Misuse of past aid costs agencies stimulus money

By Kevin Johnson
USA Today

WASHINGTON — Twenty-six police agencies in 16 states are barred from receiving shares of $1 billion in federal stimulus money to hire more officers after misusing millions of dollars in prior aid, Justice Department documents show.

The Amtrak Police Department and agencies in two New Jersey cities, Newark and Camden, are among the largest departments barred from getting new aid for hiring police. All of the agencies agreed to bans on new grants for up to three years rather than pay back about $7.1 million to the government, the documents show.

In doing so, the police agencies forfeit an important funding source to help protect the public during the economic downturn. In return, the federal government is giving up its claim on millions of dollars in misused grant funds.

"We're just trying to find money to retain good employees," says Morehouse Parish, La., Sheriff Mike Tubbs, whose department defaulted on $280,276 by failing to adequately document how the money was spent. The agency is nearing the end of its ban but won't be eligible for the new hiring funds. "I may have to lay off some people."

The bans stem from grants issued under the Clinton-era police hiring program known as Community Oriented Policing Services (COPS). The largest federally funded law enforcement buildup in U.S. history provided money for more than 100,000 officers starting in 1995. The Obama administration revived the program in its $787 billion stimulus package, allocating $1 billion to hire up to 6,000 officers during the next three years.

Several federal agencies keep lists of entities and people banned from doing business with the government. Brian Miller, the General Services Administration's inspector general, says there is "inconsistency across the government" in how grant suspensions and bans are decided.

"We have an obligation to ensure that money gets to the places best equipped to handle it," Justice spokesman David Buchanan says.

Police agencies from Connecticut to Arizona are barred from getting the Justice funds. Violations include various misuses of money, such as failing to hire the officers funded by the grants. Defaults are calculated based on the amount of grant money allegedly misused.

Among the violators:

*The Amtrak Police Department, which defaulted on a 1997 grant to hire 10 extra officers, accepted a three-year ban rather than repay $241,628 it owes the government for failing to hire and retain the officers, Amtrak spokesman Cliff Black says.

Despite that ban until the end of 2009, Amtrak gets a share of a separate $450 million in transportation stimulus money to upgrade safety and security. "We chose to let the (ban) expire because we had funding from other sources," Black says.

*The Waterbury, Conn., Police Department blamed former city officials for its nearly $1.9 million debt to the Justice Department. Police Lt. Chris Corbett says the administration of former Republican mayor Philip Giordano -- who was sentenced to 37 years in prison in 2003 for sexually abusing two young girls -- improperly diverted the 1998 grant money.

*The Camden Police Department is on the banned list until 2010 because the city can't afford to repay $565,000 in grant violations, Police Inspector Michael Lynch says. He blamed prior police administrations for the infractions, including failing to provide reliable budget data to support grant use.

"We're turning over every rock to find more money now," he says, adding the city has contacted the Justice Department to try to resolve the debt. "We're going to have to deal with it."

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