Posts Tagged ‘government accountability office’

Tom Steward

Empty Remodeled Minnesota Airport Lands Federal Grant, No Flights or Passengers

by Tom Steward

The St. Cloud Regional Airport is banking on a recently announced $750,000 federal grant to land an airline at the airport that’s been virtually deserted since Delta terminated service in and out of St. Cloud in late 2009. Despite a $5 million makeover of the terminal two years ago, St. Cloud’s airport has mostly sat idle as the city desperately seeks new commercial airline partners. St. Cloud received $750,000 in federal stimulus funding to assist with a portion of the renovation, but the project has thus far amounted to a passenger boarding bridge to nowhere.

The latest federal subsidy comes under the little-known Small Community Air Service Development Program (SCASDP), which provides temporary help to small airports to attract and maintain local air service through marketing and revenue guarantees. St. Cloud officials said the taxpayer gift would go a long way toward courting a new carrier, mostly by offsetting the financial risks involved with getting new service off the ground. In other words, the federal government is subsidizing the airport so the airport can subsidize the airlines. “One hundred percent of it will go towards what we call a minimum revenue guarantee. It’s really putting a pot of money somewhere set aside that in the event that airline loses money or has some start up costs or whatever it might be that they’re able to pull from that and make themselves whole,” airport director Bill Towle told the St. Cloud Times.

While increasing St. Cloud’s chances of attracting air service, analysis by the Freedom Foundation of Minnesota suggests the program fails to deliver for communities more often than not. In fact, a federal audit found that half of SCASDP grants failed to meet their objectives or failed to continue to provide air service capable of competing in the marketplace after the subsidies dried up.

Federal auditors have consistently raised questions about the overall lack of effectiveness of the $20 million per year FAA program. An Office of Inspector General 2008 audit revealed that just 30 percent of subsidy recipients were successful in achieving and sustaining their desired results for at least one year. The 40-page report concluded that “70 percent of the grants in our review failed to fully achieve their objectives. Specifically, 50 percent of the grants were unable to achieve any of their articulated grant objectives or were unable to sustain grant benefits beyond the grant horizon.”

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Jeff Dunetz

GAO Identifies $100 BIL. Savings by Cutting Specific Duplicated & Wasteful Programs

by Jeff Dunetz

The Government Accountability Office (GAO), issued it first annual report on reducing or eliminating duplication, overlap, or fragmentation in government spending (embedded below).  This particular report identifies areas where adjustments would generate tens of billions of savings, and the GAO did not even examine the entire federal government.

Within and across these missions, this report touches on hundreds of federal programs, affecting virtually all major federal departments and agencies. Overlap and fragmentation among government programs or activities can be harbingers of unnecessary duplication. Reducing or eliminating duplication, overlap, or fragmentation could potentially save billions of tax dollars annually and help agencies provide more efficient and effective services. The areas identified in this report are not intended to represent the full universe of duplication, overlap, or fragmentation within the federal government. We will continue to identify additional issues in future reports.

Even so, what this report finds is astounding,

In some cases, there is sufficient information available today to show that if actions are taken to address individual issues summarized in this report, financial benefits ranging from the tens of millions to several billion dollars annually may be realized by addressing that single issue. For example, while the Department of Defense is making limited changes to the governance of its military health care system, broader restructuring could result in annual savings of up to $460 million. Similarly, we developed a range of options that could reduce federal revenue losses by up to $5.7 billion annually by addressing potentially duplicative policies designed to boost domestic ethanol production. Likewise, we identified a number of other opportunities for cost savings or enhanced revenues such as reducing improper federal payments totaling billions of dollars, or addressing the gap between taxes owed and paid, potentially involving billions of dollars. Collectively, these savings and revenues could result in tens of billions of dollars in annual savings, depending on the extent of actions taken.

