Missouri State Auditor Susan Montee says employers are overstating the number of jobs created under two tax-credit programs.

In an audit report issued today, Montee criticizes the Department of Economic Development's oversight of the Enterprizse Zone and Enhanced Enterprise Zone tax credits. She says the department doesn't verify data submitted by businesses seeking the credit, and doesn't monitor the businesses after they get the credit. As a result, Montee says, the DED provides overly rosy information to the Legislature:

The DED economic forecasts do not utilize actual activity created by the tax credits, but instead use estimates of activity provided by businesses. Our review of 19 businesses authorized for tax credits in 2007, noted actual jobs created were 6.1 percent less than proposed and actual investment was 29.5 percent less than proposed.

Sometimes the state agency even exaggerates the businesses' own projections, Montee reports:

Our review of 40 businesses that submitted information to the DED for an EEZTC in 2008 found errors in the number of estimated jobs or estimated investments for 17 businesses (a 43 percent error rate). For example, one business submitted an estimate to the DED indicating it would invest $11,388,848; however, the DED used an assumption of $49,358,848 (333 percent more) in the economic forecast. Another business estimated it would invest $5,697,000, but the DED used $87,600,000 (1438 percent more) in the economic forecast.

Since Gov. Jay Nixon's tax credit review commission is meeting today, you can be sure Montee's report will get a lot of attention.