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The 'other white meat' meets the runway

Image: Elkhart Municipal Airport
John Brecher / msnbc.com
Joe Forys looks out over Elkhart Municipal Airport from its tower. Forys worked for the FAA at the airport in South Bend until he was fired in 1981 by President Reagan. After several years of doing a "little bit of everything," Forys was hired by the city of Elkhart in 1989 as an air traffic controller. This image is a stitched composite of several frames.

In this city where President Barack Obama championed a federal stimulus bill free of "earmarks" and "pork," some elected officials and citizens are questioning whether the first "shovel-ready" project here to be funded by the legislation – a $4.2 million resurfacing of a runway at the Elkhart Municipal Airport – meets that promise.

It's an argument being played out in various forms around the nation as the money from the $787 billion economic stimulus package that Obama signed on Feb. 19 begins trickling down to the local level. (Click here to read msnbc.com reporter Tom Curry's account of how the money is making its way to Elkhart.) It often wears partisan garb, but at its heart is the vexing question of how you define "pork" and "earmarks" -- terms commonly equated with hogs at the trough.

As Associated Press reporter Calvin Woodward explained in a Feb. 9 article titled "Obama has it both ways on pork," the Elkhart runway resurfacing and other projects that will benefit from the surge in federal spending are technically not earmarks. But that's not to say that they are pork-free.

"There are no 'earmarks,' as they are usually defined, inserted by lawmakers in the bill," he wrote. "Still, some of the projects bear the prime characteristics of pork tailored to benefit specific interests or to have thinly disguised links to local projects."

This Pro Publica article -- published on msnbc.com also before the legislation was finalized – also detailed numerous provisions and exemptions intended to benefit special interests or specific businesses or industries.

In Elkhart's case, the question boils down to whether the airport project benefits the few or the many.
There is no debate about whether the 6,500-foot runway needs resurfacing – it has visible cracks that are sprouting weeds. (Click here to read the Elkhart Truth's story on the airport resurfacing project.)

But there is plenty of discussion over the wisdom of spending federal money on it when the city with one of the nation's highest unemployment rates has so many other more-pressing needs. (Click here to read msnbc.com reporter Bill Dedman's piece on U.S. cities that resist recession and Elkhart's spiraling job loss problem.)

David Henke, one of three Republicans on Elkhart's nine-member Common Council, said he has two problems with the project.

"It's a little surprising to see stimulus money go to an airport that 99.9 percent of the citizens do not access," he said, referring to the fact that the airport is used by private and corporate aircraft and a few charter operations but has no commercial service. "The second point is that the stimulus should be used exclusively for long-term job reclamation. Repaving is going to help some contractors … but at the end of the day, once the project is done, the jobs are gone. It's not going to bring in new planes, it's not going to bring any new revenue."

Mayor Dick Moore, a Democrat who set the agenda for applications for stimulus funding, responds that such criticism misses the mark because the funds came from a $1.1 billion pool dedicated to airport renovation or maintenance and could not be used for other purposes.

"I guess we could've turned the money down, but we were at the top of the list because we already had filed with the FAA," he said. "… We would have eventually done it at great expense, with local dollars or by getting a grant and having to come up with matching funds."

He and Andy Jones, the airport's general manager, stress that the airport creates badly needed jobs throughout the city.

Image: Elkhart airport
John Brecher / msnbc.com
Andy Jones

"Flying commercial eats up a lot of time for these executives; a lot of times it's really cheaper for them to be able to move in and out of where they do business quickly and efficiently," explained Jones.

Moore adds that while the airport's economic benefit to the city may be incalculable, it is not insubstantial when it leads to deals being finalized with local suppliers.

"When they fly away, what did they leave behind?" he wondered, musing about the departure of executives after such a meeting. "An order for the $3 million or $4 million?"

Beyond that, the mayor estimates that the runway repair alone will provide 250 short-term jobs, a number that strikes critics as too high but may not be far from the mark, according to Gene Yarkie, regional vice president with Rieth Riley Construction Co., Inc., which plans to bid on the project.

"A project like that seems quick and easy, but there are a lot of steps along the way that go into getting that to the runway or highway -- aggregates have to be mined, processed, trucked and then applied," he said. "A lot of jobs are created along the way."

Slowly boiling beneath the current debate about the runway project is a bigger question about the airport's net benefit to the city.

Henke, the city councilman, said the airport runs an annual deficit of $675,000 – an expense that is born by city taxpayers. That leads some to question whether Elkhart even needs an airport, especially since there is a regional airport just 15 minutes away in South Bend, which offers nonstop flights to Atlanta, New York and other big cities.

Henke said he does not count himself among them.

"I'm not saying I'm anti-airport, but what I am saying is you've got to be smart about your investments," he said. "If you' own a lake cottage and you're behind on your payments, this is not a time to put an addition on."

How is your city, county or state spending its share of its stimulus funding? Do you agree with the priorities that have been set for the money? Do you even know where it's going? Have you tried to get information about where the stimulus money is going and been frustrated? Please share your thoughts or experiences in the comments section below.

