Opinion ID: 29566
Heading Depth: 2
Heading Rank: 1

Heading: Federal Sources.

Text: We first consider the sufficiency of the Government’s evidence that the entity of which Jackson was an agent received over $10,000 per year of federal funds. The Government offered evidence of funding received by the City of Monroe for the Louisiana Folk Life Festival. Billy Gene Pearson, Director of Administration for the City, testified that, for the City’s fiscal year ended April 30, 1997, the DCA received $12,900 from the National Endowment for the 2 Defendants also argue the lack of a nexus between the offense conduct and the federal funds as a constitutional challenge to § 666 as applied. We will “not grasp a constitutional question for decision even though properly presented, if there is also present some other legitimate ground upon which the case can be decided.” State of Texas v. Grundstrom, 404 F.2d 644, 648 (5th Cir. 1968). We do not reach the constitutional question in this case because, as explained in this part, we find the insufficiency of the evidence dispositive of this appeal. 3 Humanities (NEH), and, for fiscal year ended April 30, 1998, $10,090 from the same source. No grant documents in evidence substantiate receipts from the NEH of those amounts, however.3 Dr. Michael Luster, Director of the Louisiana Folklife Festival, testified that the City received grants from only state and local entities.4 The documentary evidence substantiated Luster’s testimony and demonstrated unequivocally that the $12,900 funding came from the Northeast Louisiana Arts Council (NELAC), and that other grants were from the state or local agencies.5 No corroboration of any receipt of 3 Pearson testified about his review of City financial records without introducing any documents. 4 R. 16-17. A defense witness, Dr. Michael Luster testified about his review of official audit reports for the City, admitting that the reports show $12,900 labeled “National Endowment for the Arts Folklife Festival . . . revenue recognized and expended” for fiscal year 1997 and “National Endowment for the Humanities pass-through programs reported as $10,090 for fiscal year 1998. 11 R. 1600-06. (The Government has provided no evidence to clarify the ambiguity about whether those documents reported that the $12,900 was from the National Endowment for the Arts (NEA), as Luster read them, or from NEH, as Pearson testified.) Regardless of how the financial reports are worded, however, as explained below, the record does not contain sufficient evidence from which a reasonable jury could find beyond a reasonable doubt that the City received such funds from either NEA or NEH. 4 Dr. Luster testified that from 1996 through 1998 the Festival received no federal funding; it received funding from the Louisiana Division of the Arts (DOA), the Louisiana Endowment for the Humanities (LEH), Northeast Louisiana Arts Council (NELAC), the City, the Convention and Visitors’ Bureau, and no other public entities. 11 R. 1558-62, 1611. 5 Documentary evidence supporting Dr. Luster’s testimony shows the following funding to the City: $ 3,800 used from NEH-to-NELAC grant to compensate artists (per Dr. Luster’s Final Descriptive Report, ex. D-1334; see also ex. D-1337, showing $3,800 as “endowment payments previously requested” on request for additional advance from NEH-to-NELAC grant); 4 $10,090 is apparent from the documents. Dr. Luster testified that the amount was in error, that $10,000 was the correct amount, and that the grant was from the Louisiana Endowment for the Humanities (LEH) — not NEH.6 One of defendants’ exhibits would suggest such a receipt of $10,000 from LEH in calendar year 1997.7 The Government concedes that the alleged federal funding was not received by the City directly but by Louisiana agencies for further distribution to local or regional arts projects meeting the criteria established by NEH or the National Endowment for the Arts (NEA). The record supports an inference that the City received some funding indirectly from those federal sources via local and state agencies.8 Specifically concerning Pearson’s testimony that the $12,900 requested from NELAC endowment of $16,700 from NEH (shown as “endowment now requested” on ex. D-1337); $ 9,750 Louisiana State Arts Council, Division of the Arts (DOA) grant # FY97155 of July 1996 (ex. D-1339); $10,000 LEH grant # 96-415-024 dated August 20, 1996 (ex. D- 1340); $10,000 LEH grant # 97-415-074 dated July 8, 1997 (ex. D- 1342); DOA grant # FY98058, amount unspecified (ex. D-1341, August 1997 transmittal letter) $14,350 DOA grant # FY99053 of July 1998 (ex. D-1343); and $11,500 LEH grant # 98-415-139 dated July 14, 1998 (ex. D- 1344). 6 11 R. 1605-07, 1611. 7 See ex. D-1342 (LEH grant agreement # 97-415-074 of July 8, 1997 providing $10,000 for 1997 Folklife Festival). If the grant was funded in July 1997, the receipt would have been in the City’s fiscal year ending in 1998, matching the time frame of the $10,090 receipt Pearson mentioned. 8 Dr. Luster testified that some of those state and local contributors to the City were themselves grantees of federal funds from NEH and NEA. Dr. Luster also testified that the DOA, which 5 DCA received $12,900 from NEH, the record contains evidence that this funding, although actually channeled through NELAC, did have federal origins.9 Assuming Pearson’s testimony about $10,090 of NEH funds corresponds to the 1997 LEH grant agreement for $10,000, we will further assume for purposes of this analysis that the record will support an inference that some of that LEH grant had federal origins as well.10