THE SCARY TRUTH NO POLITICIAN WANTS YOU TO KNOW: $640,000,000 TAXPAYERS’ DEBT IN PITTSFIELD IS A HARD NUMBER
BY DAN VALENTI
PLANET VALENTI NEWS AND COMMENTARY
(FORTRESS OF SOLITUDE, WEDNESDAY, AUG. 19, 2015) — THE PLANET‘s pulling back the curtain on the $640,000,000 in debt owed by Pittsfield taxpayers had the line flying Mach III with its head on fire. We interpret that as a faint flicker of hope for the citizens of Pittsfield, for if the actual size of the obligations run up by irresponsible, selfish, greedy politicians becomes known, not only would citizens vote in record numbers to oust all opposed incumbents but they might actually storm city hall with clubs and torches. We’d pay five bucks to see that.
The $640,000,000 debt obligation, detailed yesterday, is not fiction. This is a actual, documented, tangible obligation. It won’t go away by ignoring it, which is at present the city’s strategy. It can’t be wished away. There are only three possible outcomes:
1.) Pay it in full.
2.) Renegotiate it downward to a manageable number.
3.) Leave it alone and let the city default. Option 3.) nullifies all contracts between citizens and municipal unions.
The Numbers Are Real; The Official Response Isn’t
All of the numbers come from verifiable state or city records. THE PLANET had to estimate only one number, as it turned out the largest. There is no hard OPEB figure for Pittsfield for FY16. We used the most recent figure — $332,000,000 posted by the Massachusetts Taxpayers Foundation in 2011. That current cost is estimated at $400,000,000.
The Pittsfield OPEB is but sliver of the staggering $15 billion your political crooks have promised public employees in the taxpayers’ name — $15 billion for health insurance only plus a pension shortfall of $83 billion (source benefitspro.com/2013/10/18/mass-pension-woes-worsening). That’s a $98 billion statewide bill.
Some doubters tried to spin THE PLANET‘s debt expose like a child’s top. For example, Shakes His Head, a regular and valued commentator, tried to confuse the issue by dragging in a long-dead redolent red herring, talking about the mountainous debt as routine cash flow management. He then talked about “an infusion of cash” the city gets “only a few times a year” for “salaries, bills, debt service, etc.” This “infusion of cash” the rest of you know as “taxes.” Shakes doesn’t want to mention that. He’s a public employee. He has a vested interest in keeping the public in the dark.
A Rigged Game
If the electorate got wind of how bad the situation is in Pittsfield and statewide, it would force pension and health care reform. They would force legislators to obtain home-rule authority to reduce benefits. Of course, whenever there is a peep of that, the public employees’ unions storm the politicians with death threats. Should any public hearings be held to intelligently debate the options for taxpayer relief, the unions jam the hearing like thugs to put the proper starch into pols to keep them spineless.
Shakes then accuses THE PLANET: ” … to say the City is insolvent is irresponsible.” First, THE PLANET never said the city is insolvent. We said if the present situation is not addressed (if spending and debt continue to increase with the tax base shrinking), the city will default. Shakes, “irresponsible” is to obfuscate the issue with a misleading comment on “the reality of cash flow” (again, as a public employee, you can’t bring yourself to say “taxes.” We understand. It’s your gravy train).
Ladies and gentlemen, the ever-shrinking number of taxpayers in Pittsfield owe $640,000,000 to public employees thanks to a generation of contracts politicians “negotiated” with the municipal unions, led by the teachers, the biggest bandits of all. They did all this while you weren’t paying attention.
Citizens, you have one final chance to rectify this in the upcoming election. Miss that chance, and the doomsday clock can be set to five minutes before midnight.
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“Well it’s all right, even when push comes to shove. Well it’s all right, if you’ve got someone to love.” — The Traveling Wilburys, “End of the Line.”
“OPEN THE WINDOW, AUNT MILLIE.”
LOVE TO ALL.
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I have always said the MBTA should declare bankruptcy. the overly generous un ion contracts and pensions/healthcare which begin at 20 years (they don’t even make you wait until you’re 62) are what is bankrupting that system.
In places like Pittsfield – the bankruptcy would haver two effects:
1.
1. it would rightsize salary and benefit packages to reasonable amounts based on average pay and benefits for this area. it would also allow for changes in work rules, switch us to 401-K style retirement and possibly put the employees into medicare, removing our retiree obligation. maybe we keep it for those over 75 or 80.
2.it would allow us to decide what services we want, and how we want them. so maybe we sub out most dpw services, maybe we partner with a university to establish a model school program – using our schools as a laboratory for a fixed fee.
I say go bankrupt. if Trump can do it – so can Pittsfield.
