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040502

Sen. Coburn, White House square off in stimulus showdown

By Mary Jane Egan Jul 01 2009, 06:01 AM

In the spirit of fiscal conservatism, Sen. Tom Coburn’s (R-Okla.) office released a report on June 16 claiming that about $5.5 billion in stimulus money from the American Recovery and Reinvestment Act (ARRA) has already been allocated towards unworthy projects. Furthermore, the report estimates that a total of at least $55 billion will be considered wasteful as all $787 billion of the allocated funds are spent.

Entitled “100 Stimulus Projects: A Second Opinion,” the report served as a direct response (in format and number) to the Obama administration’s late May release, “Recovery Report: 100 Days 100 Projects”. The administration, however, quickly regained its footing. The same day Coburn released his report, the White House had compiled a response to each of the 100 accusations of waste. In the press flurry that followed, each side accused the other of ideologically-based statements misleading information, and downright lies. How downright refreshing!

As more news has surfaced about the verity (or lack thereof) in the 100 allegedly wasteful projects, special attention has been paid to the “Top Ten Projects.” Those the senator deemed “most questionable” made the list, including an earmark for Illinois that Coburn coins “the costliest pork project in history.” As the Obama and Coburn offices wage a verbal war over legislation signed in February, reporters are working on getting the facts straight. Here is the latest on three of Coburn’s top accusations, with their corresponding number listed:

#1: “Free” Stimulus Money Results in Higher Utility Costs for Residents of Perkins, Oklahoma

Facts: To help pay for a new water treatment plant, the town of Perkins applied for a $1.5 million allocation of stimulus money, and won.

Coburn claim: Perkins forgot to calculate the cost of strings attached to the funds, including mandated union wages and Buy American provisions. Now, Perkins residents have actually witnessed a 60 percent increase in utility taxes. More taxes, less stimulus.

Administration response: The money was allocated through a state-operated program known as the Clean Water State Revolving Fund, therefore the state of Oklahoma is actually responsible for the higher rates. Additionally, the strings to the money provide fair wages and American jobs. More jobs, more stimulus.

Note: Taxes increased and Perkins residents are unhappy about it. While neither Coburn nor the White House tells the full story, this news piece pits local against national improvement. Oklahomans can be upset that their utilities bills skyrocketed, but they’re probably saving a steelworker’s job in the Rust Belt.

#2: FutureGen: The Stimulus Earmark that Wasn’t, Becomes the Costliest Pork Project in History

Facts: The stimulus package allocated around $1 billion for a “fossil research energy and development project.”

Coburn claim: This allocation should be properly called a shameful example of pork spending, since FutureGen was the only possible project that fit allocation criteria. Much of FutureGen funding would have originated in the Department of Energy (DOE) before an abrupt announcement to pull funding in 2008. Renewed evaluation caused officials to doubt the project’s economic and environmental benefits. FutureGen funding is an earmark President Obama promised would not be included in the stimulus bill.

Administration response: The DOE has reviewed the project and will continue to do so. FutureGen will only receive full funding “if it proves to be a smart investment.”

Note: It appears that FutureGen does not currently seem to be a “smart investment.” The DOE restarted the project as of 12 June, but lack of private backing for the remaining costs has stalled progress again. Both American Electric Power Co. and Southern Co. have pulled funding as of 26 June.

#8: Taxpayers Taken for a Ride: Nearly $10 Million to be Spent to Renovate a Century Old Train Station that Hasn’t Been Used in 30 Years

Facts: The Elizabethtown train station in Pennsylvania will undergo complete renewal for about $9.4 million in stimulus dollars.

Coburn claim: The stop manages just fine, with platform service to over 80,000 passengers per year. The building serves no purpose. It does not sell tickets, coffee, or newspapers inside. Besides, Pennsylvania already has a record number of structurally deficient bridges that actually need repair.

Administration response: Ridership to and from Elizabethtown is on the rise, and stimulus money to create a working train station could aid in continuation of this trend. It will result in creation of jobs and “better quality of life” for Elizabethtown residents.

Note: Even if Coburn’s claim is correct, his headline remains misleading. At least three major news networks misinterpreted the senator’s accusation. All three implied that the station does not service passengers, which is completely untrue.

Keep in mind, there are 97 more possible sources of fraud according to Coburn—and those are just the worst offenders. But with so much energy spent on accusation and rebuttal, both sides are depriving accountability and non-partisanship of much-needed stimulus.

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