
January 12, 2012
Dear Omaha Firefighters,
I want to write to you personally to share a few very important thoughts about the condition and the position your union finds itself in today.
As you know, I have been very outspoken about what I believe has been major wrongdoing within both the firefighters union and the fire department. It appears that the wrongs were committed by a very small group of leaders who have found their way into positions of power and leadership. Much of the wrongdoing, I believe, has been targeted toward the faithful, honest and hardworking firefighters who have avoided becoming close with these leaders and therefore have found themselves “black balled” and “passed over” in favor of others who were willing to turn a blind eye to the harmful agenda that has damaged both the firefighters and the city.
Our organization decided to commission an investigation into all the things we were hearing, and in that effort discovered material you have seen us produce over the past few years. Now that much of this has come to light, I have been told union leaders and their attorney have decided to go on a “witch hunt” attacking those they allege spoke either to me or our investigators. This witch hunt has led them into great error and the harming of innocent individual firefighters.
An example of this is the attack against John Strawn. I met John through the Republican Party and had the opportunity to speak with him personally. I spoke with John about the investigation that took place during the Daub administration regarding misuse of union hours and failure to comply with the labor agreement. The issues during the Daub administration involved proper classification and documentation of union activity, similar to the issues we uncovered that the State Auditor confirmed.
John simply verified for me that both he and Mike McDonnell were investigated during the Daub administration for not properly accounting for their union hours, and that they were almost fired as a result. John did not have specific knowledge of Steve LeClair’s activities, because he was retired and not around when LeClair became president. We were trying to determine how widespread the misuse of union hours had been during past years, and John confirmed there indeed had been a problem during the Daub years and that Mr. McDonnell had been instructed to stop ignoring proper accounting procedures and comply with the labor agreement.
In the lawsuit filed against me, I disclosed that I had been informed Mike McDonnell was assigned to the Bureau when he became fire union president, but that some had said he did not show up for work at the Bureau and that this practice continued when Steve LeClair became fire union president. I also stated that, to the best of my knowledge and belief, this information was confirmed by John Strawn and three other individuals. After conferring with John Strawn, I now believe, although John might have been present when the subject of Steve LeClair had been discussed, John Strawn did not provide information specifically about LeClair, because he was not around while LeClair was president.
Even if John Strawn had provided the information about Steve LeClair being at the union hall on a daily basis, it would be silly to seek retribution from him, because the information was absolutely true and well-known to many. Steve LeClair and his superiors readily admitted during the lawsuit that LeClair worked at the union hall on a daily basis and not the Bureau, confirming exactly what I had been told. The issue of LeClair not showing up at the Bureau was not a focus of ours, considering all of the other things we were uncovering, until I read in the Auditor’s letter that he reported only six hours of union leave. I thought he was caught red-handed, because it was well-known that he was at the union hall on a daily basis.
So, today union officers and their attorney are wrongfully attacking an innocent person, claiming Mr. Strawn maligned LeClair, when he did not. This is a perfect demonstration of their reckless ambushing of an innocent firefighter without any proof. It is similar to the ambush of four highly regarded firefighters in a document produced a few months ago attacking the “four horsemen;” four individuals we have never interviewed and none of whom I would know if I saw them. The behavior of your union officers and legal counsel is promoting firefighter-on-firefighter assault, in my opinion.
Lastly, in order to end the lawsuit with Steve LeClair, Mr. Corrigan clearly communicated to our legal counsel that they were willing to settle the matter without an apology or retraction. They made a settlement demand for the amount of legal fees expended by Mr. LeClair to that point: $18,000. Because that amount was less than the cost of a trial and because an apology was no longer required, our insurance company compelled us to settle the case. We made it clear we would not agree to pay for other parties to sue us by paying their entire legal bill. After negotiation, our insurance company agreed to pay $9,000—half the cost of the legal fees.
Therefore, Steve LeClair should have an outstanding balance of $9,000 on his legal bill. If your union is asked to pay his attorney’s fees, it should not be for anything more than $9,000. LeClair should not make money personally off of a personal lawsuit and expect Local 385 to pay his entire legal bill ($18,000) so he can get free money. It would be wise for your members to watch this activity carefully to see if your union was stuck with the entire bill. Hopefully, this did not occur.
In my opinion, and in the opinion of many leaders within this community, your leadership team has seriously damaged your public reputation and set your union on a course of economic destruction by negotiating unsustainable labor agreements and by personally attacking anyone who questions what has occurred, whether firefighter or private citizen. The citizens of Omaha will not support a union that continues to operate in the manner your union leaders have operated in the past 10 years.
It is critical that your membership replace these individuals with leaders of high moral character and integrity. Otherwise, things will only get worse for your members because the public will no longer stand for what has been happening in our city. Business and community leaders will sooner or later demand massive restructuring of the city’s relationship with your union and the fire department.
Now is the time for you to have the courage to stand up for those who demonstrate disciplined behavior, honesty, integrity, adherence to the rules, reward for true performance, awarding of promotions according to true accomplishment rather than favoritism, and mutual respect for both taxpayers and city leaders. Now is the time to set your union on a course of long-term sustainability and prosperity, in part by retaining legal counsel who won’t drag your members into court, anytime, anywhere, knowing they can, because you will just cough up the money to pay the legal bill.
The citizens of Omaha really do want to hold you in the highest of esteem, and I am confident that community respect will return to your members if you show the resolve needed to replace these leaders with new leaders who know how to build relationships and form alliances–not only with politicians, but with the greater business and taxpaying community.
I and the members of my board are willing to meet with any group of firefighters who would like to learn more about our motives and efforts regarding your labor organization and the city of Omaha. We truly believe the bickering and fighting has got to come to an end. It is time for men and women of character within your union to rise up and begin healing the wounds created by this reckless group of individuals who I believe have used you and your union to advance themselves at the cost of the entire union and at the expense of the City of Omaha.
A new era of leadership is needed and now is the time for your members to set a new course for Local 385 and we would welcome any dialogue that you felt would be fruitful for all concerned.
