NYC Mayor de Blasio responds to criticism over wife's $2M, 14-person staff amid budget woes

He says the aides are essential for fighting COVID-19

NYC Mayor Bill de Blasio with wife Chirlane McCray (JOHANNES EISELE/AFP via Getty Images)

 BRECK DUMAS

New York City Mayor Bill de Blasio (D) held a news conference Wednesday where he explained how he justifies having taxpayers foot the bill for the staff of his wife, first lady Chirlane McCray, following a report that she has a 14-person team that costs the city $2 million annually.

How

What are the details?

Earlier this week, New York City publication The City reported that McCray—who is not a city employee—has been building up her team at City Hall under the radar as she considers a potential run for Brooklyn borough president. As De Blasio threatens to cut 22,000 jobs due to revenue loss amid COVID-19, the outlet says, McCray has nearly doubled her staff.

McCray's new hires reportedly include $150,000-a-year senior adviser who was brought on in April following an announced hiring freeze, and a $70,000 videographer who was signed on in February. According to The City, the videographer's "work for McCray includes a 'Baking with the First Lady' clip that was posted during the height of the pandemic in early April."

Following backlash over the news of his wife's costly payroll, de Blasio told the media that critics do not "take into account the work that's being done." 

"This work is about the needs of the people of this city especially in crisis," he said, citing his wife's work on mental health and pointed to the effectiveness of her coronavirus racial inequality task force.

The New York Post reported that "De Blasio made the comments despite his insistence that there's not enough money in city coffers to maintain parks or pick up trash."

McCray has come under fire for big spending and a lack of transparency in the past. Last year, Politico reported that the first lady's $850 million mental health initiative, Thrive NYC, "has operated without much scrutiny or accountability," pointing to budget discrepancies in the hundreds of millions since its inception in 2015.

In response to McCray's purported staffing needs, Republican City Councilman Eric Ulrich told The Post, "Whatever happened to the money from Thrive NYC? How much taxpayer money will the mayor's wife pilfer before leaving office? How can she sleep at night hiring these hacks knowing so many other city workers are facing layoffs this fall? This is a disgrace!"

But de Blasio insists that his wife's aides will be vulnerable to layoffs just like the other 22,000 city workers whose jobs are threatened if the state or federal government does not provide a multibillion dollar bail out to The Big Apple as the mayor has requested. 

Without such funds, de Blasio said, "Unquestionably there will be layoffs at City Hall. There's no question about it for my staff, her staff, everyone."

NYC shutters field hospital that never saw single patient — and officials want taxpayers to pick up the tab

More than $20 million

Borja Sanchez-Trillo - Comunidad de Madrid via Getty Images

 CHRIS ENLOE

A field hospital set up in Brooklyn specifically for coronavirus patients is now being dismantled without having served a single patient, The City reported.

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As New York City quickly became the global COVID-19 epicenter, city officials ordered that many sites across the city be converted into field hospitals. At the time, experts said the growing pandemic would easily overwhelm the city's hospital system.
One such site transformed into a hospital was the Brooklyn Cruise Terminal in Red Hook, which was designed to treat nearly 700 patients.
According to The City, the field hospital was "slated to open in mid-April but wasn't ready for service until May 4." But by the time construction was completed, New York's coronavirus-related hospital population had dropped significantly, meaning the city no longer needed the field hospital.
And now, the site is being demolished.
What's worse, city officials reportedly expect the Federal Emergency Management Agency — via the taxpayer — to pick up the $20.8 million tab for constructing and tearing down the temporary site.

The City reported that the bill would include an additional $2 million fee paid to a construction management firm.
"As part of our hospital surge, we expanded capacity at a breakneck speed, ensuring our hospital infrastructure would be prepared to handle the very worst. We did so only with a single-minded focus: saving lives," Avery Cohen, a city hall spokesperson, said.
"Over the past few months, social distancing, face coverings, and other precautionary measures have flattened the curve drastically, and we remain squarely focused on taking that progress even further," Cohen added.
Despite grisly predictions, New York on Saturday reported its lowest death toll since March.

