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Audit: Calif. Agencies Overstate Stimulus Jobs

SACRAMENTO, Calif. (AP) -- A state audit on Tuesday found that some California agencies inflated the number of jobs created by the federal stimulus program.

In a sampling of five state agencies, the California State Auditor found that two overstated the number of jobs by 617 positions.

For example, the Water Resources Control Board did not follow guidelines and triple-counted the number of jobs created with the money. It ended up overstating the number of jobs by 71.

The audit said other agencies ranging from the Department of Education to the Department of Public Health failed to review jobs data submitted by recipients and failed to review supporting documents.

California reported nearly 58,000 jobs saved or created through the stimulus program through June 30. The five agencies were among 12 programs that account for 97 percent of the jobs reported.

Gov. Arnold Schwarzenegger's office responded in a letter that it has begun to correct the findings, which are sent to the federal government.

The administration expressed frustration with federal calculations that "do not come close to capturing the economic impact" of the jobs created or saved by program.

Gov.-elect Jerry Brown on Monday announced he was eliminating the Office of the Inspector General over federal stimulus spending in California. His transition team noted that the work could be done by other auditing agencies, including the state auditor.

"In response to the state's multibillion dollar budget deficit, Gov.-elect Jerry Brown will be streamlining operations and eliminating redundancies in the governor's office and throughout state government," said Jim Humes, a member of Brown's transition team.

(Copyright 2010 by The Associated Press.  All Rights Reserved.)

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