"Reviving the Economy: Government Responds"-Keeping Track of the Stimulus Money
Tuesday, May 12, 2009SUSIE GHARIB: When it comes to the $787 billion stimulus bill, one of the biggest challenges the Obama administration faces isn't funding the stimulus package. It's keeping track of where and how the money is spent. The administration has set aside $84 million to do just that. As we continue our series, "Reviving the Economy: Government Responds," Stephanie Dhue reports that tracking all that cash isn't easy.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: With $787 billion on the line, President Obama promises to make sure it's spent wisely.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I have told each of my cabinet, as well as mayors and governors across the country, that they will be held accountable by me and the American people for every dollar they spend.
DHUE: So the administration established the recovery.gov web site as a way for Americans to track the money and any jobs created. Congressman Edolphus Towns chairs the House Oversight and Government Reform Committee. He says the effort still has a way to go.
REP. EDOLPHUS "ED" TOWNS, (D) NEW YORK: We need to get recovery.gov up and running and in order to do that, we have to make certain that the information goes in and that we have it and people can be able to look and able to follow it. That's not happening yet, so we're concerned about that.
DHUE: Currently, the site only lists total amounts of money available and already spent, along with a map showing allocations for each state. So far, the administration requires limited reporting of who eventually gets the money. Craig Jennings is with OMB Watch, a nonprofit that promotes government transparency and accountability. He says that means if the money goes to, say, New York state and then to New York City, the transparency ends there.
CRAIG JENNINGS, SR. FEDERAL FISCAL POLICY ANALYST, OMB WATCH: Certainly, the city of New York is going to be contracting that out to repair schools, potholes and such, but all those contractors, we won't know who those people are and what kind of funds they are getting.
DHUE: States have complained they don't have extra resources to track down every dollar. Congressman Towns has introduced legislation to let states use a percentage of the stimulus money to do that.
TOWNS: We cannot ask them to do something they're not capable of doing and with additional resources, then there'll be no excuse coming from them as well.
DHUE: It's a challenge to get this done quickly. Coordinating information among 29 Federal agencies and 50 states and developing the technology to track it in a user friendly format is a task that won't be complete until October. Earl Devaney, who heads the recovery.gov effort, estimates 7 percent of project spending is typically lost to waste, fraud and abuse. Out of $787 billion, that would be $55 billion. Towns says he's working to make sure that doesn't happen.
TOWNS: To me, that's a lot of money and of course we want to make certain that we cut down on that number. We recognize that the stimulus package is to stimulate, but the point is, because we name it something, it doesn't mean it's going to do it and we have to make certain that people are doing what they're supposed to do.
DHUE: If done right, recovery.gov could be a powerful model for tracking all Federal spending and holding government accountable. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
