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A U.S. Senator highlighted Washington, N.C. in an unflattering report on how federal stimulus money has been spent.

Sen. Tom Coburn, an Oklahoma Republican, listed "Little Washington" among 100 wasteful uses of stimulus money. The city plans to use $42,000 from a stimulus-funded foundation to hire a project-funding manager whose job would include securing more stimulus money, according to the report.

The money for the new job comes from the Edward Byrne Memorial Justice Assistance Grant program, which received stimulus funding, Coburn wrote in his report, "Federal Stimulus Projects: A Second Opinion." Coburn is a doctor who frequently highlights his medical background, including on his Web site title: "Tom Coburn, M.D."

$10.7 million in federal recovery money is headed to the Charlotte area for water projects.

The N.C. Local Government Commission approved the projects announced Monday by State Treasurer Janet Cowell, who chairs the committee. The state Department of Environment and Natural Resources will administer the funds, which are interest-free loans, and only half the principal must be repaid.

Charlotte gets $2.2 million to enhance stream buffers and watersheds, protecting watersheds and preserving wildlife habitat, as well as $600,000 for a water reuse and environmental restoration project.

Gastonia and Hickory received $309,000 and $1.9 million respectively to replace deteriorating sewer lines.

Catawba County will use $3 million to back up the water supply for the town of Maiden and increase fire protection.

Officials at the U.S. Department of Agriculture on Thursday disputed statements by officials from a volunteer fire department in North Carolina and a state senator about when the fire department's recently announced federal loan and grants for a new fire station were approved.

Leaders of the Pikeville Pleasant Grove Volunteer Fire Department and state Sen. David Rouzer, a Republican, said Wednesday that the department had requested the $1 million loan and at least some of the $150,000 in grants last year and was working through the application process with the Bush administration, reports Mark Johnson.

The fire department's president, Russell Robertson, said he was told the loan was approved in December. Contract bids for the new station were put out in January, he said.

Rouzer, who worked for the Agriculture Department in the Bush administration, accused the Obama administration of being disingenuous because Vice President Joe Biden, who visited the fire department Wednesday, announced that the fire department was receiving stimulus money through the Obama administration.

Robertson reiterated his December timeframe Thursday morning. But after speaking with USDA officials, said later in the day that he had misunderstood the process.

He said the fire department did not officially apply for the money until March 5. USDA provided a copy of the application with that date.

The tax cuts included in the federal stimulus package would cost North Carolina less than state officials initially thought last week.

Barry Boardman, an analyst for the non-partisan Fiscal Research Division at the legislature, outlined for lawmakers Wednesday how the state would lose $585 million over two years if they conform state tax laws to the federal changes, as they typically do. Much of that money is through tax breaks for businesses.

Last week Department of Revenue officials, who were given an extraordinarily quick turnaround time of a few hours, estimated the loss at about $760 million. Boardman said his office, given more time, adjusted for several factors, including that the state and federal government operate on different fiscal year calendars.

Legislators now will have to decide whether to alter state tax laws to mirror the federal changes. They chose not to copy federal tax breaks during the economic downturn in 2002, which complicates tax filing, particularly for businesses.

Senators wanted to know Wednesday how some of North Carolina's multi-billion dollar stimulus package is going to do what it's supposed to: create jobs.

Sen. David Hoyle, a Gaston County Democrat and co-chairman of the Finance Committee, zeroed in on multi-million dollar expenditures in the package, such as daycare, Head Start and student work study programs.

"There are a lot of things in here that look like spending and not what we're trying to do: save jobs," Hoyle said to Dempsey Benton, appointed by Gov. Beverly Perdue to oversee the stimulus money. Hoyle asked if the daycare funds were for "babysitting for people who lost their jobs."

Benton cautioned that state officials are learning more details about the federal money each day but emphasized that hundreds of millions of dollars will fund construction across the state.

"There will be jobs," Benton said, "people contracted to do that work." He acknowledged later that he didn't think the state could require that those jobs go to North Carolinians.

CAN WE SEE HER GRADES? Gov. Beverly Perdue participates in a required ethics course for state officials today, also speaks to the N.C. Center for Nonprofits public forum before heading to Washington tomorrow for a National Governors Association meeting.

BURR ON THE BARBECUE HIGHWAY: U.S. Sen. Richard Burr travels route 70 in the east today, talking to the New Bern Chamber of Commerce at an 8 a.m. breakfast and the Kinston version at noon.

HOMER SIMPSON TAX: State employees undoubtedly will be griping about plans to make them pay more for their health insurance if they're overweight or smoke. This from the state that brought you Krispy Kreme and Lucky Strikes.

A REALLY BIG BAKE SALE: The federal stimulus package could drop $2 billion in the laps of N.C. schools.