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Tuesday, April 21, 2015

SEGARRA'S PLAN TO LOOT EDUCATION FUNDS TO BALANCE CITY BUDGET, BOARD PRESIDENT SAYS NO WAY, THREATENS TO GO "NUCLEAR"

We all knew it couldn't be true, there had to be a gimmick. How does a City that is essentially broke have no lay-offs, no tax increases, hire 20 additional police officers and close a potential 60 million dollar deficit? You can't without a little bit of fraud perpetrated on the taxpayers.

The solution simple, you loot the Board of Education retirees health Care Fund for $30 million

The e-mails below explain the situation better than I  can, so take a read. It promises to get messy as Pedro tries to cover his Mayoral butt to avoid being exposed as an incompetent leader in a critical election year. This is the start of the e-mail from Board President Rich Wareing, Mayor Segarra's response and Wareing's reply to Segarra . An FOI request was made to the City of Hartford to obtain these e-mails.

 At least one candidate familiar with the situation offered a reasonable alternative. It wont' help Segarra's budget picture, but currently the Board is considering closing the Renzulli School on Cornwall Street. Bob Killian suggested using a much smaller portion of the fund, which is currently over funded, to keep Renzulli open until other funding means can be explored and secured.

A request for comment from Mayor Segarra's Communications staff has gone unanswered.


Mr. Mayor,

I write in reference to the approximately $32m in assets held by the Board in reserve against future OPEB liabilities.  I learned this morning from sources within City Hall that it is your intent to use over $12m of the Board's money to balance the City's budget for FY 2015-16.  Unfortunately, this was consistent with other rumors I have heard to the effect that the City intends to use approximately $3.5m in Board money to balance the FY 2014-15 budget.  I just read an article in the Courant confirming your intention with respect to your FY 2015-16 budget and several points need to be made.

First, I should not have learn of things of this magnitude impacting the Board of Education in the news, nor should I have to rely on informal sources within City Hall.  I should have the courtesy of a call from you.  If you have time for cocktails with Brad Davis and well-heeled contributors, you have time to call me to discuss matters which significantly impact the education of our children.

Second, the Superintendent also had the right to notice before you made a public announcement on this subject.   This is especially true when, as you are well aware, she intended to use some of the surplus reserve to balance the FY 2015-16 budget without layoffs and position eliminations beyond those already announced.  Instead, you let her present a budget to the Board and the community based on assumptions which you knew at the time were inconsistent with your own budget plans, yet you remained silent.  Your conduct in this respect was unprofessional and disrespectful. More importantly, it has impaired her ability to do her job.  She deserves an apology and I fully expect that you will make one when you next meet with her privately.

Third, while the City maintains that these monies belong to it, you are well aware that the Board retained outside counsel who rendered a contrary opinion.  Indeed, when I met with Juan Figueroa and you to discuss this issue you both expressed considerable anger that the Board had done so.  I thought at the time your anger was caused by the Board having done so without informing the Corporation Counsel, which as I said at that time was a reasonable position.  It is now clear, however, that your anger was caused by the Board obtaining a legal opinion that might complicate your plan to use Board assets to balance the City's budget.  Indeed, that is no doubt why Mr. Figueroa took the position that the Board needed to obtain the Corporation Counsel's permission to retain outside counsel (which is not true where, as here, the Corporation Counsel cannot provide advice free of ethical conflict), or at the very least, was obliged to let him "craft the scope of the engagement," no doubt to limit our attorney's ability to offer an opinion that might contradict the Corporation Counsel's on this matter. In any event, this is not a matter that you can unilaterally resolve by a stroke of your budgeting pen.  This is a serious legal dispute that, unless handled with considerably more care than you have heretofore exhibited, is quite likely to enmesh the City and the Board in litigation; a result that would be disastrous.

Fourth, While some of the money used by the Board to fund its OPEB reserve was general funds, and some even from the City's modest $94m annual contribution to the Board's general fund, some of that money came from special funds to which the City never had, does not have, and never can have, a claim. Any appropriation by the City of the Board's OPEB reserve will thus necessarily involve its appropriation of State and Federal grant monies to which it has absolutely no legal claim.   This is obviously a serious issue to which the City has given little, if any, serious thought as evidenced by the fact that, when I raised this point with the Corporation Counsel and Mr. Hill, they were quite surprised to learn that special funds were also used to accumulate the Board's OPEB reserve.  Should the State of Connecticut or the United States question the City's conduct in this regard please understand that the City will be solely responsible for its conduct.

