With the stroke of a pen, Gov. Spitzer has cleared the way for 60,000 home-based day-care providers to join New York's growing quasi-public-sector labor cartel. And in the process ... he has further undermined his ability to control the cost of government in the Empire State.

(snip)

The providers in question are independent contractors, subsidized by government grants but hired by parents. Some are licensed day-care operators; others are friends or relatives of the low-income working moms whose kids they watch. In recent years, unions across the country have been eying these informal caregiver networks as a new frontier for building membership rolls and political influence.

Of course, the law is a tremendous favor to two of the state's most influential unions. And like most such favors, it adds to taxpayer costs -- up to $100 million in New York City alone, according to Mayor Bloomberg's estimates alone. Moreover, as McMahon pointed out three years ago:

But the impact won't be limited to state and local budgets. By raising the compensation floor for a large number of day-care providers, Spitzer's ... gift to the UFT and CSEA will tend to push up day-care expenses for all working parents in New York - whether or not they receive government subsidies. Ironically, more parents will have an incentive to use unlicensed, unregulated day-care providers who don't accept government-subsidized payments - the only group not subject to Spitzer's order.

The home-care providers won't be considered government employees (not yet, anyway), but as the Albany Times Union reported, they will be covered by "agency shop" provisions that force them to pay union dues even if they don't want to join the union.

In an example of the Legislature's habit of bipartisan pandering to public employee unions, the bill passed the closely divided state Senate by a 57-4 margin. The four "no" votes were cast by Senate Republicans (including Minority Leader Dean Skelos) -- leaving 25 other GOP members on the anti-taxpayer, pro-union side. Atypically, there was more dissent in the Assembly, where 35 members opposed the bill.

The unions are predictably cheering -- and, just as predictably, pushing harder for an increase in federal day care subsidies.

Lockport mayor Michael Tucker summed it up nicely:

North Tonawanda's in the middle of a tough budget process and so are we...these are the things we have to do.

The Buffalo News reported in August that an earlier version of this plan was quashed when there was push back from the Office and Professional Employees International Union, which cited concerns that the proposed director of the merged systems was "unfamiliar with the North Tonawanda system".

In response:

[North Tonawanda mayor Robert] Ortt said the union has taken two different positions on a proposed job merger, supporting one where they retain a union member.

A Lockport Union-Sun & Journal editorial, endorsing the consolidation, notes:

But in our opinion, it's a fantastic move. In this day and age, of tighter budgets, less revenue and a shrinking tax base, everything is on the table...

North Tonawanda has been without a head of their system since April, when the former Superintendent left to run the Niagara Falls Water Board.

The State should make it easier for city mayors and managers to craft deals like this one -- without the threat of union interference -- by streamlining the Taylor Law, one of the recommendations in the Empire Center's Taylor Made report.

Other liabilities detailed in the report include $60 billion for state government, $13.8 billion for the state's 20 largest counties and $6.5 billion for the top 20 school districts. New York City and California tied for the largest unfunded OPEB liability at $62 billion each.

In a New York Post op-ed, E.J. McMahon wrote:

The good news is that retiree health benefits, unlike pensions, aren't guaranteed by the state Constitution. Elected officials can still change course by restructuring health benefits for both current retirees and active employees.

The report concludes with a series of recommendations for curbing costs, including:

1. Preserve health benefits for employees who have already retired, but require them to pay a larger share of their own premiums.
2. Reserve the greatest benefit to those who have worked the longest.
3. Allow trust funds to cover adjusted OPEB liabilities, but calculate required contributions to these funds based on assumed returns from conservative, low-risk investment strategies.
4. Eliminate retiree health insurance coverage for new hires and for employees who have been on the payroll for less than 10 years, and shift these workers into retirement medical trusts.

A spokesman for the state's largest public employee union, the CSEA, dismissed the Empire Center report as "scare tactics ... to create the misimpression that government is going off the rails when in fact it's not."

In other words: Move along folks. Nothing to see here!

