Inquirer Editorial: Legislators still play favorites

Despite the demand for more government transparency, Pennsylvania public officials can't seem to shed a culture of secrecy that protects an elite. That helps explain how a felon's family business could get a fortune from taxpayers.

The state funneled $1 million in taxpayer funds to renovate a Delaware County nursing home controlled by the family of former Philadelphia City Councilman Leland Beloff, whose 1987 extortion conviction is legendary.

Working with former mob boss Nicodemo "Little Nicky" Scarfo, Beloff tried to strong-arm the late Willard Rouse, one of the city's most renowned developers. That history alone should have set off neon signs saying steer clear of giving tax money to a Beloff business, especially without full public disclosure.

Add to Beloff's criminal history the fact that for-profit ventures are banned from receiving taxpayer grants, according to an audit by state Inspector General Kenya Mann Faulkner.

Unfortunately, no alarms were set off, because that's how business too often is done in some corners of Philadelphia, in the dark where no one can see.

E-mails obtained by auditors showed that an aide to U.S. Rep. Bob Brady, a Beloff friend, sought status reports on the grants, but Brady said he had no role in the process.

Fortunately, Faulkner found out about the grants, too, and conducted a forensic audit. Auditors found other examples of questionable spending of the secret funds doled out by powerful legislators, known as "Walking Around Money" or WAMs.

State Rep. Dwight Evans controlled the WAMs when he chaired the House Appropriations Committee. Among his favored recipients was the Urban Affairs Coalition, which got $24 million to distribute to other entities, including the Beloff nursing home. Another $28 million went to Evans' beloved Ogontz Avenue Revitalization Corp. The state has rightly frozen funds for both organizations. While they have done good work in the city, their source of funds has raised questions about their operations that should be resolved.

WAMs are taxpayer funds that governors have traditionally let legislators spend any way they want in return for the lawmakers' support on budget and other issues. Gov. Corbett ended the practice after being elected, but some WAM money is still floating around from old contracts, which is the money the inspector general is taking issue with.

What taxpayers must keep in mind is that just because Corbett won't approve WAMs doesn't mean a future governor won't find it useful to bring them back as the lubricant he needs to grease the legislature's skids.

Meanwhile, the inspector general's audit, which was obtained by Inquirer reporters John P. Martin and Angela Couloumbis, should be released to the public so it can see for itself all the connections that were involved.

Faulkner is to be commended for her work, but she's done as much as she can do. Next up should be an investigation by Attorney General-elect Kathleen Kane, who campaigned as someone unafraid to go after powerful figures.