A poverty of principles at City Hall

In the grand scheme of things, a $9,099 health insurance policy isn't a huge deal.

Then again, neither is $30,000 for BlackBerrys.

Not when you're talking about an annual budget of more than $5 million, which is the operating budget of the Buffalo Economic Renaissance Corp.

But when that budget is supposed to be targeted to combat poverty and promote economic development in the nation's third-poorest city, well, $30,000 here and $9,099 there speak volumes.

And what it says is that bureaucrats get first dibs on money earmarked to deal with poverty.

You poor folks, well, step to the back of the bus.

It's all on display, has been for years.

For three decades, the city has been squandering its block grant funding. HUD finding after HUD finding has concluded the city is spending too much on city salaries and risky loans.

The investigation Pat Lakamp and I did in May found that Brian Davis shifted $30,000 in block grant away from his Ellicott District to help fund One Sunset, just a couple of doors down from Hutch's, about the swankiest restaurant on Gates Circle.

And now, as I report in today's News, BERC expanded its health insurance options last December in ways that enabled BERC President Brian Reilly to opt out of his single plan that cost the city $3,730 in favor of brand-spanking new policy that is costing the agency $9,099.

Hey, it's only money.

Poor people's money, at that.

Common Council President David Franczyk raises a good question: Why did the BERC bureaucracy, headed by Reilly, make the decision to expand coverage knowing that the guy in charge stood to benefit. Shouldn't that have fallen to BERC's governing board?

"For his own protection, you think he'd want to bring it to the board," Franczyk said.

It makes sense, doesn't it, that if you stand to benefit from a decision, you either recuse yourself or give your superiors a say - or at least a heads up. Reilly didn't do that. Instead, he signed the contract with the health insurance company, then got his girlfriend coverage.

It's all so City Hall.

As I've nosed around the agency the past several months I've learned that the bureaucracy often keeps the board in the dark. The decision to alter health insurance options in a way that benefits the guy is par for the culture. Been going on well before Reilly got there.

Moreover, I've learned that Reilly likes to play things close to the vest. Suffice to say, he's tough to reach on the phone.Take yesterday, for example.

I placed numerous calls and e-mails to his office, explaining that I needed to talk to him about his health insurance. Did likewise with his attorney.

What I got back, to quote Simon and Garfunkel, was the sound of silence.

City Finance Commissioner Janet Penska, to her credit, finally got the lawyer to come down to her office late in the day to answer some questions.

Reilly, I'm still waiting to hear from. Usually, Peter Cutler, the mayor's press secretary, can get him to return a call, even if it's days or even weeks later. Not yesterday.

Better to sulk than speak, I guess.

OK, so he blows off reporters. Not that big of a deal, really. I mean, his boss, the mayor, does it all the time.

But I'm far from the only one to get the silent treatment from Reilly, and some of the people he's given the cold shoulder to have come bearing a precious commodity - investment in the city.

In the past couple of months I've fielded phone calls from a prominent developer, a state official and someone heading up a non-profit, all of whom were all looking to invest money in the city. I'm not talking chump change - among the three of them, they were involved in projects with the potential to bring upwards of $100 million into the city. All three are credible people involved with credible organizations. Very.

All three had the same experience. They called Reilly and he failed to return their phone calls.

Several tried him more than once. One guy eventually got through, only to be snarled at. The other finally called me asking who else he could call in City Hall. The third fellow finally got through, only to feel he got stiffed in the end.

Such is the state of economic development efforts in the city. That, and One Sunset.

Comments

[Mark]

$9000.00 here, 9000.00 there, across all city departments, it adds up. To cap that with the business as usual, friends and family program, appointments of unqualified flunkies for city jobs, it is no wonder we look like a backwater to the rest of the country, you know the ones that experienced economic growth over the past couple decades. No wait, there is an anti-group of attorneys taping a community foundation to pay legal fees to support their blockade.

[Pat]

This is just typical bullying and pompous by these politicians. We need to have a professional city manager, hired by our council, instead of elected people running everything. Two year max on the council and get out. Do not tell me that people would not do it. The public sector is too wasteful with our money.

