Taxpayers for Common Sense Announces New Golden Fleece Recipient

Knik Arm Bridge and Toll Authority - Taxpayer Funded Cheerleaders for Alaska’s Knik Arm

Read the full analysis: http://www.taxpayer.net/library/article/golden-fleece-kabata

Read the press release: http://www.taxpayer.net/library/article/golden-fleece-kabata-release

Today, Taxpayers for Common Sense awarded the Golden Fleece to the Knik Arm Bridge and Toll Authority (KABATA) in Alaska for a decade of waste resulting from its pursuit of a bridge in Anchorage. The Knik Arm Bridge would cost at least $1.6 billion to construct, and is the less infamous but no less wasteful sibling of the "Bridge to Nowhere" in Ketchikan. Both received hundreds of millions of taxpayer dollars in the form of earmarks in the 2005 transportation bill.

"KABATA has spent millions of federal taxpayer dollars on the Knik Arm Bridge, with virtually nothing to show for it," said Ms. Ryan Alexander, president of Taxpayers for Common Sense. "The recent legislative audit calls into serious question the financial underpinnings of the project, and causes us to question whether KABATA is working in the best interest of taxpayers and Alaskans."

In the Golden Fleece report, Taxpayers for Common Sense cited the litany of problems regarding KABATA and the Knik Arm Bridge:

  • Hope Springs Eternal: The Alaska Legislative Budget and Audit Committee recently reviewed the underlying numbers and concluded KABATA is relying on “overly optimistic” toll and revenue projections to justify the project.
  • Decade of Waste: Federal taxpayers have doled out $75 million over ten years on right-of-way acquisition and six-figure KABATA salaries.
  • Putting Taxpayers on the Hook: In addition to a direct $113 million investment, federal taxpayers would be asked to back a $357 million loan and subsidize the sale of $600 million worth of bonds, based on costs and benefits that appear increasingly uncertain; Alaskan’s would be on the hook for (increasingly likely) toll revenue shortfalls.
  • Definition of Insanity: KABATA has been rejected from federal loan and grant programs a total of nine times, yet the project’s financing plan still assumes a $357 million federal loan will be forthcoming.
  • Up, Up, and Away: More realistic accounting recently caused the estimated cost to jump to $1.6 billion, a $500 million increase. Several factors – in particular the as yet unknown difficulties of building in the area’s soil and clay – will likely drive the price tag much higher, perhaps by as much as a billion dollars or more.

Read the full analysis: http://www.taxpayer.net/library/article/golden-fleece-kabata

Read the press release: http://www.taxpayer.net/library/article/golden-fleece-kabata-release


About the Golden Fleece Award

From surfing subsidies to the Great Wall of Bedford, Indiana, Wisconsin Senator William Proxmire’s Golden Fleece Award protected taxpayers … and made them laugh! One of the most popular and enduring icons of American politics, Senator Proxmire’s Golden Fleece Award embodied both outrage and humor as it put the public spotlight on waste and abuse of taxpayer money.

To commemorate the 25th anniversary of the famous waste-busting award, Senator Proxmire asked Taxpayers for Common Sense (TCS) to revive the Golden Fleece Award. The first revived Golden Fleece was awarded to the FAA for fleecing taxpayers out of a half a billion dollars in lost taxpayer revenue at the Tampa International Airport. The most famous award recipient? The Bridge to Nowhere.

Now, Taxpayers for Common Sense awards “The Golden Fleece” when a project so symbolizes waste of taxpayer dollars – instead of investments worthy of those limited resources – that we feel compelled to give it extra public attention.

In honor of Senator Proxmire, Taxpayers for Common Sense also collected the complete history of the Golden Fleece for the education and enjoyment of taxpayers of all generations. Working from the Senator's files, TCS has summarized the 14-year history of fleeces from 1975 to 1988. From this list, TCS has also selected its favorite awards and presents them here in a Golden Fleece Top Ten List.

