Update: This story in the Connecticut Post is receiving a lot of chatter today. A court complaint was filed against Bass Pro Shops, the company introduced on Sunday as a key piece of the Steelpointe Harbor redevelopment on the East Side. A federal judge dismissed the complaint. What’s all the hullabaloo? The bigger the company the more prone to these types of complaints. The Post overplayed the story. For more read the comments thread.
Bridgeport resident David Walker, the former Comptroller General of the United States, has issued his latest financial report on Bridgeport and the State of Connecticut claiming “Connecticut resembles the Greece of the U.S. from a state financial perspective.” Walker has made Bridgeport a pet fiscal project, after purchasing his Black Rock home from ex Congressman Chris Shays, under his national non-profit Comeback America Initiative. Walker offers no apparent specific solutions to his critical outlook about the city and state, but here’s what he asserts:
The city of Bridgeport and the state of Connecticut are both in poor financial condition. They must restructure their finances in order to improve their competitive posture and avoid a future debt crisis. The numbers are clear and compelling. These two governmental entities need to achieve major transformational reforms soon. Their fiscal clocks are ticking and time is not working in their favor.
Walker’s news release:
Former Comptroller General David M. Walker and the Institute for Truth in Accounting Release “The Financial State of Connecticut” and “The Financial State of Bridgeport, CT” reports
According to data released in the “Financial State of Connecticut” report, Connecticut resembles the Greece of the U.S. from a state financial perspective.
BACKGROUND
The reports use financial results extracted from the official comprehensive annual financial reports filed by the respective governments for the fiscal year ending June 30, 2011. The burden per taxpayer figures are driven largely by unfunded pension and retiree healthcare benefits. Absent meaningful reforms these amounts will continue to increase over time, and once the new pension accounting standards by the Governmental Accounting Standards Board take effect, the unfunded pension amounts for both entities are likely to increase dramatically.
CONNECTICUT
Connecticut’s unfunded burden per taxpayer as of June 30, 2011 was $50,900, up from $49,000 in 2010. Connecticut is by far the worst of all 50 states in its unfunded burden per taxpayer.
According to the state’s audited financial statements, Connecticut’s unfunded retiree’s health benefits exceeded $29 billion as of June 30, 2011. Based on a subsequent actuarial report issued by the state’s outside actuarial firm, Segal Company, these unfunded obligations were reduced by about $5 billion in the latest round of bargaining and another $6 billion through changes in various assumptions. These new assumptions may or may not prove valid over time. In any event, the remaining approximate $18 billion in unfunded obligations are still too high, and much work remains to be done to make them reasonable, affordable and sustainable.
BRIDGEPORT
Bridgeport, Connecticut’s unfunded burden per taxpayer as of June 30, 2011 was $28,400, an increase from $27,100 in 2010. The city’s unfunded burden per taxpayer is worse than 46 of the 50 states, based on the Institute for Truth in Accounting’s latest “State of the States” report. Bridgeport’s unfunded retiree health benefits alone exceeded $900 million, and are four times the amount of its reported unfunded pension obligations. This may be the highest unfunded per person retiree health obligation in the world.
According to David M. Walker, former U.S. Comptroller General and founder and CEO of the Comeback America Initiative, “The city of Bridgeport and the state of Connecticut are both in poor financial condition. They must restructure their finances in order to improve their competitive posture and avoid a future debt crisis. The numbers are clear and compelling. These two governmental entities need to achieve major transformational reforms soon. Their fiscal clocks are ticking and time is not working in their favor.”
Mayor Bill Finch responds:
We have worked hard since I took office to reduce spending, cut department budgets, while delivering excellent service to our residents. Our fiscally responsible actions have earned us positive ratings from Fitch and Moody’s independent financial rating agencies. Mr. Walker, who served as Comptroller General under President George W. Bush while the federal government ran up historic debt figures, should understand that Bridgeport’s situation is not unique. He is right to point out that structural change is needed and that pension obligations at the federal, state and local level are unsustainable. However, our federal, state and local governments made a promise to their employees to provide these benefits and these benefits must negotiated through collective bargaining. At my direction, Bridgeport began structural reform of its employees benefits years ago, to address our rising healthcare costs drastically reducing the city’s cost of health benefits for both current and future employees. We will continue to collectively bargain in the best interests of the taxpayers tackling these issues, including the high cost of pensions, in these hard economic times. And, Bridgeport unlike many other municipalities is addressing its pension obligations head-on. In 2011, we worked with Governor Malloy, the State OPM and the State Legislature to develop a fiscally responsible and comprehensive approach to addressing the challenges of fully funding Pension Plan A.