Fifth, in light of the foregoing, the Board may reed to rework its budget for the balance of this year and for FY 2015-16 and eliminate as much as $7m in spending.  If so, positions will be cut and the quality of service will be reduced.  Such additional cuts at the Board may allow you to balance your municipal election year budget without a tax increase or layoffs at City Hall, but they will hurt kids, especially those most in need. Indeed, as you know, the Superintendent estimates that the Board needs an additional $12m per annum to fully implement her plans to achieve equity for all learners.  While none of us excepted the City to actually appropriate this additional money, we expected - and reasonably so -- that City would not make it harder to achieve equity for all learners.

I will be candid, I see little hope of averting what Mr. Figueroa described in our meeting as a "constitutional crisis," given your reckless course of action.   I am, however, prepared to meet with you, Dr. Colon-Rivas, Mr. Stallings and the Superintendent to try to work through this issue.

R-----Original Message-----
From: Segarra, Pedro E. [mailto:SEGAP001@hartford.gov]
Sent: Monday, April 20, 2015 10:39 PM
To: Richard Wareing
Cc: Colon-Rivas, Jose F.; Matthew Poland - Library; cstall3@gmail.com; Shelley Best; Robert Cotto Jr; Brescia, Michael F.; Beth Taylor; Narvaez, Beth
Subject: Re: OPEB


I guess we have a disagreement as to facts, analysis, agreements and the status of finances. I also find your tone and approach most disrespectful. Given the late hour of the day I will respond more fully tomorrow and will meet with the appropriate parties as necessary.

Mayor Segarra


Sent from my iPhone

FW
From: Richard Wareing
Sent: Tuesday, April 21, 2015 7:17 AM
To: 'Segarra, Pedro E.'
Cc: Colon-Rivas, Jose F.; Matthew Poland - Library; cstall3@gmail.com; Shelley Best; Robert Cotto Jr; Brescia, Michael F.; Beth Taylor; Narvaez, Beth
Subject: RE: OPEB

Mr. Mayor,

The disagreements around this issue are hardly new, so your surprise is disconcerting.  It certainly does not auger well, but I remain committed, as I told Mr. Figueroa and you, to a "non-nuclear" solution.  I hope you feel similarly.

I make no apology for the lateness of the hour of my email.  I responded as soon as I finished reading your quotes in the newspaper.  Had you chosen to inform the Board and/or the Superintendent of your plan, prior to telling the Courant, we would have been having this conversation on a different timeline.

I won't attempt to parse your cryptic reply about your next steps.  It is enough to say that this matter will get resolved and it will get resolved with appropriate input from and consideration of the interests of the Board of Education.  There are several ways in which that could occur.  I would prefer that it be through honest dialogue between the key players.

Finally, I am in no way being disrespectful.  My tone and manner of address is appropriate, especially given the very serious subject.  What you dislike are the existence and contents of my communication, especially my having called you to task for the poor way in which you have treated the Superintendent.  I fear you have grown too used to hearing only  "yes" from those in your employ and the adulation of those who support you. 

RFW

 
 

42 comments:

Anonymous said...

Segarra is no different than the street level thugs that plague his City, a common criminal stealing the future of Hartford's people. Why is it that Killian has a reasonable idea and Segarra's solution is just more money.
PEDRO NEEDS TO GO.

Billy Ray said...

You can just feel the difference in the education/respect/thought process between Mr. Wareing and Hizhonor by reading those emails.

Anonymous said...

Start lay offs. The fire department is heavy isn't that why they went to the 24 hour straight time shift. When a guy retires they rehire.

peter brush said...

the Board of Education retirees health Care Fund
--------------
The Board of Ed is a State outfit. It is funded in part by muni taxes, but that only serves to hide the ball of accountability. The Board operates what has been ruled to be an unconstitutionally segregated system. Test fraud was discovered at Betances School, and nothing was done or said by the Board. The kids get whatever the monopoly Board says they get, but don't mess with the "retiree health care fund."

