Some of the close to seven billion dollars in projects in Stimulus Checkup create few jobs; benefit private interests over the public good; or make improvements where they are not necessary. Some send money to companies facing fraud charges. Others take millions of dollars to do work local officials and experts admit are not needed or will not help.
Stimulus money has been, or will be, spent on dinner cruises, golf courses, puppet shows and stimulus road signs. Many Americans will question whether investing $787 billion in these projects are the highest national priorities.
Spending $25,000 for a puppet show may not seem like a big deal in Washington, for most Americans it is a lot of money. Washington, D.C. politicians blithely spend billions of dollars a week, but every dollar wasted is also a dollar borrowed—and a dollar to be paid back with interest in the future.
Why Does It Matter?
Over the past ten years, the national debt more than doubled as Congress went on a spending spree—and yet we still find ourselves in the midst of an economic downturn.
Americans who have lost their job, health insurance, or home, are facing mounting personal debts, but are also faced with the question of who will pay off the staggering national debt that has grown by more than $1.4 trillion over the past year.
The federal government must join American families in prioritizing its spending by making tough decisions. When we downplay wasting money on a $6 million project, it is easy to do it again ten more times. Once $60 million is out the door, it is easy to spend another $60 million and before you know it, billions of dollars we do not have are spent on things we do not need. Sadly, this type of spending is excused in Congress because "it‘s always been done that way."
The American people have always rejected arguments based on "it‘s always been done that way," and will continue to do so. Congress needs to make hard choices and eliminate things that are a low priority—even if doing so is unpopular—so we can preserve this country for future generations.
In the previous report, one hundred questionable projects were identified that did not appear to hold out promise for helping the economy grow. The Administration was quick to review these projects and to its credit addressed a number of them. In the months that followed, many more questionable stimulus projects costing millions and even billions of dollars were identified. This follow-up, Stimulus Checkup, takes a closer look at 100 more projects that raise questions about how stimulus money has been used so far.
Sincerely,
Tom Coburn, M.D. U.S. Senator
John McCain U.S. Senator
1. “Almost Empty” Mall Awarded Energy Grant ($5 million)
2. Renovations for Federal Building as Expensive as New Building ($133 million)
3. DTV Advertising Agency Generates Three Jobs ($5.9 million)
4. Research to Develop Supersonic Corporate Jets ($4.7 Million)
5. Water Pipeline to a Money-Losing Golf Course ($2.2 million)
6. Police Boat Gets High-Tech Upgrade Even As Force May be Downsized ($190,000)
7. Program to Control Home Appliances From a Remote Location ($787,250)
8. 18-Mile Tourist Rail Extended ($2 million)
9. Dinner Cruise Company Gets Terrorism Prevention Money ($943,190)
Few security analysts see the dinner cruise industry as a key vulnerability in our nation‘s efforts to combat terrorism. But, that did not stop the Department of Homeland Security from awarding nearly $1 million to the privately-held Entertainment Cruises, LLC, to step up its security efforts.
The Chicago-based company has 23 vessels in eight cities, including Boston, Chicago, Philadelphia and Washington, D.C., which according to the company, help to provide ―superior dining and entertainment experiences for its guests.‖68 One ship, the Spirit of Boston, which received stimulus funds to pay for an alarm and surveillance system,‖69 is a three-deck vessel, boasts ―chic table settings, two dance floors and the ―largest outdoor patio deck on Boston Harbor.
In an interview on the company‘s blog, Dan Russell, General Manager for Chicago, said that his favorite cruise ship was the Mystic Blue: ―It is very laid back atmosphere (which I really need right now), casual, good food. It‘s like a lounge on the water.‖71
Entertainment Cruises vice president, Gary Frommelt, noted that it was unusual for his company to get terrorism-prevention funding, "We feel that we‘re really a low threat for a terrorist incident. But the stimulus was a nice perk."
11. All Aboard The Wine Train! ($54 million)
While some major U.S. cities have still not been fully protected from the possibility of catastrophic flooding, engineers are hard at work to relocate the Napa Wine Train to prevent just that. The contractor, Suulutaaq, has received at least $54 million in stimulus funds for the project despite little to no experience with a project of this size.‖80 Suulutaaq, an Alaska Native Corporation, won the contract as part of a non-competitive bidding process, sparking local concern. When the project first began, Suulutaaq‘s work was slower than expected, causing the firm to replace its construction managers. An Army Corps of Engineers official said that in the spring, Suulutaaq was ―not performing like we expected, though performance has since improved. Until receiving the Wine Train relocation project contract, the largest contract Suulutaaq had ever managed was $30 million.
The Napa Wine Train has proven to be a popular tourist attraction, providing, ―a relaxing three hour journey along the thirty six-mile round-trip… through one of the world's most famous wine valleys.‖83 One of the most popular meals on the train is the $124 Vista Dome Lunch, where guests enjoy ―a complimentary glass of California sparkling wine [that] continues with a four course lunch of their choice.‖84 Sean Pramuk, the former owner of Uva Trattoria Italiana in Napa, had wanted the city to take care of other flood prevention measures before the Wine Train. ―We need the Wine Train. It‘s good. But we're doing something first for the tourists before we‘re doing it for the people that are here year-round and get flooded.‖85 The proposal includes building a flood wall at the Napa Wine Train station, constructing a new railroad bridge and moving the existing train track 33 feet to elevate the track to align with the new bridge.‖86 Streets in the area, as well as underground utilities, will need to be raised to match the newly elevated track.‖87 The Wine Train project is part of a $99 million stimulus allotment Napa received for flood control.
More Common Sense coming later this week.
For verification of all information on this blog, please go to:
http://www.wikicountability.org/index.php?title=Stimulus_Checkup:_A_closer_look_at_100_projects_funded_by_the_American_Recovery_and_Reinvestment_Act
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