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How stimulus money is spent represents challenge for Obama

Barack Obama will face a serious test soon after taking office.

It will be a test of his ability to keep campaign promises, and it will be a test of his ability as a manager of bureaucracy. It also will be a test of his influence to change the culture in Congress and throughout Washington.

The test will come as part of his intention to sign into law a massive economic stimulus package soon after being sworn in on Jan. 20.

There is widespread support for the idea that the nation's sluggish economy is in need of a stimulus. And most people also like Obama's plan to emphasize funding for infrastructure projects as well as so-called green energy and transportation projects that will have long-term benefits to the country.

But there are serious concerns about what happens when the federal government announces a plan to spend hundreds of billions of dollars in a hurry.

Already the news articles feature troubling headlines like "A lobbying frenzy for federal funds."

With such a massive and rapid federal spending plan, there will be some money wasted in scams or diversion of money to politically connected groups or individuals.

The familiar "waste, fraud and abuse" that Americans hear so much about becomes a larger concern when the government money is spent quickly. And there is real danger that the giant stimulus package is being viewed by members of Congress, campaign contributors, lobbyists and well-connected special interests as a jumbo-sized earmark orgy.

Recent examples of what happens when the federal government spends huge amounts of money quickly and with little oversight include the Iraq War and Hurricane Katrina recovery efforts.Already, there is troubling news surrounding the financial bailout money and banks refusing to explain how they are using the money.

Will Obama's plan to commit hundreds of billions of dollars in government spending early next year be handled more fairly or wisely than Katrina relief money or Iraq war contracts?

If we are to believe candidate Obama, it will be. But following through and delivering will be a challenge for President Obama.

Candidate Obama repeatedly promised to root out wasteful spending. He promised to go through the federal budget line-by-line to eliminate wasteful spending and end programs that do not work.

It was a heartening promise, and the 2009 stimulus package will be his first opportunity to demonstrate a changed culture when it comes to the federal government spending taxpayers' money.

A high level of scrutiny and rational evaluation — with no political considerations — will be needed to effectively and fairly direct the mountains of money coming out of Washington through the fiscal stimulus package.

Already states and municipalities are lining up with their requests. Will projects in the districts or states of leaders in Congress get higher priority? If Obama's campaign promises mean anything, they will not.

Will lucrative contracts be awarded to companies or groups that have been generous campaign contributors? If Obama wants to change Washington — as he has promised — he must ensure that they are not.

Will money be spent on projects of real public value or will politics skew the process?

If Obama's campaign promises are to mean anything, he must ensure that the fiscal stimulus money is spent fairly and without regard to politics or campaign contributions.

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