On April 19,
2007, the House passed the pork-laden Water Resources Development
Act of 2007 (H.R. 1495) and sent it to the Senate, where it has
acquired additional earmarks. Some of these earmarks would require
the Army Corps of Engineers to finance a series of costly projects
that benefit the rich and influential who can afford a lobbyist
with access to Members of Congress and committee staff.
Notwithstanding
continuing concern over the flood protection afforded
storm-vulnerable cities like New Orleans, Galveston, Miami, and
Biloxi, as well as the need to rebuild and strengthen existing but
inadequate flood protection systems, this Congress appears intent
on diverting taxpayer dollars from core responsibilities to
water-sports and other low-priority schemes. Indicative of this
bill's misplaced spending priorities is the authorization of more
money for one of Representative Don Young's (R-AK) infamous Bridges
to Nowhere (Section 4005).
To its credit,
the Bush Administration's recent Statement of Administration Policy
(SAP) warns of the wasteful spending included in the bill and the
inclusion of many projects outside the three main missions of the
Corps. The SAP states that "the Administration strongly opposes
H.R. 1495 in its current form."[1] Specifically, the
Administration expressed concern about spending proposals targeted
to wastewater and drinking water infrastructure projects-heretofore
a state and local responsibility-and "a costly commitment to
periodic nourishment of sand beaches." The Corps' beach
replenishment program reflects a trickle-up economic policy
designed to transfer the tax dollars of ordinary Americans to
protect the vacation homes and seasonal businesses of the
well-to-do.[2]
As has been the
case in most years, the Corps budget is fully earmarked, and many
of the included projects focus on its core missions of inland
navigation and flood control and protection. While many of these
projects have been subject to a rigorous cost-benefit analysis to
ensure that the estimated value of their benefits exceeds their
costs, other projects in the bill instead reflect the influence of
privileged constituencies and their lobbyists working on retainer.
Among the many questionable earmarks included in the bill are:
- Funding for a
study on the impact on navigation of the proposed Knik Arm Bridge
(renamed "Don Young's Way" in SAFTEA-LU) at Cook Inlet in Alaska
(Section 4005);
- Riverfront
development to enhance recreation in Perth Amboy, New Jersey
(Section 4048);
- Ecosystem
restoration of the Walla Walla River Basin in Washington (Section
4063);
- Water supply
projects in Wilke County and Yadkinville, North Carolina, and
Abilene, Texas (Sections 4058, 4059 and 4077);
- Authorization of
$5,300,000 for the construction of Lake Lanier Olympic Center in
Georgia (Section 5061); and
- Authorization of
$65,000,000 for a Lido Key Beach, Florida, replenishment project
(Section 3036).
Several other beach replenishment projects have been added to
Section 1001 of H.R. 1495, including:
- $21,000,000 for
Imperial Beach, California, beach replenishment;
- $101,000, 000
for beach replenishment at Ocean City, Sea Isle City, and
contiguous New Jersey seashore resorts;
- $59,000,000 for
central New Jersey seashore beach replenishment;
- $122,000,000 for
beach replenishment in northern New Jersey; and
- $10,600,000 for
beach replenishment on Pawley's Island, South Carolina.
Behind the
diversion of taxpayer money from essential flood safety programs to
geographically and seasonally limited recreation activities like
the Corps' beach replenishment program is a trade association-the
American Shore & Beach Preservation Association (ASBPA)-that
represents seaside resorts. Also involved are lobbying firms that
specialize in obtaining resort-oriented earmarks, among which is
Marlowe & Co., a firm that also represents the ASBPA and serves
as a contact on the Association's press release.
As noted in an
earlier Heritage report,[3] Marlowe & Co. (headquartered at 1776 K
Street, NW, in Washington, D.C.) is one of the leading beach
earmark acquisition firms. Lobbying reports filed with the
Secretary of the Senate included many contracts between Marlowe and
dozens of beach resort communities seeking money from the Corps for
"beach nourishment" projects, among them Pawley's Island, South
Carolina, and Imperial Beach, California, both of which would
receive earmarks from H.R. 1495. Each town paid Marlowe & Co.
$20,000 for services rendered during the first half of 2006.[4] Should
Congress go forward and give Pawley's Island the $10.6 million
Marlowe has requested for it, the town will have received a
remarkable return on its retainer: $10.60 of taxpayer money for
every two pennies it paid Marlowe.