"The Wisconsin Democrat has long been the taxpayer’s champion in Congress.”
--The Wall Street Journal


Past Golden Fleece Recipients

Golden Fleece: Small Modular Reactors (February 2013)

Taxpayers for Common Sense awarded the Golden Fleece to the Department of Energy for wasting taxpayer funds on small modular reactors.

Ryan Alexander, president, Taxpayers for Common Sense, said:  “The nation is two days away from the across-the-board budget cuts known as sequestration. But at the same time we are hearing the Department of Energy and the nuclear industry evangelizing about the benefits of small modular reactors. In reality, we cannot afford to pile more market-distorting subsidies to profitable companies on top the billions of dollars we already gave away.”

Autumn Hanna, senior program director, Taxpayers for Common Sense, said:  “The nuclear industry has a tradition of rushing forth to proclaim that a new technology, just around the corner, will take care of whatever problem exists. Unfortunately, these technologies have an equally long tradition of expensive failure. If the industry believes in small modular reactors and a reactor in every backyard – great – but don’t expect the taxpayer to pick up the tab.”

For more about DOE's wasteful spending on small modular reactors, click here.

Golden Fleece: Agriculture Risk Management Agency (December 2012)

Taxpayers for Common Sense awarded the Golden Fleece to the U.S. Department of Agriculture’s Risk Management Agency (RMA) for wasting taxpayer funds on risk management education for crops ranging from Christmas trees to turf grass.

“While the program is purported to help underserved producers and crops, grants also teach agricultural producers how to squeeze more money out of taxpayer-subsidized crop insurance,” said Ms. Ryan Alexander, president of Taxpayers for Common Sense. “Taxpayer dollars have been wasted on conferences and entertainment sessions to inform producers about ways to manage business risks, many of which are already covered by the private sector. With the nation teetering on the edge of the fiscal cliff, taxpayers shouldn’t be teaching agribusinesses how to reach deeper into Uncle Sam’s pockets.”

For more about RMA's wasteful spending, click here.

Golden Fleece: The Riverboat Ripoff (April 2012)

Congressman Ed Whitfield (R-KY) is proposing a Riverboat Ripoff. His bill (H.R. 4342) Waterways Are Vital for the Economy, Energy, Efficiency, and Environment Act of 2012 (WAVE4 Act) would bailout commercial barge operators from most of their share of the costs of constructing the locks and dams that make navigation possible on much of the nation’s waterways. Even though taxpayers already cover nearly 90% of the cost for building and maintaining the inland navigation system that makes their businesses viable, this bill proves that for some special interests, that’s not enough. In exchange for a miniscule increase of six cents in the diesel fuel tax, H.R. 4342 proposes to effectively eliminate a cost-sharing responsibility that’s financed inland waterways for more than 30 years while sticking taxpayers, already saddled with $15 trillion in debt, with the bill. The proposed legislation could end up fleecing taxpayers out of an extra $200 million every year. Congressman Whitfield and the bill’s six cosponsors, Rep. Costello (D-IL), Rep. Robert Aderholt (R-AL), Rep. Russ Carnahan (D-MO), Rep. John Duncan (R-TN), Rep. Tim Johnson (R-IL), and Rep. Terri Sewell (D-AL), rightfully earn a Golden Fleece.

For more about the The Riverboat Ripoff, click here.

Bridge to Nowhere in Alaska Receives Golden Fleece Award in 2003
(From the Revised Report in 2005): Rep. Don Young (R-AK) is trying to sell America's taxpayers a $315 million "bridge to nowhere" in rural Alaska. As Chairman of the House Transportation and Infrastructure Committee, he is in a very good position to get his way. But Rep. Young should be stopped from using his political clout to force federal taxpayers to pay for a bridge that is ridiculous in its scope, unjustified on its merits, and far too expensive for taxpayers to swallow at a time of record federal deficits.*** More...