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{"commentId":6898124,"authorDomain":"hehbmr"}

This is why so many people are going to tea parties. The stimulus plan of Obama can't work. Tax cuts to the average folks would have been much better. Bureaucracy at it's finest. Just look at how long those billions of dollars are slowly moving in New Orleans.

{"commentId":6898124,"threadId":"570865","contentId":"2775828","authorDomain":"hehbmr"}
    Reply#101 - Tue May 5, 2009 4:18 PM EDT
    {"commentId":6899841,"authorDomain":"kenneth-wainner"}

    e.hutch read my note about Moody's estimate of what tax cuts could do vs infrastructure. And Justmemark, the D+George Bush presidency had 6 years of Republican Congress, enought to screw the country up considerably. How can anyone now defend the expensive Iraq War, against a country that had no way to harm us. Even with WMD, they could not deliver it and were a darn sight less threatening than Korea or Iran. Bush let our only enemy, bin Laden, escape. 911 happened 8 MOS after Bush took office and there is plenty of evidence that he had significant warning that a terrorist attack would take place. And for you that think torture is ok, you have No regard for our military troops. Torturing enemies gives license to ALL out enemies to treat our troops the same. And it has always been Illegal!! We tried Japanese combatants for using it , it's against the Geneva Convention and the Army Manual. And if it happened to you would youi call it torture. Give our troops a break, unlike Cheney the draft dodger.

    {"commentId":6899841,"threadId":"570865","contentId":"2775828","authorDomain":"kenneth-wainner"}
    • 1 vote
    Reply#102 - Tue May 5, 2009 5:43 PM EDT
    {"commentId":6901950,"authorDomain":"christinechristensen"}

    julz--Yeah, giving a ton o' money to the elderly sounds great, if you're one of the elderly. I dont think my senior mother wants her grandkids to pay for it though.

    Washington, stop the spending! We are entitled to life, liberty and the pursuit of happiness, not free health care, secure retirement and all the other wonderful things you want to 'give' the people of America, legal citizens or not. You are here to protect our sovereignty and uphold the constitution. Period. Why do you think so many people want to come to this country? No, not because of its socialist agenda. They can go to France for that. But because of our free enterprise system, and, ahem, our capitalist society.

    {"commentId":6901950,"threadId":"570865","contentId":"2775828","authorDomain":"christinechristensen"}
      Reply#103 - Tue May 5, 2009 7:58 PM EDT
      {"commentId":6904712,"authorDomain":"ldyboaterh"}

      Well, in our fair town of Houston, Texas, the powers that be have decided that they are not going to do anything with U. S. 290....a road into the city that was built over 30 years ago...imagine the subdivisions that weren't there when it was built.

      Our wise city planners are going to complete a portion of a beltway 25 miles from downtown that connects I-10 and U. S. 290. They have already warned us that when complete, businesses and homes built on what is now rice fields will increase flooding in the city of Houston. They will spend part of the money to do a study on the effects...no plans, as usual, to act on the findings of the study. Houston just loves to spend money on studies.

      I guess the long range goal is to be like New Orleans....

      {"commentId":6904712,"threadId":"570865","contentId":"2775828","authorDomain":"ldyboaterh"}
        Reply#104 - Tue May 5, 2009 11:44 PM EDT
        {"commentId":6908413,"authorDomain":"todd1972"}

        This country was destroyed during Bush's reign of terror. Our children were put into debt by his war of choice with Iraq that was pushed to the public not willing to make sacrifices during war as the previous generations did. You people need to get off the Fox entertainment (entertainment NOT news) propaganda. Bush and his circle are enemies of the state and responsible for the murder of thousands of young americans by their refusal to listen to their advisers with military experience. Bush was a coward during the Vietnam years and remains so to this day. The best possible outcome would be to see Bush, Cheney, Rumsfield and Rice hanged for high treason to show the rest of the world we punish all criminals.

        {"commentId":6908413,"threadId":"570865","contentId":"2775828","authorDomain":"todd1972"}
          Reply#105 - Wed May 6, 2009 10:02 AM EDT
          {"commentId":6915316,"authorDomain":"toysareme49"}

          They are at the wrong end of stimulating the economy.Give money to the people and let them save thier homes and pay off thier bills that will help everyone not just the rich.If that airport has no commercial planes let the rich pay for it not taxpayers.My gosh get yer heads out of where the sun don't shine.

          John

          {"commentId":6915316,"threadId":"570865","contentId":"2775828","authorDomain":"toysareme49"}
            Reply#106 - Wed May 6, 2009 2:49 PM EDT
            {"commentId":6922432,"authorDomain":"drew1973"}

            I've driven down county road 6 countless times driving from South Bend to Elkhart and I have yet to see a single airlplane taking off or landing at the Elkhart airport. I can see this creating some jobs for a while but once they are done upgrading the airport those jobs are gone. I just don't see this having a lasting impact on the economy in Elkhart.

            {"commentId":6922432,"threadId":"570865","contentId":"2775828","authorDomain":"drew1973"}
              Reply#107 - Wed May 6, 2009 8:17 PM EDT
              {"commentId":6930685,"authorDomain":"bigfatlazypig"}

              Government spending money wisely???? Ahahoaahoahaohaohaohahahahaahaoahahahahahaohaaohahahahahaohahaahaohahaoaohaoahoahahaohaohoa! That's a good one. Its up to us to put a stop to it all.