What if there were layoffs? Would they renegotiate then?

(snip)

Maybe we're in the trouble we're in [New York state] because the CSEA doesn't renegotiate contracts. At some point the people are going to get tired of it.

Troy's budget includes a 5.5 percent tax increase.

Meanwhile the, Kingston Daily Freeman reports that Orange County will lay off 39 employees, Sullivan County could lay off 15 employees and that some Ulster County employees deserve a raise but, "now is not necessarily the time..."

In Wayne County, village of Macedon residents will vote on whether or not to dissolve the village into the town, reducing costs associated with maintaining the municipality. A Canandaigua Messenger editorial concludes:

It's time for over-taxed property owners in the village of Macedon to take matters into their own hands to reduce costs where they can. Dissolution offers that opportunity for financial relief.

Municipalities and public sector workers across the state are making concessions in tough economic times. Maybe it's time for CSEA to start pitching in.

In an unusual move, he ordered the district to pay plaintiff William Hamilton's legal fees of $2,500. The district is considering an appeal.

Greenwald is hearing a second lawsuit alleging the violation of the state Open Meetings Law in appointment of an interim superintendent.

Hamilton, the district's business manager has been suspended with pay. The second suit was bought by David Zehner, the high school principal who also was suspended with pay. Both men were paid more than $100,000 in 2009, according to SeeThroughNY.

Here's a brief background about the controversy that is roiling the 1,600-student school district located between Syracuse and Auburn:

• Despite public clamor, the district refuses to explain reasons for its extraordinary house cleaning: forcing out the superintendent 18 months before her contract expires; suspending Hamilton and Zehner; firing the district treasurer; and reassigning a school principal.

• When Hamilton filed a FOIL request seeking Dominick's severance deal, she rejected it on the grounds of her own personal privacy.

• A mailing to school district residents in July announced had been appointed interim superintendent effective November 1, but there is no record the school board ratified such action in a public meeting.

"Dominick's desire to keep the reason for her retirement and value of her severance package secret is not a sufficient basis under the Freedom of Information Law to deny the subject FOIL request."

"In any event, this Court would not be bound by a confidentiality agreement and must make its own determination regarding disclosure."

On Wednesday, Greenwood heard arguments from Frank Miller, a school district attorney, who said reports his explanation:

"They got their public relations out ahead of the formal board action," the district's lawyer, Frank Miller, said after the proceeding. "That's what we said in our affidavit. We didn't pull any punches about it.... There's been no formal appointment."

"The myth of confidentiality is just that, a myth," said Bob Freeman, executive director of the state Department of State's Committee on Open Government. "It's crap."

School Superintendent Marilyn Dominick and board President Mary Alley both have said they cannot discuss personnel matters handled by the board in executive session.

"There's no law that says that," Freeman countered. "What they're saying is we choose not to talk about it."

Freeman said that the word "personnel" never appears in the state's open meeting law. The only things the board cannot discuss, he said, are matters that would identify a specific student or things that are specifically prohibited by law.

"These other things are not inherently confidential," he said.

There are no exceptions in the law that allow a district to hide when this kind of upheaval is visited upon its schools. The potential for personal embarrassment or the revelation of unpleasant facts often tempts public officials to keep public business private. That's precisely why laws are written to compel disclosure, unless certain harm under particular conditions, as spelled out clearly in the law, can result.

The state faces a $60 billion liability for unfunded other postemployment benefits (OPEB). This is the amount of retiree health coverage already earned or "accrued" by current and retired employees that the state has promised but not set aside money to pay for.

In the case of Woodstock, the town board is considering changes that would hike retiree health insurance contributions for approximately 25 non-union employees. Their costs would increase 25 percent from 15 percent of premiums. The changes are contained in a proposed employee handbook that would replace a 2003 version.

The changes would not apply to unionized employees, according to the Kingston Daily-Freeman. The story does not say whether retiree health benefits are protected by existing union contracts.

"The non-union employees strongly feel proposed changes are unreasonable and arbitrary," protested Deputy Town Highway Superintendent Kevin Peters.

