5 Public Works Projects to Start at Hill Insistence;Chairmen Hollings and Smith Override Objections of Commerce Department
Chairmen of two congressional appropriations subcommittees have cleared the way for the Economic Development Administration (EDA) to start five public works projects mandated by Congress last year but opposed by Secretary of Commerce Robert A. Mosbacher on grounds that they are legally ineligible for federal assistance.</br></br>Mosbacher outlined his objections to the projects, which have a total price tag of $11.4 million, in an April 7 report to Rep. Neal Smith (D-Iowa) and Sen. Ernest F. Hollings (D-S.C.), the respective chairmen of the House and Senate Appropriations subcommittees on Commerce, Justice, State and the judiciary.</br></br>The five projects were written into appropriations legislation last year by the subcommittees. Smith sponsored one of the five, a $2.25 million EDA grant to Des Moines and Ankeny, Iowa, which are in his district.</br></br>Mosbacher said the projects did not meet the requirements of Congress's public works and economic development law. He said he was concerned that by "earmarking" projects into law Congress "send{s} a signal that established process need not be followed."</br></br>Last week Smith and Hollings told Mosbacher in a joint letter that they were not persuaded by his concerns, paving the way for federal money to flow to the projects. Congress required the administration to evaluate the projects when it "earmarked" a total of $15.7 million for special projects, including the five Mosbacher said were ineligible.