Federal dollars flow into local businesses

Region – Tens of millions of dollars are on their way into the region thanks to appropriations by Pennsylvania congressmen in the recently enacted Fiscal Year 2010 Defense Appropriations Bill. The bill passed the House and Senate and was signed by President Barack Obama in late December.

Millions of federal dollars are coming to central Pennsylvania thanks to earmarks by the region's elected officials.

The projects funded by such appropriations, also known as earmarks, range greatly in size and purpose. In general, appropriations made as part of the Defense

Appropriations are intended to improve national security and provide an economic boost to local areas, according to press releases from several congressmen.

“These projects will encourage job creation and bolster our nation’s security,” said Senator Bob Casey in a press release.  “I am pleased the Congress has approved this important funding, which will promote economic growth in Pennsylvania, ensure that our service-members have state-of-the-art equipment and protection and strengthen our nation’s defense.”

Congressman John Murtha, chairman of the House Appropriations Subcommittee on Defense, brought home $75 million for 21 projects in the 12^th District, which includes parts of Cambria, Somerset and Westmoreland counties.

“I’m proud to secure funding for local programs that are providing our troops and the Defense Department with advanced technology, quality equipment, and other important services,” Murtha said in a press release.  “These programs showcase the talent of small businesses, the skills of our local employees, and in many cases save the government money.”

Murtha spokesman Matthew Mazonkey told Pennsylvania Business Central in an interview in March, “If there were no earmarks, federal bureaucrats in Washington would solely decide what is in the best interest of Pennsylvanians. We think representatives of the people know more about what their constituents need than bureaucrats in Washington who have never visited the area and never met with local officials. Earmarks have produced thousands of local jobs, saved taxpayers money, and have diversified our local economy to sustain economic development and long-term growth.”

One company that received an earmark from Murtha in the Defense Appropriations Bill was Compass Systems Inc., which is based in Maryland but has an office in Johnstown. The company has 85 employees and nine in the Johnstown area. It received $2.8 million to “provide the Defense Department with a hand-held mobile mapping communications device that will enable a more rapid, accurate, efficient, analysis and dissemination of digital data from multiple sensors.”

Compass Systems President and CEO Mark Pinekenstein said earmarks served as, “A piece of the puzzle of providing for national defense.

“Without the money, the task is something a small company would have difficulty doing,” he added, “So it will benefit the company, and the economy in Johnstown, as we plan to increase our operations there.”

Also included in the bill is $640,000 for Johnstown’s Exceptional Parent, a media company using print, online and interactive communications to provide resources for military families dealing with a wide range of disabilities.

“This [money] is important because one of the major directions in which we want to expand our programs is serving the U.S. Army,” company president and CEO Joe Valenzano said. “This is a way of putting good tax dollars to work.”

One company that didn’t receive any funding this year, despite receiving several million dollars in past earmarks from Murtha, was Windber-based Kuchera Defense Systems Inc. The company was barred from receiving government contracts after allegedly offering kickbacks to another federal contractor. This is the company’s second suspension; Kuchera Defense Systems reportedly laid off a portion of its roughly 300 employees after the earlier contract suspension, which occurred in July 2009.

Murtha was joined by all of his fellow central Pennsylvania congressmen in adding earmarks to the Defense Appropriations Bill. Congressman Chris Carney, representing the 10^th District, secured $10.8 million in earmarks, Congressman Shuster, a member of the House Armed Services Committee, secured $7.8 million for six projects across the Ninth District. Jason Altmire, representing District 4, brought home $8.28 million in earmarks and freshman Congressman Glenn GT Thompson added $6.1 million in appropriations to the bill.