KEVIN BROOKMAN said...

Peter,

whatever you think about the Board they at least used some proper management and had some vision to establish the reserve fund. Should Segarra now be able to raid it since he has no vision and no management skills?

peter brush said...

Should Segarra now be able to raid it...?
-------------
It's my understanding that the State forces the muni guys to foot the bill for about half of the Board's budget. It's also my understanding that the muni guys have no, zero, nada and not any say in how the money is spent. Can the muni government find out about the fraud at Betances? I don't think so. That the Board has to deal with public sector unions, that the unions now have a big part in how the schools are run, and that the souls of the kids are disregarded is State policy.
I carry no brief for Pedro or his management skills. But, if it were up to me I'd do away with the District and the Board; give every kid a voucher.

KEVIN BROOKMAN said...

Peter,

check the City Charter, who appoints the majority of the members of the Board of Education... Mayor Segarra. I think that essentially gives him control of the Board if he knows how to appoint and use that power

Anonymous said...

Pee dro, you're getting it from all the sides,
Damn - Nene, Da vete, persona Pal K non-grata is u.

Fig, sanate culito del diablo and la loser can't help.

Alyssa said...

Quintessential Rich Wareing. He writes exactly as he speaks. I can even "hear" his tonal inflections in his writing! I only hope the legal opinion obtained by the BOE is better than the legal pablum fed to the City Council re: the Registrar actions. Someone should obtain the meeting video of Shawn Wooden assuring everyone how fantastic the legal advice was and why they were moving forward. Regurgitating. Kudos to the judge.
Thanks for your coverage, Kevin, and for posting Rich's email. Helps fill in the gaps of other media outlets and further puts the Feds and state auditors on notice re: Hartford City Hall.

Anonymous said...

Dear Mr. Wareing: you are totally disrespectful to our 'mayor.' What did Segarra do? He just cheated you and the BOE by a few millions of dollars. No big deal, after all this is election year and Segarra must pretend he's proposing a 'balanced' budget.
You also interrupted Segarra late night while he's busy trying very hard the get the necessary funds for that Yard Rats ballpark (you must agree that a stadium with a luxury suite is way more important than, what do you call this, education?).
Please change your tone and approach. Pedro demands some respect.

peter brush said...

check the City Charter, who appoints the majority
-------------
No question; school boards are chosen locally, but they are agents of the State. The point is not that there is not local influence on District doings, but fundamental decisions, spending levels for example, are made according to State law and regs. The City Council can't tell the Board how much to spend, nor can it refuse to raise (property) tax revenue as demanded by the District. Similarly, the municipal government has nothing to say about curriculum or special education.
--------------
School boards derive their power and authority from the State Constitution and the statutes of the State of Connecticut. Accordingly, a local school boards acts as an agent of the state government with all the authority and limitations imposed by the General Assembly and the state constitution.

Anonymous said...

"Concerns have been raised about Segarra's plan to use $32 millions that is currently in a Board of Education reserve... to balance his budget." Segarra works like a thief at night, like a rat, and then he has the guts to tell Rich that he's not respectful enough.
The looter is asking for respect, that's new.

John mendez said...

I told you all that Pedro was a "touch of class".

Anonymous said...

Another Segarra TEMPER TANTRUM, anyone who knows Pedrito knows it's his way or the highway, even if his way is illegal, corrupt or just plain STUPID.

He is a little, little man with a big, big ego and problems, mental ones!!!# plain & simple; he's a crook, a liar, a cheat, a IDIOTIC FOOL! Oh yeah he's a PERVERT to boot.

Mayor or Mayoral is what he is NOT!

Anonymous said...

It's not only the $32 million from BOE that's wrong here. The entire budget is baloney. Where are all the expenses for that idiotic ballpark.
Everything going to be all right as long as Pedro E. Segarra (E. for Excellency) gets his 24 seat luxury box.

Anonymous said...

RICH WAREING WOULD MAKE A GREAT MAYOR!
IT IS TIME FOR THE REPUBLICAN PARTY TO REACTIVATE AND RUN HIM AS THEIR CANDIDATE.
HE HAS DONE A MAGNIFICENT JOB AS CHAIR FOR THR BOE.

