Weatherford Democrat

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March 3, 2009

TxDOT use of stimulus funds questioned

AUSTIN, Texas (AP) — House Democratic leader Jim Dunnam said Monday the state transportation department may have violated federal law by not giving priority to economically distressed areas in the adoption of maintenance projects that will get economic stimulus money.

TxDOT spokesman Chris Lippincott suggested Dunnam did not fully understand the federal legislation and said the department complied with the law when adopting $500 million in road and bridge maintenance projects last week.

Dunnam read a portion of the federal stimulus bill, signed by President Barack Obama on Feb. 17, that stipulated economically disadvantaged areas "shall" be given priority in spending. He asked Texas Department of Transportation Executive Director Amadeo Saenz whether economically disadvantaged areas were a factor. Saenz said they weren't.

"We are subject to being charged back this money if y'all don't spend it in compliance with statute," said Dunnam, chairman of the House Select Committee on Federal Economic Stabilization Funding.

TxDOT is scheduled to vote again Thursday on how to spend the bulk of Texas' transportation money from the stimulus — $1.2 billion.

After more than an hour of questioning from members of the committee, Saenz agreed to "check to make sure we have complied with the federal mandate."

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The Obama administration asked Congress for permission to change the metal mixtures of pennies and nickles since it costs 2.4 cents to make a penny and 11.2 cents to make a nickle, at a cost of about $100 million annually per coin. (Though a suitable, cheaper metal mixture was not yet proposed.) Do you approve of this cost-saving measure?

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