March 17, 2008

Budget Bloat at Blasted Governor's Mansion

The nonpartisan Tennessee Center for Policy Research has looked into the budgetary bloat in the renovation of the Tennessee governor's mansion and issued the following statement today:

Taxpayers Charged Millions for Extravagant Embellishments to Governor's Mansion
Renovations including $321,000 kitchen, $14,000 dimmer switches revealed as state faces shortfall
NASHVILLE - The renovations at the governor's mansion have gone over budget because of extravagant embellishments and poor planning, according to documents obtained by the Tennessee Center for Policy Research through public records requests.

A wet bar, fancy accent lighting and a major kitchen overhaul were added to the project's bottom line after construction was well underway, records show.

Some of the many examples of increased costs, in the form of "change orders" to the original project include:

Renovating the kitchen - $321,393

Hanging accent lighting - $53,850

Replacing dimmer switches with brass cover plates - $14,436

Installing a wet bar - $10,930

Refurbishing wash stand legs - $7,511

Change orders are agreements between contractors and the state allowing contractors to add to or delete from the work originally agreed upon when unexpected work is needed. Unfortunately, it appears that Governor Phil Bredesen and First Lady Andrea Conte used change orders as a way to quietly slip in lavish and costly embellishments to the mansion renovation project without taxpayers' knowledge.

"The Governor has expressed concern over a looming state shortfall. But the shortfall was caused by wasteful spending such as $14,000 dimmer switches and $7,500 sink legs," Tennessee Center for Policy Research President Drew Johnson said. "If the Governor is serious about reducing spending, he needs to look no further than his own back yard to start the cost-cutting."

Initially, renovating the Governor's Mansion and bringing the house into compliance with provisions of the Americans With Disabilities Act was to cost less than $10 million. As of today, the price tag has ballooned to $19.2 million - over 20 times the $900,100 appraised value of the house - at a cost to taxpayers of $12.8 million, according to state records.
Construction recently began on a new phase of the mansion, an underground entertainment facility, that will likely produce dozens more change orders boosting the cost to taxpayers.

"Please Governor," Johnson pleaded, "stop pouring money into the governor's mansion that could be used to educate children or heal TennCare recipients."

The state House may vote tonight on an amendment to routine bonding legislation that could halt the ballroom project, though Democrat leaders are working furiously to save the ballroom.