Justice Dept. Says City Cleared For New Grant Dollars

[e-mail] — The Department of Justice on Monday cleared the way for the city to receive up to $8.2 million in stimulus funds after lifting a "high risk" designation it had placed on Baltimore's grant applications.

The federal agency had threatened in April to withhold new crime-fighting funds because city officials had not properly accounted for grant money received in 1996, 1998 and 2000. That sent city officials digging through archives dating back two administrations for receipts or Board of Estimates agenda items to show auditors how the federal money was spent.

"I'm pleased to have this behind us," said Sheryl Goldstein, director of the Mayor's Office on Criminal Justice.

The city had to refund $3,809.66 of a $696,877 grant it received in 1998.

Earlier Goldstein had refunded roughly $1,600 of the 1996 grant. In 2006, when Gov. Martin O'Malley was mayor, the city refunded $146,750.66 from the 2000 grant.

Goldstein received a letter from the Justice Department Monday saying that the papers she provided "satisfactorily addressed" all of the problems.

"They responded to the outstanding issues that they had," said Susan Oliver, a Justice spokeswoman. "Everything has been resolved. They will have access to any future grants."

City auditors, who had raised concerns about the grants since 2002, said that the DOJ clearance will allow them to close their own case.