***Read the original write-up from June, 2003: Golden Fleece: $190 Million Bridge to Nowhere

Agency Receives Golden Fleece for Shady Forest Deal in West Virginia
Washington, DC (June 27, 2001) - Citing the illegal use of taxpayer dollars at the Northeastern Research Station's Fernow Experimental Forest, Taxpayers for Common Sense (TCS) today awarded the United States Forest Service the dubious honor of the Golden Fleece Award.

"Either it's amateur hour at the Forest Service, or these employees knowingly chose to defraud taxpayers," commented Jonathan Oppenheimer, Director of the TCS Forest Campaign. "Either way, it cost taxpayers millions of dollars." More...

The Fleece is Back!
Washington, DC (July 5, 2000) -- To commemorate the 25th anniversary of the famous waste-busting award, former Wisconsin Senator William Proxmire asked Taxpayers for Common Sense to revive the Golden Fleece Award. The first of the revived Golden Fleeces has been awarded to the FAA for fleecing taxpayers out of a half a billion dollars in lost taxpayer revenue at the Tampa International Airport. 

This is the second time that the agency has received the award for the same problem. In 1985, Proxmire also awarded the FAA a Fleece for a similar problem below-market leases at Florida airports.

See also: Airport Ripoff Costs Taxpayers Millions


 About the Golden Fleece

Continuing the legacy of the late Wisconsin Senator William Proxmire’s beloved American political icon, the revived Fleece retains his integrity and visibility. It also involves activists, citizen organizations, and public officials to give them a stake in this powerful tool to serve American taxpayers.

Senator Proxmire served as Honorary Chair of the Advisory Board of Taxpayers for Common Sense (TCS) since the organization’s founding in 1995 until his passing in 2005. TCS is committed to enhancing his legacy while preserving his principles of strict political independence and dedication to service of taxpayers.

Purpose

Taxpayers for Common Sense believes the Fleece is needed now more than ever. The Fleece has three purposes:

  • Spotlights specific examples of outrageous waste – The Fleece directs public and media attention to promote to specific issues where reform is needed. It also prevents waste by motivating government officials to protect taxpayer money and thereby avoid the spotlight a Fleece could bring.
  • Serves all taxpayers by inspiring advocacy by citizens groups and leadership by public officials – By inviting a variety of activists, citizens groups and public officials to co-release specific Fleeces, Taxpayers for Common Sense seeks to inspire more leadership by public officials and activism by citizen groups.
  • Preserves and enhances the reputation of Senator Proxmire and the original Fleece – The new Fleece honors the Senator and the original Fleece by maintaining his high standards of excellence and integrity; inspiring media and public appreciation of his work through an online presence; and, educating a new generation of taxpayers about Senator Proxmire’s legacy.

Criteria for Awards

The new Fleece will be awarded to projects and programs that:

  • Are wasteful, ironic, or ridiculous uses of the taxpayers’ money.
  • Would be recognized as wasteful by many people of varying political perspectives.
  • Have not received extensive national media attention.
  • Feature a variety of federal agencies and programs that would appeal to taxpayers from a variety of political perspectives.
  • Are well-documented and can be solidly defended against tough critics.

Preference may be given to projects or issues that are at a key juncture or where a Fleece can make a real difference in the result for taxpayers in the short term. Taxpayers for Common Sense makes all final judgments.

Outreach Activities

Press outreach to release new Fleeces – Each Fleece will be publicized through a press release and other media outreach which could feature co-releasers who are leaders or have expertise on the particular issue.

Golden Fleece on the TCS website – Taxpayers for Common Sense disseminates information on new Fleeces through this website. Taxpayers for Common Sense also makes available the excellent repository of historical information on the original Fleece, including the only complete list of all Fleece awards.


 History of the Golden Fleece 

Senator Proxmire served as Honorary Chairman of the Taxpayers for Common Sense Advisory Board and inspired many. This history of the Senator and his famous Golden Fleece Award is compiled in his honor.