In defending the proposed changes, Town Supervisor Jeff Moran said the town has tried "to treat union and non-union employees as equally as possible." For example, when union employees got a 4 percent raise this year so did non-union workers.

A look at Woodstock's proposed $6.97 million budget explains why the town is looking to trim costs. It would raise property tax levy by 26.3 percent.If approved by the town board, overall spending would increase 9.8 percent.

Among the biggest cost drivers: general fund employee benefits, up 28 percent; and highway department employee benefits, up 14 percent.

While the town has some control over those costs, it has no control over the weather. Nevertheless, the proposed budget assumes no increase in snow removal costs.

Other municipalities and school districts offer tuition reimbursement for their employees--although many require the academic credits be work-related. Some school districts pick up tuition costs--and then pay again, because the additional academic credits move teachers to a higher salary level.

In Harrison, Police Chief Anthony Marraccini objects to paying for Officer William Duffelmeyer to enroll in a course called Principles of Rhythm and Dance at Manhattanville College.

By Marraccini's count, the town has spent an estimated $25,000 for Dufflelmeyer to take courses unrelated to police work. They include: Individual, Dual and Leisure Sports; Team Sports and Coaching; Math Probabilities and Statistics; Advanced Biophysical Concepts and Kinesiology.

But as the Journal News reports, the police contract does not require such courses to be job related.

Any police officer hired on or before Dec. 20, 2001, is "entitled to attend any course of study at Manhattanville College pursuant to obtaining any associate, bachelor, or graduate level degree at no cost to the member," the police contract states. Courses taken at another college must be related to criminal justice.

Covering college costs has been a part of the police contract for more than a decade, officials said, and was added to encourage young police officers to get a college degree.

Does Manhattanville--or some other local school--teach a course in Advanced Principles of Collective Bargaining? Indignant Harrison officials might wish to inquire before working themselves up into a lather over municipal workers who take advantage of benefits they fairly bargained for. The devil, it would seem, is in the town's police contract.

Update: In 2009, Duffelmeyer collected $102,838 in total wages from the Town of Harrison, according to salaries posted on SeeThroughNY.net.

To all the abused taxpayers who bang their heads against walls when public workers retire with enough money in unused sick time to buy a yacht, relief is on the way. Not enough, but some.

County records...show the highest package will go to retiring Chief of Patrol Robert Turk, whose base salary is $219,670. Turk will get an estimated $676,414 severance check--for unused sick and vacation time and other deferred compensation--after 37 years on the force.

Another 37-year veteran, Deputy Commissioner Robert McGuigan, is estimated to receive the second highest severance of $671,740. McGuigan's base salary is $217,117.

The third retiring chief, Karen O'Callaghan...will receive a severance check of about $632,000 when she finally signs out [after 27 years of service].

Christie's bid to fix what one municipal official called a "ticking time bomb" would raise the retirement age, rework the formula to make pensions less lucrative and require workers to pay more for health care, among other changes. The reforms, which would also roll back an across-the-board 9 percent increase granted in 2001, would affect more than 780,000 current employees and retired workers in the pension systems--including judges, teachers, state workers and firefighters.

...have rolled back pension benefits or seriously considered doing so--and not just for new hires, but for current employees and people already retired.

It's not just a U.S. phenomenon. In France on Wednesday, lawmakers voted to raise the retirement age from 62 to 65. If the measure wins final approval, France will become the latest European Union country to require workers to stay on the job longer because of a deficit-plagued pension system.

Among those already dropped from NYSHIP rolls are adult children, ex-spouses and former step-children of state and local government employees. Some of the "dependents" have died. According to the Buffalo News:

One of the more extreme examples found in the audit are the 85 employees who had between seven and 12 dependents apiece, each one of those dependents receiving benefits they didn't deserve.

Budco's 2008 contract with the state Department of Civil Service guaranteed savings of three times the amount of the $4.3 million contract. With preliminary savings estimated at $25 million a year, Budco has surpassed that goal.