In total the GAO identified 34 areas for cutting including:

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Publius

Billions Wasted Each Year by Redundant Federal Programs

by Publius

From The Wall Street Journal:

A report from the nonpartisan GAO, to be released Tuesday, compiles a list of redundant and potentially ineffective federal programs, and it could serve as a template for lawmakers in both parties as they move to cut federal spending and consolidate programs to reduce the deficit. Sen. Tom Coburn (R., Okla.), who pushed for the report, estimated it identifies between $100 billion and $200 billion in duplicative spending. The GAO didn’t put a specific figure on the spending overlap.

The GAO examined numerous federal agencies, including the departments of defense, agriculture and housing and urban development, and pointed to instances where different arms of the government should be coordinating or consolidating efforts to save taxpayers’ money.

The agency found 82 federal programs to improve teacher quality; 80 to help disadvantaged people with transportation; 47 for job training and employment; and 56 to help people understand finances, according to a draft of the report reviewed by The Wall Street Journal.

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Matthew Vadum

HUD Report Slams Corrupt ACORN As Funding Ban Set To Expire For Undead Group

by Matthew Vadum

Citing massive irregularities and gross taxpayer funding abuses, federal investigators are recommending that government funding for ACORN’s still operating housing affiliate be cut off immediately.

Investigators must have felt it was necessary to urge the funding cutoff because the federal government’s prohibition on funding ACORN isn’t a permanent ban. It exists at the whim of lawmakers and runs out at the end of this month. This is the finding of an analysis by Capital Research Center (which has been tracking ACORN since 1998).

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Investigators may also have wanted to remind the public that ACORN is still alive. Reports of ACORN’s demise continue to be churned out by misinformed journalists who  amplify the zombie group’s lies. In recent days the Washington Post incorrectly described ACORN as “a dead NGO,” and Slate said ACORN has “stopped existing.” More on this in a moment.

The Sept. 21 report from the Department of Housing and Urban Development’s Inspector General found that ACORN Housing, which changed its name earlier this year to Affordable Housing Centers of America (AHC), may have concealed fraud by destroying or failing to produce records.

ACORN violated federal rules on how grants are to be used. The group charged the government salary costs for employees after they were terminated, the report said, and violated federal procurement standards.

The report suggested ACORN corruptly funneled taxpayer dollars to its affiliates and engaged in money laundering. ACORN has taken in more than $19 million in housing counseling grants since 1995 from HUD. NeighborWorks, a congressionally chartered nonprofit, gave ACORN $25.9 million. ACORN Housing has received more than $27.3 million from other federal and non-federal sources, the report said.

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Publius

Party at the DOJ: Golf, Pool Parties and other Fun on the Taxpayer Dime

by Publius

From CBS News:

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With a $13 trillion debt, why is the Department of Justice spending money on parties and rollercoaster rides rather than investigating crime, drug cartels, prosecuting terrorists?

Untold millions of your tax dollars are paying for recreation in the name of crime prevention: pool parties, rollercoaster rides, and police donut-eating contests. The idea is that fun activities keep kids out of trouble, build self-esteem and prevent crime.

CBS News investigative correspondent Sharyl Attkisson reports the problem is the money comes from the Department of Justice – which doesn’t even have enough resources to keep up on analyzing foreign intelligence.

Now, the U.S. Government Accountability Office (GAO)has found nobody is measuring just how much is spent on the recreation – or whether it even works.

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Matthew Vadum

BREAKING: ACORN Demanded and Won Changes to Preliminary ACORN Report that Whitewashes Wrongdoing

by Matthew Vadum

ACORN demanded and received changes to a congressional report that –surprise, surprise– fails to find ACORN did anything wrong.

Longtime ACORN lawyer Arthur Z. Schwartz sent a letter to the Government Accountability Office (GAO) which was examining federal grants to ACORN, under orders from Congress. Schwartz’s demands appear at pages 32 and 33 of the report which is called “Preliminary Observations on Funding, Oversight, and Investigations and Prosecutions of ACORN or Potentially Related Organizations.” The paper is available at GAO’s website.