One can only imagine how much money was involved in graft, kickbacks and dirty backroom deals of that $640,000,000.00.
A code of ethics among those at the top tier of the pyramid of the elite club of Pittsfield politics is virtually nonexistent.
Monies were borrowed, the taxpayers are under obligation to pay it back but the few who were at the top levels of the cash grabs have already made off with their share of the loot.
Have to agree with you about how those at the top got their cash grabs. I saw it happen.
You saw it happen Felix and you said nothing. How Come?
I tried. And you know what I got. Fear. Intimidation. Whistle blowing, only to get fired and lose your pension? Like you would have done differently with a family to support.
You have no idea how bad it is in Pitts city govt.
Pittsfield politicians always make sure they get more than they deserve of the cash. It’s the general public that is suffering under this progressive nonsense.
And the Back Room Deals still exist. poorboy.
to take a tiny burden off the state system, let’s make judges pay into the state retirement system. currently they do not contribute to the system but they are allowed to freeload when they retire.
I never knew that, that is not fair. I think our local judges are a main reason we have so much crime especially when it comes to drugs. They need to set bail out of reach and when found guilty give them long terms so serve. Our police catches them and our judges just let him walk free.
I am not sure how the City handles its pensions and why it negotiated them separately in contracts instead of a policy. I think that there are likely creative opportunities to modify healthcare for existing employees and retirees that benefit local taxpayers.
I am surprised if there is a shortfall on the financial side but have noticed that the .1 % annual interest that the State Retirement Board provides coerced investors is remarkably poor.
I should also note that the average teacher salary for Pittsfield is higher than my salary. The teachers, the police, the firemen, the DPW will vote and they will drive the election. Their families depend on the livelihood. If you want to change the cycle in the Berkshires then significant workforce developments have to be made starting with education. An appropriate building is important, but some truly innovative programmatic changes should follow. Cutting programs like skilled trades is a disservice.
What a beautiful place we live in, and with so much to offer, yet our people, your friends, family, and neighbors, are withering.
The City is far from insolvent financially but it is insolvent as far as human capital goes. Crime, School perception, Blight, Employment remain why people leave and never come back. fixing these problems will take more taxes and definitely reevaluating how existing fees and taxes are spent. These are the issues the candidates should discuss.
And I, for one, think Mayor Bianchi performed appropriately given the City’s fiscal resources.
We gave out huge management raises, bought a school that will only do half the job, and continue to sign contracts that rape the taxpayer. Please explain how this is appropriate performance?
oh, and we moved City offices into a non-City owned building….without a bid, without searching for real alternatives…
SHH, pretty good post but I disagree that fixing things require more taxes. The issue isn’t that there isn’t enough money – there is more than enough. When you give corrupt incompetents more money nothing will improve. If the following were done there would be improvement along with the ability to lower taxes:
1. Review all city and school system positions and eliminate those that are redundant, unneeded, or consist of someone sitting on their arse 6 hours a day.
2. All salaried positions are to become exempt positions as they should be. That means no more overtime pay for those, and would also eliminate all the falsified OT pay. If anyone thinks the former water dept head is the only person falsifying OT reports they are smoking something.
3. More responsibility and accountability. If someone steals from the taxpayer – fired. If someone is fired, no parting gift like Monterosso got. If streets are not plowed properly like this past winter – those responsible fired.
4. Negotiate all union contracts on behalf of the taxpayer – not as a stooge of the unions. Employees need to pay 20% towards their health insurance, not 15%.
5. Stop giving businesses like HON a free ride from paying taxes. They need to pay their taxes too, just like hard working regular folk do.
These are just a start. There is so much more a strong leader could change in this city. The problem is we have not had one since I can remember.
SOL MY LETTER BELOW IS FOR YOU–I WILL BE TAPING MY TV SHOW IN ABOUT AN HOUR AND I WILL BE SHOWING YOUR POST AS A INTELLIGENT INDIVIDUAL AND TAX PAYER WHO HAS HAD IT AND RIGHYFULY SO ALL THE THING YOU HAVE MENTIONED I HAVE ALSO MENTIONED IN PETITIONS TO THE COUNCIL BUT MAZZEO KILLED THEM UNDER RULE 27 BUT DONT WORRY I WILL BE READING ALL MY PETTITIONS I FILED ON BEHALF OF THE TAXPAYER AND YOU WILL SEE I AM THE ONLY CHOICE FOR MAYOR WHO IS GOING TO ADDRESS ALL THE THINS YOU SAID BECAUSE I HAVE BEEN SAYING THESE THINGS RIGHT ALONG–I HEAR YOU AND EVERYONE OUT THERE BUT REMEMBER YOU PEOPLE ARE GRUMBLING –I AM ACTING WHY THE HELL DO YOU THINK I AM RUNNING FOR MAYOR–I GET YOU ALL AND I HOPE ALL OF YOU GET ME. IF I DO NOT BECOME MAYOR IT IS OVER FOR EVERYONE AT LEAST EVERYONE ON THIS SITE WHO ARE THE MOST INTELLIGENT IN THE CITY. WE HAVE NO TIME TO WASTE– JOIN ME AND ACT LIKE I DO 24/7 NOT FOR ME BUT FOR YOU—–CRAIG
You are so right Sol. Mismanaged incompetency. Greasing the wheels. Very well written.