"New York can not afford to spend taxpayer dollars on insurance for individuals that are no longer, or were never eligible to participate in the State's plan," said Assemblyman Sam Hoyt, a Buffalo Democrat, was instrumental in persuading the state to hire an outside firm to conduct the audit.

The two-year review began with a 60-day amnesty period, during which time enrollees will be able to correct and update the status of dependents eligible for family coverage--without penalty.

"People also could fess up now," a state official said in August 2008. "If enrollees are later audited and found to be falsely claiming a dependent, they could face disciplinary, civil or criminal action. That could require enrollees to reimburse the state retroactively for the cost of insuring any 'ineligible dependents'."

Governments, as well as private-sector employers, struggle to remove ineligible "dependents" from health insurance coverage--and to keep track of dead employees and dependents. The City of Buffalo discovered it paid $2 million to provide health insurance to 152 deceased employees.

Buffalo Mayor Byron Brown recently fired Human Resources Director Karla Thomas more than eight months after ordering her to correct the problem.

Since NYSHIP does not cover City of Buffalo employees, it is not included in the Budco audit. A company official estimates 12 to 15 percent of Buffalo "dependents" are not eligible for city health insurance, the Buffalo News reports.

LaFave, the district's highest paid employee, earned $100,285 in 2009, according to data posted on SeeThroughNY.net.

Michael A. Clark, Hudson River area administrator, was been appointed executive director in August (here). The press release does not indicate his salary, raising questions about whether giving LaFave's retirement incentive will produce savings for the district.

In announcing the 12 layoffs in May, LaFave said, "As the Hudson River Area is literally running out of money, the Board has no alternative to lay off more than half of the Hudson River Area employees."

Three employees were "rehired by the board of directors in June with the sole purpose of allowing them to enroll in the state's early-retirement incentive program," the Watertown paper reports.

The three regulating district employees also each had 19 sick days given to them, allowing their employment to run seamlessly from the date they were laid off until the day the board agreed to rehire them.

A teacher of 32 years, Robert blamed a jealous snitch for busting them. "It's unfair that gutless people who may have it in for you stoop so low to do something this," he told the Daily News.

They are among 13 teachers and other school employees who either lost their jobs or paid fines for faking illness, according to the reports by Special Commissioner of Investigation Richard Condon. The News reports:

Each busted worker managed to get sick notes from their doctors--but most needed a lesson in how to be discreet.

Fresh tans and Facebook photos tipped off administrators and co-workers to some of the secret jaunts, according to investigators.

Instead, a four-month investigation by the Albany Times Union exposed Barrett taking full or partial sick days 47 times in a two-and-a-half year period.

This year alone, Barrett has visited the Bronx, California, Colorado, Massachusetts, Missouri, New Jersey, Washington, D.C., and Canada.

After the Times Union questioned city officials about Barrett's work history, Mayor Jerry Jennings said an independent counsel will examine the case. In the meantime, Barrett is on paid administrative leave.

No word on whether he can continue to pocket $750 speaking fees while on paid leave.

It's not clear whether the Japanese scandal was caused by pension fraud, faulty government bookkeeping or "disintegrating family ties," reports the New York Times.

In contrast, Buffalo City Comptroller Andrew SanFilippo clearly faults the city's Department of Human Resources for insuring former employees beyond the grave. According to the audit:

We found 152 employees for whom the City was paying medical benefits, who were in fact deceased. This has resulted in $1.998 million taxpayer dollars being spent on healthcare premiums for deceased employees. The majority of the employees died within the last 3 fiscal years, representing 96 percent of the costs, but some had deceased as long ago as 1998.

On January 11, Mayor Byron Brown ordered Human Resources Director Karla Thomas to "immediately subscribe to the monthly reports of deaths from the Social Security Administration." She did not.

"To be honest, it's a disgrace," SanFilippo told the Buffalo News.

A December audit also found the city had overpaid a $526,309 to insure 250 employees. Thomas has yet to recoup funds from the insurance carrier--despite the mayor ordering her to do so in January.