[Tracy]

Just another example of these folks helping themselves and not doing their jobs. Whatever happened to ethics and accountability?

[kris]

Good work Mr Heaney. Look at the job openings on the BURA page at city of Buffalo website. The job for Account Clerk has been posted since 9/07. Do you really think it is that hard to fill an entry level position?
Thank you for exposing the corruption at city hall.

[Andrea]

I have no intention to defend Reilly's ability to do his job. Having said that, there are many people in this world who either choose not to get married, or are not legally allowed to get married due to their sexual orientation. For us, equal health insurance coverage is a civil rights issue. Would the News have published this story if Reilly were married? What exactly is the point here? Is the News implying that the only people deserving of health coverage are people who are legally married? Would the News have printed this story if Reilly were gay? Maybe he will just marry his girlfriend now to shut you all up. That's a shame. Those of us in committed life partnerships should not feel bullied by those of you with your piece of paper. 50% of your relationships end in divorce anyway. Isn't that right?

[Paul S]

Sounds like more "business as usual" in Buffalo. Registered Democrat Politician=License to Steal.

[Paul S]

Sounds like more "business as usual" in Buffalo. Registered Democrat Politician=License to Steal.

[Paul S]

Sounds like more "business as usual" in Buffalo. Registered Democrat Politician=License to Steal.

[enoughalready]

Where's the accountability? The empty suit and his bully handler need to go. Wake up Buffalo- the city is at a crossroads and needs real leadership.

[enoughalready]

"In the past couple of months I've fielded phone calls from a prominent developer, a state official and someone heading up a non-profit, all of whom were all looking to invest money in the city. I'm not talking chump change - among the three of them, they were involved in projects with the potential to bring upwards of $100 million into the city. All three are credible people involved with credible organizations. Very.

All three had the same experience. They called Reilly and he failed to return their phone calls."

In a city desperate for investment- this is inexcusable!!!! Over one year on the job- what has Reilly accomplished? Not much I suspect.

I'm sure Reilly can nod his head north and south when the bosses in the Mayor's office call on him. I'm sure he answers their calls.

[George C.]

The point is not that Reilly got health coverage for his girlfriend(a laudable thing). It is that he used money targeted for anti-poverty to do it, and didn't see a problem with that.Neither do his boss Byron Brown. The kids hands have been caught in the cookie jar again!

[Buffalo Libertarian]

Andrea wrote: "or are not legally allowed to get married due to their sexual orientation."

There is nothing stopping a same-sex couple from shacking up and calling themselves married. Marriage is the most intimate of human relationships and there's no law in the United States stopping any same-sex couple from entering into that most intimate of human relationships. That the government just happens to not recognize the relationship by giving it special privileges, benefits, etc. (subsidized, of course, by the higher taxes that single people pay) is irrelevant. Government has no business even being involved in marriage.

But the point, Andrea, is that he is just one more example of the graft and corruption that goes on in this city. Reilly's girlfriend had no business getting health insurance coverage from the city - especially from funds that were supposed to address poverty and economic development.

Andrea wrote: "equal health insurance coverage is a civil rights issue." Health insurance is not a right, it's a benefit that an employer chooses to provide or not to provide. If it has to be provided to you by someone else then it is not a right.

Again, Andrea, the point is that funds that were intended for addressing poverty and economic development were being used for purposes that, frankly, should be investigated by Andy Cuomo or maybe even the federal government.

[City Taxpayer]

Unless I'm mistaken there is a NY State law that provides for health insurance for domestic partners - same as if the couple were married. Although not highly publicized - it has been in effect for nearly a decade. The party that is employed has the option to add their domestic partner on their policy and the premium that is deducted from their paychecks is adjusted accordingly (same as for a family policy).

[WNYmind]

Reilly was never qualified for this job. He is just another political flunky. Meanwhile, the OSP director position (mandated by city charter) remains unfilled with the responsibilities shifted to Reilly.

