TAXPAYER IS ALWAYS THE GUARANTOR!

Weekly Opinion Editorial 

DOUBLE WHAMMY!

by Steve Fair

 

     In 2020, Congress set aside approximately $3 billion dollars to a help stabilize education funding.  They created the Governor’s Emergency Education Relief (GEER) Fund. Oklahoma received $39.9 million in GEER funds.  The federal grants, not surprisingly, came with complicated compliance requirements. 

     Last week, Oklahoma State Auditor and Inspector (SAI) Cindy Byrd released the results of a federally mandated audit of the GEER funds Oklahoma received.  Byrd found two programs set up by the state had not complied with the federal requirements.  Bridge the Gap, a program that helped low-income families with education related costs, was misused by 20% of the 5,000 families that received the funds according to the SAI.  Byrd said the total misspent in Bridge the Gap was $1.8 million. 

     Two thirds of those getting money from Stay in School, a program that helped low-income families with tuition costs, was said to be questionable.  Byrd estimated $6.5 million of tax dollars were misused in the Stay in School program. 

     “Every federal grant comes with very strict requirements which the State of Oklahoma agrees to follow,” State Auditor Cindy Byrd said.  “Any person in change of managing federal grants needs a certain level of proficiency because the compliance regulations are very complicated.”  The full audit report is now posted on the Oklahoma State Auditor & Inspector’s official website: www.sai.ok.gov. Three observations:

     First, who was supposed to be ensuring federal compliance?  According to the federal Department of Education (DOE) website, the governor in each state must designate a State Agency or administer the GEER funds through their office.   Governor Stitt chose the latter.  Two years ago, the governor hired a consulting firm to monitor the GEER funds.  Taxpayers paid the firm $325,000.  Byrd’s conclusion from the audit was the consultant had not done their job.  She said the Sooner state ‘dropped the ball on compliance and oversight,’ on the GEER funds.    

     The blame for the non-compliance belongs at the feet of the governor.   In a press release, Oklahoma Speaker of the House Charles McCall said as much.  The Speaker didn’t name the governor in the presser, but the inference is there.  Attorney General Drummond weighed in on the audit, saying the people empowered to administer the GEER money did not have the qualifications or knowledge to do the job.    

     Second, Oklahoma statutes require competitive bids.  The SAI found the digital wallet vendor was given an $18 million dollar contract without going through the competitive bid process.  Circumventing or avoiding the exercise to request proposals from multiple parties might be quicker and more efficient, but it is not legal.  This administration was earlier criticized for bypassing the bid process in the awarding of foodservice/restaurant contracts at state lodges.  Government is not like a private business.  The laws/rules can slow down the process, but they are in place to protect the taxpayer and avoid misuse of funds.

   Third, the taxpayer is always the guarantor.  If the federal government demands repayment for non-compliance, John Q Public will pay the bill, not elected officials or the incompetent amateurs they hired.  In this particular case, it’s a double whammy.  Taxpayers sent tax dollars to Washington for Washington to send back to Oklahoma to be misused.  Taxpayers then have to pay back the misused money to Washington.   Confused? 

     GEER funding wasn’t sought by Oklahoma.  The federal government insisted they were going to help the state, whether it was wanted or not.  The federal money was grudgingly accepted, but once accepted, recognizing the strings attached was crucial.  The lack of attention to detail could cost Oklahoma taxpayers.