‘Pork barrel’ funds lack monitoring

Saturday, Jan. 13, 2001 | 10:44 a.m.

CARSON CITY -- Millions of dollars flow into pet projects of Nevada legislators every two years, but the state does little, if anything, to see if the money is spent wisely or properly.

While state agencies are monitored regularly by legislative auditors and the executive branch, there is little oversight for the so-called "pork barrel" goodies.

Legislative Auditor Gary Crews says he has no authority to examine the books of local governments or private businesses that receive money. Only in a rare case is he given the go-ahead to follow money that funds these projects, he said.

State Controller Kathy Augustine writes the checks to disburse the money, but that's where her authority ends.

In some cases she withholds the money if there is a requirement that the project must have matching funds, she said. But when that is verified, the money is shuffled off to the receiving party.

On rare occasions, the Legislature includes a requirement that a report must be made to the next session on how the money was spent. And if there is money left over, it returns it to the treasury. But that doesn't happen often.

The so-called pork bills are among the final ones passed each session. Although the funding is requested early, the Senate Finance and Assembly Ways and Means committees wait until the end to see how much is left.

These bills generate little debate when they get to each chamber's floor. The funds are targeted for a variety of items such as train depots, restoration of historic structures and special-interest groups.

For instance, $250,000 went to Nevada Partners to help prepare the underemployed and unemployed in 1999. The funds came when unemployment was at one of its lowest levels in history.

There was a $2.8 million grant to the Community Development Program Center of Nevada for revitalization of Herbert Gerson Park. The money went to the city of Las Vegas, which must return any unspent funds in June.

And $100,000 was allocated to Clark County for the Enterprise Community Federal Credit Union for small-business loans and additional operating expenses.

These three are examples of the 1999 grants that don't have any strings attached. There have not been any allegations of misuse of the money, but the lawmakers never know because follow-ups aren't required.

Augustine said she is notified at the end of each session by Lorne Malkiewich, Legislative Counsel Bureau director, where the money is headed.

Malkiewich said he's not "sure of the logistics" in disbursing the millions of dollars every year, but he gets inquiries from groups that are allocated the money. He works with the controller's office to see that the right agency gets the funds.

"There isn't a lot of authority to do any follow-up," Malkiewich says. He notes that in some cases the recipient must go to the Legislative Interim Finance Committee to get the money. For instance, $2.8 million was set aside for expansion of the China Spring Youth Camp in Douglas County. The money was distributed after the Finance Committee received a report on the work performed and on the actual cost of that work.

Crews said he believes there should be some follow-up or reporting requirement after the money goes out the door.

But without specific authority from the Legislature, his audit staff is powerless to checks the books.

Assembly Speaker Richard Perkins, D-Henderson, said most of the grants go to government agencies and "that has a built-in follow-up." But the state doesn't check to see if the money goes into the proper pockets.

"There should be something in the law that requires a quarterly or twice-a-year report to the Legislature," Perkins said. "Accountability needs to happen ... we have to have personal responsibility."

The oversight has been left mostly to the individual lawmaker who asked for the money. And if the agency or company comes back to ask for more "we ask questions," he said. "There is at least some comfort level."

Gov. Kenny Guinn appointed a task force to perform a "fundamental review" of government to see where efficiency could be improved. But the group never broached the subject of pork and the lack of monitoring.

In stark contrast to the Legislature is the state Historic Preservation Office, where the Commission on Cultural Affairs hands out $2 million every year. Groups seek money from the commission which, after hearing presentations, makes the distribution.

But the commission does not fund any group until it submits an invoice from a contractor that the work is 90 percent complete. The bill is then paid. The commission then requires proof of completion, and it sends an inspector or representative to make sure the project complies with what was presented and is finished.

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