Patronage as usual in Buffalo. My advice to good people. Move away from Buffalo and leave the city to collapse under its own weight.

There will be no reform in Buffalo, it is a magnet for curruption and nobody cares since the city is dead and unimportant in the bigger picture.

[Buffalo]

They will do an extensive internal investigation that will be conducted over the next 6-8 hours, at which point they will decide to do several things:
#1 - They will make a proclamation that Byron had no idea any of this was done (most important).
#2 - Reilly did nothing wrong, but they are going to "monitor" the situation.
#3 - Reilly's girlfriend will "voluntarily" remove herself from the policy.
#4 - The Buffalo News is to be moved up to number 3 on Byron's list of Agitators and Haters list.

[sickofitall]

Uh oh Buffalo Libertarian you just angered a lesbian. Im a single taxpayer, whats wrong with one more group of people who think something is owed to them stealing more of my money. Im on unemployment, i think I'll quit looking for a job, then when my unemployment runs out I'll claim welfare, medicaid, and collect foodstamps. Free money paid for by all of you. What the hell, I'm tired of paying for everyone else, time to get mine.

[Bill]

I think there is a need to be clear about the criticism. For me, I laud BERC for obtaining a policy that covers domestic partners. BUT, premiums for coverage beyond the employee should be deducted from the paycheck, and NOT paid by the city. Should be the same for family coverage.

[Bud]

Where is the District Attorney?
Perhaps it is time to call the FBI? State Attorney General?

[gary]

So why isn't the story about the 3 people who were looking to bring upwards of $100 million to the city not a front page story?? This is local news that should be covered by all the local media outlets, not hidden in a blog post, unless I missed that article.

[rastamick]

Like the rest of the stuff crawling under rocks Jim Heany has turned over I am guessing the arrogant and incompetent involved in this mess will suffer no consequence. Heany's car might take a potato in the tailpipe but there will be no consequences any more than there were for the last outrages BERC perpetrated with their One Sunset fiasco. Any more than anyone in the schools paid for the shennanigans at McKinley. One of them was actually promoted to principal and another of the key players is litigating against the city.

[marshalld]

he makes enough so let him pay for it if there is a problem. That should end any hint of improper activity on his part or her part. he could always marry her as well.

[liferocks]

This to late. I understand Reilly has been looking for a new job for sometime now. City Hall has found out about it and has been giving him the cold shoulder anyway. This came out too late. But better late then never. Once he secures a new position, Casey/Brown will make it seem like they took corrective action, when he was leaving anyway.

[WNYmind]

I don't think Reilly is going to find a new job so fast. He ended up in Buffalo after a lackluster career. His exist from Cleveland came after a short stay and being found out as a dud. In Wisconsin he accomplished nothing, just took credit for other's work.

The problem with Buffalo is that it attracts everyone else's trash and then is stuck with it.

Dead cities are like that. Once the death sets in, the bottom dwellers take over (look at City Hall for proof).

You can't blame Reilly too much for taking the only job offered to him. He pulled a fast one on Buffalo and now joins the ranks of Issa, Massielo, Brown, Hoyt, etc.. etc....

Buffalo is done. Enjoy the chaos and remember that the people in power rule over ruins. They don't care about anything but lining their pockets and their political ambitions (which are tiny, i.e. running Buffalo).

Let Buffalo die and move on people. There are so many places to live that are far superior to Buffalo. Let the people who run Buffalo face the truth: they are too incompetent to work in a real city, follow rules, improve the quality of life, and be respected as honest, decent, human beings. The rest is history.

[Dave]

I'm surprised that this story made the front page and the one about the family that had the shelter mix up over the 4th of July was pushed back to the front page of the local section. Is any of this really surprising to anyone? In Buffalo?

[Dan]

There's a simple solution for changing the blatant corruption at City Hall and this ignorgant arrogant Mayor and his cronies "Vote for the other guy!" At least we get to start anew. and if he screws up, vote him out. A few one term Mayors will send a strong message that the people have had enough.