Strickland’s Transportation Slush-Fund Uses Federal Dollars Meant to Create Jobs

This just in...

WASHINGTON, D.C. – Ohio’s Republican congressional delegation today sent letters to Gov. Ted Strickland and U.S. Transportation Secretary Ray LaHood citing concerns about how Ohio is spending its federal stimulus dollars on studies that won’t create jobs and requesting openness and transparency for taxpayers. Full text of the letters is below and available here and here.

The Associated Press reported Monday that Ohio has refused to fund some “shovel-ready” infrastructure projects to set aside $57 million for transportation studies.

“While the Economic Recovery and Reinvestment Act does give governors flexibility on how they spend their state’s federal dollars, it appears that Ohio officials are violating the spirit of the law by diverting money intended for ‘shovel-ready’ projects into a planning slush-fund for proposals that have no funding stream,” the lawmakers wrote to Secretary LaHood.

Ohio’s congressional Republicans previously called on Gov. Strickland to establish an independent, bipartisan oversight board to ensure transparency in how federal dollars are being spent. Gov. Strickland has not responded to that request.

“This is not the first time that your administration has decided to spend federal stimulus in a manner inconsistent with the intentions of the bill and contradictory to the expectations of recipients,” lawmakers wrote to Gov. Strickland, citing a March 14 Cleveland Plain Dealer article detailing concerns from Cleveland schools officials about how education dollars are being allocated.

“In light of media reports indicating that these federal tax dollars are being allocated to programs that clearly violate the spirit of the law, we again ask that you immediately create an independent oversight board to give Ohioans a full and detailed accounting of how taxpayer dollars have already been spent and all planned allocations for the remainder of the year,” lawmakers wrote to Gov. Strickland.

-ee-

March 16, 2009



The Honorable Ted Strickland

Riffe Center, 30th Floor

77 South High Street

Columbus, OH 43215-6108


Governor Strickland:



As federal dollars from the Economic Recovery and Reinvestment Act become available, it is all the more critical that Ohioans know that their money is being spent wisely on projects that will create much-needed jobs now and provide for the economic recovery our state desperately needs. Ohio’s unemployment rate jumped to 9.4 percent in February, nearly 3 points higher than this time last year.



We are concerned about an Associated Press report Monday which stated that your administration “passed over some ready-to-go construction projects” to spend $57 million on “planning and preliminary studies.” According to the article, both Pennsylvania and Oregon put all of their highway dollars into construction while the Federal Highway Administration “has no other examples of states using stimulus money for planning.”



This is not the first time that your administration has decided to spend federal stimulus dollars in a manner inconsistent with the intentions of the bill and contradictory to the expectations of recipients.



On March 14, the Cleveland Plain Dealer reported that the city’s public schools might not see “the windfall they expected” due to your decision to circumvent traditional school-funding formulas in favor of models developed by your administration. We have long favored local control over education dollars believing that those involved in the day-to-day decisions of educating our children know best how to spend their resources and so we sympathize with Eric Gordon, chief academic officer of Cleveland’s public schools, who said, “It’s not [the Governor’s] to spend.”



While the Economic Recovery and Reinvestment Act does appear to give governors the flexibility to spend federal stimulus dollars are they see fit, diverting money through non-traditional formulas and impact studies do not uphold the stated intentions of the legislation to create much-needed jobs and put us on the path to prosperity as well as help poor children overcome unnecessary obstacles in their educational needs.



Last month, we called on you to create an independent, bipartisan oversight board to ensure a transparent and open process regarding the State of Ohio’s use of federal stimulus dollars. You have declined to do so, instead favoring a Deputy Inspector General. In light of media reports indicating that these federal tax dollars are being allocated to programs that clearly violate the spirit of the law, we again ask that you immediately create an independent oversight board to give Ohioans a full and detailed accounting of how taxpayer dollars have already been spent and all planned allocations for the remainder of the year. Furthermore, we request that http://recovery.ohio.gov be updated with a detailed accounting of each additional expenditure within 24 hours from any executive or legislative action that appropriates stimulus dollars.



As we noted in our letter of March 4, while we opposed the stimulus bill – offering instead a Republican proposal that would have created 246,000 jobs in Ohio by the end of 2010 – we continue to hope that it works to boost our economy. We want Ohioans to get back to work, we want families and small business owners to have access to the credit they need and, most of all, we want Ohioans to have a bright future.



Sincerely,



[see here for signatures]



April 16, 2009



The Honorable Ray LaHood

Secretary of Transportation

1200 New Jersey Avenue, SE

Washington, DC 20590





Dear Secretary LaHood:



On Monday, President Obama announced that more than 2,000 transportation projects in states like Ohio have been funded with federal dollars provided by the Economic Recovery and Reinvestment Act. Of serious concern, however, is an Associated Press report on the state of Ohio’s plan to divert $57 million in stimulus dollars to transportation studies instead of creating much-needed jobs right now through the “shovel-ready” infrastructure projects clearly intended by the President.



You were questioned on this matter Monday during an interview on FOX News and responded, “If there is an issue with some program in Ohio, I guarantee I will be on the telephone this afternoon making sure that money is being spent correctly.” While the Economic Recovery and Reinvestment Act does give governors flexibility on how they spend their state’s federal dollars, it appears that Ohio officials are violating the spirit of the law by diverting money intended for “shovel-ready” projects into a planning slush-fund for proposals that have no funding stream.



According to the Associated Press, Ohio “transportation officials passed over some ready-to-go construction projects and steered about 7 percent of their $774 million share for planning and preliminary studies.”



Mr. Secretary, the American people have a right to know that their hard-earned tax dollars are being spent wisely. Like you, we want to see our aging transportation infrastructure repaired and, where necessary, replaced. We want to see jobs created now and we want to see our economy get back on the path to prosperity. The process for allocating stimulus dollars should be open and transparent, and every taxpayer should be able to immediately see where money is being spent and why, which is why we ask you to immediately review Ohio’s list as well as ready-to-go projects that were denied funding in order to study other proposals. We thank you in advance for your response to our concerns.



Sincerely,



[see here for signatures]