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ACORN’s election fraud assurance division, Project Vote, which used to employ President Obama, even threw in a few helpful suggestions in an effort to trick Americans into believing it no longer has anything to do with ACORN. Project Vote lawyer Brian Mellor’s letter appears at pages 35 and 36 of the report.

The preliminary -as in incomplete, insufficient, and downright superficial- report is less than enlightening. I got the distinct impression while reading it that its authors hadn’t actually been following ACORN’s troubled history. You can’t expect much from a federal investigation when the question posed, namely, whether some of the grants ACORN received, were misused. Instead of doing actually shoe-leather investigating, all GAO appears to have done is talked to other government agencies and compiled existing data.

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William Shughart II

Most Expensive Census in History

by William Shughart II

Article I, section 2, of the Constitution requires the populations of the various states to be enumerated every 10 years. The first such census was conducted in 1790; its main purpose was to apportion seats in the House of Representatives among the original 13 states.

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The Founders scarcely could have foreseen the stunningly costly and politically sensitive undertaking the census now has become.

There is much at stake. Census figures will be used to shift representation in Congress from states where populations have declined since 2000 to those where they have grown. By 2012, every state also will have redrawn its own legislative district boundaries to reflect recent population trends.

Moreover, the 2010 headcount will determine how every state and community fares over the next decade when federal funds are allocated for a host of social programs, including health care and job training; highway, bridge and tunnel construction; public education; and much else. The jackpot of taxpayer-financed loot to be doled out based on census results now amounts to about $400 billion. With federal spending reeling out of control, billions more likely will be up for grabs.

How much will it cost to count noses this year? No one really knows. The Census Bureau began planning for 2010 immediately after 2000. It is not yet fully ready. Preparations for 2010 have been plagued by fraud, cost-overruns and failures of computer hardware and software.

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Publius

GAO to Investigate ACORN

by Publius

From The Hill:

ACORN-Raided

The Government Accountability Office (GAO) has informed two House Republicans that it will investigate ACORN’s use of federal funds.

The GAO sent a letter to Reps. Lamar Smith (R-Texas), the ranking member of the Judiciary Committee, and Darrell Issa (R-Calif.), the ranking member of the Oversight and Government Reform Committee, informing them of its decision. Smith and Issa on Thursday released the letter, dated Dec. 7

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Warner Todd Huston

Science, Smoking, Healthcare, All Prove Gov’t Can’t be Trusted

by Warner Todd Huston

Just sit back and let big daddy government show you the way. The Democrat Party is assuring us that they know better because they have science, educated people, doctors and all that “expertise” in their control. Further more they “care” about us all and they want us to know that they’d never do anything to lead us astray.

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If you feel like the con is about to begin, you are right.

Of course, we don’t need mere suspicion to divine that the Democrats are liars. We can look at what government and Democrats have already done in several related areas — science, smoking and healthcare — to prove that this newest attempt to “help” us is based on lies, smoke and mirrors.

Let us begin with science. In two areas we see the failure that Democrats perpetuate even with science as their justification: global warming and healthcare.

We are all by now familiar with the lies that global warming is based upon, as revealed by the scheming to hide failure of the science that went on behind the scenes with the email correspondence of the “scientists” at the University of East Anglia Climatic Research Unit (CRU). The science went from settled “consensus” to “ClimateGate” in only a matter of weeks. Yet governments all across the globe have based their policies on these lies. Total failure.

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Publius

HUD Counseling Funds Tripled Despite Criticism

by Publius

From USA Today:

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WASHINGTON — Federal funding for a housing counseling program carried out by local non-profit groups such as ACORN has more than tripled since 2002, even though it has been criticized by government auditors for failing to show results.President Obama’s budget calls for a 54% increase next year — $100 million in all — for the program, which helps people buy or refinance a home, prevent a foreclosure or find rental housing. The Senate agreed, while the House of Representatives suggested $70 million; final negotiations over the bill are pending.

The Department of Housing and Urban Development (HUD) has been unable to provide much proof the program works, according to government reports, despite an increase in funding from $20 million in 2002 to $65 million last year.

The reports found:  (more…)