Keeping Your Money In Their Family

(CBS)  When the city of Columbia, S.C., built a brand new fitness center, it was thanks in part to a $1 million earmark from Rep. James Clyburn, D-S.C. And who was among the early hires? The Congressman's daughter, CBS News investigative correspondent Sharyl Attkisson reports.

Attkisson asked Clyburn: "How do you know they didn't hire her because you had helped earmark money for the center?"

"I have absolutely no idea why they - what was going on in their minds," Clyburn said. "I do know this: I would hate to think that because I was involved with helping them build the center that they would refuse to hire my daughter."

It's all perfectly legal. Through "earmarks," lawmakers can direct funds for pet projects without the normal public review - and they don't have to disclose when family members might benefit.

Alaska's powerful Sen. Ted Stevens, R-Alaska, used federal money to create a group to market his state's seafood, which then hired the Senator's son to lead it. The group got more than $30 million federal dollars, courtesy of the senator who wouldn't agree to an interview.

Then there's the First Ladies Library in Canton, Ohio, started by Mary Regula - as in wife of Rep. Ralph Regula, D-Ohio, whose committee paved the way for the Library to get $1 million in taxes a year.

The First Ladies Library is truly all in the family. No only was it founded by congressman Regula's wife, and paid for with your tax dollars thanks to the congressman, but guess who the director is? Regula's daughter.

This year, Regula added a bonus: a $130,000 earmark. He refused to talk to CBS News and folks at the Library weren't very helpful. The day we visited, they locked up early.

When we asked for details, Executive Director Pat Krider e-mailed: "I will not be providing any of the requested information."

But CBS News did find tax forms showing Regula's daughter pulls in about $70,000.

Back in South Carolina, an encore from another Dad. This year Clyburn earmarked $235,000 more to that fitness center where his daughter works.

Attkisson asked him: "What if any role did your daughter's employment there play in you giving the new earmark to the center?"

"Absolutely none whatsoever," Clyburn said.

Does he see why people might ask that question?

"Sure, I can understand that," he said. "But we ought to start with the premise that everyone is honest and honorable."

Not everyone might be willing to make that leap in faith - when tax dollars end up benefiting family.

[why_not_nar]

Sharly,
I accept your point regarding earmarks? Aren''t earmarks a relatively new process? Where did it come from? And why is it legal? Finally who in Congress is attempting to change it? And maybe for her next set of questions Katie could ask the candidates how they feel about earmarks.

From a common sense point of view, expenditures of large amount of our money, to what at best are political purposes would seem illegal? Why as this process become so common recently?

Thanks. I like the series, but think the next step is to get at the root of the problem.

[hissteps4u]

Earmark Pork barrel spending should be outlawed forever what a waste of my hard earned and many taxed paid It makes me sick

[brianbwb-2009]

Don''t know why I got cut off, but I was saying the perception of politicians as liars, crooks and thieves is based on their history of lying, cheating, and stealing.

All while they pass laws that affect poor people based on a presumption that the poor are dishonest, "welfare beggars"...

[oleander8]

"It''s all perfectly legal. Through "earmarks," lawmakers can direct funds for pet projects without the normal public review"

Well it shouldn''t be legal - but congress makes the laws and you know they aren''t going to make this illegal anymore than they are going to pass a law for term limits. Very discouraging. Term limits is the only way to get the politicians out before they become corrupt.

[brianbwb-2009]

%u201CSure, I can understand that,%u201D he said. %u201CBut we ought to start with the premise that everyone is honest and honorable.%u201D

W

[standlee5]

Is anything more disrespectful to the American taxpayer than these arrogant indulgent earmarks. Congress sucks.

[Timmyb68]

If in fact this is happening why doesn''t the media do more to "out" these high spenders?
We cannot afford to keep our heat on fuel in our tanks , gas in our vehicles and food on our tables but these people spend millions like it is water.
And what is going on with the OIL prices any way.

Nice show tonight Katie.
Thanks
Tim

[Timmyb68]

If in fact this is happening why doesn''t the media do more to "out" these high spenders?
We cannot afford to keep our heat on fuel in our tanks , gas in our vehicles and food on our tables but these people spend millions like it is water.
And what is going on with the OIL prices any way.

Nice show tonight Katie.
Thanks
Tim

[Timmyb68]

If in fact this is happening why doesn''t the media do more to "out" these high spenders?
We cannot afford to keep our heat on fuel in our tanks , gas in our vehicles and food on our tables but these people spend millions like it is water.
And what is going on with the OIL prices any way.

Nice show tonight Katie.
Thanks
Tim