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ATF had 764 inspectors in 1990. It has 771 today.
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http://treas.tpaq.treasury.gov/press/releases/ls373.htm
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Congressional reforms enacted in 1993 and 1994 to ensure that only legitimate dealers, manufacturers and importers obtain federal firearms licenses have resulted in a substantial drop in the number of firearms licensees, from approximately 284,000 in 1992 to 104,000 today.
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The report is from 1999, so there are probably more today right?
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Current as of September 2008, the data includes 60,201 records of licensed dealers
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Source
So, let's see - the number of FFLs drops from 284,000 to 60,201; but the problem is that ATF doesn't have enough inspectors, having only increased from the 764 doing the job in 1990 to the 771 in 2009.
Sounds like more shoddy reporting to me... do reporters even question the crap they are told or do they just reprint it like some kind of dictation machine?