More on the Comeback America Initiative here.
Mr. Walker also served under President Clinton.
Can anyone explain the economics of the Steelpointe deal? When will we see realized property tax revenues versus debt service?
Sugar-coated witch here–it will be years before we see any tax revenues from Steelpointe. Whatever income is generated from tenants has to go to pay off the debt service before we can put the $$$ into the general fund. Unless of course the powers-that-be decide the city can default on the debt service and use the income for what they want!
Finch is a joke. In every year and in 2011 he punted and postponed. He cut people who disagreed with him (still does–calling Officer Daniels), cut budgets to take people out at the knees he or his staff don’t like and cut funding to people or groups that might be a threat. All the while giving himself and all his buddies raises and making more hires. Check out the Mayor’s office budget–up every year. Ask JML. Can’t help but wonder whether the guy makes it up as he goes along or is just a flat-out liar. I’d guess he just makes it up–easier on the grey matter.
Are you calling Bill and out-and-out liar? Would that qualify him for outlier status?
Sadly, he is not an outlier or outliar, if you prefer.
I hear he loved 50 Shades of Grey not that it matters.
In order for the Council to approve the Interlocal Taxing District agreement last week there should have been an updated market study and revenue projections in prep for the issuance of the TIF bonds. If that info wasn’t available for the Council there will most definitely be that detail in the bond prospectus so the rating agencies can rate the TIF bonds. All this information has to be prepared for Wall Street to consider buying the bonds.
Thanks.
I always liked Gary U.S. Bonds! Latest fishmonger rumor is Bass Pros doesn’t like Black Fish!
Sadly it is not a rumor–easy to google for the current lawsuits.
One look at the past history of the City at what was done with pension funds over the years. Firefighters and police officers who were and still are in Pension Plan A had 8% of their weekly wages deducted from their pay every week and that money was NOT invested in anything but instead that money was placed into the City’s Treasury and that money drew no interest and the City took that money firefighters and police officers paid every week toward their retirement but City officials never spend a penny towards their pension. How dare this mayor or any mayor think of re-negotiating their pension. They put their lives on the line every day as they served the citizens of Bridgeport.
So basically Bridgeport was borrowing from Peter to pay Paul … or in this case the city’s administration and their minions. Uncontrollable pension and benefits, etc. from public union negotiations where the city’s representatives were grossly overmatched.
I’m Back. Bill Finch is in a state of denial. His boys Sherwood and Wood tell him everything’s okay and he believes it without question. He insults a man like David Walker when he should be begging Mr. Walker for his help. Then good ole Bill allows Paul Vallas to wreak havoc in the BOE, laying off good people and violating virtually every union contract because he doesn’t believe in unions. Really, Mr. Finch? Why don’t you explain that one to us?
David Walker is the “Major Leagues.” Bill Finch and his minions are barely “Single A” level.
David Walker cannot separate himself from massive debt. His current boss was the original leveraged-buyout specialist who served under President Nixon and his former boss. Uncle Sam is $15 trillion in debt after producing a 601% inflation rate over the last 45 years.
David Walker is marinating in massive debt.
Rumor Mill: When it comes to DEBT, Spartans in Bridgeport have declared David Walker a Greek Hypocrite.
ps–Bob has been demoted to Tidewater.
You probably don’t know where Tidewater is …
Tidewater is the lowest minor league in baseball.
In colonial times, tidewater is the last place ships could go before they scraped bottom–it’s where towns were started.
I guess you never heard of the single-A Alaska League …
Tidewater is an area in Virginia. And the Tidewater Tides were, for years, the AAA affiliate of the NY Mets.
Tidewater is for minor leaguers but I’m a self-styled expert on gold, Bridgeport real estate, growth without debt, Black Rock and the Vietnam War.
Truth Mill: When it comes to DEBT, Bridgeport is a poster child. When it comes to economic revival Bridgeport has done nothing in 50 years to creating jobs or bring in substantial businesses. However, Bridgeport has managed to milk the taxpaying public, sent two high-ranking politicians to jail, and been a tome for party politics.
OK Local Eyes … talk to me about the 1954 Geneva Convention. If you’re an expert on growth without debt please enlighten us. And gold? How so?
I don’t know what planet Bill Finch lives on but it’s not this one. I have attended almost all of the budget hearings for the last two years and have not seen one department’s budget cut. I take that back, they did cut money from the PD overtime fund but that was a no-brainer and was a setup from the start.