Sincerely,
David Nabity
Chairman and President
Omaha Alliance for the Private Sector
OmahaAlliance.com readers: Notice that the early retirement “epidemic” plagues unwary cities who do not pay attention to the well-constructed labor trap of agreeing to these early retirements for police and fire personnel. Unfortunately, many cities, like Omaha under recent regimes, fell for these “sweetheart deals” during negotiations. The net result of these early retirements is the cost of astronomic pensions COUPLED with ineffective departments depleted of experienced rank and file AND leadership. This double whammy is cripling many cities’ budgets as well as their overall security. Who is going to right this course? See below.
Pittsburgh Police are Facing Void of Seasoned Leaders
By Margaret Harding
Former Pittsburgh police Sgt. Leo O’Neill is on the leading edge of what may be a wave of veteran cops — as well as some newcomers — leaving the city in large part for a brighter financial future.
O’Neill, who departed at age 47 in 2010 for the Allegheny County Sheriff’s Office after 22 years with the city, makes about $77,000 a year as a lieutenant, is accruing pension benefits with the county and plans to start cashing city pension checks when he turns 50 next year.
“When the opportunity presented itself, I couldn’t pass it up,” O’Neill said. “Once you hit your time on the job (and become fully vested in the pension), there’s not many incentives to stick around after that.”
With at least half of the city force becoming eligible to retire by 2013, and younger officers leaving, there’s concern among the police union and top brass about what the departures could do to the department in the next few years.
“Essentially, you’re going to have this mass retirement, and you’re not going to have enough veterans to replace them,” said Dan O’Hara, president of the Fraternal Order of Police Fort Pitt Lodge No. 1. “If you continue to lose the newer people, they never become the seasoned veterans. It’s going to be a young, inexperienced department if it continues on this path.”
In part, because of a surge in hiring between 1993 and 1995, about 500 officers will be eligible to leave with fully vested pensions by 2015, O’Hara said. The city had 877 police officers at the end of the year, and Pittsburgh police estimated about 400 are eligible to retire this year.
“These are our best people,” O’Hara said. “They’re seasoned veterans, and they’re leaving, and what it comes down to is there is no benefit to stay once they can vest their pension.”
In 2008, just four city officers left for other employment, according to a city termination report. In 2009, the number was eight. Since 2010, 22 officers have departed for other jobs, including Steve Mitrisin, a military veteran who left after about three years of work and joined Collier police, where first-year officers start at a salary $14,000 a year higher than Pittsburgh officers.
“Everybody wants to make good money and have a good retirement coming,” Mitrisin said. “That was my biggest reason — looking for a better life for my family and myself.”
The issue of officers leaving after 20 years of service is something of an epidemic for larger American cities, said Maki Haberfeld, chairwoman of The Department of Law, Police Science and Criminal Justice Administration at John Jay College of Criminal Justice in New York.
“Truly, at the 20th year, this is when they should be shifted to leadership and management positions,” Haberfeld said. “And instead they leave — and various supervisor positions are open to people with less experience. … If you don’t have experienced leadership, it can cause a host of problems — discipline, integrity, effective deployment — all things that police officers build in their experience over the years.”
In Omaha, a change in pension benefits led to a “mass exodus” of officers between 2008 and 2010, said Samuel Walker, a professor emeritus at the University of Nebraska at Omaha who studies police issues. The result has been a department void of experienced leaders, he said.
“There is a pattern of officer misconduct, and that’s, in part, a result of lack of experienced senior leadership,” Walker said. “It can very much erode the quality of policing.”
O’Neill, whose father and brother were city police officers, said he was happy with his time on the force. He worked in narcotics for nearly 20 years and left in 2010 as a sergeant in Zone 6 when he had the chance to become a lieutenant in the sheriff’s office.
“There never seems to be a light at the end of the tunnel with the city,” O’Neill said. “That always seems like the sentiment.”
From his post in the courthouse, he sees many of his former colleagues when they come to court.
“A lot of guys in my time frame are all taking tests and trying to get out,” O’Neill said. “There’s a ton of people looking.”
Pittsburgh police will increase recruitment and “strategically plan to lessen the impact on the police force of people who are retiring,” Chief Nate Harper said in a statement released by spokeswoman Diane Richard.
“There will always be a concern as we seek to train and maintain the best officers,” the statement said. “However, we cannot stop a member of the bureau from making personal choices that may dictate a better living situation for that officer and his/her families.”
Pittsburgh police officers make $40,896 in their first year, according to 2012 figures. Fourth-year officers get $58,419.
First-year sheriff’s deputies make $30,582 and top out at $69,670 after five years. Lieutenants get about $77,000. Sheriff William P. Mullen said about 400 people took the test to become sheriff’s deputies in December, and he estimated about 75 were Pittsburgh police officers.
Eighty people have applied for positions with Ross police, which held a test for prospective officers on Saturday. Nine of the 14 officers Ross police have hired since 2008 have Pittsburgh police experience, Ross Detective Brian Kohlhepp said. Ross officers start at $53,297 and top out at $76,139 after five years.
Eight of the 24 people whom Allegheny County police hired since 2008 were former Pittsburgh police officers, Superintendent Charles Moffatt said. The county does not recruit city officers; the job interest is there, Moffatt said. Starting salary for a county officer is about $46,000, but officers reach the top pay level of $69,975 after just 18 months of service.
“They’re well-trained,” Moffatt said of city officers. “They have actual street experience, and they can more or less hit the ground running after a short field training experience with us.”
Collier Township pays first-year officers about $54,900. They reach the top pay of $73,236 after five years on patrol. Mitrisin, who worked out of the Zone 2 station in the Hill District for about three years, said he tested with Cranberry, Ross and Collier police before taking the job in Collier.
“A lot of guys will tell you the city is the best place to work,” Mitrisin said. “They love the action. It just depends on the person. I got enough of it in Iraq. I didn’t hate it, but when you sit back and say you can make a lot more money in the suburbs and not deal with what you’re dealing with there, why not?”
