(June 16, 2009) -- In a report released this morning (June 16), a U.S. Senator charges that the use of federal "stimulus" dollars to facilitate LB's 14th St. Park "skateboard" park project is one of 100 examples of the Obama administration's use of taxpayer dollars for dubious purposes.
The report by Senator Tom Coburn (R., Oklahoma) titled "A Second Opinion on the Stimulus," lists what it calls the "ten most questionable stimulus projects" plus ninety additional projects -- the latter category including the LB skatepark -- for a total of 100, listed in no particular order.
Regarding the LB project, the report states:
"...A California skate park will get a $620,000 "facelift." Plans to refurbish the skate park in Long Beach, California, had stalled for months as local funds put towards higher priority park projects. With $620,000 in federal stimulus funding available to upgrade the skate park, the city council decided to move forward. Daniel Johnson, a skater, said, "If most of us weren't skating right now, we'd be doing some bad stuff." [footnote cites a Press-Telegram news story]
Senator Coburn's report states in pertinent part:
By offering 100 examples of questionable stimulus projects, worth $5.5 billion, this report does not
attempt to prove that the stimulus is not working. Rather, the intent is to educate taxpayers,
policymakers and the media on lessons that can be learned from some of the early missteps and prevent
other questionable projects from moving forward.
As Congress debated the stimulus bill in February, there were significant concerns that billions of dollars
would be wasted and the bill was rushed to passage without a single member of Congress reading it...
Supporters of the stimulus said that the key to preventing the misuse of federal money was a strong dose
of transparency. If the details of every project were posted online, they said, including where the money
is spent and for what, a natural system of accountability would develop. Unfortunately, this has not
happened. It is nearly impossible right now for the average taxpayer to find out where his money is
going. It was recently revealed that Recovery.gov, a new website being developed to bring
"unprecedented transparency" by tracking the money "down to the penny," may not even be ready until
spring 2010 -- a full year after the stimulus was passed. Taxpayers who will be left paying for every
wasteful stimulus project deserve a full accounting of where their money is going.
This makes the report being released today all the more important. It highlights 100 projects out of
thousands that have received stimulus money but are not poised to stimulate the economy, create lasting
jobs, serve taxpayers in the long term, or use taxpayer money in an appropriate way. Some may be
reasonable if funded through private investment, or state and local government. Some would even be
worthy federal projects. The vast majority of the projects, though, are not appropriate uses of taxpayer
money at any time or in any context.
This waste is troubling both for its short-term failure to put Americans back to work and for its longterm
fiscal impact on the nation. Our current national debt exceeds $11 trillion and the Congressional
Budget Office projects more than $1 trillion will be added per year to it for the next decade, in large part
due to stimulus spending.
As we move forward with the stimulus, it is vital that the public know how and why taxpayer dollars are
being spent and the impact of the projects that are being funded.
The document parallels a White House document citing 100 other pending stimulus projects...and LATimes.com says the Obama White House criticized Sen. Coburn's report prior to its official release, with aides "poring over a draft of the report" and charging that the Senator's research was flawed and in some cases ideologically driven.
LATimes.com quotes Ed DeSeve, a senior aide to President Obama, as saying in a prepared statement:
"With 20,000 projects approved, there are bound to be some mistakes -- when we find them, we have been transparent about it, and worked on a bipartisan basis to shut them down immediately. Sen. Coburn's report, however, is filled with inaccuracies, including criticisms of projects that have already been stopped, projects that never were approved, and some projects that are working quite well."
In a related development, LBReport.com has learned that LB City Manager Pat West informed Mayor Foster, Councilmembers and other officials by email on Monday (June 15) that a Department of Housing and Urban Development representative had alerted City Hall to "an opinion piece [by Sen. Coburn] for [Tuesday's] news complaining about certain projects" and said the agency would prefer that skateboard parks not be used for stimulus dollars although it views them as an eligible use.
"[A]t this stage, [the skateboard project] continues to be an eligible use. HUD has not sent us anything in writing denying this project," City Manager West added in his email.
On June 2, the City Council approved authorizing city management to receive CDBG "stimulus" funds for a project to end chronic flooding on Arlington St. in WLB...and to fund a 14th St. Park skateboard project.
In its application to HUD seeking federal funds for the skate park, city management said it qualified for funding by promoting "smart growth" and "reducing pollution emissions" as follows::
Description of how activity wil achieve above items:
The project is a "smart growth" in that it provides surrounding youth with a
nearer local recreation choice that will reduce trips to faraway similar facilities
within the City, hence, reducing pollution emissions.
