Legislation to Provide Grant Oversight Re-Introduced in Senate
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:
Receiving annual reports starting within 12 months of receiving a subsidy.
Instituting site visits for large grant and loan recipients.
Corroborating job numbers reported by recipients with other departments of state government.
Providing more complete success and failure statistics to the General Assembly.
Reporting penalties waived as well as penalties assessed.
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."
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:
Receiving annual reports starting within 12 months of receiving a subsidy.
Instituting site visits for large grant and loan recipients.
Corroborating job numbers reported by recipients with other departments of state government.
Providing more complete success and failure statistics to the General Assembly.
Reporting penalties waived as well as penalties assessed.
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."
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