Mayor wants fingerprint time clocks at Cleveland firehouses
Move follows internal city audit that found some city firefighters collected pay for hours they didn’t work
By Dave Davis
The Plain Dealer
Expert Analysis
Clocking in: A sign of changing times
By Adam K. Thiel
While I think it is uncommon, although certainly not unheard of, for firefighters to formally clock in and clock out of the fire station, I wonder if this story is a sign of changing times (pun intended), or an isolated response to a local situation?
As you can see from the story, and perhaps contrary to what you might think, both labor and management agree on the proposal to install biometric timeclocks in Cleveland firehouses.
And why wouldn’t they?
Continue reading Clocking in: A sign of changing times |
CLEVELAND — Cleveland Mayor Frank Jackson is moving quickly to install time clocks that read fingerprints in all fire stations to ensure that firefighters are actually on the job on the days they are paid to be.
The move follows an internal city audit, released in mid-November, that found some city firefighters collected pay for hours they didn’t work, including one man who collected two years of pay while working a total of 11 days. Auditors also found that some firefighters failed to record sick time and violated the city’s bereavement policy.
Officials representing Cleveland Fire Fighters Local 93 said late Friday they support the city’s decision to install time clocks that read fingerprints.
“The city is still operating under archaic conditions,” said Joseph W. Diemert, a lawyer for the union. “To monitor — clock in and clock out — is something that the guys think is wonderful and a good thing to do.
“There are mix-ups and there are slip-ups,” Diemert added. “This is something that they could have done long before this and they don’t need union approval to do it.”
Jackson and Cleveland Finance Director Sharon Dumas met with Plain Dealer editors and reporters Friday to discuss the payroll abuses.
Dumas said the city is looking at a time clock system made by Kronos Inc. It’s expected to cost roughly $500,000 and could be installed by early next year, about the same time a second, more in-depth, audit of the Fire Department is out.
At the union, Diemert said firefighters are “100 percent” behind an audit, but would like to see it done by an outside group, such as state or federal officials. Diemert indicated that any problems that might have occurred were mistakes, not deliberate acts of wrongdoing, and he laid the problems squarely at the feet of City Hall, saying the administration’s mismanagement of the Fire Department was largely responsible.
“I’m disappointed that the mayor feels firefighters haven’t been team players,” he added.
Jackson acknowledged that fighting fires is a dangerous job, and that “some people do get hurt.” But he indicated that sick time, shift swaps and overtime had been abused.
The mayor was at times critical of firefighters as a group, saying they haven’t done enough to help the city through its budget shortfall after it lost $38 million in state funding. He added that the Fire Department busts its budget year after year, while other departments work with what they are given.
“How can I close up rec centers on Saturdays?” Jackson asked. “How can I do layoffs of police officers? How do I tell the lady who cleans our bathrooms… They’ve got a family, too.
“There’s no way in the world, with the problems that we have and the sacrifice that other employees have made, that I’m going to allow them to continue this behavior as if they don’t belong to this city,” he added. “That’s not going to happen.”
Jackson promised that those responsible for the abuses would be held accountable. He said administration officials review the Fire Department’s payroll data every two weeks, but have struggled to reform the system because union employees handle the scheduling and payroll in dozens of locations.
“It’s a controlled union shop,” said Jackson, noting that everyone except the top two officials are members.
Dumas said the Fire Department has already exhausted its overtime budget of $5.3 million with two pay periods to go. The department will end this year $1 million to $1.2 million over budget for overtime, she added.
Republished with permission from The Plain Dealer
LECLAIR vs. NABITY
and OMAHAALLIANCE.COM SETTLE LAWSUIT
December 2, 2011
By now, news outlets have released information about the settlement reached in the above-captioned lawsuit. Below are various statements either entered into by the parties or released from party representatives. As usual, opponents of Dave Nabity and the OmahaAlliance.com accuse private citizens, like Dave Nabity and our organization, of having an “agenda” and being anti-union. WE DO HAVE AN AGENDA – it is to seek reform of our local government and weed out waste, inefficiency, and corruption.
That any public sector union or its supporters can complain or sue or malign that purpose IS THE WHOLE POINT and the reason we seek reform. It is undemocratic to silence objectors, especially those who speak out against any misuse or abuse of power. The Alliance stands for accountability, responsibility, transparency, and the proper use of authority in local government. Please read the following and make up your own mind. We include the deposition of the Fire Chief for the public’s edification. Once you have read it, decide for yourself if his description of how your tax dollars are accounted for in the Fire Department is what you would expect to satisfy accurate payroll records.
Release from Dave Nabity:
Memo to Omaha Alliance Members Regarding Settlement of Defamation Lawsuit
(Omaha, NE) As many of you may know, last year the President of the Firefighters Union filed a lawsuit against me and the Omaha Alliance for the Private Sector (OAPS) after I spoke out against the practices that were exposed when State Auditor Mike Foley investigated the fire department. The main issue regarded the misuse of “detached duty” service and the concerns that a select group of firefighters were not following the labor contract and not properly keeping track of their union hours. On November 29th, 2011, both parties came to an agreement to settle the lawsuit and not proceed to trial. OAPS agreed to do so for he following reasons:
- The OAPS board felt that even if we exposed all of the misdeeds that we believe are happening within the OFD, the Mayor has already shown that he is unwilling to fire anyone who is violating the labor contract or mismanaging the epartment. So, the time, energy, effort and cost would gain virtually nothing.
- Our efforts and money would be better spent on working towards influencing the City Council to make sure the labor contract that is currently being negotiated is more comparable with what other cities have offered their firefighters.
- We can also work to empower the City Council to demand strict compliance to the labor agreement, so that nobody, including the Chief, OFD employees, or union officers, can take liberties that needlessly cost the taxpayers.
