After the Katrina hurricane, the federal government gave $234M US to a southern Mississippi county utility authority. According to an AP article, the Authority wasted that money in a shocking manner.

Three wastewater treatment plants nearing completion will begin operations at 11%, 6% and 1% of design capacity. Of course, the operations costs for these plants will be substantial and borne by the county taxpayers. How do these boondoggles keep happening?

The federal officials certainly deserve a large portion of blame. The AP article ended with this info:

Robbie Wilbur, a spokesman for the Department of Environmental Quality, said the site was picked “because there were fewer endangered species issues, less wetlands impacts, better access, and lower construction costs.”

Wilbur said the decision was made by local officials, but members of the utility authority dispute that.

“DEQ rejected all of those alternatives … I want it on the record that we strenuously looked at these alternatives and asked for them and those things were rejected,” Ladner, the Harrison County supervisor, said during a November 2009 board meeting. “They were determined that we put it there and if we don’t … we lose all funding.”

But the local engineering firms that did the population projects and feasibility studies also share the blame. Generally, authorities hire engineering firms to do the feasibility studies that will then go on to design the plants (which is the main fee generator for many consulting engineering firms). So it’s like asking the barber if you need a haircut.

Finally, the local Authority Board members have to make better decisions. The allure of free money so often colors the thinking of rational people. Bad decisions get made, then the terrible consequences spin out for the next 50 years.

America needs a better model for spending public money. Or do you think this boondoggle is the exception to an otherwise efficient system?