Neff Zone Column

Print Edition: December 3, 2005

TIS’ THE SEASON OF TAKING

During this time of year you usually read about the spirit of giving. Unfortunately, this time around, it seems like those heartwarming stories are being overshadowed by tales of the spirit of taking.

For example, remember that "bridge to nowhere" in Alaska championed by Republican Senator Ted Stevens, a $223 million piece of political pork that was to connect the mainland with a virtually uninhabited island? If you’ve been following the story you were probably happy to hear that despite the tantrum Stevens threw on the Senate floor, those earmarked funds for the bridge were cancelled. Ah, but there’s more to this than meets the eye. Apparently the House and Senate didn’t want to anger Stevens, so although they cancelled the "earmark" they agreed to let the $223 million still go to Alaska, meaning the state can use the money any way it sees fit. They can now build the bridge on their own. The nation’s taxpayers won’t save a dime. Happy holidays!

As mentioned in this column before, the Small Business Administration’s handling of small business loans to victims of hurricane Katrina has been abysmal. Earlier this week it was reported that out of 205,000 loan applications there are still 153,000 awaiting processing and only 7,689 loans have been approved. Then, the Partnership for Public Service, using the governments own statistics, reported that the SBA has the lowest worker morale of 30 government agencies studied.

So, what has been the response of the administration to this troubling news? The official in charge of the SBA’s Office of disaster Assistance, Herbert Mitchell, was chosen by President Bush last month as one of the government’s top 55 executives and given a 35% bonus on top of his $154,194 salary. What part of the "Brownie you’re doin’ a heck of a job" fiasco did the President not understand? Your tax dollars at "work." Season’s greetings!

Oh yeah, do you know what became of the infamous Brownie? The President kept him on the payroll as a $148,000-a-year consultant. Ho-ho-ho!

Closer to home is the revelation that the state’s politicos have been using/abusing a federal tax loophole called a 527. Essentially, a 527 is a tax exempt organization that can raise unlimited amounts of money from corporations, unions, law firms, individuals and others and then spend the money on political activities. Officholders can use 527 dollars to pay for things like "office expenses."

Governor Granholm used her 527 dough to pay for private flights to out-of-state functions and to send her chef to an out-of-state seminar to learn how to cook for large groups. Apparently no one within Michigan’s borders knows how to construct a buffet.

Secretary of State Terri Lynn Land used her 527 cash to throw a private dinner party in New York City during the national convention, to the tune of $40,000, and even went so far as to send out letters requesting "sponsorships" for up to $15,000. In an almost insulting oxymoronic joke, the fund that paid for the swells to dine in the Big Apple is called the Grassroots Fund.

Attorney General Mike Cox spent $30,000 of his 527 dollars at Mickey Mantle’s restaurant in NYC to show off for Michigan delegates to the convention, another $1,897 on a rug for his office, and $971 for a single dinner in Manhattan for his staff. Aren’t you glad he’s in charge of fighting graft in our state?

All this is perfectly legal, of course, because the 527 loophole is there for all to see. But there’s something borderline unethical, arrogant, and just plain disheartening about this, don’t you agree? These politicians must assume the rest of us are just stupid. Are we to believe that the contributors to these slush funds don’t expect anything in return? And when an issue comes up that requires a decision between a 527 contributor or one of us "commoners," which way do you think it will go? Many happy returns of the day!

Finally, I’m sure you’ve heard by now of the "Kalamazoo Promise," whereby all students who graduate from the Kalamazoo schools will henceforth be given a free scholarship (covering 65-100% of tuition and fees) to any state college in Michigan www.kalamazoopublicschools.com. This is all compliments of private benefactors and at no cost to taxpayers. "Yahoo," I say. More power to them. Wonderful.

However, now Western Michigan University in Kalamazoo has announced that any student who attends WMU under the Kalamazoo Promise will get free room and board from the university. Now, putting aside the fact that it makes no sense to give room and board to students who already live in Kalamazoo anyway, there’s a teensy-weensy problem with WMU’s offer. It’s a public university financed by public funds provided by the state’s taxpayers. Here’s the rub -- you will still have to pay full rate for your student’s room and board because you don’t live in Kalamazoo. So while Promise kids get free tuition and free taxpayer-provided room and board, everyone else who attends WMU will pay full rate.

I fully support public financing of the state’s university system, but it seems grossly unfair to use public funds to benefit some students while the rest pay top dollar. This is different than typical scholarships because this particular assistance is not open to competition or application. If WMU wants to go this route and use private benefactors’ money, fine and dandy. Jingle bells all the way!

Jim Neff is a local columnist. Comments to neffzone@gmail.com. Read Neff Zone columns online at www.neffzone.com/cadillacnews.