Reviving the Economy: Signs of Stimulus?-Tracking The Cash
Monday, May 25, 2009SUSIE GHARIB: When it comes to the $787 billion stimulus package, a big challenge the Obama administration faces isn't funding it, but it's keeping track of where and how the money is spent. The administration has set aside $84 million to do just that. But as Stephanie Dhue reports, 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 website 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 ways 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 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 non-profit 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're getting.
DHUE: Billions of dollars are at stake in getting this right. Earl Devaney, who heads the recovery.gov effort, estimates 7 percent of project spending typically goes 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: The president has set an ambitious goal to account for every dollar spent, but right now it's far from clear he'll meet it. The administration has set an October 10th deadline to complete the recovery.gov website so it can be a resource for taxpayers to follow their money. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
