Friday, June 15, 2012

 

Grassley, Colleagues Seek Answers on Spending, Other Practices

of Government-sponsored Travel Promotion Agency

WASHINGTON - Sen. Chuck Grassley of Iowa is among six senators who are asking for information about troubling spending and practices by a government-sponsored travel promotion agency called Brand USA.   Besides Grassley, signers of a letter to the Commerce Department secretary were Sens. Jim DeMint (R-South Carolina), Tom Coburn (R-Oklahoma), Rand Paul (R-Kentucky), Jeff Sessions (R-Alabama), and Mike Lee (Utah).

Brand USA is a government-sponsored travel promotion agency, created to boost tourism in the United States.  It was formerly known as the Corporation for Travel Promotion, which was created by Congress in 2009.

In order to pay for Brand USA's funding, Congress levied a $10 tax on foreign tourists.  To date, $25 million incurred from the tourist tax has been distributed to Brand USA.  Brand USA has come under scrutiny for holding lavish parties in London, subsidizing travel corporations' advertising budgets, a misguided ad campaign, and struggling to meet federal matching funds requirements.

The full text of the letter follows.

June 14, 2012

Via Electronic Transmission

The Honorable John Edgar Bryson                                                    
Secretary
U.S. Department of Commerce                                              
Herbert Clark Hoover Building                                 
1401 Constitution Avenue, NW                                
Washington, DC 20230

Dear Secretary Bryson:

Recent media reports raised serious concerns about the direction and management of the promotional campaign directed by the Corporation for Travel Promotion (Brand USA/Corporation), a public/private entity formed to promote U.S. tourism abroad.  We are concerned about reports of potentially significant waste and misuse of funds at the Corporation.

Congress passed the Travel Promotion Act (Act) in 2010 to "increase international travel to the United States ... thereby creating jobs and stimulating economic growth."  The Act sunsets in 2014 when funding for the Corporation would be provided by industry contribution only.  The Corporation is responsible for spending hundreds of millions of dollars to promote America abroad and must ensure that the highest standards of performance and accountability are met.  Unfortunately, recent reports indicate that the Corporation is allegedly not meeting those high standards.

It is our understanding that in November 2011, the entire Corporation Board traveled to London to attend the World Travel Market, a trade show for the travel industry.  While there, the Board held a meeting in London to discuss marketing strategies and efforts to lobby Congress. Despite the fact that board members traveled all the way to London for the meeting, it was a brief event, beginning at 1:30pm UK time and ended at 3:30pm UK Time.

A related video (https://www.facebook.com/video/video.php?v=2210089064112) shows members of the Corporation Board enjoying themselves at a Brand USA Launch party held at the British National Maritime Museum in Greenwich, London. The video, also available on the Brand USA website, shows it was a high-end affair held at the Maritime Museum covered in light art projections displaying the Brand USA logo.  Brand USA also provided guests, over 500 VIPs, sushi, champagne and petit fours.

We want to ensure that the Corporation's administrative and financial matters are fully transparent.  It is our understanding that the Corporation awarded a media consultant, JWT of New York City, an initial ninety day contract.  According to a recent GAO report,[1] the Corporation negotiated a subsequent Master Service Agreement with JWT without first going through the bidding process.  Moreover, the Corporation's first substantive annual report, due out on May 15^th, has yet to be released to the public even though the Department of Commerce (Department) has been reviewing it for weeks.  For a company spending tens of millions in federal funds it is vital that such this information be made available to the public and Congress immediately.

In an effort to gain a clearer understanding of the operations of the corporation and its oversight by the Department, please provide the following:

1) All documents associated with the production of the Launch Party held at the British National Maritime Museum, including all costs associated with the event, menus, transportation, swag given to guests, invoices from contractors, and museum rental charges.

2) A comprehensive list of all Brand USA employees and Board members who attended the World Travel Market and Brand Launch Party at the British National Maritime Museum in London.

3) The salaries and benefits of the top five most highly compensated individuals employed by the Corporation.

4) An itemized listing of all expenses incurred by the Corporation since its founding current through the date of this letter.

5) An itemization of all cash and in-kind contributions made to the corporation current to the date of this letter.

6) Copies of all in-kind advertising contributions made to the corporation including the claimed value for the contribution by the Corporation.