Brown has not ruled out firing Thomas, whom he appointed two years ago, according to the News. In a second story, the newspaper reports Brown "circumvented rules" when he appointed Thomas to a six-year term.

Both are examples of double-dipping that raise questions about keeping retirees on the payroll when so many other New Yorkers are unemployed.

In Fairbrother's case, a lawsuit by a citizens group alleges that prior to her 2007 retirement she made a "demand on town officials in exchange for her silence concerning highly improper accounting of town revenues and expenditures".

In 2008, she received $71,544 in overtime for the period between 2002 and 2007, which boosted her pension by 29 percent, according to the Utica Observer-Dispatch.

In an editorial, the paper calls Fairbrother's "the most egregious recent example locally" of double-dipping.

Fairbrother will pull in about $101,000 this year from the combination of paycheck and pension. In the Mohawk Valley, that is an absurd sum of money to be paying a bookkeeper, particularly one who was overseeing the books as New Hartford's finances went into the toilet without anybody knowing about it between 2006 and 2009.

But [Mark Johnson, a spokesman for the pension system] said such employees must formally retire from the town and then be rehired, even if there is very little time between the two.

"That can take two seconds," he said. Still, Fairbrother should have been formally taken off the town payroll and then reinstated, he said.

It appears that did not happen.

Regan, 62, whose current salary is $163,332, will earn $29,999 when he is rehired. Mayor Phil Amicone's spokesman, David Simpson, said Regan's new salary plus his annual pension are expected to match his current salary.

Regan explains that he was also motivated by protecting his wife's right to his pension. He told the paper that if he died while his an "active" city employee, "my wife gets only a lump sum, so I'm protecting her."

Legislators' salaries, which start at $10,100, are low enough that when spread out over a 35-hour weekly schedule, the hourly pay is less than minimum wage and results in members qualifying for only an eight month retirement credit.

A shorter work week will raise the hourly pay, in the eyes of the pension system, and allow most legislators to collect a full year credit. Legislators who earn the base salary, $10,100, will still fall short of a full year credit, but those who earn extra--the chair and vice chair of the Legislature and committee chairs--will benefit.

This move will increase the state's retirement payout, but will not affect the county's contribution.

This recommendation brings into question what some local leaders mean when they say they will do "more with less." Did they really mean fewer hours and more pension benefits just for themselves? It is not clear if they even grasp the national and state economic picture, that see rising deficits on the one hand from Washington and a horrific 2010-2011 spending plan on the other from Albany.

Fine, but it will clearly impact New York state's. With a state pension system in crisis, it is hard to believe that elected officials would even consider additional burdens on it.

The memoranda of understanding were signed by union leaders and John V. Currier, deputy director of the Governor's Office of Employee Relations on July 22, 2009.

However, Governor David Paterson made no mention of such a forthcoming promise in his June 5, 2009 press release announcing an agreement not to go ahead with 7,000 layoffs in 2009. Media accounts no mention an 18-month "no layoff" agreement. The Paterson administration eventually released the July pacts under the Freedom of Information Law (FOIL).

Legal experts within the Paterson administration argue the "no layoffs" agreements are not legally binding.

While the pacts--legal or not--apply to the state's two largest unions, they do not protect Executive Branch employees represented by:

• United University Professions (State University professors and professional staff);

• Communication Workers of America (graduate students and teaching assistants);
  
  
• District Council 37 (rent control employees);

• NYS Correctional Officers and Police Benevolent Association (NYSCOPBA);

• NYS Law Enforcement Officers Union (nonpolice security personnel);

• NYS Police Investigators Association (State Police investigators); and

• Police Benevolent Association of the NYS Troopers (troopers and supervisors).

"I don't think we can get to the $250 million just through the early retirement program, but I think we want to see where we are with that program over the next week (or) 10 days, where we think savings are," Megna said. "And then after that, I think we need to sit down with the governor...and decide if we need to take further actions, including layoffs."