This is why you don't put large sums of money into the hands of government bureaucrats. You get this and the SBA illegally pouring $80 million into Planned Parenthood

‘Hundreds of millions of dollars’ lost in Washington to unemployment fraud amid coronavirus joblessness surge 

May 21, 2020 at 6:55 am Updated May 21, 2020 at 11:13 pm

Greed

Reality star allegedly spent $1.5 million from federal small business program on jewelry, Rolls-Royce

Jonathan O'Connell, The Washington Post

 Published 4:44 pm CDT, Saturday, May 16, 2020

Another California train boondoggle

SMART weighs eliminating weekend service, 40% of weekday trains to cut $6 million from budget

SMART trains sit at the Rail Operations Center, along Airport Boulevard, in Santa Rosa on Thursday, August 17, 2017. (Christopher Chung/ The Press Democrat)

THE PRESS DEMOCRAT

 

May 6, 2020, 8:49PM

 

Updated 40 minutes ago

As the North Bay’s passenger rail system searches for $6 million in budget cuts, it must decide whether it wants to be a commuter train focused on weekday service or an option for weekend visitors, but it can’t afford to be both.

Either way, the cuts will be significant and come at the sacrifice of staff and service, SMART’s lead executives confirmed to their board of directors Wednesday. Failure of the agency’s sales tax extension in March, compounded by economic uncertainty related to the coronavirus pandemic, offers no path forward but making hard choices.

“We see a lot of reluctance, and we feel the same way as you about service cuts,” General Manager Farhad Mansourian told the SMART board during the virtual meeting. “We don’t want to lose people. It’s drilling a hole in our heart, but we don’t know what else we can do given the financial present and the future, and not knowing how fast the economy will recover.”

The 12-member board must now consider cost-saving measures that entail eliminating SMART’s limited weekend routes, or reducing its weekday service by more than 40%. Since January, the 2½-year-old rail system has run a more robust 38 trips per weekday, to go with 10 weekend trains.

Cutting the weekend, which SMART suspended in mid-March in response to the stay-at-home order, would save the agency an estimated $1.6 million per year, according to Erin McGrath, SMART’s chief financial officer. Dropping the weekday schedule down to 22 trips centered around morning and evening commuter travel, meanwhile, would offer $3.2 million in annual savings, she said. SMART is currently making 16 daily trips during the health order.

Layoffs are factored into each cost-cutting decision. They include 14 full-time workers tied to weekend service, and 31 more employees by removing 16 weekday trips. If both are approved, the loss of 45 employees would be a one-third reduction to SMART’s full-time workforce.

“It just hurts my heart,” said Windsor Councilwoman Deb Fudge, one of SMART’s longest-serving board members. “This is not what we want to do to our SMART family.”

A mix of one-time savings and ongoing expense reductions unrelated to salaries that totaled more than $6 million are also on the table. Use of one-time savings, however, is a temporary solution, McGrath said.

Board members delayed giving their preferences, opting to seek more public input before taking positions. Decisions will be due by the end of June as the agency looks to pass a budget expected to take a revenue hit of 15% to 25% as a result of the impacts of the public health crisis.

Measure I, SMART’s 30-year sales tax extension, was designed so the rail agency could refinance rising bond debt, saving $12 million per year. But voters in Sonoma and Marin counties largely rejected the measure, lending just 54% support toward the two-thirds majority it needed to pass.

In the meantime, the SMART board voted unanimously Wednesday to accept staff recommendation to realize more immediate cost savings, by dumping onboard train wireless internet, which costs the agency more than $530,000 a year. The free service will be gone within a month, while Wi-Fi at stations will go unaffected because there is no cost to SMART.

Agency staff will also work to avoid anticipated spikes in insurance premiums next year due to what McGrath said was market volatility by reducing coverage levels. SMART will continue to explore a short-term debt refinancing plan as well that could result in $1 million savings each year, but includes a $150,000 consultant fee to assist in that process.

The bigger decisions about the train’s future could come as soon as the board’s next meeting on May 20, or by no later than its two scheduled meetings in June to finalize next year’s budget.

“We have challenges ahead of us no matter what data we get, and it’s tragic,” said Barb Pahre, SMART’s board vice chairwoman. “There’s no other way to put it.”

What socialist/communists live for: NYC Mayor De Blasio's wife spent $900 million in taxpayer money—with no record of how it was used

NYC Mayor De Blasio's wife spent $900 million in taxpayer money—with no record of how it was used

She has some explaining to do

John Lamparski/Getty Images

 AARON COLEN

New York City Mayor Bill de Blasio's wife, Chirlane McCray, was given $900 million to start a mental health initiative focusing on helping the homeless in the city. Four years later, no one seems to know what that money was actually used for, according to the New York Post.

