Stimulus Package doubles size of Congress

By Grant Bosse on November 17, 2009
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The political appeal of the $787 billion stimulus package was that it allowed the Obama Administration to spread the money across all 435 Congressional Districts in an attempt to win votes from politicians eager to bring home the bacon in rough economic times. But reports by the Obama Administration’s Recovery.gov database show that the money wasn’t limited to those 435 districts. It also went to 440 Congressional Districts that don’t exist.

Lead Investigator Grant Bosse

Lead Investigator Grant Bosse

Reporter Jim Scarantino of the Rio Grande Foundation broke the news yesterday that the stimulus tracking website listed millions in federal funds for projects in ten bogus New Mexico districts. Within hours, colleagues at other state think-tanks had published stories detailing the massive errors in their state’s stimulus disclosure databases. By late-afternoon, ABC News and the L.A. Times had picked up the story, prompting an angry reaction from Democratic Congressman David Obey, who blasted the Administration’s lax oversight of the nearly $1 trillion spending package.

Reporter Michael Noyes of the Montana Policy Institute investigated how his state could have received funding in 13 separate Congressional districts, when it has only one Representative.

Ed Pound, director of communications for the Recovery Accountability and Transparency Board, tells the Montana Policy Institute that his organization posts whatever information is reported by stimulus grant recipients, and doesn’t check to make sure it’s actually true.

“Our job is data integrity, not data quality,” he said.

The Recovery.Gov website was set up in February with a budget of $84 million.

Overall, Bill McMorris of the Franklin Center for Government and Public Integrity calculates that $6.4 billion of the stimulus package has been distributed to 440 phantom Congressional Districts, which the Administration claims created over 28,000 jobs at a cost of $224,500 each.

The news of the mythical Congressional Districts comes on the heels of an admission by the Obama Administration that 60,000 jobs had to be cut from its latest stimulus report after finding faulty data from a dozen stimulus recipients.

Reported problems with the stimulus jobs data are so widespread that the Washington Examiner’s David Freddoso and Mark Hemingway have published an interactive map of bogus jobs created or saved by the stimulus.

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15 Comments For This Post So Far

  1. Michael Natkin
    12:13 pm on November 17th, 2009

    Can you offer any citation for the 84M figure for the website? I think that is the cost for the whole oversight and data gather operation, not for the development and operation of the site.

  2. Grant Bosse
    12:30 pm on November 17th, 2009

    Michael,
    I believe you are correct. The organization has an $84 million budget, but the organization’s sole responsibility is Recovery.gov.

    Grant

  3. jmb27
    4:13 pm on April 19th, 2010

    Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.

    Here is an example of what I am talking about:
    Scott Veerkamp / Predatory Lending (Franklin Township School Board Member.)

    Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
    “Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM.”

    The Center for Responsible Lending says YSP “steals equity from struggling families.”
    1. Scott collected nearly $10,000 on two separate mortgages using YSP and junk fees. 2. This is an average of $5,000 per loan. 3. The median value of the properties was $135,000. 4. Clearly, this type of lending represents a major ripoff for consumers.

    http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F

Trackbacks

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  3. Creating Fake Congressional Districts : Conservative Compendium

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    [...] of the information can be found on http://www.recovery.gov, a website that operates on an $84 million budget. New Mexico Watchdog broke the story yesterday after noticing money had been distributed to ten [...]

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  7. $6.4 Billion Stimulus Goes to Phantom Districts

    [...] McMorris, who I quoted in this morning story on the 440 phantom Congressional Districts that received funding under the stimulus. The site’s monitors, however, are not too savvy about [...]

  8. Stimulus Package Creates Imaginary Jobs, Destroys Jobs in the Real World | OpenMarket.org

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  9. Bogus jobs, bogus statistics, real money

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  11. Reporter Grant Bosse launches phantom campaign for Congress

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