7) In correspondence  dated December 20, 2011, March 2, 2012, March 15, 2012, and May 1, 2012 from Mr. Scott Quehl  at the Department of Commerce to Ms. Lauren Carrico or Ms. Wanda Fischer at the Department of Treasury, Mr. Quehl states, "the Department of Commerce has reviewed the CTP's request for payment of ... and associated documentation received ..."  Please provide copies of all documentation referenced in those letters.

8) On March 2, 2012 Ms. Laura Carrico at the Department of Treasury received a letter from Mr. Scott Quehl at the Department of Commerce stating "the Department of Commerce has reviewed the CTP's request for payment of $15,718,112 and associated documentation received February 1.   Our review concludes that the CTP has received qualifying amounts from nonfederal sources totaling $2,476,884. The Department of Commerce therefore recommends the transfer of $4,953,768 to the CTP. " Please provide all documentation associated with the review of this request for payment and an explanation of the rationale for the reduction in authorized payments.

9) The number of webpage hits to www.discoveramerica.com identified by country of origin.

10) A detailed and itemized breakdown of all the costs associated with the contract with JWT, including costs associated with retaining talent, the production of videos, and other multimedia items.

11) Copies of print advertisement's placed overseas by Brand USA and a listing of the publications in which the advertisements were placed or location of outdoor advertising placement.

12) For items 1, 2, 3, 7, 8, 10 please provide a short justification for the expenses and detail what results you expect from the expenditures and what metrics you will use to measure the success of the expenditures.

Thank you in advance for your prompt attention to these matters. I would appreciate receiving a response by no later than June 27, 2012. Whenever possible please provide documents and materials electronically.  Should you have any questions please do not hesitate to contact our offices.

Sincerely,

Jim DeMint
Tom Coburn
Rand Paul
Jeff Sessions
Mike Lee
Charles Grassley

Lyons, Nebraska - This week, the Center for Rural Affairs joined four other farm, rural and environmental organizations in signing and sending a letter to every U.S. Senator urging them to place limits on the federal crop insurance premium subsidies granted to individual farmers, establish income limits for subsidy recipients and require that recipients be actively engaged in farming.

"We are a diverse group of organizations united by the belief that responsible farm policy should direct subsidies for crop insurance premiums to farmers who need it," said Chuck Hassebrook of the Center for Rural Affairs. "And Congress should cap those premium subsidies at levels that do not make it easier for the nation's largest farms to drive out small, mid-sized and beginning farmers."

To view or download a full copy of the letter go to: http://files.cfra.org/pdf/crop-insurance-letter.pdf

According to Hassebrook, federal farm spending is dramatically shifting from farm payments to subsidies for crop insurance, with the federal government now paying an average of 60% of premiums. Crop insurance expenditures are more than double traditional farm programs under the proposed new farm bill, with no subsidy limit and no eligibility requirements.

"The result will be an increase in the already excessive subsidies to the nation's largest farms," Hassebrook explained.

"In a time when federal dollars are scarce we are sending precious government resources to large and highly profitable agribusinesses while cutting food assistance to needy children and environmental protections for soil, water, and wildlife," said Craig Cox, senior vice president of agriculture and natural resources at Environmental Working Group. "It is simply irresponsible to send unlimited subsidies to farm businesses that can easily afford to pay more of the cost for their crop insurance - 26 mega farms received over a million dollars apiece per year in crop insurance subsidies in 2011."

The joint letter also explains that capping individual premium subsidies and setting income limits will not deny farmers access to needed risk protection.  And it is important to note that such a policy would not deny or cap insurance payments (indemnities) to farms facing losses.  Rather, it would limit subsidies on the front end for payment of premiums. These subsidies are highest in the best of times because it costs more to insure a crop at market value when its price is high.

"Federal crop insurance is a valuable tool for producers - one which we support.  Farmers need to be able to manage risks of failed crops and low prices to maintain their farms from year to year," said Chuck Hassebrook of the Center for Rural Affairs. "But the emergence of crop insurance as the primary element of farm policy requires that it be subject to payment limitations and eligibility requirements, just like traditional farm programs."

With Father's Day coming up this Sunday, it's more important than ever to support our troops before one of the most important holidays of the year for men in the military, who are usually family men. 