- On an individual note, I and many of my peers, believe that the best course of action is to spend our time and financial resources on finding “reform- minded” candidates to run for office in 2013 to replace those who have been willing to upport these horribly expensive labor contracts and department heads who run “fast and furious” with taxpayer resources.
Much of the decision to “settle” the lawsuit was driven by our insurance company. The law explicitly allows liability insurers to settle claims or lawsuits as the insurer “deems expedient.” Thus, if the insurer can pay less to settle a claim than it would cost in attorney fees to defend the case, the insurer can settle the lawsuit. Under no circumstance was I willing to step back from my initial statement and assessment of the situation. Today, I continue to believe that the taxpayers were being taken advantage of by the officers of the fire department and the union. When LeClair’s counsel indicated a willingness to settle the lawsuit without a retraction on my part, I instructed my attorney to proceed with settlement negotiations. We had the option of terminating our insurance coverage and proceeding to trial at our own expense, but it seemed foolish to spend between $25,000 and $50,000 on a trial and possible appeal when the facts of the case were not in dispute. The depositions of both LeClair and McDonnell clearly revealed the games that we believe they were playing to get around the labor contract. Just as I had been told, LeClair worked at the Union Hall on a daily basis and worked almost exclusively on union matters. Through an absurd reading of the labor contract, McDonnell did not require LeClair to account for activities that I believe any reasonable person would understand to be union activities. No trial was needed.
On the one hand, I was looking forward to the trial because we had a great group of witnesses that I am confident would have told the truth and exposed (in my opinion) how a few individuals have so taken advantage of the city that taxpayers have lost in excess of $10,000,000 over the last three years. On the other hand, even if we prove all of this, what changes? The mayor had his opportunity to show he was going to hold people accountable after the Auditor’s Report, and he didn’t. Therefore, the best strategy is to focus our time, effort and money on the future to make sure that Omaha is finally rid of individuals who take advantage of the city, waste significant amounts of money and cover for each other when a light begins to shine on their
activities.
We will be posting on our website the final documents from the suit. You will see, I made no apology and I strongly believe hat I stated was accurate. We will also be posting the actual depositions from both union President Steve Le Clair and Chief Mike McDonnell. You will be shocked at the way they have answered the questions and amazed at how little they can recall in one area and how much they remember of another. These depositions clearly show to me (in my opinion) that they took huge liberties with the labor contacts that no mayor or city council should allow and there should be significant consequences for the Chief for allowing this game to be played. The department has run over budget in the past by $5,000,000 a year and they have done very foolish things that have significantly cost the taxpayers.
It is time to move on from this battle and look toward the most important one, the 2013 elections.
Feel free to contact me if you have any questions on these matters and thanks so much for being a part of our organization and roviding us support as we have worked to make Omaha a better managed city.
Sincerely,
David Nabity
Release from Attorney for Dave Nabity and OmahaAlliance.com:
Yesterday, David Nabity and Omaha Alliance for the Private Sector, Inc. settled their lawsuit with Steve LeClair. Attached are the relevant documents.
David Nabity did not apologize for the statements he made on KFAB and he did not retract them. There has been no admission of liability or damages, whatsoever. Neither David Nabity nor Omaha Alliance will pay a single dime to Steve LeClair.
Omaha Alliance’s liability insurer, Great American Insurance Company, made a business decision that it was in the insurance company’s best interest to pay the minimal sum of $9,000.00 as opposed to paying legal fees for a weeklong trial. Right before trial, Steve LeClair was willing to settle his lawsuit for a fraction of what he had paid in attorney’s fees over the last year but he no longer demanded an apology or retraction or public vindication. Up to that point, the insurance company could not compel
Nabity or Omaha Alliance to apologize or retract the statement and would have paid for trial. Until Nebraska enacts some type of loser-pay lawsuit reform, plaintiffs’ attorneys can continue to collect from insurance companies without having to set foot in court and individuals will continue to have money paid on their behalf without having an opportunity to contest liability.
Regards,
Joshua W. Weir
Dornan, Lustgarten & Troia, PC, LLO.
1403 Farnam Street, Suite 232
Omaha, NE 68102
Ph: (402) 884-7044
Fax: (402) 884-7045
Other statements, releases, and depositions on the matter:
Nabity Joint stipulation for dismissal with prejudice (2).pdf
Release and Settlement Agreement.pdf
Jointstatement.pdf
Final McDonnell Deposition.pdf
Affidavit of McDonnell
LeClairDeposition.pdf
Be Careful What You Ask For
By Tristan Bonn
Maybe this happens to you: in the morning, I pick up the paper to read and on one side of the page some state or local agency is asking for money – to improve security, or hire more workers, or build a new building or what have you. On the opposite column, that same agency has just given away some enormous amount of money to its employees in benefits I have never even heard of, let alone ever received myself. Okay, maybe that is a slight exaggeration, but not by much! I know this is beginning to sound like a broken record, but just look at the facts or at the very least, look at what the paper is reporting. Here are three more examples of gross waste and mismanagement.
The Millard School District received and is still receiving quite a bit of negative feedback and consternation over a
requested $140.8 million bond they say they need to improve security and put astro-turf on their football fields, among other items. Ballots have gone out and the vote is scheduled in the next days. In Sunday’s Omaha World-Herald, we learned that Millard has or will pay out $24 million in bonuses to teachers who retired over the past 4 years. One teacher will retire at 55 to a nice pension and a quarter a million dollar bonus!! The District justifies this expense as needed to retain good teachers. “School Buyouts Become Bonuses” http://www.omaha.com/article/20111106/NEWS01/711069911
I don’t get it – I thought districts and teachers’ unions told us it is not their fault schools are failing – it is the
parents’ fault. So, why do we need to retain teachers by paying them a bonus? And, isn’t it their job to successfully teach kids – I mean isn’t that what their regular pay is for? How about using the retirement bonuses for school security and astro-turf and give us taxpayers a break?
