March 9, 2005

New Criticism Of State Grants

A new audit of grants handed out by the Legislature largely calls the process in need of reform.

You'll remember the public scrutiny of some of these grants began last year, when questions were raised about a grant secured for a San Francisco non-profit organization by then Assemblymember Kevin Shelley. Some of the money from that grant, according to allegations, may have been funneled back into Shelley's political campaign.

Today, State Controller Steve Westly released an audit of 20 grant projects that received funding in the 2000-01 and 2001-02 budget years. The audit raises questions about how $1.1 million was spent, but leaves the issue of whether the money should be paid back to the state Department of Parks and Rec. A spokesman for the department says they're still conducting their own review, which is covering all of the grants awarded in that time period.

Westly's report also dovetails with a bill in the Legislature (AB 725) to change the way these grants are handed out.

You can read the audit here.

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