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For Immediate
Release
3/31/09
Senator Orie Re-Introduces Legislation to
Provide Stricter Oversight Over State Grants
The recent scandals involving the misuse of state economic
development grants in Beaver County has prompted Senator Jane Orie (R-Allegheny)
to renew her efforts to provide stricter oversight over state grants used for
job creation and retention.
Orie said Senate Bill 697 would create the Economic
Development Accountability Act and require that the Department of Community and
Economic Development improve its monitoring procedures for state economic
development grants.
"The recent controversy has made it clear that we need to
do more to ensure that state dollars are being used judiciously and for the
purpose in which they were intended," Orie said. "These projects are funded by
state tax dollars and the recipients should be held accountable for their
effectiveness."
Orie's legislation would require DCED to more strictly
oversee grants by:
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Receiving annual reports starting within 12 months of
receiving a subsidy.
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Instituting site visits for large grant and loan
recipients.
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Corroborating job numbers reported by recipients with
other departments of state government.
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Providing more complete success and failure statistics
to the General Assembly.
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Reporting penalties waived as well as penalties
assessed.
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Reviewing and updating the benchmark and performance
measures of each development subsidy program every five years and publish
these measurers on the state's website.
Orie's bill would also require that recipients of
development subsidies to also disclose whether they are meeting requirements
regarding the participation of women and minorities and whether they are
delinquent in the payment of any state, county or local taxes for the previous
year.
"It is very evident that safeguards have to be put in place
to ensure that these important funds are being targeted correctly, particularly
in these tough economic times," Orie said. "This bill will provide some
commonsense procedures what will help to spot red flags and encourage those
organizations that are successful in creating jobs."
Contact:
Michael A. Sarfert, Esq.
(717) 787-6538
Additional Information:
Reforming
Government
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