How HUD is wasting money

Published 12:00 am Saturday, February 26, 2000

No one who knows how bureaucracy works will be surprised about to hear this Washington story. Apparently, about 900 Housing and Urban Development employees are getting $100,000-plus a year to tell people how good HUD is and how much more money the agency needs. There are allegations that Housing Secretary Andrew Cuomo has hired about 900 people through the Community Builders program for what basically are $100,000-a-year public relations jobs. If HUD was doing such a good job, it would not need 900 public relations folks. A half dozen would suffice. The Community Builders program was designed to improve relations between HUD and local communities. But it also is alleged that those hired did not have much in the way of public relations skills or community-relations skills, but were Cuomos political pals. How exactly they are going to improve relations between HUD and local communities is not clear. But, with $100,000 salaries, no doubt they are improving relations with area electronic shops, supermarkets, car dealerships and liquor stores. This program probably was conceived at a Washington-area liquor lounge. The program now is costing $85 million in salaries. Of course, that $85 million is not going toward housing for the poor. Michael Beard, a HUD inspector general, said many of the Community Builders staff have been put on the government payroll as senior civil servants in violation of civil service regulations. These facts came out in a hearing of a Senate Housing subcommittee. To put it diplomatically, senators were not pleased. The program does have some defenders besides those 900 employees, of course. Deputy HUD Secretary Saul Ramirez said the program was a clear success and that critics didnt understand Cuomos innovative approach to shaking up the housing departments bureaucracy. No doubt thats true. Its also true that supporters, auditors, inspector generals, reporters and random people stopped on the street would not understand Cuomos governing style. You do not shake up a department by hiring 900 more people at high salaries. You shake up a department by firing people. Unlike many Washington stories, this may have a happy ending. Congress has ordered the department to phase out the program by Sept. 31.It is a schedule Congress should keep.

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