And, what about the Learning Community? Why is there a tax levy anyway? If you add the amount of retirement
“bonus” pay given out by 8 of the Learning Community’s districts, the total is $65.5 million in retirement bonuses! Then, you throw in superintendent pay – starting with John Mackiel’s $400,000 (can’t wait to see his “bonus”) – and that’s another $2.5 or so and that’s ALMOST 70 MILLION DOLLARS for retirement bonuses for schoolteachers in Omaha, Nebraska – touted as an inexpensive place to live. Wow. Maybe we should have an “Occupy the Learning Community” protest and sit in. “Retirement Buyouts” http://www.omaha.com/article/20111106/NEWS01/711069887
But, the school districts are not alone. The beleaguered Department of Health and Human Services is another reliable actor in the continuing bilking of taxpayers in this state. Just as we are still reeling from the new heinous patient abuse charges that date back to 1974!!, we learn that HHS did not protect itself (meaning taxpayers) in the event it could not perform under the terms of a contract with the private provider Mosaic. While removing patients from Beatrice is long overdue, HHS did not vet its client list to see if there were enough patients to fill the contract beds it bargained for. As a result, HHS is gushing even more taxpayer money – $1.3M since April 2010 for empty beds, not to mention the $25M per year lost while Medicaid payments were withheld pending non-compliance. As for the empty beds, the HHS director can only offer that they will “fill eventually.” “State Pays as Beds Stay Empty’” http://www.omaha.com/article/20111030/NEWS01/710309961
And we cannot overlook the Omaha Police Department, who would like a $50M new police headquarters. I can’t blame them for asking for a new building – they need one – the one they are in is horrible and asbestos filled. They also need a real training budget, a new fleet of vehicles, another hundred officers and some serious technology upgrades, as well. But, they cannot get any of it. Why not? No money. “4 Options, No Funds for HQ” http://www.omaha.com/article/20111107/NEWS01/711079889
But, before you feel too sorry for the police department, remember this is the same department, through their union, that negotiated and took retirements at 46 years of age, spiked their overtime, vacation pay, and got, in some cases over a $100,000 in “unused sick pay” – was that another retirement bonus? So, OPD got the money they asked for, they just put it in their own pockets instead of into the department.
The saddest thing about all of this is, not the poor employees, not the dilapidation of buildings, not the enormous injustice to taxpayers, but the people who were supposed to be served by those dollars: the disabled at Beatrice, the kids in our schools, the victims of crimes. So, the next time you go asking for more money, remember who it is really for.
While you are at it – check out this editorial by Ross Douthart, “Political Fights Weaken Middle Class,” Omaha World Herald, 11/9/2011: http://www.omaha.com/article/20111109/NEWS0802/711099954/-1#ross-douthat-political-fights-weaken-middle-class
The Time for Change Is Now
By Tristan Bonn
Even if you are not a “watchdog,” in fact, if you are just “watching,” the recent local headlines about state and local governmental agencies is, well, just appalling. Glance at most any news report in the past six weeks or so and you would discover the following:
- After years of lost federal funding and a federal consent decree – the Beatrice State Developmental Center is investigating new allegations of patient abuse, “Bruises Spur Beatrice Center Probe” OWH 9/9/11; and “Beatrice Center Staffers Accused of Abuse,” wherein, Jodi Fenner, director of the Division of Developmental Disabilities for HHS “described the alleged abuse as systematic and borderline sadistic,” OWH 10/6/11;
- HHS may have to find yet another new director to usher it through a failing privatization effort that was attempted to fix a broken state run system, ”Child-Welfare Benchmarks Sought,” wherein, Carol Stitt, director of the Nebraska Foster Care Review Board, “said the auditor’s report was another illustration of the ‘dysfunction’ in the [HHS] reform effort,” OWH 9/11/11;
- OPS, the largest school district in the state, received the worst test scores in 18 years, “Put Academics Above Board at OPS” OWH Editorial 9/25/11; and its controversial and highly-paid superintendent is retiring, “National Search for Mackiel Replacement” OWH 8/17/11; a freshman school board member asked to see an OPS organizational chart and was, well, gleefully refused by the school board president, “OPS Rift: Dispute Over Control” OWH 9/18/11;
- The public learned that Firehouse 56 was described as a “party house” during a 2003 investigation where 4 firefighters confessed to misconduct, which was never disclosed to the public, “Firehouse Called Party House” OWH 9/10/11;
- The Learning Community’s shared levies have been ruled unlawful, “Learning Community Seeks Stay” OWH 9/27/11; parents are incensed about a “truancy” program, which has morphed into an invasive absenteeism check, “Parents Chafe at Truancy Oversight” OWH 10/2/11;
- OPD faces excessive force claims and questions about its lack of training and supervision, “UNO Expert: Officer Should be Fired” OWH 8/31/11;
- The City, forever financially strapped, paid out well over a half million dollars “unused sick pay” to five high ranking police and fire officers per another excessive union contract term that has taxpayers fuming, “Review City Pay Perks” OWH 9/25/11.
Sadly, this is a mere fraction of the bad news just in the past FEW WEEKS! If we can agree with the many experts cited in these accounts that these systems are broken, and I think most people would, then can’t we move quickly to find real solutions? I think it is fair to say that the people working in these systems have fundamentally failed to achieve their objectives. Either, we have a completely incompetent workforce, and most would agree we do not, OR we have a serious structural problem.
What we hear from most of these agencies is that they do not have enough money to do their job. But, the truth is – there is NO MORE money – taxpayers in this state are soaked. They pay so much in taxes and they get so little in services. While nearly every one of these agencies is operated by a union workforce, they almost never have a solution to help fix their troubled departments. Yet, every new contract negotiation spirals up the union demanded employee costs to run these failing systems! With 60 – 90% of general fund monies going to personnel costs alone, there is no money to actually operate these systems – forget about reforming them. In fact, increasingly, taxpayers are eyeing the pay, pensions, and benefits of public sector employees – many of which far exceed their own – and are furious at government workers’ constant demands.
