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AP Report: Calif. ‘Raided’ Special License Plate Fund Intended for 9/11 Victims

Report: Cali. Govs. Raided Fund Intended for 9/11 VictimsSACRAMENTO, Calif. (AP/The Blaze) — After the 2001 terrorist attacks, California lawmakers sought a way to channel the patriotic fervor and use it to help victims’ families and law enforcement. Their answer: specialty memorial license plates emblazoned with the words, “We Will Never Forget.”

Part of the money raised through the sale of the plates was to fund scholarships for the children of California residents who perished in the attacks, while the majority — 85 percent — was to help fund anti-terrorism efforts.

But an Associated Press review of the $15 million collected since lawmakers approved the “California Memorial Scholarship Program” shows only a small fraction of the money went to scholarships. While 40 percent has funded anti-terror training programs, $3 million was raided by Gov. Jerry Brown and his predecessor, Arnold Schwarzenegger, to plug the state’s budget deficit.

Yes. You read that correctly. Two Californian governors raided a fund set up for the families of 9/11 victims so they could do something about their ballooning deficits.

Millions more have been spent on budget items with little relation to direct threats of terrorism, including livestock diseases and workplace safety.

Moreover, the California Department of Motor Vehicles has been advertising the plates as helping the children of Sept. 11 victims even though the state stopped funding the scholarship program seven years ago. The specialty plate fund continues to take in $1.5 million a year.

Californians who lost loved ones in the attacks take the raid on the license plate fund as an affront to the memory of those who died.

“I can’t believe that they would do that,” said Candice Hoglan, who lives in the San Francisco Bay Area and bought a plate to commemorate her nephew, Mark Bingham. “We’re paying extra for the plate; we’re making a point, and it means a lot to us.”

Bingham was killed on United Airlines Flight 93, which crashed in Pennsylvania, and was one of the passengers who led the attempt to wrest control from the hijackers. His mother, Alice Hoagland, also was troubled by the program’s apparent drift from its original purpose.

“I’m sorry that as we retreat in time from 9/11, we seem to be retreating in our resolve never to forget,” she said in a telephone interview.

Report: Cali. Govs. Raided Fund Intended for 9/11 Victims

[In this April 21, 2012, photo, Candice Hoglan poses for a portrait with her vehicle with a license plate commemorating the events of Sept. 11, 2001, in Sunnyvale, Calif. Hoglan's nephew Mark Bingham was one of the passengers of United Airlines Flight 93, which was hijacked by terrorists on Sept. 11. (AP Photo/Marcio Jose Sanchez)]

The plates, which cost an initial $50 plus a $40 annual renewal fee, feature an American flag partially obscured by clouds and the “never forget” slogan. Residents of California, where all four jetliners were bound when they were hijacked, have bought or renewed the plates more than 200,000 times since 2002.

Of the other states directly associated with the 2001 attacks, only Virginia has established a similar specialty plate program. Yet it did not set up a special fund for the proceeds of its “Fight Terrorism” plate.

For the past decade, the California DMV has said on its website that the money will “fund scholarships for the children of Californians who died in the September 11, 2001, terror attacks and helps California’s law enforcement fight threats of terrorism.” It advertises the program with the slogan, “Be a patriot.”

Report: Cali. Govs. Raided Fund Intended for 9/11 VictimsWhile the DMV description of the program was not “totally disingenuous,” the department should probably remove references to the scholarship program, said Joe DeAnda, a spokesman for the state treasurer’s office, which disburses the money.

“It‘s out of date and it’s on DMV to update that,” he said.

Late Friday, the department modified the description of the license plate on its website to remove the reference to the scholarship program in response to the investigation by the AP, which began in March. Spokeswoman Jan Mendoza said the reason promotional materials were not updated sooner was “unknown.”

The DMV still lists the scholarship program on the online and hardcopy form drivers fill out to buy the license plates, but Mendoza said the department will change this next time the forms are printed.

The legislation establishing the plates had earmarked 15 percent of the revenue for scholarships. Yet only $21,381 has reached the children and spouses of the three dozen California residents killed during the terrorist attacks. The state treasurer’s office closed the scholarship program in 2005, the sign-up deadline for potential recipients, and has $60,000 in reserve.

The total amount dedicated to scholarships was 1.5 percent of the $5.5 million raised through the sale of the plates through 2005.

The original legislation said the remainder of the money would go to “law enforcement, fire protection, and public health agencies“ to be used ”exclusively for purposes directly related to fighting terrorism.”

