees’ jobs were saved because they received a pay raise with the stimulus cash.

Similar claims led to overstating by more than 9,300 the number of jobs saved with more than $323 million in stimulus money distributed by the Health and Human Services’ Administration for Children and Families, the AP’s review found.

More than 250 other community agencies in the U.S. similarly reported saving jobs when using the money to give pay raises, pay for training and continuing education, extend employee work hours or buy equipment, according to their spending reports.

The Georgia program inflated the numbers even further by claiming the recovery money saved more jobs than the number of people it actually employs. The agency employs 508 people but claimed 935 jobs were saved because of confusion over government reports.

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