Wednesday, March 25, 2009

City of Birmingham Ordered to Give Back Misused Federal Block Grant Funds

Here's another reason why federal oversight and control of federal funds sent to states and municipalities is not a bad thing (and why arguments that states and municipalities are always the best qualified to judge what federal funds should be spent on are ridiculous).

Birmingham, AL is required to pay back $780,000 in community development block grant funds, which were used to pay staff expenses and salaries while organizing events called "Neighborhood Fun Days" (unsanctioned by the Department of Housing and Urban Development). That's right neighbors: your infrastructure and quality of life may be crumbling around you heads, but Birmingham officials are paid to make sure you have fun amidst the ruins. Bread and circuses for everyone.

1 comment:

  1. So, didn't the system work? They misused the funds, and the feds are making them pay them back. State and local systems certainly do know better how to appropriate funds for projects than the folks in D.C. I do agree that accountability is important - which is why states are required to account for their use of Federal stimulus funds.