To add insult to injury, these workers are exempted out of the federal pension plan: Social Security. Their retirements are guaranteed unwittingly by taxpayers. So, just when Social Security is about to go bankrupt and all of us will be without or with much less, as taxpayers – we are STILL on the hook for public sector pensions. How can that be? “Well, we have a contract,” public sector workers say. But, what about the very first contract – the mother of all contracts – the promise of fair-dealing between a government and its citizens. Why doesn’t that agreement trump all other agreements?
Still, most union leaders, and many members, just don’t seem to think that these failures or problems are their problem. Public sector unions, despite all the warnings opposing their creation, even from FDR himself, figure they won the fight to unionize long ago. They don’t have to worry about where the money comes from. Not enough? Too bad. And, THAT IS JUST THE WAY IT IS. Unions have painstakingly created a byzantine box, which no taxpayer can now escape. For crying out loud, the Omaha Fire Department is arguing that legislative oversight of the contract bargaining process, in short, DEMOCRACY, is “bad faith,” “Fire Union Sues City” KETV 9/11/11. Union contracts trump the Constitution? This is just plain nonsense.
So, while it is not union-bashing per se that most people espouse, it is union structures, contracts, and actions in fact that have so many taxpayers so enraged. Look, unions could make many, many concessions that would help cities and taxpayers make it through these tough times, and perhaps allow unions to survive, but they just won’t. The “concessions” they offer are so minute in the grand scheme of things that it is impossible to believe they want to work anything out with taxpayers – their only source of revenue. So, what choices are taxpayers left? Well . . . here are some suggestions:
- Start a petition to put an end to collective bargaining on the state ballot. This would cost $1 -2 million and would be opposed by NSEA and all other unions, a scenario like Wisconsin;
- End defined benefits and change to defined contributions. Well, Omaha should have done that back in 1984, when everyone else did, because we don’t have the money now to pay off the current obligation;
- Try the “new” CIR and bargain “incrementally.” Again, this would take YEARS to realize any significant changes;
- Have the City of Omaha file for bankruptcy and modify or discharge union contracts and pensions. Expensive,
complicated, and lots of unintended consequences;
- Get rid of the CIR altogether and force Omaha to deal with its unions, after all, Omaha is the problem, not the rest of the state. This would allow the City to make a last best offer and bargaining would halt. If anyone – public or union – didn’t like it, then change would occur at the ballot box, not the CIR.
The only possible choice worth pursuing, in my estimation, is the last one – abandon the CIR. It doesn’t work and it cannot be fixed (like the Beatrice Center and OPS, it is simply time to admit defeat and rid this community and state of failing systems). In this scenario, unions retain their right to bargain, but a jurisdiction, like Omaha, is not forced to compete with out of state jurisdictions that don’t reflect the standards of this community. Also, this approach will force more local control and more participation in elections, rather than let a tribunal decide what our elected officials should. Citizens need to actively and relentlessly contact their state legislators to make this happen. We must act now or be doomed to this slow economic death at the hands of out-of-control public sector unions. Many states have made these kinds of dramatic changes already. While Wisconsin has been the most contentious, Oklahoma and Tennessee have legislatively prohibited collective bargaining for public sector unions, Indiana has by executive order and Ohio will vote by ballot soon, “Labor Unions Adjust to New Reality Under Obama” OWH 9/4/11.
Speaking of other communities, Omaha, and every other community, is in competition for jobs, new people, and new businesses. While Omaha’s steady and surefooted economy has helped this community weather this recession better than many other communities, we still have some serious deficiencies that were commented on by recent site locators and journalists visiting our city. Our infrastructure, roads, sewers, etc. are dated. Stick around long enough and you will find many city services wanting, OPS is a failed school system, and our police and fire union contracts are exorbitant. All of these problems are exacerbated or created by the constant budget drain of filling outrageous union contract demands. None of these problems will change on their own – we must take action.
The most recent Census Reports also confirm these trends, “Shift to Outskirts Surprises Cities,” OWH 3/2/11. People are moving to where the jobs are – away from top-heavy, expensive labor contract cities and states and to right-to-work cities and states. And, why wouldn’t they? Even many of our police and fire personnel live outside of Omaha to escape the heavy burden their contracts cost those of us who stay. Let’s stop pushing this problem down the road. Let’s act now to fix this. The Alliance is forming taxpayer, business owners, and concerned citizen action groups and committees to cause these changes to happen now – later is just too late. Please join us.
October 5, 2011
OPS Administration in need of reform
Jordan Cash
OPS Administration in need of reform
By Jordan Cash
The rift within the Omaha School Board over decision making, along with a series of fiscal and administrative blunders and consistently low test scores have made it abundantly clear that the Omaha Public Schools system is not working as it should be.
At its core, the issue is the inability of the school board to direct the policy for the school district and the incredible amount of control exercised by Superintendent John Mackiel, to the point where the school board almost appears to have become little more than a rubber stamp for the administration. That an elected official on the school board cannot even receive an organizational chart of the district is outrageous (this story first appeared in the Omaha World Herald and may be found here).[1] Arguments that creating such a chart would take too much staff time are also only add insult to injury. As an organization overseeing around 46,000 children with more than 7,000 employees,[2] it is not unreasonable to expect details about how the district is organized to be available to teachers, parents and the taxpayers funding the system.