Finch and McCarthy put together a budget committee of council people who had no clue what their responsibility was by being on this committee. They cut no department budgets and basically passed Sherwood/Finch budget intact.
Last year the taxpayers paid for salary and benefits for 45 jobs that were never filled, this year the number grew to 80-plus.
Finch and company paid minimal monies into the pension funds for the past few years. While Finch and company have kept the hiring of the nuts and bolts workers to a minimum he has spent money like a drunken sailor for appointed and political jobs. The latest example is former Economic development person Don Eversley. He was hired by some bullshit organization and the city is going to continue to pay him $120,000-plus. This means we are paying two salaries for one position. I asked a B & A member where the money was coming from and he stated he did not know.
Finch stated we got a positive rating from Fitch Moody. This is true but it was the lowest rating allowed on the positive side.
The people of Bridgeport have no idea how badly they are being screwed by this group of robber barons.
Reading the CT post this morning I read an article that really was a disappointment. The new tenant for steel point is being sued in federal court by the US EEOC for the following:
The suit, announced by the EEOC on Sept. 21, alleged that Bass Pro, since at least November 2005, has been denying qualified blacks and Hispanics retail positions such as cashier, sales associate, team leader, supervisor and manager.”
If this is true (and I mean if), this is not a good thing for Bridgeport.
Guess this means Bass Pro won’t be hiring any local folks. Talk about lawsuits; Andy, you should see all the outside attorneys in City Hall the past two weeks meeting with the unions and Labor Relations. The City should just hire a good labor attorney instead of paying outside counsel $250/hour. Where is this in the budget?
The money for outside attorneys is hidden in the budget and we have not found it yet. We cannot get a clear picture of the costs because Sherwood/Finch will not issue a 12th-month report. No one on the B & A is asking for the 12th-month report to date. The 12th-month report tells you the final dollar figures for the city budget.
I am going to beg to differ with the assertion BPS will not be hiring any local folks for a few reasons.
EEOC complaints and the usually inevitable subsequent CHRO complaint, quite honestly increase commensurate with the size of the company. On any given day UBS, Cablevision, ESPN, and any sizable organization is fielding EEOC and CHRO complaints as a NORMAL part of Human Resources Management of daily operations. It’s a sad but true reality. Not every candidate is a winner, and when folks become disgruntled regarding being passed over for a job, one of the first things they do is turn to Title VII to see if they can seek solace within the language. It happens all the time, and not only in Louisiana and Texas. Because these companies are not looking to put a facility in Bridgeport at a highly controversial site, is the reason why their complaints are not fodder for gossip in the Post.
Now let’s say I am a strategic planner for BPS, and I see the opportunity to stuff a sock in the mouths of the CHRO and squelch the noise in the court of public opinion, I see the upcoming venture at Steelpointe as an opportunity to do that. But I am thinking, well, putting a facility in an urban location is not enough. I am going to actively pursue hiring a melting-pot staff, and seize the opportunity to let my actions speak louder than the CHRO’s and the plaintiffs words. So call me crazy.
I agree with Denis OMalley and Zena Lu. A complaint was filed and it was dismissed. These kinds of claims occur much more often against larger entities. The story was overplayed.
What’s worse is Bill Finch says he was fully aware of these allegations but Bass Pro denies them and Finch believes Bass Pro and RCI Marine claims they didn’t know anything about the lawsuit.
These f’n liars can’t even get their stories straight.
The City didn’t do their due diligence or in this case it would be Mountain Dew diligence.
Bill got confused when they were talking about Bass being properly vetted. When they talked about bringing in the NASCAR driver he thought they had been Corvetted!
Andy Fardy and Grin Ripper, I am not surprised by Mayor Finch’s knowledge of the EEOC claims and the fact he doesn’t care about it. Finch doesn’t care about the facts and the facts are right in front of him. Mayor Finch has no problem if Bass did violate EEOC and what he is doing is setting the climate for other businesses and in fact his own administration that discrimination is not an issue. As long as he gets whatever he is trying to get or achieve, the hell with EEOC and discrimination.
Bill Finch knows the power of denial.
Ficarra said the company’s deals with the city and Steel Point developer Robert Christoph comply with local and federal non-discriminatory practices.
What the hell does this mean? We did not outright say it was OK for Bass Pro to discriminate???
Was the city so concerned they felt compelled to include language that says they will not discriminate?
For just a moment, some of the continually depressing, the sky is falling posters relented in light of the Bass Pro announcement.
