Lincoln Mayor Should Welcome Foley Audits

Mayor Chris Beutler ought to welcome Auditor Mike Foley’s annual audit of the Haymarket Arena project, a project unequaled in cost or scope in our City’s recent history, to ensure the project is transparent and within budget. Instead, Beutler complained to a local radio station’s morning show that Foley was imposing himself into the City’s affairs, and that the Auditor does not have the authority to perform financial audits of the Arena project.

Let’s settle this argument based on the facts; Nebraska State Statute reads the Auditor of Public Accounts has the duty to “examine or cause to be examined…any political subdivision with the authority to levy a property tax…” The Arena’s Joint Public Agency (JPA), which voters approved with the bond issue in May, does have the authority to collect property taxes should predicted revenue fall short. While city leaders have promised Lincolnites that property taxes will not be used to fund the arena, and I certainly hope they are right, the truth is the JPA still has the authority to levy a property tax if need be and therefore Foley has the statutory authority to conduct a financial audit of the Arena.

Besides the legal arguments, the Mayor should welcome Foley’s audits because they save taxpayer money. Foley audited the Antelope Valley project in April and found $2.8 million in “substantial deficiencies”, millions of dollars apparently wasted and could jeopardize future funding from state and federal sources. In fact, based on Foley’s work, the Federal Highway Administration has demanded further review of the project.

Beyond reports of contractors and consultants being overpaid to the tune of millions of dollars, the big surprise with the Antelope Valley audit was the conclusion that no one knows how much it costs! The price tag has been revised multiple times, and after ten years taxpayers are still looking at projections of costs, projections that keep moving higher and higher.

For the Arena to avoid the problems of Antelope Valley, an all-out audit by Foley should be welcomed at the beginning of the process, not 10 years later. Problems with the Arena are already coming to light. NU Regent Tim Clare pointed out that the JPA is considering a union-only clause to the project; should only labor unions be allowed to work on the $340 million project the result will be a cash cow for unions and extra costs to the taxpayers.

Lincoln voters approved the Haymarket Arena with the expectations of economic development and higher quality of life. Voters also expected, and were promised, the project to be done in a transparent manner, on time and on budget. The only way to keep these promises made to Lincoln taxpayers is a full financial audit. Foley has proven his ability to get the job done for Lincoln taxpayers in the past and his support should be welcomed by Mayor Beutler.