The school board recently spent $131,000 of federal stimulus money on controversial cultural proficiency books, of which the Platte Institute criticized last month (a pdf of the article may be found here).[3] In addition, the school board set aside $200,000 to be used in the search for a new superintendent when Mackiel retires next year, even though one 2006 study shows that superintendent searches for the top 65 urban areas-of which Omaha is 49th-only cost between $40,000 and $100,000.[4] School boards in Bellevue and Lincoln in their recent searches for new superintendents spent a combined total of $47,926, which included the hiring of consultants and advertisers. (The combined student bodies of the Bellevue and Lincoln school districts are only slightly smaller than that of Omaha).[5]
Currently, Mackiel’s contract allows the superintendent far more latitude in determining policy than is given to most superintendents, particularly since Mackiel’s contract contains a clause restricting the School Board to act only on policies that are set elsewhere.[6] This clause of the contract has since become board policy, actively giving the superintendent more authority over the direction of the school district. In addition, Mackiel’s salary and benefits are collectively far higher than any other superintendent in the state, reaching over $413,000.[7] This amount is more than that of superintendents in other cities of comparative size to Omaha; the superintendents for Raleigh, North Carolina and Colorado Springs, Colorado-cities close to Omaha in population[8]-do not have salaries and benefits as high as Mackiel.[9] Indeed, Mackiel’s salary is high enough to raise concerns from Nebraska Governor Dave Heineman.[10]
That the board has little room for dissent is another issue which suggests there may need to be changes on the board. The purpose of a multiple person board is to facilitate discussion and debate, dissent shows the students and parents of OPS that the board is considering multiple options.
Having unanimity most of the time creates the sense that the board is caught in some cycle of constant groupthink, is a rubber stamp for the administration, or both. Since the 2010 elections, when Justin Wayne, Barbara Velazquez, and Marian Fey joined the board, there have been 217 votes, and while Wayne dissented or abstained the most-a combined fifty-five times-the other eleven board members dissented or abstained a combined total of thirteen times.[11] When one does not consider Wayne’s dissents or include abstentions as veritable “no” votes, the OPS Board has voted unanimously ninety-eight percent of the time during the past year.
Most problematic is that Omaha Public Schools test scores are horrendous; in reading, language, and math, OPS students posted the worst scores in 18 years this past year.[12]
An OPS reform suggestion proposed by State Sen. Scott Lautenbaugh of Omaha would reduce the board to five members and limit them to two terms, with each member paid $20,000 a year. This idea would make the OPS Board the only paid school board in the state.[13] This idea has some merit. OPS has the largest school board in the state, Lincoln only has seven school board members, while Grand Island has nine and Bellevue has six. In perspective with cities of similar size, Colorado Springs only has seven school board members and Raleigh-whose school board also oversees the entirety of Wake County, North Carolina-only has nine members.[14] Term limits would keep ideas fresh and prevent individuals from turning membership into a lifelong post. Only seven of the current members have entered the board within the last ten years. The board’s president, Sandra Jensen, has had a continuous presence on the board for over thirty years.[15]
However, there are also concerns with Lautenbaugh’s proposal. A five member board may be too small to truly facilitate school board functions without being too heavily reliant on the administration. A seven-member board with two members elected by the school district at large would probably be a better fit. Also, making the OPS board the only paid board in Nebraska could be a misuse of taxpayer money, since the superintendent is already overpaid there is no reason to also pay school board members.
Other reform ideas would go beyond simple administrative reform and board restructuring. Ideas include OPS giving up some of its schools to other districts; keeping the OPS boundaries and having high schools and their complement elementary and middle schools act as mini-districts and compete to promote best practices; or breaking OPS into three districts as was proposed by State Sen. Ernie Chambers in 2006.[16]
Another idea that builds upon the concept of high schools and their complimentary schools becoming competitive is one being tried in Falcon, Colorado, which would turn each high school into its own zone, with the principal acting as an assistant superintendent and overseeing those zones. The superintendent job is then replaced with a chief executive officer to oversee academic issues across the zones, while other issues normally overseen by a superintendent would be passed to the new assistant superintendents overseeing the smaller zones. This idea is a part of Colorado’s Innovation Schools Act, which allows districts to gain waivers from state laws and collective bargaining arrangements.[17]
With falling test scores, over-spending, and a school board that seems to be operating at the direction of the superintendent, there is no doubt that OPS needs to make some changes. The elected board members must respect taxpayer dollars and insure Omaha’s students receive an adequate education.
[1] Jeffrey Robb and Jonathon Braden, “Dispute over control is at the heart of board rift,” in Omaha World Herald, September 18, 2011. Accessed September 19, 2011: http://www.omaha.com/article/20110918/NEWS01/709189859/12.
[2] Student and Employee numbers from the “About OPS” Webpage, http://www.ops.org/district/HOME/AboutOPS/tabid/196/Default.aspx, accessed September 28, 2011.
[3] The Platte Institute released an article reviewing the content of the cultural proficiency book, entitled “OPS ‘Cultural Proficiency’ Book Summary,” that article may be found at http://www.platteinstitute.org/research/page/platte-chat-archive.
[4] Joe Jordan, “Exclusive: OPS Sets Aside Big Money for Big Search,” in Nebraska Watchdog, September 26, 2011. Accessed September 28, 2011: http://nebraska.watchdog.org/16903/ops-sets-aside-big-money-for-big-search/.
[5] Ibid.
[6] Contract between Board of Education of Douglas County School District 0001 and John J. Mackiel, effective September 1, 2010. Section 12, Administration. Accessed September 28, 2011: http://dataomaha.com/superintendent-contracts/john-mackiel.
[7] Metro-area superintendent contracts. Accessed September 28, 2011: http://dataomaha.com/superintendent-contracts.
[8] Top 50 Cities in the U.S. by Population and Rank, accessed September 29, 2011: http://www.infoplease.com/ipa/A0763098.html.
[9] Carol McGraw, “Top educators’ pay scrutinized when budgets are slashed,” in Colorado Springs Gazette, April 10, 2011. Colorado Springs D-11, Nicholas Gledich is the superintendent for Colorado Springs in the list below the article. Accessed September 29, 2011: http://www.gazette.com/articles/slashed-115973-paid-budgets.html; Sarah Plummer, “Raleigh BOE renews superintendent’s contract,” in The Register-Herald, April 29, 2011. Accessed September 29, 2011: http://www.register-herald.com/local/x976268603/Raleigh-BOE-renews-superintendent-s-contract.
[10] Jonathon Braden, “Escalating salaries alarm governor,” in Omaha World Herald, April 3, 2011. Accessed September 28, 2011: http://www.omaha.com/article/20110403/NEWS01/704039908.
