Overlords

Background

• Pittsburgh has two oversight groups:

the ICA (Intergovernmental Cooperation Authority) and

Act 47 Coordinators.

• Pittsburgh's cost of government has gone up greatly. Three governmental groups, rather than one, now function in Pittsburgh.

First, the existing government includes the mayor, the mayor's administation and city council.

Second, the Act 47 coordinators.

Third, the I.C.A. Board (Oversight Board).

* Cost of both oversight boards is more than $3.2 million as reported in the P-G in April, 2006

• The taxpayers and citizens of Pittsburgh and Pennsylvania pay for the extra costs of government when there are oversight boards are operational.

The overlords don't do this work as volunteer position. Those organizations have overhead, office space, attorney fees, and many other costs of operations.

• In 2005, the I.C.A. made a fuss to City Council and objected to the costs of some smaller expense items to be paid for from the City Clerk's budget. These expenses were for itmes such as a stenographer to transpose the the minutes of meetings into the public record.

• In 2005, the I.C.A. made a fuss about the ongoing operation of the city cable breau. The overloards wanted to cut the TV coverage of the city council meetings. Meanwhile, the meetings of the I.C.A. board are not put on cable TV.

• In 2005, the I.C.A. made a fuss to Gene Ricciardi about the lack of cost cutting from city council's budget.

See the PDF letter [1] of October 10, 2005.

• The original ICA board was made up of five white, older guys. The board in 2006 has some new members with more diversity.

• Planks about the Overlords in Pittsburgh from Mark Rauterkus
• Bob O'Connor's approach to the oversight boards
• Tom Murphy's approach to the oversight boards
• Planks about the Overlords in Pittsburgh from Twanda Carlisle
• Position from Pippy on Act 47 and unions

Distressed Oversight

Mayor Tom Murphy and Grant Street cronies celebrated the arrival of distressed status for Pittsburgh. They campaigned in political circles for the distressed label. PA Governor's top economic advisor was the one to give Pittsburgh the distressed status.

Oversight comes from two boards in Pittsburgh, ICA and Act 47. Both are on with serious flaws. The former ICA leader needed to quit so he could work full time to secure one of the licenses for a Pittsburgh-based casino. The Act 47 coordinators asked for a set of budget changes that did not pass council. Neither addressed Pittsburgh's biggest problem, the debt. The oversight boards are distressed. The oversight plans don't add up. The answers found in the necessary numbers are not to be found in the oversight plans, mainly because of the state's acts. The oversight plans are simply half-baked.

The real reason that the oversight boards are in Pittsburgh are to insure that the city does not go bankrupt and default on the bonds. Meanwhile, US Airways went bankrupt, was able to re-organize, and is functional again and even expanding with some new hires in mid February, 2006. Perhaps Pittsburgh should go bankrupt, default on the loans, and then re-organize its debt so as to make for a quicker pathway to prosperity for the region.

Links

• Over reaching
• James Roberts

Media

• City's fiscal watchdog missing a few teeth Post-Gazette, Pittsburgh Mayor Bob O'Connor's administration hasn't met all of the marks set by the city's state-appointed overseers, but that depleted panel isn't in much of a position to call him on it. The five-seat Intergovernmental Cooperation Authority, or ICA, created in early 2004 by state legislators seeking a bigger role in city budgeting, has just three members. One of them announced his resignation three months ago. It's been 10 months since it's had a full complement.

Outside Links

• Pittsburgh's I.C.A. Board web site
• Plans -- Post-Gazette -- Plans of the ICA as published by the PG from November 12, 2004.
• Older plans of the ICA as published in April, 2004, with comments in the yellow post-it sytled notes from Mark Rauterkus. (169k, PDF)

Background

Pennsylvania's obligation

The city of Pittsburgh is chartered by the Commonwealth of Pennsylvania. Cities and counties are subordinate to the state government. If a city is fiscally irresponsible, as Pittsburgh was, then the state has an obligation to take actions.

The ploy to entertain and seek the distressed status was put into motion by Mayor Tom Murphy. Bill Peduto called for Act 47 status as a member of city council.

Murphy celebrated when the distressed status was granted. So, Act 47 was greatly desired. The second oversight board, the I.C.A., was created by the state legislature.

Act 47 Status Template:Art-woulda

In the summer of 2004, city council voted, 5-4, in favor of starting the Act 47 process.

On November 22, 2004, I spoke to City Council's public hearing. Again, I asked for a no vote. The tide had turned as Doug Shields joined with the minority. The package of bills that were asked for by the Act 47 Coordinators were harmful to the city.

At the end of November, 2004, wierdness struck Pittsburgh's City Council again. The once 5-4 vote for Act 47 turned to a 4-5 vote against. The members voted to NOT table the bills. Then the President of Council asked for a recess of the meeting. The recess vote passed, 5-4, thanks to another Doug Shields flip-flop. That set up a few days of intense talks.

At the end of the recess, council voted 9-0 in favor of Act 47. Go figure.

once the dust clears on act 47, you will need a principled, yet pragmatic 'where should Pgh go from here' position.

You can briefly say "I told you so" and show that a Rauterkus Administration would have tried to head off bankruptcy from 2001-2005.

But most voters IMO are aware of the problem. From an independent candidate, they will be more interested in solutions than in finger pointing.

You have to give voters a reason to vote against Murphy and the Deeeeeemocrats. But more importantly, you must give voters a few good reasons to vote FOR Mark Rauterkus.

Overlords are here to watch, witness and object to spending.

This oversight is much like those black domes built into the ceilings in the casinos in Las Vegas and Atlantic City. Plus, these oversight members get to open up the purse and look inside. They can judge how much money is there now, how much is to arrive, and how much is promised into the future.

Pittsburgh's [debt] quagmire isn't well understood. Pittsburgh's cash flow is complicated. The reports from different offices within the city are seldom in agreement. The controller, city council's budget office and the mayor's finance department are often at odds with the others. There is little consensus and trust.

The first mission with the various oversight boards is to get to the bottom of what is really happening. They always need to be doing fact finding and research. As the early reports from the oversight boards came out, then more disagreement entered.

The citizens as well as those in Harrisburg have been hearing cries of help for years. The boy who cried "wolf" too many times is none other than Tom Murphy and perhaps his cheerleaders on City Council.

The state needs the oversight groups to look over the shoulders and insure that the mayor's office and city council put the brakes to spending.

The state needs the oversight groups to monitor all lof the city's transactions so it can come to grips with the actual financial conditions in terms of debt, cash-flow, income trends, expense categories, and more.

The oversight boards can not fix Pittsburgh's woes.

Perhaps they are here to understand them, report on their findings and to offer first aid so as to stop the massive bleeding.

The oversight boards are for oversight and not for making an overhaul.

The overhaul is yet to come. Some elements of the overhaul needs to go back to the state house, state senate and the governor. Other elements of the overhaul have to come from within.

You could call for an "OVERHAUL BOARD" that would take the positive input of the oversight boards and drive them deeply into the city bureaucracy. And you are the man to lead this initiative.

The oversight boards are doing their job. But in order to return Pittsburgh to health, we need to go further. We need an OVERHAUL BOARD. I am going to clean up this city, but I will use a shovel, not a broom!