Although LB City Hall had previously prepared a lengthy list of projects it said were "shovel ready" for federal stimulus dollars, the 14th St. skateboard park wasn't among them. It was advanced after the election of Robert Garcia (backed by several Council incumbents) who took office on May 5 with less than a majority of votes cast in an April winner-take-all special election (succeeding a Councilmember who advanced to state office).
Councilman Garcia, who faces reelection in less than year, said during the June 2 Council proceedings that on taking office he'd pressed city management to find a way to fund the skateboard project.
Garcia previously headed LB's Young Republicans but switched his party affiliation on moving into the Dem-preponderant Council district when it became clear that its incumbent would likely seek state office and prevail. He has since been a strong supporter of President Obama.
Extended portions of city management's agendizing memo and HUD application/attachment on the issue follow:
Recommended Projects
The intent of the program is to put these funds to use quickly. Accordingly, in selecting
projects for CDBG-R funding, the City shall give priority to projects that can award
contracts based on bids within 120 calendar days from the date the funds are made
available to the City. Hence, selected projects must be "shovel ready." ARRA requires
that the selected projects should demonstrate how the use of CDBG-R funds for a
project will locally maximize job creation/retention; economic benefits; and promote
energy conservation, smart growth, green building technologies, or reduced pollution
emissions.
...
14th Street Skate Park
Expansion of the Skate Park at 14th Street and Pacific Avenue. Improvements
include the fabrication and installation of new skate park equipment as well as
associated site work, grading, concrete, fencing, shade structures, and benches.
Construction of this project wil take four (4) to six (6) months. This project will
create 10 full-time construction jobs...
[Attachment]
...Activity Name: 14th Street Skate Park
Activity Description: Expansion of Skate Park at 14th Street and Pacific
Avenue in Central Long Beach. Improvements include
the fabrication and installation of new skate park
equipment as well as associated site work, grading,
concrete, fencing, shade structures, and benches.
Eligibility Category: HUD Matrix Code - 3F - Parks, Recreational Facilities
CDBG Regulation Citation-Sec. 570.201 (c)
National Objective Citation - 570.208(a)(1) LMAlLMJ
Activity Census Tract: 575401,575402
Surrounding Census Tracts: 575300, 575803, 573002
Percentage of LMI Persons:85.2%
National Objective Citation: LMA, LMJ
Funds Received from Other Recovery Act Programs: $0
Total Activity Budget: $620,000
...Description of how distribution and use of CDBG-R funds wil meet the
requirements of Title XII of Division A and Section 1602 of the Recovery Act:
As a condition of CDBG-R funding, HUD requires compliance with Title XII of
Division A and Section 1602. Title XII of Division A gives priority to projects that
can award contracts based on bids within 120 days from the date the funds are
made available to the recipients. Section 1602 gives preference to projects and
activities that can be started and completed expeditiously and notes a goal of
obligating at least 50% of the funds not later than June 17, 2009.
The projects selected to receive CDBG-R funds meet the above-mentioned
requirement as follows:
...The 14th St. Skate Park Project design phase has been completed and can be
started within 3 weeks after funding is awarded.
...Relation of Projects to the ARRA...
...Activity Name: 14th Street Skate Park
Activity wil address the Recovery Act by:
Preserving and creating jobs and Investing in transportation, environmental
promoting economic recovery protection, or infrastructure that will
provide long-term benefit
Assisting the most impacted by the Minimizing or avoiding reductions in
recession essential services
Providing investment needed to increase Fostering energy independence
economic efficiency
Description of how activity wil maximize job creation and econ. benefit:
The 14th Street Skate Park Project will assist with job retention and creation
and generate economic benefits. The project will preserve jobs and
livelihoods for classifications of workers adversely impacted by the recent
economic downturn: construction workers and laborers and construction
material suppliers. The project is anticipated to require up to 10 workers onsite
to improve the park.
The activity will also reduce blight and create long-term infrastructure benefit
by revitalizing a youth recreation alternative in a low/moderate income area.
...Activity Name: 14th Street Skate Park
Will this activity promote any of the following items (yes/no)? Yes
Check all that apply: ["smart growth" and "reducing pollution emissions" checked]
Description of how activity will achieve above items:
The project is a "smart growth" in that it provides surrounding youth with a
nearer local recreation choice that will reduce trips to faraway similar facilities
within the City, hence, reducing pollution emissions.