But in 2008, former Gov. Arnold Schwarzenegger borrowed $2 million to close a budget gap. Last year, Brown borrowed another $1 million.

Report: Cali. Govs. Raided Fund Intended for 9/11 VictimsThe borrowers: California Gov. Jerry Brown, left, and former California Governor Arnold Schwarzenegger, right, borrowed a respective $3million from the fund to close budget gaps
(via Daily Mail)

Neither loan has been repaid nor are their deadlines to ensure they will be. Elizabeth Ashford, a spokeswoman for Brown, said the loans have done no harm.

“We’re trying to simultaneously balance the budget and fund important programs,” she said. “If there was an indication that borrowing this money was going to negatively impact this program, we wouldn’t borrow the money.”

The rest of the money has gone to a wide array of budgets and programs.

The Legislature sent $3.7 million to the California Department of Food and Agriculture, according to the Department of Finance, to establish an online food monitoring database and implement a variety of worker safety programs, including hiring industrial hygienists to tend to worker health.

But it is difficult to say precisely where the money has gone. Late Friday, the agriculture department delivered documents it said were in response to a California Public Records Act request the AP filed eight weeks earlier.

The response contained itemized budget reports going back six years and listing payments for all types of government functions, ranging from salaries and benefits, to printing costs and communication equipment. Among the details: $18,163 for furniture in 2006 and $11,492 for auto inspection in 2009.

Report: Cali. Govs. Raided Fund Intended for 9/11 Victims[Investigators flocked to the Pennsylvania field where Flight 93 went down; California residents are upset that the money meant for relief for victim's families were not used for that purpose
(via The Daily Mail)]

The response also included a legislative report on the threats the agriculture department is targeting with an online database the license plate program helps fund. A similar report from 2006, when the license plate money was first authorized, lists bioterrorism as a potential danger. But the 2011 report focuses on food safety and livestock concerns, including foot-and-mouth disease and meat and poultry monitoring.

Director of Animal Health and Food Safety Services Annette Whiteford said the department does not track license plate money separately from other funds.

She said it would be wasteful to reserve the money exclusively for anti-terrorism work. For example, the department uses some of the money to buy safety suits that would be essential during an anthrax attack but also are useful for routine food investigations.

“The things that I worry about in the animal food safety division are very high consequence events, but very infrequent. So I always try to leverage those resources,” she said.Report: Cali. Govs. Raided Fund Intended for 9/11 Victims

Another $2 million has gone to programs that aim to protect Californians from all manner of potential threats, not just those related to terrorism.

The California Emergency Management Agency used nearly $1 million in memorial license plate money for general operations, including administrative costs, buying and fueling cars, and hiring a person from 2007 to 2009 to coordinate five so-called “fusion centers,” according to documents obtained through a Public Records Act request.

The other $1 million went directly to the fusion centers, which were founded after the 2001 attacks to focus on terrorist threats but have since switched to an “all crimes” approach that includes gang activity and natural disasters.

Herb Wesson, who wrote the license plate bill when he was speaker of the California Assembly, said he was saddened to hear how the money had been spent.

“I understand the financial climate they find themselves in, but they are not following the spirit and intent of the legislation,” said Wesson, now president of the Los Angeles City Council. “The lion’s share of the money was supposed to be given to local law enforcement so that they could beef up their anti-terrorism operations.”

About 40 percent of the total raised to date, or $6 million, has gone to anti-terrorism training programs for firefighters and law enforcement officers. There is a slight discrepancy between the DMV‘s revenue figures and the Department of Finance’s expenditure figures that neither agency could explain.

Report: Cali. Govs. Raided Fund Intended for 9/11 Victims[In memoriam: Mark Bingham (left) was a passenger on United Airlines Flight 93; the aircraft crashed outside Shanksville, Pennsylvania on September 11, 2001 (via Daily Mail)]

Patricia Anderson, who paid $98 for a personalized memorial plate reading “WE R 4US,” said she signed up for the program primarily to show respect for victims of the 9/11 attacks. Anderson said she was disheartened but not surprised to learn that much of the money has gone to fill the state deficit or used for general purposes.

“That’s California,” said Anderson, who now lives near Austin, Texas. “It’s kind of a given these days – nothing is spent on what it’s supposed to be.”

Comments (54)

  • inferno
    Posted on May 29, 2012 at 9:44pm

    This is not new. Ask the politicians in Sacramento how the tax on gasoline is spent. It was instigated to cover the cost of maintaining highways, instead it went the general fund to by votes, by funding every cockeyed scheme they could think of, to keep their names in front of votors. If you or I did this, we would be prosecuted and seerve time.