WHAT DO YOU SAY RICH!

Anonymous said...

At this point, anyone, and I mean ANYONE, would do a better than that self-interest, corrupt, caviar loving Pedro. ANYONE.

Anonymous said...

Kevin, please stop bothering Pedro with some nonsense city balance even if it's all fraud. These days Pedro is ultra occupied with financing the stadium for the Yard Rats with money the city don't have.

KEVIN BROOKMAN said...

Ok Maribel, I apologize

Anonymous said...

It's not the Yard Rats stadium folks, it's the luxury box. It's clearly more important than some fire department or education.

Anonymous said...

Some lies on the budget here, some manipulations on the budget there, the budget just need to look good, it has to impress city council and the media, they don't look at the details, they simply don't understand it.

Anonymous said...

Pedrito,
the masses need your your comments on Ferguson, NY, SC and other national incidences; Oh and now Hartford. Nena, talk to the masses.

KEVIN BROOKMAN said...

I want to hear what our Mayor has to say also, but there is no comparison between Ferguson and this incident

Anonymous said...

C'mon, more important to hear Pedrito talking about Aaron Hernandez than anything in Hartford, especially when there's a problem.

Anonymous said...

This mayor is too busy with his reelection campaign (he'll do anything to get reelected) and getting money that nobody have for his Yard Rats ballpark (the Rock in Rock Cats was renamed Yard and the Cats was renamed Rats)

Anonymous said...

Someone - a punk - smashed windows in banks, businesses, even the Mark Twain House, but no word from the mayor.

Sorry, Mark Twain House is not the Yard Rats Stadium, no value, no interest in that house.

Anonymous said...

I agree 100% with the name. This minor league baseball was stolen from our good neighbor New Britain. Segarra and Deller did it like thieves at night, just like Rats.
Therefore the correct new name should be changed to
HARTFORD YARD RATS.

Anonymous said...

HARTFORD YARD RATS works for us and definitely fits the circumstances.

Anonymous said...

Hartford North End infested with drugs. Entire City of Hartford infested with Rats. It's appropriate to use the name HARTFORD RATS or HARTFORD YARD RATS for that stadium.

Anonymous said...

Now Segarra can make it the Education Rats.

Anonymous said...

This guy Segarra, trying to manipulate with next year proposed 'magic' budget, really thinks that we stupid, doesn't he?

Anonymous said...

9:02 am on 4/24
The vandalism spree occurred on Farmington Ave, not on the 7xx Prospect Ave block, so the mayor has nothing to say.

Anonymous said...

Don't you people get it, Segarra has absolutely no interest in education, his only goal is getting reelected, nothing else. Wake up people of Hartford.

Anonymous said...

Segarra was at the "Volunteers Repair Homes" earlier today. Instead of tools or repair kits he showed up with his PR people, nicely equipped with cameras of course.
Kevin, could you ask him what exactly he repaired today, unkess the whole thing was just a photo op for him.

KEVIN BROOKMAN said...

It is all part of the show for an election year, now he cares about the community. I think we all know what Segarra is about and it is not the neediest of Hartford's residents. Smarten up Hartford, judge him on what he has done, not the show he is putting on

Anonymous said...

I saw it this morning on Ch.3. Scot Haney, the weatherman gave Segarra some free airtime. I think Segarra told Haney something idiotic about getting more tax $$ for the renovated properties or something like that, not sure.
Could Scot Haney write his comment here to clarify what Segarra told him so we make sure it's correct.

Anonymous said...

Segarra - also known as Pedro Caviar - always cared about the community, the one located at the Prospect Ave 700's block

Anonymous said...

This budget is a shenanigans budget.

Anonymous said...

Someone has to tell the folks at BOE the the multi million dollars ballpark must be paid somehow, so if Pedro can loot the education budget that's exactly what he's going to do. Honestly, he never expected Wareing to notice this theft

Anonymous said...

Pedro E. Caviar's budget full of illusions, so many illusions that he could be the greatest mentor to Barnum & Bailey Greatest Show on Earth. Master of illusions.

Anonymous said...

I looked at the budget, didn't find anything in the budget about the stadium or anything to do with caviar.

KEVIN BROOKMAN said...

Illusion or delusion