Mayor's status may imperil Sacramento's federal stimulus funds, lawyer says

[Kadie]

Mayor's status may imperil Sacramento's federal stimulus funds, lawyer says

Published: Saturday, Mar. 21, 2009 - 12:00 am | Page 1A
Last Modified: Saturday, Mar. 21, 2009 - 12:44 am

The city of Sacramento likely is barred from getting federal money – including tens of millions the city is expecting from the new stimulus package – because Mayor Kevin Johnson is on a list of individuals forbidden from receiving federal funds, according to a leading attorney the city commissioned to look into the issue.

Federal authorities placed Johnson and the nonprofit Hood Corps organization he founded on the federal list last year – before he was elected mayor – following a preliminary investigation into allegations that the urban Peace Corps-style program had misused federal funds. Federal officials said the allegations were so serious the funding suspension was warranted.

Shortly after Johnson's election last November, City Attorney Eileen Teichert hired Frederic M. Levy – regarded as an expert on government contracting and compliance – to determine whether Johnson's inclusion on that list posed an issue for the city when it sought federal funding. Teichert had said before the election she thought Johnson's inclusion on the list would not threaten the city's access to federal aid.

Levy's response is laid out in a confidential memo, obtained by The Bee, that was distributed this week to City Council members.

The question, he said, is whether federal agencies consider the mayor a "principal" in city financial decisions; if the answer is yes, he wrote, it would "prevent the City from obtaining … federal grants, subsidies, or cooperative agreements."

Levy concludes that Johnson, in his role as mayor, likely would be found to be a principal, meaning he is "in a position to influence the use of federal funds."

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http://sacbee.com/topstories/story/1717767.html

[LSparkle]

1. Ridiculous! Don't we believe in rehabilitation in this country?

Even if he may have been involved with a questionable
organization in the past, didn't he take an oath to
act in the best interests of the city when he became
mayor? Should the city be punished for what its mayor
may have done years ago? We've all seen the pictures
of the tent city ... Hopefully some stupid technicality
won't prevent Sacramento from getting the help it needs.