    Report Post »  
  • Concernd4USA
    Posted on May 29, 2012 at 8:08pm

    Seriously this is minor league stuff. Our president is a crook, my governor (Illinois) is a crook, most of the government officials are crooks. Princess Nancy has made tens of thousands in dirty money and nothing happens. Then they cry foul when someone does not pay their parking tickets. The more money is involved and the bigger the organization the more room for corruption.

    Report Post » Concernd4USA  
  • Carefreeflyer
    Posted on May 29, 2012 at 7:41pm

    The people involved with the theft of this money should be put behind bars for a very long time and made an example of for future would-be thieves.

    Report Post » Carefreeflyer  
  • The Gooch
    Posted on May 29, 2012 at 7:01pm

    Lies! Lies, I tell ya! I have it on good authority (i.e., one the recurrent leftist posters that comments on this forum) that CA is in fine fiscal shape… it’s the rest of the country (especially those damn white trash, fly over states) dragging CA down.

    Report Post »  
    • lukerw
      Posted on May 29, 2012 at 10:26pm

      Funny… I heard that said about the Federal Gov’t… that Businesses were plotting with the GOP to make Obama look bad!

      Report Post » lukerw  
  • POdVet
    Posted on May 29, 2012 at 5:51pm

    Here’s a hint Schwarzenegger and Brown. When you take something with out any plan or even way to possibly pay something back. It is called STEALING! Lock both of tem up until they pay back what they stole out of their own pockets! Maybe if we do that on a national scale, politicians will begin to curb their theft just a little bit.

    Report Post »  
    • JACKTHETOAD
      Posted on May 30, 2012 at 1:51am

      Ahnold should’ve put some towards a chin job for his wife. (She could change stations {in the ‘old days’} on a car radio with that bad boy.)

      Report Post » JACKTHETOAD  
    • JACKTHETOAD
      Posted on May 30, 2012 at 2:04am

      Just lookin’ at that always did make me shriver.

      Report Post » JACKTHETOAD  
  • tksocal
    Posted on May 29, 2012 at 5:42pm

    Simply put… Stealing!

    Report Post »  
    • Bill Rowland
      Posted on May 30, 2012 at 4:34am

      Show a politician money and he will find a way to spend it. Ever notice that they pass a temporary fee that never seems to get cancelled. It’s money they need to build tunnels under highways for turtles or for bridges to nowhere.
      If your family managed their budget the way our politicians do the bankruptcy courts would be backed up for years.
      Remember watch the other hand.

      OMG 2012

      Report Post »  
  • bobbyjoe
    Posted on May 29, 2012 at 5:38pm

    I love California but please get me out of here

    Report Post » bobbyjoe  
  • frogg
    Posted on May 29, 2012 at 5:29pm

    Both Govenors broke the law. Put them in Jail. Simple solution. Maybe that would wake Obma up and get him to obey the law? At least it would stop The State government in Califorinia from stealing the money from now on.

    Report Post » frogg  
  • ravinginfidel
    Posted on May 29, 2012 at 5:19pm

    If I had a charity and misappropriated the funds I would be arrested and sent to jail. Isn’t this the same.

    Report Post »  
  • dadsrootbeer
    Posted on May 29, 2012 at 5:09pm

    So liberal progressive broke a## California is raiding more funds in order to pay the unions and all of the bogus monster pensions. Nothing new, they have been doing it for years. Check out what they did with the money the got from the deal cut with the banks for the housing meltdown. It was to go to the people who got hurt…Well, guess again, it didn’t and went to state workers instead.

    Report Post » dadsrootbeer  
  • elosogrande
    Posted on May 29, 2012 at 5:02pm

    Would you expect anything more from politicians? Their motto across the country is lie, cheat, steal, and NEVER let a dollar go unspent.

    Vote them all out in November.

    Report Post »  
  • PA PATRIOT
    Posted on May 29, 2012 at 4:53pm

    Don’t Bogart that Joint Mr. Brown!

    Report Post » PA PATRIOT  
    • pscully17
      Posted on May 29, 2012 at 5:12pm

      kind of like the fed governemnet and the states ( maine here)…over committing to social, vote for me, handout programs, raiding funds set up by specific taxes like tghe gas tax… and now, the fed and states roads and bridges are falling apart, and the money is gone!! Maines state legislatutre just authorized a BOND inititive for the November ballot, to borrow $20+ MILLION for road and bridge projects…maine collects 26 cents per gallon of gas ( not including registration fees, and other vehicle related revenues)… the road repair funds are bankrupt.. whered the money go? Politicians Pockets!! certainly not back to the tax payer in the form of tangable goods/service/repairs. The bulok of that money is doled out to NON TAX PAYERS for social safetynet programs.. foodstamps, medical, and housing/heat aid… ITS BULL%$%#!!!

