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Iowa firm not being lured away with stimulus funds

Jun. 17, 2009 2:02 pm
The good news is that Georgia isn't using federal stimulus funds to lure away an Iowa company.
It's still open for debate whether the Peach Tree State is spending its American Recovery and Reinvestment Act finds to steal a company from Ohio.
Iowa. Ohio. Apparently from Washington, they all look alike - or sound alike.
Georgia's use of stimulus funds was one example cited by Sen. Tom Coburn, R-Oklahoma, in "100 Stimulus Projects: A Second Opinion" in which he cited examples of questionable stimulus projects.
According to his report, Georgia used the federal money to offer a grant to an Iowa firm, taking 1,200 jobs away from the state.
The Obama administration refuted the claim stimulus dollars were being used and pointed out the company is in Dayton, Ohio.
Iowa did get dinged in Coburn's report, which suggested federal stimulus funds freed up funds to make it possible for the Legislature to approve $11 million for new cars. Some lawmakers said the cars were unnecessary because the state had about four dozen brand new cars sitting unused in a parking lot near the Capitol.
"Some of them have the stickers on them," Rep. Christopher Rants, R-Sioux City, said. "None of them have license plates. Some of them still have the seats wrapped in plastic."
Six times Democrats rejected his attempts to either delay buying the new cars or use the money to fund domestic violence shelters or a tuition assistance program.
The Obama administration called Coburn's claim "pure speculation.
"This is not a direct use of (stimulus) funds to buy cars," the administration said.