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On recovery.gov, the federal website that tracks stimulus spending across the country, a tagline describes the site as the government’s official online effort to provide “easy access to data related to Recovery Act spending.” But try clicking past the appealing interactive maps and the 595,263 national jobs count, prominently displayed in a shade of dollar-bill green, and making sense of anything but superficial data becomes a full-time job in and of itself.
President Obama has touted the site as a way to provide transparency in the distribution of funding from the $787 billion American Recovery and Reinvestment Act. And, yes, there’s plenty of data on recovery.gov. You can find out how much Maine has been awarded, the names of recipients, the types of awards and the number of jobs associated with each allotment. But a few fundamental flaws call much of the data into question.
Perhaps most worrisome, Maine’s job count of 2,082 plunges more than 10% after it’s adjusted for inaccurate and misleading figures attached to just two of the state’s top job creators in the last quarter. MaineHousing acknowledges it submitted outdated figures that led to an overstated job count, and the feds essentially relabeled the University of Maine System’s existing funding for work study as stimulus money.
Recipients, who keep up with ever-changing federal accounting guidelines with varying levels of success, are responsible for the reporting. And in the Maine data, the description field for projects ranges from the nihilistic (blank entries) to the minimalist (“highway improvements”) to the esoteric (“the role of slug in regulation of hematopoietic stem cells”). Then there was the state’s phantom third congressional district, an “unassigned” zone allotted more than $100,000 that disappeared from recovery.gov earlier this month just as mysteriously as it appeared.
The most recent quarterly stimulus data, which covers Oct. 1 to Dec. 31, 2009, is the result of the second round of reporting required by the federal government. Just days before agencies were due to submit, the feds “simplified” the criteria for calculating recovery act-funded jobs. Recipients were instructed to count jobs only for a single quarter, as opposed to a longer period, told not to bother distinguishing between new and retained jobs, and to base the totals on the number of hours worked to determine full-time equivalent positions.
For MaineHousing, and doubtless others, the last-minute change caused problems. The agency is receiving $42 million to weatherize Maine homes, work that’s performed by Community Action Programs that employ their own people and also contract out. MaineHousing had already collected job hours from the field by the time it got notice of the change. “We didn’t have time to go back and refigure it,” says Dan Simpson, public information manager for the agency. So the federal recovery site attributes 204 jobs to weatherization in the last quarter, while the state’s website, maine.gov/recovery, lists the accurate figure of 140 full-time equivalents, he says.
Stimulus funding has allowed the agency to more than double its weatherization efforts to 4,000 homes over two years, Simpson says.
Also important to note is that one job doesn’t necessarily equal one person, explains Roger Crouse, director of the Department of Health and Human Services’ drinking water program, which is receiving $19.5 million in stimulus funds and reported 180.16 jobs for the quarter. The agency takes the total hours worked, on often more than one project, and divides it by 520 (40 hours per week times 52 weeks a year, divided by four quarters, to equal 520 hours per quarter). So 1,000 hours spent replacing a sewer line equals 1.92 full-time equivalent jobs, work that could have been performed by multiple people or a single worker. “If one employee works 80 hours a week, we don’t know that,” Crouse says.
Without the stimulus funding, “our project list would have been cut in half,” he says.
At the University of Maine System, the longstanding federal allotment for work study jobs was simply relabeled as recovery act funding. University of Maine at Presque Isle Financial Aid Director Chris Bell says the feds notified him that his school’s work study allotment would drop by $81,000. But the amount was simultaneously restored via stimulus funds. “They essentially attributed a portion of our allocation to stimulus money even though our allocation didn’t go up a dollar,” Bell says.
All seven campuses in the system — which received a combined $812,234 for work study programs and reported 161.6 related jobs — experienced similar adjustments, he says. Fortunately, the original allotment is expected to be reinstated after the recovery act money expires. “We’re not spending a penny more on federal work study than we would have before notification of [recovery act] funding,” Bell says.
Jackie Farwell, Mainebiz staff reporter, can be reached at jfarwell@mainebiz.biz.
Here are some of the oddest entries in the most recent recovery act data
$737,702.60: Raise and realign headstones and renovate turf, Togus National Cemetery
$62,818: Two replacement dental chairs, Indian Township Health Center
$5,570.32: Undercover investigation, Knox County
$2,806.16: Drainage pipe, Everett J. Prescott Inc.
What else could you do with Maine's $2 billion in stimulus money?
The first number above represents the number of stimulus-funded jobs in Maine in the last quarter. So does the second one. But consider the source.
The federal government reported the first figure, while the state reported the much smaller second number on its recovery act website, maine.gov/recovery. Not all of the $2 billion in stimulus funding allocated to Maine flows through state government, explains Ryan Low, commissioner of the Department of Administrative and Financial Services and the state's recovery act guru. According to a Jan. 26 state report, $800 million of the total flows directly to universities, private businesses and municipalities that bypass the state and report directly to the feds. The numbers associated with those awards may show up on the federal website, but not the state's portal.
Here's another mind-bending figure: 67%. That's the percentage of Maine's stimulus funding that's exempted from federal reporting requirements, according to Low. The simplest way to describe that category is money that directly serves individuals, such as Medicaid and unemployment payments, he says. With privacy concerns in mind, the state plans to report that data, likely by county, on Maine's recovery website. But because jobs associated with those programs aren't reported, Low says he's convinced the jobs figures for Maine, and other states, are actually dramatically understated.
Maine was one of 16 states to volunteer for an Office of Management and Budget survey, in which accounting for two of the state's stimulus awards was audited, including the $191 million state fiscal stabilization fund. "I'm convinced we've set up one of the best processes in the country," Low says.
Both the federal and state jobs tallies differ wildly from yet another calculation: The White House Economic Advisor's report for the quarter credits Maine with a whopping 10,000 jobs. The council includes all recovery act funding, even monies exempt from federal reporting, and jobs indirectly created or saved by stimulus money.
Job impacts from recovery act funding will make a marked shift in 2010. Last year, public sector positions such as teachers and police officers made up the bulk of the job count. But this year, 90% of the employment impact will be felt in the private sector, according to Michael Balsam, chief solutions officer for Onvia, a Seattle firm that's tracking the data. And just a quarter of the recovery act funding allotted last year has actually left Washington, D.C., he says."The majority of the dollars to help businesses are coming soon."
Data on recovery.gov drills down only two levels, so information about the contractors and subcontractors actually employing people is all but nonexistent. Onvia has launched recovery.org to inform businesses about contracting opportunities in their states. Right now, the site lists 418 projects valued at $996 million in Maine, such as archaeological survey services for a proposed bunkhouse site in Wells for the U.S. Fish and Wildlife Service.
The site also lists non-stimulus projects, as the recovery act represents less than 5% of all government spending, according to Balsam.
Many businesses are leery of government work, but the government is behind 50 cents of every dollar spent in the U.S., Balsam points out. "Working with the government or with companies that work for the government has to be a core part of your strategy," he says.
Businesses are relying on each other more to push the economy back up the hill, and opportunities for small and minority- and women-owned firms abound, according to Balsam. But businesses must learn to differentiate themselves from the field. "Competition is really stiff," he says. "Government is really the last customer standing."
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