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The City Council discovered this shocking amount of potential waste during a meeting Wednesday. And while it sounds good to spend heavily on a mental health initiative, it appears that nobody has noticed any real benefits from that investment.
"I like the fact that money is going toward mental health, but when they say we're seeing a benefit in all areas, I take exception to that, because I don't see it everywhere," Queens Councilman Robert Holden told The Post. "I'm not sure anybody does."
The Thrive program, which had its budget raised to $250 million per year in 2019, has produced some underwhelming numbers in terms of how many people it impacts.

Seven mayors attended a 2017 national mental health conference in New York City. Only 570 of the estimated 12-15,000 mothers who experience postpartum depression have been reached by the program, Politico reported, a number NYC disputes.
Of the 78,000 newborn deliveries in the city annually, only 28,560 new mothers have been screened by the Thrive program.
Bob McManus harshly assessed the program's effectiveness for the New York Post:

So, ipso presto, co-Mayor Bill coughed up enough cash to break a pack mule's back and sent it off to co-Mayor Chirlane — who then went forth to cure Gotham's mental-illness problems.

Fast-forward to Wednesday, when the City Council was startled to discover that McCray and Team Thrive are closing in on having spent an eye-popping $900 million since the program's inception — and nobody seems to have a clue on what.

That is, nobody appears to have kept receipts; the subways and street corners are still overrun with crazy people, and nobody in charge knows what's to happen next.

Why Illinois Is In Trouble – 109,881 Public Employees With $100,000+ Paychecks Cost Taxpayers $14B...and they won't miss a paycheck while the people who pay them will.

Why Illinois Is In Trouble – 109,881 Public Employees With $100,000+ Paychecks Cost Taxpayers $14B

Adam AndrzejewskiSenior Contributor

Policy

Top 10 IL Public School Salaries & Pensions 2019

 OPENTHEBOOKS.COM

Illinois could soon be the first state in history to have its bonds rated as “junk.” Last month, both Moody’s MCO and Standard & Poor’s downgraded Illinois debt to just one notch above junk status. 

Last week, the Illinois State Senate President Don Harmon (D-Chicago) wrote a letter to Congress requesting a $41.6 billion bailout. Critics balked. 

In many ways, Illinois may have already crossed the Rubicon. 

Our analysis at OpenTheBooks.com shows that an Illinois family of four now owes more in unfunded pension liabilities ($76,000) than they earn in household income ($63,585). In a state of 13 million residents, every man, woman, and child owes $19,000 — on an estimated $251 billion pension liability. 

Our auditors discovered 110,000 public employees and retirees who earned more than $100,000 last year. 

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We found tree trimmers in Chicago making $106,663; nurses at state corrections earning up to $277,100; junior college presidents making $491,095; university doctors earning up to $2 million; and 111 small town managers who out-earned every governor of the 50 states ($202,000). 

Our interactive mapping tool allows users to quickly review the 110,000 public employees and retirees across Illinois making more than $100,000 (by ZIP code). Just click a pin and scroll down to see the results in your neighborhood rendered in the chart beneath the map. 

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Mapping the Illinois $100,000 Club -- 110,000 six-figures public employee salary and pension records ... [+] OPENTHEBOOKS.COM

Auditing Illinois’ large pay and pension systems

Here’s a system by system break down with the head counts of employees and retirees who made more than $100,000 per year: 

Public schools (35,000) – Last year, nearly 22,000 educators earned a six-figure salary while more than 13,500 retirees received six-figure pensions. Six retired superintendents pocketed $300,000+ pensions, including Lawrence Wyllie (Lincoln-Way CHSD 210 – $341,019); Henry Bangser (New Trier Township HSD 203 – $331,489); Gary Catalani (Wheaton-Warrenville Unit SD 200 – $330,015); Laura Murray (Homewood-Flossmoor CHSD 233 – $324,677); and Mary Curley (Hinsdale CCSD 181 – $315,336).Chicago (22,000) – We calculated that the city paid out $521.2 million in extra pay (overtime, vacation, supplemental, fitness, etc.) above base salaries. Four deputy fire chiefs made between $314,983 and $351,715. Police officers made up to $272,672 and EMT’s up to $270,851. The Chicago Transit Authority (CTA) paid line workers up to $300,135, telephone line workers up to $282,123, and escalator mechanics up to $203,855. Colleges & universities (16,000) – Bradley Underwood made$2.9 million as the basketball coach at the University of Illinois. Junior college power couple Dale Chapman ($491,095) and Linda Terrill Chapman ($242,070) combined for a $733,000 income at Lewis and Clark Community College. Fady Toufic Charbel ($2 million); Mark Gonzalez ($1.1 million); and Konstantin Slavin ($1 million) are million-dollar doctors at University of Illinois at Chicago (UIC). A UIC pension paying out $524,865 goes to a retired doctor, Tapas Das Gupta.State of Illinois (15,000) – Six-figure salaries and pension payouts amounted to $1.8 billion last year. Five barbers at Corrections made over $100,000 while eight nurses at Veterans, Human Services and Corrections made between $200,000 and $277,100. Eight troopers and police officers at the Tollway Authority made between $200,000 and $277,000. A court-ordered monitor, Dr. Stewart Pablo, cost taxpayers $327,600 to report on the lack of mental healthcare availability within the prison system — $1 million in total during the past three years.Cities & villages (8,000) – Small town managers rake in the pay, perks, and pension benefits. These administrators include Michael Ellis (Village of Grayslake – $296,654); Richard Nahrstadt (Village of Northbrook – $290,603); Dane Bragg (Village of Buffalo Grove — $280,000); Patrick Nagle (Village of Rosemont — $279,523); Michael Cassady (Village of Mount Prospect — $278,282); and Reid Ottesen (Village of Palatine – $274,067). The Wheaton Park District conferred a $273,243 pension on retired administrator Elizabeth Kutska. 