Below is a heartwarming story about some fortunate troops who actually get to be home for Father's Day this year.

According to the calendar, Father's Day is Sunday. But for four men who recently returned from overseas tours of duty with our armed forces, the holiday came early this year thanks to their favorite Major League Baseball teams. The reunions took place at Mariners, Braves, Twins and Diamondbacks games this season. EspnW talked to the teams, the servicemen and the family members to bring you an inside look at how these special homecomings happened. In each case, the teams came up with a plan, but executing the surprise with so many moving parts wasn't easy. It took planning, some luck and, of course, some deliberate misdirection, requiring the assistance of friends, family members, team mascots and, in some cases, the umpires working the games.

This is an amazing achievement on the part of these sports teams. They have made this Father's Day an uplifting and unforgettable holiday for these families. But there are thousands of troops, many of them also fathers, who are still serving bravely in Afghanistan, and they WON'T be home this Sunday to see their families for the
holiday.

We at Move America Forward are excited to announce our plans for the fifth annual Troopathon, coming July 12th, 2012.

Mark your calendars! This July 12, 2012 at 4 PM Eastern / 1 PM Pacific at www.troopathon.org our 5th annual Troopathon, "Never Forget Our Troops" will begin streaming live as well as simulcast on multiple radio stations across the country!

This year's theme for our TROOPATHON is "NEVER FORGET Our Troops" which just gives the Troopathon 2012 a little of it's own unique flavor! This year we are going to put on a bold event to support our troops with participation from all our favorite Troopathon guests who you will remember previous years.

But our "Never Forget" theme is not ONLY about our troops, because this year we have another individual to honor with the Troopathon, our dear friend Andrew Breitbart, who tragically passed away this year.

We all miss him and in recognition of Andrew's devotion to the troops, we're going to dedicate this year's Troopathon to his memory and his life's work.

Andrew participated in every Troopathon, from our inaugural event in 2008, up until last year's event at the Nixon Library. From 2009-2011 Andrew was a co-host for three consecutive Troopathons. Troopathon would never have been as successful as it was without Andrew's dedication and hard work.

He was an unforgettable figure...so "NEVER FORGET" is an appropriate theme for not only honoring Andrew's legacy, but also to remind people not to forget about our troops in Afghanistan!

For this, the FIFTH annual Troopathon needs to be bigger and better than the last four! We are pulling out all the stops in order to send the largest care package shipment to our troops! It's a lofty goal, and a gigantic undertaking, and we need your help if we are going to succeed!

Please help us put on a great show for YOU and OUR TROOPS. The better show we can make, the more people will donate and send more care packages to our troops - so we must do our very best! Please make a donation today and make this year's Troopathon the best ever!


If you don't know what the Troopathon is, or didn't watch the last four, it's time to familiarize yourself with a concept that is making waves and breaking new ground in efforts to support our troops.

The Troopathon is a unique event that comes once a year and is designed to show a huge outpouring of support for our troops. We love sending care packages to the troops. We do so all year long especially on the holidays, but once a year the Troopathon raises a huge amount of care packages for the troops. It's the biggest day of the year for our organization, and it's VERY important that we make it a success!

Over the years, our Troopathons have raised millions to send TONS and TONS of care packages to the troops...over 190 TONS, in fact!

The Troopathon is a great concept, and very unique. Move America Forward was the first organization to attempt this and continues to be the only pro-troop organization that holds an annual Troopathon-like event. The concept is to bring all of your favorite pro-troop celebrities who we already know and love from talk radio, television, Hollywood movies, the music scene and internet bloggers who support our troops.

You will recognize names like Rush Limbaugh, Sean Hannity, Mark Levin, Dr. Laura Schlessinger...the list goes on! They come on the show to support our troops because they understand how much the troops sacrifice and the importance of their mission to defeat the terrorists and keep America safe!

WE'RE DEPENDING ON YOU our loyal Move America Forward supporters, to help us put this show together and make it a reality. Without your help and support, none of this would be possible, so we are grateful for the amazing support you have all displayed in the past with your donations and contributions.

Help continue and extend the legacy of Move America Forward's great work for our troops...please make a donation today and make Troopathon 2012 a successful event for the 5th year in a row!