Transparency needed for CARES Act spending

The CARES Act allocated $1.25 billion to Montana. Governor Bullock plans to distribute it under his authority. Spending public dollars is usually a legislative function, hammered out in lengthy discussions by elected representatives and entailing public scrutiny and transparency. Such is not the case with CARES Act funds: Governor Bullock plans to distribute under his authority alone.

$1.25 billion is a lot of money. If distributed equally to all Montana households, it would amount to nearly $3,500 each. Accountability for how these public funds are spent is very important.

The state constitution, in Article 8, Section 12, declares that the Legislature is strictly accountable for all funds. But for coronavirus relief funds, the job is being taken on by the governor and an advisory council that he has hastily put in place.

This could lead to a distribution of money quickly, without adequate oversight. If favoritism occurs, how will the public know?

The advisory council consists of 25 members, only two of which are elected by the people of their legislative districts. Is this a super-legislature? On a per head basis, they will take part in spending about the same amount of money that legislators do in the annual budget.

Is this council accountable? No. The advisory council might meet behind closed doors. To my knowledge, the date and time of their meetings are not publicized so the public and the media can attend to watch and hear the deliberations.

Who is on the advisory council? Sixteen are donors to Democrats or are governor’s appointees, while six are donors to Republicans. The other three did not appear as donors to either party on the website of the Commissioner of Political Practices. Of the 15 who donated to Democratic Party candidates, nine donated directly to Steve Bullock. Favoritism and the rewarding of friends and allies appears to have infused this committee from its inception. How could the grants that are eventually made avoid favoritism?

Kevin Warsh wrote in the Wall Street Journal May 26: “When the government puts out a shingle offering money, the line tends to get long and the opportunity for mischief multiplies. The Treasury and Fed are working in a difficult environment to support businesses affected by the pandemic. They should resist the temptation to play favorites.”

Will recipients be subject to audits by the Legislative Audit Division, as they traditionally are when they receive a federal award through the state? No one knows.

Let’s hope that the distribution of this stupendous amount of money doesn’t devolve into one in which whom you know and your status in the networks of political parties and businesses plays a big part. We want a process that eliminates even a hint of favoritism. Early indications are not encouraging.

Montana taxpayers deserve to know how grant decisions are being made. And we need a transparency website we can check to see that federal taxpayers’ money was given to those in need — NOT those with political ties.

State Rep. Tom Burnett, R-Bozeman