A quick recap for those just joining us: outgoing DOT Director Jim Lynch resigned at the request of Governor Brian Schweitzer. He was replaced with Tim Reardon, who had been serving as DOT Legal Counsel. Schweitzer claimed the forced resignation was due to Lynch's daughter being given a job at DOT, which might represent a violation of nepotism laws. However, the hiring in question took place more than four years ago. The Briefing has questioned whether there's more to the story.
Today, this blog continues investigating the scandal with a brand-new revelation not being covered at all in the main stream media: documented proof of the unconstitutional use of fuel taxes to buy a state plane.
In November of 2007, the Legislative Audit Division turned in an
audit report on the Department of Transportation. There were 14 recommendations for improvement listed, but the most interesting one is this:
Unconstitutional Diversion of Highway Revenue
The department advanced $300,000 from its restricted highway revenue account to its aeronautics administration account to fund the purchase of an airplane, contrary to highway revenue non-diversion requirements in the state constitution.
The report goes on to describe the illegal transfer of funds:
On February 23, 2006, department personnel moved cash between accounts by recording a receivable in the restricted highway revenue account and a payable in the aeronautics administration account, without first obtaining the Department of Administration’s approval for an advance, as required by state law.
In their response to the audit, the Transportation Department said, "The department does not believe this is a diversion of the highway revenue funds since this is merely a loan to the Aeronautics program and the Highways Special Revenue Fund will receive repayment of the loan."
The man who signed that letter? Director Jim Lynch.
Also listed in the audit among agency personnel? New director Tim Reardon.
The
Montana Constitution reads as follows:
Constitution of Montana -- Article VIII -- REVENUE AND FINANCE
Section 6. Highway revenue non-diversion. (1) Revenue from gross vehicle weight fees and excise and license taxes (except general sales and use taxes) on gasoline, fuel, and other energy sources used to propel vehicles on public highways shall be used as authorized by the legislature, after deduction of statutory refunds and adjustments, solely for:
(a) Payment of obligations incurred for construction, reconstruction, repair, operation, and maintenance of public highways, streets, roads, and bridges.
(b) Payment of county, city, and town obligations on streets, roads, and bridges.
(c) Enforcement of highway safety, driver education, tourist promotion, and administrative collection costs.
(2) Such revenue may be appropriated for other purposes by a three-fifths vote of the members of each house of the legislature.
No where is there any reference to making loans to buy a plane for 300 large.
In October of 2009, the Legislative Audit turned in
another audit report on the Department of Transportation. In that document, they note that the unconstitutional "loan" remained unresolved two years later.
Still listed on the audit among Transportation Department Leadership? Old director Jim Lynch, and new Director Tim Reardon.
If the apparent schedule of an audit every other year continues, there should be a new one coming out this fall. The briefing assures its readers that they
will find coverage of that audit in this space.
Montanans are currently paying almost $4 per gallon for gas -- in part because the State of Montana charges a tax on gas. The money collected from those gas taxes is required under our constitution to be spent only for highway construction, maintenance, and safety. But Schweitzer's department of transportation took those funds and used them to buy themselves a plane.
With that kind of record, the best excuse Schweitzer could find for a staff shakeup was that somebody got a job four years ago?