Excellent letter Sol.
Mr Gaetani how did you make out in court today?
Good luck in your campaign.
Shake come on you really feel that Bianchi performed admirably? Really!!!
Was it appropriate when Bianchi spent 100k on refurbishing the floors in city hall on a whim of his wife and Melissa?
Was it appropriate when Bianchi gave Spectrum 150K to move the meth clinic downtown after the court case was in favor of the city to keep them out?
Was it appropriate when he personally went after John Barrett when he was leading the unemployment office and then had to make a 150k settlement for his handpicked guy?
Was it appropriate when he moved all the employees off GIC without anyone’s input? Cost to the tax payers TBD
Was it appropriate when he gave 500k to his friend at 100 North St.?
Was it appropriate that he made sure no one voted on the new school?
Is it appropriate that he is a part time Mayor?
Has anyone else have any move appropriate questions for Shake?
these are the kind of questions Bill Sturgeon will NOT ask during the debate. But every voter should read your post and reflect on the mayors record. Tyer does not even need to campaign further if the courts block out Mr Gaetani.
“And I, for one, think Mayor Bianchi performed appropriately given the City’s fiscal resources.”
Wow, really?
Money appropriated for new carpets diverted to remodel Bianchi’s office. Duct tape, fleas bed bugs, chigger bites still infest.
$100,000.00+ needlessly spent on a methadone clinic dependant on heroin addicts.
$150,000.00 free gift of taxpayer money to Monterroso after only 3 months on the job and with allegations of sexual harrassment resulting in a paid suspention.
$500,000.00 to Scarafoni for a sweetheart deal that was totally unnecessary for a needless move of offices that were totally free previously.
$121,000,000.00 for a new high school that is totally unnecessary due to dwindling school population. Money bring borrowed without a voting consent of taxpayers.
$3,500,000.00 to pave the runway at the airport after spending a shameless amount of money filling in wetlands, seizing property by eminent domain for a project that 99%+ of the people of Pittsfield receive no benefit from. Meanwhile no money to fill potholes – a basic service of any city government.
The mayor performed appropriatey? You say.
all 4 of you posters above this post are now truly thinking with your heads. unquestionably– one of the options that face this city is indeed bankruptcy. i have many ideas to reduce the budget at 7% per year down to 28% before i leave office. the reality however is that this reduction of 28% of the present budget might not do it either. going back to bankruptcy– one has to realize that it is a way for a good mayor to right a lot of wrongs in the city to very quickly reestablish salaries of all city employees that reflect what the city’s taxpayers can afford. the problems with trying to save the city without filing bankruptcy are the unionized teachers police -fire and city of pittsfield workers– will amass in force to continue to scald the taxpayer. these are the people who will come out in force to elect banchi or little miss muffett. if they dont heed my call–sooner than later the city will collapse.– now here is the problem– what will the population of this city think of my proposal?–i believe i would be dead on arrival. here is the 64 000 dollar question what is the alternative? there is none. thank god the waco’s on this site seemed to have disappeared and i can spend some time here discussing my intentions. the real truth of the matter is that filing for bankruptcy is the one and only way to go. if elected– i may do just that and then quickly regroup and establish new guidelines and salaries of every city employee. the problem in our city is us and many of us are city employees. i hope every one can realize –that i do indeed have the ideas the right ideas to save this city but i just may be beat by this same group who i am trying to help. i am hoping these types will try to sacrifice but i know that they wont and all of us will go down with the sinking ship. is there any life rafts out there? i think all of us are going to need them and Probably sooner than latter?—-ANY INTELLIGENT FEED BACK WILL BE APPRECIATED—-CRAIG
Interesting idea Craig. File bankruptcy, wipe the slate clean, then quickly recover and live within your means. Lots of pain but over with quickly. It may just work.
The way the US is handling this bankrupt economy is to keep printing money and flooding/injecting/proping up, thus the economy dies a slow death. This will result in very much pain and suffering for the people. When the economy crashed in 2008, it should have been allowed to happen.