Other reports
filed with the Senate indicate that Marlowe & Co. also
represents (among its many other clients) Virginia Beach, Virginia;
St. Augustine Point, Florida; Cape May Point, New Jersey; and
Myrtle Beach, South Carolina. It further reports that the ASBPA
paid almost $10,000 for similar services, including advocacy before
the Office and Management and Budget "to ensure that shore
protection is not a low budget priority."
In a 2004
interview with The Hill, firm owner Howard Marlowe bragged:
"We know beaches!" The article went on to note that the company
earned more than $700,000 in 2003 and estimates that it has won
more that $100 million in beach projects since it has been in the
business.[5]
Even more
revealing was information that Marlowe & Co. had posted on its
Web site until 2005, which promoted its services by providing
prospective clients with its success stories. For its beach
nourishment practice, the firm once provided 14 pages listing the
170 beach earmarks it had secured for its clients between 1998 and
2005. Although its Web site
no longer provides any details on the congressional favors it
receives-visitors to the site are urged to contact the firm
directly for details about its successes-the 2005 list is still
available at the original URL.[6]
Assuming that
Marlowe was describing his company's success accurately, one has to
wonder exactly how his firm was allowed to participate so
intimately in the congressional budgeting, authorizing, and
appropriations processes. Indeed, as these and other earmarks
suggest, and as the lobbyists' own promotional materials imply,
Congress and the congressional committees responsible for water
resources and the Army Corps of Engineers have effectively
privatized some portion of the congressional budget process to the
K Street lobbying firms and appear to have allowed them wide
latitude in selecting what projects are included in the
legislation.
Once a bill is
passed and signed into law, the money for the project is
guaranteed, and the Members of Congress who endorsed the project
respond by issuing press releases bragging about the money they
have brought back to the district, while the lobbyists involved
brag to current and prospective clients about the money that they
have obtained for their paying clients.
Although the
beach resort people represent only one of many factions attempting
to divert Army Corps of Engineers money to their personal benefit,
they do offer a useful case study of how the growing influence of
today's lobbying and advocacy profession can lead to policies that
undermine the safety and security of the American people. Much of
the responsible policy focus has been on how best to use the
federal resources available to secure from danger many of the
nation's key metropolitan areas and crowded commercial centers, but
the ASBPA uses what political clout it has to divert those
resources to recreation and the protection of seasonal vacation
homes and businesses.
When President
Bush presented his FY 2008 budget with its focus on core safety
responsibilities, the President of the American Shore & Beach
Preservation Association-Harry Simmons, Mayor of Caswell Beach,
North Carolina-responded in language reminiscent of "surfer-speak":
"This budget request for 2008 is nothing short of a wipe-out for
our nation's coastal communities."[7] Marlowe's Web site provides a
table comparing the President's beach spending plans with what an
unidentified source suggests might be needed. Whereas the President
proposes $54 million in beach work, the unidentified source claims
that $280 million is needed, some of which need-based funding would
be directed to Marlowe clients as per lobbying reports filed with
the United States Senate.[8]
In defense of its
urgent demands for more spending, Mr. Simmons provided a helpful
ecology lesson to the readers of his press release:
This budget is
bad for beaches. Replenishing beaches by adding sand to the system
protects coastal habitat by replacing the sand that marine life
needs to live. Without sand on a beach, sea turtles, birds, plants
and other forms of marine wildlife won't have an ecological
infrastructure in place.[9]
There you have
it: No earmarks, No sand! While we do not know for certain the
President's views on "turtles, birds, plants and other forms of
marine life," we do know that his budget priorities focus on a life
form missing from Mr. Simmons's complaint: people. And we know from
sad experience that incompetence in Washington's oversight of, and
resource allocation for, the Army Corps of Engineers contributed to
the disaster in New Orleans when hurricane Katrina passed by on
August 29, 2005.
How much of that
disaster was due to the diversion of resources that Mr. Simmons and
others continue to urge is something worthy of a more detailed
examination to ensure that another New Orleans-type disaster never
happens again.[10] Until then, these low-priority projects
should be stripped from H.R. 1495. If they are not, the
President should give serious consideration to vetoing any bill
that includes them.
Ronald D. Utt, Ph.D., is
Herbert and Joyce Morgan Senior Research Fellow in the Thomas A.
Roe Institute for Economic Policy Studies at The Heritage
Foundation.