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Sacramento May Be Ineligible For Stimulus Funds

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Mar 21, 2009 4:08 pm US/Pacific

Sacramento May Be Ineligible For Stimulus Funds

SACRAMENTO (AP) ― A legal expert says Sacramento likely can't get millions of dollars in federal stimulus money because its mayor is barred from receiving federal funds.

Authorities blocked federal funding for former professional basketball star Kevin Johnson and his nonprofit Hood Corps last year, before Johnson was elected mayor. The government is investigating whether Johnson's urban Peace Corps-style program misused federal funds.

The Sacramento Bee reports Saturday that it obtained a confidential memo from Washington legal expert Frederic M. Levy, who was hired by the city attorney.

Levy tells city council members that Johnson's status likely means the city isn't eligible for federal funds. Levy says that's because Johnson would influence how the city spends the money.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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