State lawmakers say spend cash wisely and openly

BOSTON — Lawmakers yesterday stressed the importance of transparency in spending the state's portion of the federal stimulus package to avoid another Big Dig fiasco.

"Massachusetts has been entrusted with what may be as high as $11.9 billion in public funds and that carries with it great responsibility to make sure that the money is properly spent," Rep. David Linsky, D-Natick, co-chairman of the Legislature's new 18-member Temporary Standing Committee on Federal Stimulus Oversight, said yesterday morning.

"We have a role because the public doesn't want another Big Dig," Linsky added. "There was a feeling that that was a huge public construction project that was way over budget, completely out of control and quite frankly there was money that was wasted and not well spent. Although the project itself was important, it shouldn't have cost what it did. We need to make sure that doesn't happen again."

Oversight of federal construction funds has a spotty history in Massachusetts, with many taxpayers viewing the Big Dig as riddled with shoddy work and waste. The price tag on that project, which started at $2.3 billion, has exploded north of $15 billion, with an additional $7 billion in interest expected to accumulate.

According to the order creating the committee, lawmakers expect some of the stimulus money to be spent at Gov. Deval Patrick's discretion on infrastructure projects. Spending on other funds, including those targeted for Medicaid, would be determined by the Legislature through the budgetary process.

Patrick said last week the commonwealth would likely receive between $1 billion and $2 billion for infrastructure. The governor has proposed spending plans for this fiscal year and fiscal 2010 that collectively call for $1.2 billion in federal economic recovery funds to be spent in the state's operating budget.

The Beacon Hill committee's charge is to perform ongoing review of stimulus spending in Massachusetts, coordinate efforts with the Patrick administration, ensure compliance with federal requirements on stimulus spending and make recommendations, after reviewing state laws and regulations, "that will allow Massachusetts to access additional funding or to spend money more quickly to stimulate the economy."

Through December, Massachusetts employment had tumbled to 139,000 jobs below its previous peak, with employment reaching its lowest level since June 2006, according to the Greater Boston Chamber of Commerce.

The order creating the committee also stipulates that it may hold hearings on federal stimulus plans, audit expenditures, and work with Patrick, Attorney General Martha Coakley, Inspector General Gregory Sullivan and Auditor Joseph DeNucci "to ensure transparency and accountability for federal stimulus spending."

Linsky said Washington has recognized a need for states to use stimulus funds to balance budgets, but added, "It really has to be spent on capital projects." Projects without long-term public staffing costs are preferable, he said.

Linsky said he's seen the "wish list" from every city and town.

"I'm sure that there is a constituency for everything that's been asked for but we need to make sure that the money is appropriately spent and is also in keeping with the idea of stimulating the economy," he said. "Money should not be spent just for the sake of spending money."

Linsky said he's never met Jeffrey Simon, Patrick's director of infrastructure investment, but expects to sit down with him this week. Simon most recently worked as president of Actus Lend Lease.

Saying he was "as concerned as anyone" about the size of the stimulus package, Rep. Viriato deMacedo of Plymouth, the committee's lone House Republican appointee, said he understood GOP concerns in Washington about the bill's impact on inflation, the money supply and long-term debt.

But now that it's signed into law, transparency should be the focus, he said. The state's track record on the Big Dig, where cost overruns were repeatedly kept under wraps and then unveiled, makes transparency essential, he said.

"To me, that is one of the number-one issues," deMacedo said, referencing nationwide anger over an inability to pinpoint the spending of billions of dollars from last year's financial industry bailout package. "Where did the money go, who got it, what did they spend it on - people expect that from our government. Ultimately they are the ones paying the bill."