Largest pay and pension systems in Illinois conferring $100,000 per employee or retiree. 

OPENTHEBOOKS.COM

Private associations, nonprofits, and retired lawmakers

Consider the many ways that private associations, nonprofits, and retired lawmakers have exploited the legal loopholes.

• Retired Chicago Mayor Richard M. Daley (D) double dipped the pension system for nearly $232,000. Daley made $149,009 per year in state lawmaker pension payouts after a short eight-year career as a state senator plus another $83,784 per year in city pension payouts for his 22 years as the mayor of Chicago.
• Three of the highest earners within the municipal pension system work for private associations – not government. Peter Murphy, executive director of Illinois Association of Park Districts, made $359,287, while Brett Davis, executive director of the Park District Risk Management Agency, brought in $331,817. Brad Cole of the Illinois Municipal League pulled down $313,997. These private nonprofits muscled their way into the government system.
• Former Illinois Governor Jim Edgar (R) double dipped pension systems: General Assembly pension ($175,951 per year) and University Retirement System pension ($85,140). After “retiring” from the University of Illinois, he was hired back part time for another $62,769. Last year, Edgar’s total payout from all sources was $323,860.

We estimate that Edgar earned $2.4 million in compensation from the University of Illinois (2000-2013) and another $2 million in pension payments already paid-out from his 20-year career as legislator, secretary of state and governor.

Highly compensated locals

DuPage County employees have a history of hefty salaries and pensions. Anthony Charlton, director of Stormwater Management, made $253,420. Five more county administrators made over $202,000 last year. Dewey Hartman, a chief deputy police officer, received $324,431 – a $159,574 bump in his final year. Hartman now receives a $176,872 pension. 

Local park district administrators outearned the state director of parks ($116,500). These included James Pilmer ($212,794) at Fox Valley; Raymond McGury ($209,443) at Naperville; and Michael Bernard ($206,819) at Wheaton. However, the top two pensions exceeded the highest salaries: Elizabeth Kutska ($273,242) from Wheaton; and Steven Messerli ($215,484) from Fox Valley.

Forest preserve and even water district employees tapped into the largess. Brian Dorn pulled down $247,071 at North Shore Water Reclamation while Edward Stevenson made $214,856 at the Forest Preserve of DuPage County.

Possible solutions to the Illinois crisis

Illinois Governor J.B. Pritzker wants to hike the income tax during a recession. The proposal would change the state constitution to allow for a progressive income tax. Currently, the Illinois income tax is a flat rate tax. 

Last week, Illinois State Senate President Don Harmon wrote a letter to Congress asking for a $40 billion bailout. $10 billion in bailout would be used for pension plan solvency. 

This week, U.S. Senate Leader Mitch McConnell suggested another path, “I would certainly be in favor of allowing states to use the bankruptcy route.” McConnell specifically mentioned Illinois along with Connecticut, California, and New York.

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Request for comment: Before publication, we reached out all every entity mentioned. If any other individual, politician, or pension system would like to offer comment or context, please contact the author.

Adam Andrzejewski

Adam Andrzejewski (say: Angie-eff-ski) is the CEO & Founder of OpenTheBooks.com – one of the largest private databases of government spending in the world. Our mission:

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