Diverse Coalition Presents City with Plan to Bolster Transparency and Accountability of Federal Stimulus Funds

NEW YORK, NY (02/26/2009)(readMedia)-- The NYS Stimulus Oversight Working Group today, joined by New York Councilmembers Bill de Blasio, Gale Brewer, Eric Gioia, Jessica Lappin, and John Liu on the steps of New York City Hall, released its Common Principles for Transparency and Accountability and Taxpayer's Right to Know, urging New York's policymakers to adopt principles of fairness and effectiveness and incorporate them into the city-level investment plans which will be made possible by the federal stimulus package. Setting up a transparent process before the money is allocated, the groups argued, will avoid future recriminations and investigations, and secure the public's confidence.

"To ensure public confidence, New York City must collect all of the information related to the stimulus spending, including 'drilling down' to the subcontractor level, and create a dedicated website to track all stimulus money spent in the city," said Susan Lerner, Executive Director of Common Cause/New York, which coordinates the Working Group. "Past experience suggests that what should be a no-brainer will take the combined efforts of this diverse, expanding coalition of groups and Councilmembers, dedicated to implementing the stimulus plan in an open, honest, and ethical way to realize."

"New York has the brain power and infrastructure to set a national standard ensuring a transparent and fair allocation of the federal stimulus money," said Bettina Damiani, Project Director of Good Jobs New York.

"The efforts of the New York State Stimulus Oversight Working Group highlight best practices in ensuring that every dollar of the American Recovery and Reinvestment Act is spent in a transparent and responsible manner. I look forward to working with the advocacy community and my colleague Council Member Bill De Blasio in creating a searchable online database of the funding priorities," said Council Member Gale Brewer.

"To make sure stimulus funds go to those who need them most, we can leave no room for error. I am drafting legislation with my colleagues to create Sunlight NYC, a comprehensive website that will ensure the public knows where their federal tax dollars are going. I applaud the New York State Stimulus Oversight Working Group for building such a broad coalition behind transparency and accountability in government," said Council Member Bill de Blasio.

"In tough times every penny counts," said Council Member Eric Gioia who has proposed creating a website- Google Government- which would track how all tax dollars are used in the City. "We need to have transparency and accountability so that New Yorkers know their hard earned tax dollars aren't being misused. It is important to track every dollar the City gets."

"We are talking about an enormous sum of taxpayer money," said Council Member Jessica Lappin. "We need to make sure that citizens have faith that their tax dollars are being put to good use. The use of this money must be fair, effective, ethical, and transparent. Anything less would be unacceptable."

"The President and Congress have done their part. Now, our local agencies must clearly delineate the process by which allocations are to be made, contracts granted, and accountability enforced. From the DOE to the MTA, agencies bear the onus of demonstrating that billions will be invested in the right places and that waste and inefficiency will be averted," said Council Member John Liu.

"President Obama and the Congress have taken an important first step toward eliminating the draconian cuts to our schools proposed by Governor Paterson and local officials by prioritizing education and providing for specific uses of stimulus funds. These principles lay out a blueprint for state and local officials to use in establishing relevant accountability systems," said Geri D. Palast, Executive Director of the Campaign for Fiscal Equity.

"Stimulus dollars need to both jumpstart the economy and efforts to address the threat of global warming. To get the biggest bang for the buck, New Yorkers need to know the 'who, what, when, where, and why' behind stimulus spending. Given New York's record on transparency, this would be a big change," said Robert Moore, Executive Director of Environmental Advocates of New York.

"Transparency and openness can be a critical check and balance to help make sure critical federal stimulus money is spent wisely," said Gene Russianoff, senior attorney for NYPIRG.

"With the large sums of public money coming into our state and local government from the American Recovery and Reinvestment Act, it is imperative that New York follows the federal government's proposed model by implementing a 'tough, unprecedented oversight effort' that assures the public that these needed funds will be spent wisely by all recipients, including subcontractors," said Dick Dadey, Executive Director of Citizens Union of the City of New York.

The Common Principles for Transparency and Accountability would establish stronger standards than were put in place through the federal guidelines issued by the U.S. Office of Management and Budget on February 18, 2009, which require tracking only one step beyond the state or city coffers. This leaves a great deal of responsibility on the shoulders of state and local officials to accurately track stimulus-related investment.

The Common Principles state, in part, that New York's policymakers must ensure that funds provided to New York through the federal stimulus package are distributed Fairly, Effectively, and with clear standards for Ethical and Honest Use. Clearly defined metrics for success should be laid out for each investment. New York must put these standards in place in short order, as stimulus funds are expected to be distributed at great speed, and all tracked information should be made available at a single, centralized website. Coordination between the various entities responsible for oversight is critical.