Auditor General Jack Wagner Asks Gov. Corbett To Stop DRPA from Funding Private-Sector Projects

Interstate agency wants to spend $20M on rowing course, cancer center

HARRISBURG, Pa., Dec. 13, 2011 /PRNewswire-USNewswire/ -- Auditor General Jack Wagner has asked Pennsylvania Gov. Tom Corbett to block the Delaware River Port Authority's plan to spend $20 million of $29.9 million in unused economic development funds on several private-sector projects that include the rebuilding of a rowing course and construction of a cancer center.

DRPA's board, which is chaired by Corbett, is scheduled to vote on the issue Wednesday.

"I am still hopeful that you will use your position and influence to resolve of the controversial issue of what to do about the $29.9 million in funds originally allocated for various economic development projects that remain unexpended and under contract," Wagner said in a letter he sent to Corbett.

Wagner, Pennsylvania's independent fiscal watchdog and a statutory member of the DRPA board, said the remaining funds should be used to reduce the agency's debt or to upgrade infrastructure. Specifically, he proposed investing the money on upgrades to the PATCO high-speed train system.

However, DRPA's finance committee voted last week to spend two-thirds of the remaining economic development funds on several private-sector projects, including $4 million for improvements to the Cooper River rowing course in Pennsauken, N.J., and $6 million for a cancer center.

Wagner said he opposed the finance committee's plan because it was inconsistent with two board resolutions adopted last year that were intended to discontinue spending DRPA funds on economic-development projects unrelated to the agency's core mission of transportation-related projects.

Under the DRPA finance committee's plan, only $10 million of the $29.9 million would be applied to capital projects next year.

Approval of the DRPA finance committee's plan would require affirmative votes from at least 10 of the 16 commissioners, five each from Pennsylvania and New Jersey.

Wagner, who will be attending Wednesday's meeting, said in his letter to Corbett that investing the entire $29.9 million in PATCO "would be legally sound, fiscally responsible, transparent to the public, fair to New Jersey, and consistent with the core mission of the DRPA."

Wagner added, "I cannot think of a valid reason not to pursue such a win-win resolution – and I certainly cannot think of any reason not to at least take the time to seriously consider it."

Auditor General Jack Wagner is responsible for ensuring that all state money is spent legally and properly.  He is the commonwealth's elected independent fiscal watchdog, conducting financial audits, performance audits and special investigations.  The Department of the Auditor General conducts thousands of audits each year.  To learn more about the Department of the Auditor General, taxpayers are encouraged to visit the department's website at www.auditorgen.state.pa.us.

SOURCE Pennsylvania Department of the Auditor General

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