WASHINGTON, D.C. – Montana’s Congressman, Denny Rehberg, this week sent a letter to Brian Miller, Inspector General of the General Services Administration (GSA) asking for a review of the last-minute decision to lay aside a Congressionally approved plan to replace the dangerous Battin Building Courthouse in Billings. The decision to buy and construct a new building in Billings rather than to lease existing space will cost taxpayers an additional $45 million and will reduce tax revenue for the City of Billings by at least $450,000 annually. It also wastes hundreds of thousands of dollars invested by private businesses in Billings in pursuit of the original leasing plan.
“This last-minute change is a slap in the face to stakeholders in Montana who, in good-faith, invested in a workable solution,” said Rehberg, a member of the House Appropriations Committee. “We found a way to save taxpayers a lot of money while also addressing the serious deficiencies of the Battin Building. Throwing out these innovative solutions at the last minute underlines the problem with bureaucrats in Washington, D.C. making decisions that negatively impact Main Street Montana.”
In his letter, Rehberg expressed his concerns about the intention to spend $80 million, up sharply from the estimated cost of $35 million approved by Congress last year. He also expressed frustration at the lost revenue for the City of Billings and the money wasted by private partners who had been asked to bid on the proposal, only to have the rug pulled out at the last minute.
The $80 million in funding is allocated from the so-called stimulus bill.
“This is another example of a disturbing trend,” said Rehberg. “When Congress floods huge government agencies with nearly $1 trillion in extra money, it eliminates the incentive to save money and provide value to taxpayers. With government accounts bursting at the seams with borrowed dollars, what incentive exists to tighten a belt, or to find a solution that saves money?”
LETTER:
The Honorable Brian D. Miller
Inspector General
General Services Administration
1800 F Street, N.W., Room 5340
Washington, DC 20405
Inspector General Miller:
As you know, the mission of the Office of Inspector General is to “help the General Services Administration effectively carry out its responsibilities and to protect the public interest by bringing about positive change in the performance, accountability, and integrity of GSA programs and operations.” I have been made aware of a troubling action relating to a new federal courthouse in Billings, Montana and request your assistance.
Recently, the General Services Administration announced its intention to spend $80 million from available American Recovery and Reinvestment Act funds for the purchase of a new U.S. courthouse in Billings, Montana. These funds will be used for the construction of a new facility, as well as for the purchase of a plot in downtown Billings.
As you may know, the Battin Building which currently serves as the courthouse location has become extremely deficient in its ability to serve its function. In June, 2006, the chief judge of the District of Montana and the Ninth Circuit Judicial Council requested that the facility in Billings be designated as a judicial space emergency due to unsafe levels of asbestos within the building. Specifically, the building contains friable asbestos above the ceiling – an area that also serves as the return air plenum for the building. This condition has resulted in multiple emergency evacuations over the last couple of years and has prevented all but the most essential maintenance and repair work from moving forward.
In response to these and other concerns, General Services Administration had previously recommended the ultimate disposal of the current building replacing it with the acquisition of a new courthouse on a leased basis. This arrangement was approved by Congress in April of 2008, and the GSA subsequently requested bids from the community. These local contractors, responding to request for bids by the GSA, spent hundreds of thousands of dollars completing proposals, only to be told at the last minute their efforts were futile.
More disturbing to my office, as Montana’s sole Congressman, is the increase in the cost of the project that has accompanied the new GSA proposal. The estimated cost to build a privately-owned building was approximately $35 million, more than 50% less than the GSA estimate of $80 million.
I question the timing of this decision and its impacts on taxpayers and the City of Billings. Now is not the time to deny tax revenue to a locality, exclude private partners and balloon the timeline and costs of construction of a new U.S. federal courthouse in Billings, Montana. This deal adds up to a net loss for taxpayers and the people of Montana.
I ask your office, as the protector of government accountability, to review this decision and report on the benefits, if any, that changing the lease agreement to a purchase agreement will have to the people of the United States.
Sincerely,
