Perry Challenged For Outsourcing Federal Disaster Money

 AUSTIN, Texas (AP) _ Texas’ outsourcing of the management of more than $1 billion in federal disaster recovery funds to an engineering firm has raised concern from federal officials.

The Austin American-Statesman (http://bit.ly/nMbN13) reports that the firm, Kansas City, Mo.-based HNTB, has close ties to Gov. Rick Perry’s administration. The state has so far paid the firm $45 million to process infrastructure grants for communities damaged by Hurricanes Dolly and Ike.

Three years after the storms, only 20 percent of the first round of money released to Texas to aid disaster recovery grants has been spent. Federal officials say at least half those projects should have been completed by now.

Weeks ago, the Texas General Land Office cancelled HNTB’s contract, but the company still runs the infrastructure program temporarily out of its Austin offices.
     
     (Copyright 2011 by The Associated Press.  All Rights Reserved.)

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