Fortunately the news broke BPS had been investigated for discriminatory practices … thankfully we are now back to the familiar refrain of the world sucks, the City sucks, Finch sucks, Council people suck, etc.
According to the CT Post article today, the EEOC brought a suit against BPS. A Federal court dismissed the claim but they can refile at a later date with more information about the discrimination.
Speaking with a couple of lawyers I know, I was told when you commence an action, you go in with your best stuff because if you don’t and it gets dismissed, then the odds of success coming back at a later date really stack up.
Corporations, like cities, get sued all the time. Ask all these pundits how many times the City is up defending discrimination allegations in CHRO complaints.
This seems like much ado about nothing. But it does get the perpetual cranks back to their monotonous, depressing refrain and the race card hustlers like Martinez and Mackey back on track.
Only in Bridgeport! A Shakespearean-Psycho-Drama!!!
Did we all take our meds today?
I hope you are right but this suit involves three states and the thing that bothers me is it was filed by the Feds. Time will tell.
Imagine a planet where aluminum foil helmets are not just commonplace, they’re in vogue. That’s the planet where Andrew C Fardy lives!
My my my, another intelligent observation from R2D2.
I will let my spokesperson respond to ACF’s reply:
www .youtube.com/watch?v=2-BKjnAgNgY
JML and ACF make a good team. Here’s why: JML can spot a fire while ACF can determine who/what/why started it.
Murphy’s law: “Anything that can go wrong, will go wrong.”
Seems like Bridgeport needs to find a way to relocate Murphy once and for all. Reading today’s article about BPS was surreal.
As for Mr. Walker, there are now some pretty bright finance types formally reviewing the Board of Ed budget and expenses all year long. That is a very good start. Without a Board of Finance (which the Charter Revision Commission didn’t recommend), having volunteers with finance background helping the Board of Ed is a good thing. But it isn’t enough. Same should happen with the City budget and the pension issues. Dueling press releases isn’t the answer.
Murphy’s Law continues … “things may be getting worse, but at a slower rate.”
“I hope you are right but this suit involves three states and the thing that bothers me is it was filed by the Feds. Time will tell.”
The EEOC filed the case … The Federal Court dismissed it without prejudice.
In my opinion, at this stage the Equal Employment Opportunity Commission and the NLRB (Nat’l Labor Relations Board) are just self-serving hacks and this Bass suit is another example.
This is the Federal equivalent of lawyers who advertise on buses for slip & fall BS cases.
As an example … Remember the NLRB sued Boeing over setting up a plant in S. Carolina because it was a Right to Work state.
Denis OMalley, keep on drinking the Finch administration Kool-Aid. You wrote, “But it does get the perpetual cranks back to their monotonous, depressing refrain and the race card hustlers like Martinez and Mackey back on track.” Hey, I call it like I see it, no matter whose toes I step on. I questioned Lennie about the pictures of the event Sunday where I said it was funny not seeing any people of color in any of the pictures. Now when Finch wants to do his dog and pony show with blacks he just makes a few calls to some black ministers and he gets two busloads of black children to pose in the background for him.
Next, I agree with what Andrew C Fardy wrote, “I hope you are right but this suit involves three states and the thing that bothers me is it was filed by the Feds. Time will tell.” Now remember, this was property where mostly Latino and some blacks lived, their homes and businesses were taken from them for this project but this mayor couldn’t even find a few of them for props.
The Equal Employment Opportunity Commission and the NLRB (Nat’l Labor Relations Board) are just self-serving hacks and this Bass suit is another example. Yeah, you’re right Denis OMalley, you are so right, just keep drinking that Kool-Aid.
*** What would you expect from someone who’s connected to city government, no (EH)? *** Stop The World I Want To Get Off! ***
Typical reaction by Mojo and Mackey … I run a B2B business (not Bpt based or any financial benefit whatsoever). Not a city municipal management or brain-dead beater municipal union employee like so many OIB posters.
Can anyone read this blog on an ongoing basis and not see the overwhelming majority of posters revel in things remaining
negative in Bridgeport?
Reading these posts, why would anybody from outside Bridgeport want to consider coming here?
For Mojo, Mackey et al., much more fun being the harbinger of doom!
*** Then everything must be “typical” when you’re on the outside looking in, no? Besides for every negative, hopefully there is a positive even if they’re far and few between. For many OIB posters, the realities of the past and present tend to cloud the dreams of the future! *** TAXPAYER HARBORING IN DOOM! ***