1.) What are the consequences of taking federal money without implementing the attendant requirements?

Probably none. This happens all the time. Do you really think all those tens of millions of dollars for insulation and weatherization went to actual homes? Not here in Rhode Island, it plugged holes in the budgets of the organizations that were supposed to oversee the installation.

2.) Doesn't deliberately taking targeted funds with no intention of implementing the program border on something close to fraud?

Yeah, but that's how it all works now. State politicians suckle up to the federal government for money, and divert local money to tangible projects they can tout. A politician's 'success; is not measured by the state of affairs when they leave compared to when they arrived, but to their clout in fundraising and specific projects with their names on them.

3.) Even if such an action is not fraud, wouldn't the federal government find out and simply debit that amount from future monies headed to the state, putting us back at square one revenue-wise? Or, framing the question positively, under what scenario do we get away with doing this?

They should, but they won't.

Let's see -- the unions have apparently told Chafee to be against charter schools. But something tells me that Chafee and his wealthy wife did not attend public schools, but instead attended expensive private schools -- charter schools presumably not then available. Query where are/where did the Chafees' children attend school? Somehow I doubt they are or were in public schools. I'd like to hear the Chafees' explanation for their own children presumably not attending public schools.

"Query where are/where did the Chafees' children attend school?"

They went to private school(s), although I won't say which ones because they're still young. I only know because my sister and I attended school with them (I in a much higher grade, obviously).

Hypocrisy is the rule rather than the exception when it comes to rich liberals and education. Everyone should sink or swim together in state institutions - oh, except for THEIR kids. If you think any of the Democrats in Washington, DC send their kids to the unionized hell-holes like common folk have to, keep dreaming. Their kids all attend the bajillion-dollar per year Sidwell Friends school. They treat their non-union house servants, cooks, and drivers like absolutely sh*t too, I've seen it firsthand. All their pro-worker rhetoric is just that, a vehicle to re-election.

"border on something close to fraud?"

Yes, and anyone involved should face criminal charges. Even better, *federal* criminal charges.

This Gov must go...he's just a shill to the unions who have done NOTHING to improve education in 30 years...thanks to the 36% who put this bum in office.

Just think of the governors who trashed the stimulus package but had no problem accepting the $.