[11] Robb and Braden, “Dispute over control” Omaha World Herald, September 18, 2011.
[12] Paul Goodsell and Jonathon Braden, “8th-grade scores worst in 18 years,” in Omaha World Herald, August 23, 2011. Accessed September 29, 2011: http://omaha.com/article/20110822/NEWS01/708229868/542.
[13] Jeffrey Robb, “Bill would trim OPS board,” in Omaha World Herald September 21, 2011. Accessed September 29, 2011: http://www.omaha.com/article/20110921/NEWS01/709219871.
[14] Links to the websites with school board member listings:
Lincoln-http://www.lps.org/about/board/;
Grand Island-http://www.gips.org/about-gips/board-of-education/board-members;
Bellevue-http://www.bellevuepublicschools.org/bps/index.cfm?action=306&id=160&tab=1;
Colorado Springs-http://www.d11.org/boe/contact.htm;
Raleigh/Wake County- http://www.wcpss.net/Board/boeinfo.html.
[15] Robb and Braden, Omaha world Herald, September 18, 2011. Jensen was first elected in 1978, she then left the board but was re-elected to it in 1980.
[16] OmahaAlliance.com Board, “Can’t Wait for Superman,” September 12, 2011. Accessed September 29, 2011: http://omahalliance.com/2011/09/cant-wait-for-superman/.
[17] Robert Gelchion and Nancy Mitchell, “Does a district need a superintendent?” February 7, 2011. Accessed September 29, 2011: http://www.ednewscolorado.org/2011/02/07/13155-does-a-district-need-a-superintendent.
Platte Institute for Economic Research
900 South 74th Plaza, Suite 400, Omaha, NE 68114
Phone: 402.452.3737 | Fax: 402.452.3676
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It should be coming increasingly clear by now that public sector employee unions have and believe their interests
exceed taxpayers’. This agonizing recession, where hard-working middle class people are beaten down by
corporate cronyism and union welfare, has laid bare the greed and excesses of public employee unions.
Their salaries, benefits, pensions, working hours, days off, vacations, and more far exceed most every
private sector persons’ compensation that I know. Here, in this article, is yet another example of how
they get their way. They make the taxpayer pay for their union work!! That is crazy. It is deliberate.
It is widespread. And, it must stop. The Alliance fought against this provision in our local fire contract
for exactly these reasons. Read below.
Goldwater
Institute Special Investigation
September
21, 2011
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Money for nothing: Taxpayers foot the bill for government union work
by
Mark
Flatten
Phoenix taxpayers spend millions of dollars to pay full salary and benefits for city
employees to work exclusively for labor unions.
An investigation uncovered that collective bargaining agreements with seven
labor organizations require the city to pay union officers and provide
members with thousands of additional hours to conduct union business
instead of doing their government jobs.
The total cost to Phoenix taxpayers is about $3.7 million per year, based on payroll records supplied
by the city. In all, more than 73,000 hours of annual release time for city
officials to conduct union business at taxpayers’ expense are permitted in
the agreements. And it’s not just Phoenix: Similar agreements nationwide
cost hundreds of millions of dollars, by some estimates.
The top officials in all of the unions have regular jobs with the city. But
buried in the labor agreements are a series of provisions for those employees
to be released from their regular duties to perform union work.
For top officers, the typical amount of annual release time is 2,080 hours, a
full year of work based on 52 weeks at 40 hours each. They continue to draw
full pay and benefits, just as if they were showing up for their regular
jobs. But they are released from their regular duties to conduct undefined
union business.
Union officials say the time is a good investment that leads to a more productive
workforce. Critics say it amounts to an illegal gift of taxpayer money.
One city council member called it “shocking,”
adding that “taxpayers should not be funding union activities. It should
all come out of union dues.”
To read the rest of this special investigation, click
here.
To read recommendations for ending this practice, click
here.
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Get Involved
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Mark Flatten
(602)
462-5000 x223
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CAN’T WAIT FOR SUPERMAN
By the
OmahaAlliance.com Board
Recently, John Mackiel announced his retirement as OPS superintendent. A week later, OPS released its worst test
scores in 18 years. Coincidence? Who knows? Whether you loved or hated Mackiel, no Superman is going to fix OPS no matter who you hire next, no matter how long you wait, and no matter how often you blame poverty (you know, bad schools increase the rate of poverty, exacerbating a downward spiral). After Mackiel’s ten years on the job, expensive bond issues, new construction, the end of busing, a new Learning Community, and more, OPS is still too big, too top heavy, and has simply not succeeded in its mission to educate our children. OPS is a failed school district: that’s a fact – and everybody knows it.
If a business faced this kind of performance, it would be time to close or reorganize, reassess your strategic plan, and make bold changes. That’s what OPS should do – break apart and reorganize. Here are a couple of suggestions worth considering: 1) Include the other area school districts by giving them one OPS high school and a complement of junior high and elementary schools. Westside could take Benson, Bennington – Northwest, Bellevue – Bryon, Elkhorn – Burke, leaving North, South, and Central as the new OPS; or, 2) Keep OPS’ boundaries, but make each of the seven high schools a mini-district and let those districts compete, better yet – give students vouchers to use within this reconstructed district; or, 3) Use a Senator Chambers’- like plan breaking OPS into three parts; or, 4) Shop around the country for a “best practice,” like an Arizona Plan that allows parents and students more choice and more types of schools to choose from. Whatever works, because what we are doing now does not!
A change in superintendent is an opportunity for OPS to consider much bigger structural improvements and reassess its vision. The School Board, Learning Community, and legislature should use this opportunity to act, be prepared with a fully vetted restructuring plan BEFORE the legislative session opens so that any changes can be made in advance of any new hiring and another school year begins. We need a strong, well-educated workforce that matches the incredibly vibrant and productive Omaha business community’s needs. We cannot afford to waste another ten years – another half generation of Omaha school children ground up as the grist in the OPS school mill.
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