October, 2006

A Monthly Dispatch from Citizens Against Government Waste
The Rail Subsidy That Could
by: David Williams
In the children's story, "The Little Engine That Could" a small train engine persevered to pull a train over a steep mountain even with the odds stacked against it. It appears that Sen. John Thune (R-S.D.) is twisting the lessons of that book into a rail subsidy that could be one of the biggest taxpayer rip-offs, ever. He helped to secure a $2.3 billion loan from the Federal Railroad Administration (FRA) to expand and improve the Dakota, Minnesota, and Eastern Railroad (DM&E), which is used primarily to transport coal from Wyoming to Minnesota.
Nonprofit Board Lives Large
by: Alexa Moutevelis
The Legal Services Corporation (LSC), which received $330.8 million in fiscal 2006, distributes money to 138 local nonprofit legal aid organizations across the country to help provide free legal services for the indigent. However, the Associated Press reported in September that audits from the group's internal inspector general, "Kirt" West, identified questionable spending practices among LSC board members.
Newark Mayor Takes Taxpayers for a Ride
by: Katherine Walkenhorst
With a salary of $186,000, one would think that the mayor of Newark would have no need for taxpayers to pay for his vacations. Think again. Even though former mayor Sharpe James had an annual travel expense budget of $25,000, he is currently under investigation for adding $150,000 for numerous expenses and exotic vacations. The globe-trotting has been chronicled by The Star-Ledger of Newark.
College Town Poverty
by: Sean Kennedy
The Census Bureau counts low-income (less than $9,800 per year) students who do not live in dormitories as below the poverty line even if their parents pay 100 percent of their bills. College towns such as Columbus, Ohio; Ann Arbor, Michigan; and Berkeley, California are counted as "poor." Despite picturesque buildings and low unemployment rates, these cities rake in the bucks simply by the presence of cash-strapped college kids.