Too big to fail, save wall street at all costs was the wrong way to go. Better to let it collapse and start a new economy based on Gold and Silver as dictated by the US Constitution. An ecomomy based on debt will fail miserably.
Just thing how well off we’d be now with the national debt wiped out.
Pittsfield needs to be reset. Wipe it clean and start over.
Barring a Global Economic Collapse the city has no chance of going bankrupt. With poor fiscal Management it could certainly see reduction of services in the long term.
Negotiating salary decreases for city employees that are already paid below other municipal areas will not be easy.
Please articulate how Municipal Services will operate with a 28% budget reduction? What kind of City do you want to portray?
Craig: We “W.A.C.O.s ( We’re Against Craig’s Outrageousness), are still here.
WACO ( We Are Compliant and Obey ) to our masters! Horacesheep > BAAAAHHH
Many city employees don’t live in Pittsfield so they can’t vote here. That’s the good news. The bad news is that many of them have family here who will vote to kick the can down the road. But in the end they will get it in the can.
We can only hope.
Craig,
Massachusetts does not allow municipalities to file for chapter 9 bankruptcy.
Jesse
Pittsfield politics already went bankrupt during the Doyle debacle 14 years ago. Millions of taxpayer dollars in Pittsfield are still unaccounted for through present time. No one knows what happened to all of the money!
Instead of forecasting the dire financial future of Pittsfield politics, why doesn’t Dan Valenti cover the past decade and one-half, where taxes, fees, spending, budgets, and debts excessively increased, while the tax base has greatly diminished.
I would like to know more about Mayor Gerry Doyle financial mismanagement and less about predictions of Pittsfield politics future bankruptcy.
Why live in the past? Let’s try to get Pittsfield going in the right direction. If not receivership will be our future.
There is currently no financial audit report that says Pittsfield’s municipal finances are in trouble. There was a period of time when something went really wrong with Pittsfield’s municipal finances during the Doyle debacle.
Pittsfield politics is made up of 70 percent of local residents relying on welfare and other social services, a diminishing tax base, a shrinking population, and very corrupt local and state politicians who only serve the vested interests.
Nor would there be. Pittsfield does not do a forensic audit or a management audit. They simple check out the math. If, for example, the audit shows the treasurer’s office purchased 500 cases of ping pong balls, it will confirm the transaction. The current type of city audit, after confirming that the ping pong balls were purchased for the amount recorded, then give the city an A+. Why? Because the math adds up. What it WON’T say is: “The purchase of 500 cases of ping pong balls by the assessor’s office was a foolish waste of money.” Just because the math adds up doesn’t mean the money was spent wisely. Our guess is that a forensic audit would give the city a failing grade. The present audit also doesn’t have the tools to root out any corruption that could be occurring. That is one glaring example of a lack of accountability on the part of the city’s “public servants” to taxpayers.
Partly true, Dan.
The Coty has what is called a “Single Audit”, which is performed in accordance with Government Auditing Standards and OMB circular A-133.
This type of audit not only looks at the numbers, but it also looks at compliance with laws and regulations.
As part of the audit, the auditors issue a management letter which outlines ways the city can improve its operations and efficiency.
The problem is, in many cases, we ignore those recommendations.
I have pointed out from past audits the comments that I thought were important and should be implemented. At times I’ve heard “when are we going to find the time to do that”? I say, make the time.
Barry
Make the time is right. It is clear, there is mismanagement.
Jonathan just look to see who Jerry Doyle hung out with. What lifestyles they had and how they operated their businesses . That should give you a good clue .
Fill the Void,vote Kathy Lloyd.
Kathy Lloyd stood up for her right to do business. She is a breath of fresh air, and could shake up the comfort zone. Pittsfield needs a voice that fights for what is right.
If you notice I didn’t say that existing practices shouldn’t be scrutinized. Every municipality has to have an audit and Pittsfield has to prepare extra audits because of the amount of Federal money it receives. Yes, audits are an evaluation of process and not a measure of good sense. Taxes will go up and decisions on spending could be more goal oriented. The administration followed procurement laws in those cases and also delivered on plans developed under past administrations. Cutting services and threatening bankruptcy will only make the situation much starker in the short term even if it develops long term improvement.
If I recall correctly, Mr. Dobelle also cut his political teeth as mayor of Pittsfield, correct? The tactics and techniques he learned here he put into practice assiduously from Westfield to Hawaii…enriching himself spectacularly while leaving the institutions he shilled for in financial shambles; or at least with a lot of messes to clean up! Turns out Pittsfield is an excellent training ground!
The Great Greek God once referred to Evan Dobelle as the only tourist to become Mayor and after he spent millions to drain and
repair the flooding problem at the Waconah Park parking lot….
the parking lot was then christened ” Lake Dobelle “.