      Report Post »  
  • korbin
    Posted on May 29, 2012 at 4:48pm

    Wow people are so shocked its how the Government operates. We need to clean out every politician and start from scratch. First why is the Government in the money making business? taking advantage of the terrorist attack? How much has been donated to the victims by us tax payers through donations? did anybody that perished have life insurance? there has been lawsuits up the ring yang, insurance money paid, private and public donations I think it is time the Government gets out of the money making business period.

    Report Post »  
  • momrules
    Posted on May 29, 2012 at 4:46pm

    I am sickened by this but not at all surprised. Liars and theives with no accountability.

    Report Post »  
  • LeadNotFollow
    Posted on May 29, 2012 at 4:45pm


    Arnold Schwarzenegger was a huge disappointment as Governor. Arnold claimed to be a Republican. He was married into the Kennedy family, so I always felt that deep down, he was actually a liberal like his wife and her Democrat family.

    Report Post »  
  • cvs334
    Posted on May 29, 2012 at 4:44pm

    The “Green Sticker” fund for OHV trials get’s raided all the time … how you like it? Sucks doesn’t it!! Cali, like the USA, sees a pot of cash and loots it.

    Report Post »  
  • drbage
    Posted on May 29, 2012 at 4:42pm

    Another fine example of how the government (from town to federal) collect money for one thing and use it for another. Would love to see an audit of how much money was “borrowed” from the Social Security Trust Fund? Remember the big Florida Tobacco lawsuit and settlement–multi-billion dollars involved even after the lawyers took the majority of it. How many anti-smoking campaigns have been run; how many states have active programs to help people stop smoking?

    Report Post »  
  • Vickie Dhaene
    Posted on May 29, 2012 at 4:39pm

    Have they NO SHAME ??!!

    Report Post »  
  • deerfawn
    Posted on May 29, 2012 at 4:38pm

    if the governments in charge it probably isn’t a good thing.

    Report Post »  
  • Best_Patriot
    Posted on May 29, 2012 at 4:36pm

    The Blaze: where it’s fire, flood, and famine 24/7. Always an emergency, always some problem, always some reason to panic, always (and I mean always) some conspiracy.

    Report Post » Best_Patriot  
    • 13th Imam
      Posted on May 29, 2012 at 4:47pm

      DEMOCRAT Theft is Rampant. Light is being shed on scurrying cockroach’s.

      Report Post » 13th Imam  
    • CatB
      Posted on May 29, 2012 at 5:39pm

      Amen 13th .. and note they don’t dispute the message (i.e. FACTS) .. just the messenger.

      Report Post »  
  • hatchetjob
    Posted on May 29, 2012 at 4:32pm

    IRA‘s and 401K’s are next to be robbed.

    Report Post » hatchetjob  
  • crazyoz
    Posted on May 29, 2012 at 4:31pm

    Next they will put a tax on condums, or did they?

    Report Post »  
  • CatB
    Posted on May 29, 2012 at 4:30pm

    Disgusting …. California … liberals … (yes Arnold is a liberal!)

    Report Post »  
  • MittensKittens
    Posted on May 29, 2012 at 4:26pm

    Just another spit in the face of the USA by a couple of communists. When are we going to get to the point of being sick enough to stop this rapping of our country.

    Report Post » MittensKittens  
    • 50Caliber
      Posted on May 29, 2012 at 4:39pm

      November 6th 2012

      Report Post » 50Caliber  
    • The_Almighty_Creestof
      Posted on May 29, 2012 at 4:45pm

      Never…not as long as 50% of our populace are freeloaders. Let’s be honest here, unless the job is easy and pays a take home of at least 3 times what they receive in their “entitlement” programs, they wouldn’t take a job even if the owner drove to their home in a limo and begged them. They’ll take what they leech off of society until the very last penny is gone.

      Any conservative leader, or any leader representing the spirit of our “old” America, is a threat to their pathetic way of life…and they’ll run as fast as they can to get away from them…even if it is straight into the arms of communism, socialism, etc.

      I fear our country is doomed.

      Report Post »  
  • ChiefGeorge
    Posted on May 29, 2012 at 4:25pm

    Is nothing sacred in the US anymore….slush funds created with socalled good intent. Way to go CA!

    Report Post » ChiefGeorge  

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