Summary

Former Wisconsin Senator William Proxmire issued a Golden Fleece Award every month between March 1975 and December 1988. In his own words, the award singled out a “wasteful, ridiculous or ironic use of the taxpayers’ money.” Through the Golden Fleece Award, Senator Proxmire fought for American taxpayers by focusing public attention on budgetary waste in every branch of government. A number of the programs or projects he targeted were curtailed, modified or canceled, helping to save American taxpayers millions of dollars. More importantly, the Golden Fleece Award encouraged all who handled or sought government money to take extra care.

Criteria for the Award

The dubious distinction of a Golden Fleece Award was not given to just any example of government waste in the federal budget. Instead, it was awarded to federal programs that most Americans would agree were outrageous and wasteful. For example, although Senator Proxmire believed that the MX Missile was a waste of money, he never gave a Fleece to that program.

More importantly, projects receiving the Golden Fleece Awards did not necessarily have high costs, but rather violated a principle of responsible government spending. Some examples include a $27,000 study to determine why inmates want to escape from prison and a $6,000, 17- page document on how to buy Worcestershire Sauce. “My own favorite was the study to find out whether sunfish that drink tequila are more aggressive than sunfish who drink gin,” Senator Proxmire told The Atlanta Journal and Constitution in 1985.

Lastly, to receive a Golden Fleece Award, an example of government waste must never have received national press coverage.

Inspiration

Senator Proxmire was inspired to create the Golden Fleece Award in early 1975 as a way to galvanize public opinion against wasteful spending. In March 1975, the Senator gave his first Golden Fleece Award to the National Science Foundation for conducting an $84,000 study about why people fall in love. After that, the Golden Fleece Award became a regular news feature and favorite with the public.

“The purpose of the award was to dramatize wasteful and extravagant spending to try to discourage it. Highlighting specific, single wasteful expenditures is more effective than simply complaining in a general way about government waste,” Senator Proxmire told The Wall Street Journal in 1988.

About Senator William Proxmire

First brought to Congress in a special election in 1957, Senator William Proxmire, a Democrat, served 32 years for over five terms in the U.S. Senate until he retired in 1989. During that time, he chaired the Senate Banking, Housing and Urban Affairs Committee, and Joint Economic Committee, and was a subcommittee Chairman on the Senate Appropriations Committee.

The Senator was well known for his high standards of integrity, dedication, and frugality. After a ritual morning exercise of 100 push-ups and a four-mile run, the Senator brought his extraordinary energy to his work in Congress. Present for more than 10,000 roll call votes during the course of 22 and a half years, he still holds the record for the most consecutive votes in the history of the U.S. Senate. In his last two Senate campaigns of 1976 and 1982, Senator Proxmire refused to take any campaign contributions, whatever their form, and spent less than $200 out of his own pocket on each of the campaigns.

In a November 1995 speech, Senator Christopher Dodd commemorated Senator Proxmire’s career and 80th birthday:

“Senator Proxmire is perhaps best remembered for his fanatical devotion to saving taxpayer dollars. He refused to travel abroad at government expense, and he returned $1 million to the Treasury over 6 years by cutting back on staff expenses. This commitment to personal thrift gave him the credibility to stand up to the waste of taxpayer money elsewhere in the government…. Golden Fleece not only makes its point about the potential dangers of ill-managed and ill-conceived government programs, but reminds us of the humor and character of this noble public servant.”

More About Senator William Proxmire

  • Words of Praise for Senator Proxmire and the Golden Fleece
  • 1999 Inductee to the Taxpayer Hall of Fame

Acknowledgements

Report written by John Hulgren and Lisa Novins. Special thanks to Senator William Proxmire and his former staff -- Arlene Branca, Ken Dameron, Ruth Fleischer, Mort Schwartz, and Ron Tammen -- for historical information and advice.

 

Filed under: Increase Transparency, Stop Waste

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