Review faults grant program
By Richard Gazarik and Debra Erdley TRIBUNE-REVIEW
Millions of tax dollars subsidize questionable
programs or organizations across the state at
the whim of the Ridge administration and
legislative leaders, a bipartisan oversight committee charged Tuesday.
The Legislative Budget and Finance Committee
said the Community Revitalization Program is not
competitive, lacks oversight and is used for political purposes.
Sen. Clarence Bell of Media, Delaware County,
committee chairman, said the grant program is a
"hush-hush" process controlled by House and
Senate leaders in collaboration with Gov. Tom Ridge.
For instance, Bell said he was allotted $175,000
in grants from the Department of Community and
Economic Development. He conceded the grants
were not based on competition or need.
"I got my funds because I'm a senator. Period,"
said Bell, the senate's senior Republican.
David Black, Ridge's deputy secretary, disputed
the committee's conclusions and said 13 of its
recommendations to improve the grant process are
being studied.
"The recommendations are the key," Black said.
"That's what we're focusing on. They really
didn't find any serious problems with anything.
We will work through these recommendations. We
think some of them are very good."
Auditor General Robert Casey Jr. last year
reached the same conclusion as the committee did
yesterday. Casey found no evidence of
competition for grants despite claims to the contrary.
The committee's analysts compared the community
revitalization program with how the state
monitors federally funded grant programs.
For example, Community Development Block Grant
and Weatherization programs had "appropriate
monitoring requirements and compliance with
those requirements was good," the committee reported.
The extremely popular community revitalization
program generated $282 million in applications
last year for $35 million in grants. There was
no way to compare the merit of rejected
applications because the state refused to release the documents.
A Tribune-Review computer analysis found need
was not a requirement for getting grants.
The Valley Forge Military Academy, an upscale
prep school, received a $15,000 grant to install
a sewer line, according to records.
Ross Township in Allegheny County received $2.4
million to build a community park on a former
slag pile.
Another $300,000 was awarded to the Pennsylvania
Snowmobile Association to plan a statewide trail
network and buy a grooming machine.
Murrysville, Westmoreland County's wealthiest
community, received $300,000 to buy land for a
park and fund its library, youth sports and
community groups.
Sen. Gerald LaValle of Rochester, Beaver County,
said $26 million was requested for community
revitalization grants, but Ridge allotted $45
million.
"That tells you they juiced it up pretty good,"
LaValle said. "The program is nothing more than
a continuation of the WAM program. The only
difference is there's more money."
The former WAM system, or Walking Around Money
used for lawmakers' pet projects, was outlawed
by the courts and replaced by community
revitalization grants in 1996.
A key complaint of yesterday's report was the
failure to monitor the grants.
"All state-funded programs require grant
recipients to submit final fiscal reports or
audits at the end of the contract period," the
committee's report said. "However, we found
often these reports and audits, which are key to
assuring the proper use of state funds, were
missing from the files."
The committee reviewed 55 grants and found that
only one file contained the required audit.
One reason lawmakers covet the grants is because
of the political goodwill they generate among
voters, particularly at re-election time.
The report found the grants are timed to give
legislators the best possible political
advantage by "coordinating the award letters
with press releases and other public relations
efforts."
"Members of the General Assembly are always
interested when grants come into their
district," Black said. "We try to be
accommodating."
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