Congressional Influences

by: denniscmcgrath

Wed Sep 20, 2006 at 12:26:44 PM EDT

I work as a proposal writer for a not-for-profit very similar in scope (though we're much bigger in size) to the one Bob Menendez is accused of assisting to obtain federal funding so that he could then charge them above-market rents.

Leaving aside for the month the FACT that the rents Menendez collected through a property management agency were in line with or perhaps even lower than comparable ones in the area, let's look at the "influence" he wielded over the process.

First, let us note the heinious fact that Congressman Robert Menendez is accused of voting to fund Head Start programs -- not for his leasee, not for Hudson county, not for New Jersey -- but for the ENTIRE UNITED STATED. Chirst, what a crook this guy is ...
Second example of his horrid malfeasance: Every good not-for-profit knows that when it is time to line up for federal funding, it's very helpful to have your congressperson send a "letter of inquiry" to the funding agency.

In effect, all this letter says is, "My constituents are applying for this funding, and I would like to be kept apprised of the progress of their application. Thank you."

When the funding is awarded, the agency notifies the congressperson first, so that they can notify the not-for-profit in person.

In effect, this creates an opportunity for the congressperson to appear to be "on your side," when in fact all he or she has done is signed a one-page pro forma letter, taken a phone call, and made a phone call. Generally, this is the entire extent of the congressperson's involvement. Most of the work is done by a staffer. Lotsa bang for no effort at all.

Certainly, should they wish to violate ethical standards and actual laws, all sorts of inapropriate and illegal pressure can be brought to bear on the funding agency (see Bob Cunningham (R-San Diego), f'instance), but I have heard no one claim that Menendez did anything more or less than what every other congressperson does on a daily basis -- send the "letter of inquiry" as a courtesy to a constituent.

Do these "letters of inquiry" help get funding? Yeah, they do. All other things being equal, if you don't ask for one from your congressperson, your applilcation will rank lower than an identical one that does have the letter. But practically everyone is smart enough to know they need to get one, so as a practical matter they don't help at all.

And, as a practical matter, the congressperson does not ever withhold the letter. Why would they? Yes, a congressperson might give the letter only to one not-for-profit because that NFP is going to kick money back somehow, but in reality, that is such a crap-shoot it would be stupid to pursue. NO one has any guarantee that their proposal to spend the money will be funded. MAYBE in a rural area with a dearth of providers this strategy would work, but applicants for federal funds are thick on the ground in Hudson county.

If we could see Menendez' correspondence during the period the letter was written on behalf of the agency that rented from him, I am certain there would be dozens of identical letters indicating the congressman's interest in all of the other applicant agencies in his district.

denniscmcgrath :: Congressional Influences

As a practical matter, to avoid even the appearance of impropriety, Menendez probably shouldn't have done business with a renter that derived program revenue from a federal source. But Menendez did ask for -- and I accept that he did ask for -- and received a green light from the Ethics people, because one renter is much the same as another in the end.

And no one is talking huge profits here, folks. He took in $300,000 over ten years -- maybe he profited $30,000. $3k a year. Probably a whole lot less than, say, the farmland assessment benefit Christie Whitman enjoys. And someone ought to saunter down to the Somerset County Court House and just find out HOW much in taxes Jr. is paying on that $900k McMansion. Something tells me it ain't the goin' rate ... could there be some TREES on his property? Hmmmm .....