              {"commentId":6930685,"threadId":"570865","contentId":"2775828","authorDomain":"bigfatlazypig"}
                Reply#108 - Thu May 7, 2009 10:27 AM EDT
                {"commentId":6944401,"authorDomain":"winecountry"}

                How would you like to live in CA and have Schwarzenegger for Governor, Boxer and Feinstein for Senators and Pelosi for your Representative?  What do you think is going to happen to the stimulus money?  

                {"commentId":6944401,"threadId":"570865","contentId":"2775828","authorDomain":"winecountry"}
                • 1 vote
                Reply#109 - Thu May 7, 2009 5:58 PM EDT
                {"commentId":6954717,"authorDomain":"winecountry"}

                How would you like to live in CA and have Schwarzenegger for Governor, Boxer and Feinstein for Senators and Pelosi for your Representative? What do you think is going to happen to the stimulus money?

                {"commentId":6954717,"threadId":"570865","contentId":"2775828","authorDomain":"winecountry"}
                  Reply#110 - Fri May 8, 2009 11:03 AM EDT
                  {"commentId":6956499,"authorDomain":"gregory-gruna"}

                  Many businesses maintain shell addresses for the purpose of financial transactions without occupying those addresses without business personnel or functions. I assume the SEC is quite aware of this practice and as far as I know it is not illegal, even if it might be associated with people of questionable moral standards. Like our ex- Vice-President, Dick Cheney, who practically pioneered the practice while running Halliburton: "In 2001, Halliburton maintained, what the Wall Street Journal described as, "a slew of entities" in offshore tax havens. According to the Journal, "Halliburton, according to its latest annual report to shareholders filed with the Securities and Exchange Commission, has units in St. Lucia, Liechtenstein, Barbados, the Cayman Islands, Cyprus, the Netherlands Antilles and the British Virgin Islands. All are well-known tax havens with few natural resources." According the Security and Exchange Commission, while Cheney was in charge, Halliburton set up over 20 affiliates in the Cayman Islands to avoid paying US taxes. [Washington Post, 8/1/02; Wall Street Journal, 8/5/02]" Another example? How about Mitt Romney's private equity company Bain Capital maintains shell company addresses in Bermuda and the Cayman Islands for the purpose of avoiding taxes and benefiting ownership.

                  {"commentId":6956499,"threadId":"570865","contentId":"2775828","authorDomain":"gregory-gruna"}
                    #110.1 - Fri May 8, 2009 12:33 PM EDT
                    Reply
                    {"commentId":7047360,"authorDomain":"jeg111273"}

                    There is one place in this country where the airport manager turned down money from the city because he does not want to put a burden on the community that effect taxing his or anyones children in years to come.   

                    {"commentId":7047360,"threadId":"570865","contentId":"2775828","authorDomain":"jeg111273"}
                      Reply#111 - Wed May 13, 2009 7:39 AM EDT
                      {"commentId":7051676,"authorDomain":"Luckeyc3"}

                      How is pouring money into an airport in a town without industries, jobs, or carriers going to help Elkhart ecomony? Only a few companies with planes use it.

                      {"commentId":7051676,"threadId":"570865","contentId":"2775828","authorDomain":"Luckeyc3"}
                        Reply#112 - Wed May 13, 2009 11:45 AM EDT
                        {"commentId":8948406,"authorDomain":"freddiejo1961"}

                        A great article for getting people fired up. I live in Elkhart County and I too was fired up when I first heard that the airport was reveiving $4.2 M for an airport that has no commercial service. But go back and re-read the article; the $$ is part of a $1.1 Billion pool of the stimulus package that is dedicated solely for airport maintenance, nothing else. The airport had already applied for funds through the FAA. That $787 billion of our money (oh yes, when it comes down to it, it's our future tax $$) from the federal gov't. is not just handed over, it's divvied up for specific purposes. One part of it is airport renovation and maintenance, and that's where Elkhart gets some of the pie.

                        It's just a shame that there's not the communication between the Mayor's office and the Common Council so that everyone understands where the $$ is coming from. Councilman Henke says it's not going to create any new jobs or bring in any new planes. Well, maybe not new jobs, but it may help keep some workers on the job for a while in the paving, concrete, and engineering fields. It may also help to bring in more corporate business because you don't want to land your jet on a runway full of cracks, holes and weeds. It's also a chance for Elkhart City and Elkhart County to get some more cheap publicity to attract future business. This new runway should be good for another 30 years with little maintenance cost to the city, as opposed to turning down the stimulus dollars and instead spending money they don't have for increasing maintenance costs on an aging runway. It may not look good on the surface, but it has the potential to pay dividends to the city and surrounding county for years to come.

                        {"commentId":8948406,"threadId":"570865","contentId":"2775828","authorDomain":"freddiejo1961"}
                          Reply#113 - Thu Aug 20, 2009 9:54 AM EDT
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