Leaders Seek To Curb Spending Abuse

Saturday, June 2nd 2007, 1:51 pm

By: News On 6

OKLAHOMA CITY (AP) _ House leaders say they are tightening up the appropriations process to prevent abuse of taxpayer funds set aside for questionable economic development programs, but critics say so-called ``pork barrel'' spending remains a problem.

House Appropriations Chairman Chris Benge said that during this year's appropriations process, there was no pork-barrel spending bill like a measure approved in 2004 that sent $11.5 million in ``passthrough'' money to multi-county planning agencies or councils of government, commonly called COGs.

Under that measure, the Oklahoma Department of Commerce was directed by the Legislature to send specific amounts of money to the COGs for unspecified projects and $350,000 to the Rural Development Authority in McAlester.

Former state Rep. Mike Mass has pleaded guilty to a federal charge of conspiracy to defraud the government, a charge linked to funding obtained for the RDF, which was then funneled to a pet food company and a gaming business.

Ex-state Sen. Gene Stipe and two other former lawmakers have been implicated in the federal investigation. Mass has agreed to cooperate in the ongoing probe, which involves allegations of kickbacks linked to taxpayer money that went through the RDF and two southeastern Oklahoma COGs.

Pork barrel, or ``special project'' spending, has long been an issue in the Oklahoma Legislature, with some lawmakers complaining of last-minute funding for local projects being stuck in appropriations bills without committee hearings or consideration by all House and Senate members.

Often the money is sent through the commerce agency or the Department of Agriculture. Critics of the process say the projects may be worthy, but there should be some objective criteria for funding programs that mainly benefit a specific area and not the state as a whole.

In the past, funding was provided through COGs for projects that did not become known until after the Legislature adjourned, Benge said.

``We have really made a concerted effort the last couple of years to clean that up,'' he said.

``I think that in the past there's been a lot of directed money and I think this year there was kind of a priority not to do that,'' said Sen. Mike Johnson, R-Kingfisher, co-appropriations chairman.

Benge concedes there are differences of opinion on what is ``pork'' and what is not.

Some Democrats have grumbled about $1 million being appropriated late in the session for the Oklahoma Youth Expo in Oklahoma City, described as the world's largest junior livestock show. Bob Funk, influential Oklahoma City businessman, is chairman of the board for the event.

``The purpose of that is to provide scholarships for kids who do livestock shows in the state,'' Benge said. ``As far as I can tell, it is a good cause.''

This year, funding for COGs passed through the Commerce Department was limited to $50,000 for each entity.

However, the organizations will get $15 million through the Rural Economic Assistance Program (REAP) administered for by the office of the State Auditor and Inspector Jeff McMahan, said Terry Watkins, spokeswoman for McMahan.

That program mainly funds rural projects, including water and sewer needs and economic development efforts.

Rep. Mike Reynolds, R-Oklahoma City, said he is alarmed about big increases in funding in recent years to the Rural Enterprise Institute, which secures federal grant money for various economic development projects.

Headquartered in Durant, the REI for years got about $250,000 in funding from the Legislature. In 2005, that was increased to $1.1 million. This year, the funding was bumped to more than $1.5 million.

Former Republican U.S. Rep. Wes Watkins has long been associated with the agency and was provided a $60,000 retainer in 2005 to help former Speaker Todd Hiett find ways to help the economy of rural Oklahoma.

Hiett, who ran unsuccessfully for lieutenant governor in 2006, toured the state for weeks, attending meetings with local officials in rural areas. He used $114,000 in legislative funds under his control for the project, which also was sponsored by the REI.

Reynolds said his concern with the funding of nonprofit agencies such as the REI is that there is a lack of accountability.

``We are sending money to nonprofit organizations that have no accountability to the Legislature and we cannot find out what the money is spent for other than the general term of economic development,'' Reynolds said. ``It is absolutely a form of pork barrel spending.''

Rep. Dale DeWitt, R-Braman, who worked to secure the REI appropriation increase, said the organization has a good track record in creating jobs.

DeWitt said the REI got an extra $440,000 to open two offices in western Oklahoma, one in the southwest quadrant of the state and one in the northwest.

``We wanted to get them on the other side of Interstate 35 so we can stimulate some growth,'' the lawmaker said.

Dewitt said the new REI offices will likely be located in the Lawton area and the Alva-Woodward area.

The Associated Press attempted to contact Tom Seth Smith, president of the REI, for comment Friday afternoon but he was not available.