Another day, another public relations disaster for Jerry Abramson.
An internal city audit has turned up an expense no one except the Mayor seems to have known about — some extra pay for Police Chief Robert White. It was reported at 11 last night by WAVE’s Lindsay English.
Metro Councilman Kelly Downard, always good for a critical comment, said the problem with the pension payments of about $90,000 for two years paid to White and agreed to by Abramson was the secrecy of it all. The deal was that when he signed on in 2002, White agreed that he wouldn’t get the money until he stayed in Louisville for five years. That way, he wouldn’t lose the pension he’d built up at his previous job in North Carolina. But the deal wasn’t known by anyone else.
“No one knows this was going on until, thank goodness, the internal auditor brought it up and you did some investigative work and found out who it was. If we didn’t know that, no one would have ever known. We would have never known,” he told WAVE.
Abramson spokesperson Kerri Richardson, on the defensive, said something that’s likely to come up a lot in future campaigns.
“The Mayor does have the discretion, especially for employees such as the police chief, that serve at his discretion to make policies that are the best fit for the city, the taxpayers and for that individual,” she said.
Conclusion: The Mayor can make excessive payments to favored individuals when he feels like it, with no approval required from anyone else.
13 responses so far ↓
1 AB // Jul 29, 2009 at 10:13 am
Downard’s correct. The issue is not the substance but the form. It’s a pretty common executive hiring practice to make some allowances for lost pensions, bonuses, etc. However, in a public setting there is no way such a deal should get done without some oversight/approval. Heaven only knows what will get uncovered when McCheese steps down. I suspect there will need to be intense scrutiny in the final months of his administration to guard against him making arrangements to benefit his cohorts.
2 Steve Magruder (I, not D or R) // Jul 29, 2009 at 10:22 am
Anyone running for mayor who doesn’t stress transparency and accountability will certainly lose, no matter which party they belong to.
3 402kid // Jul 29, 2009 at 11:20 am
could someone please find a cure for the new disease in Louisville called, discretion before we all go broke.
4 Carter Burger // Jul 29, 2009 at 12:40 pm
What does McCheese’s actions say about Beshear selecting him for Lt Gub’nah? There is no way I’d put that man on the ticket with me. Way too many shady things going on in this administration……and what about the stuff we DON’T know about, yet?
5 David Harpe // Jul 29, 2009 at 12:42 pm
So there’s money in the budget to pay perks to White and the two folks from the finance department, but they can’t find enough money to keep pools open or the lights on at the parks at night?
That makes sense.
6 Joseph // Jul 29, 2009 at 1:25 pm
Not sure I understand. White let the city hold onto a signing bonus for five years, and now it’s come due. What’s the big deal? It’s his money, right? I agree it’s in bad taste when people are getting laid off left and right, but we wouldn’t be having this conversation if the money was released in 2002.
7 Mark // Jul 29, 2009 at 1:35 pm
Why are we attacking the mayor for bringing good people to Louisville? I think everyone knows that in order to attract the best you have to pay for them.
8 Steve Magruder (I, not D or R) // Jul 29, 2009 at 1:41 pm
Joseph, the big deal is that this was conducted in a secretive manner.
9 Joseph // Jul 29, 2009 at 1:47 pm
You mean the terms of a city employee’s hiring are not public record?
10 David Harpe // Jul 29, 2009 at 2:05 pm
I don’t have any problem with the Mayor paying for good people. As Steve said, it’s the METHOD.
Allowing a person in their 40s to retire, paying them for vacation above and beyond city policy, then rehiring them a couple of months later and allowing them to double-dip…that’s a problem. The situation with Chief White seems to have similar ick on it.
Pay for good people, but be up front about it. Follow the rules. Don’t use city pension as a bonus pool. I don’t think that’s too much to ask.
11 JTT // Jul 29, 2009 at 7:33 pm
And the question is, would either of the other two applicants, the St. Paul guy or the Chattanooga guy, have required this “extra” pay? What part of – take the job you applied for – is such a problem? You apply, accept and then negotiate? Did the council understand back then how much money was involved?
12 overopm // Jul 29, 2009 at 9:28 pm
Double Dipping is legal per Kentucky Retirement System. On a good note, we the tax payers or empolyer don’t pay for a new pension or health insurance for that double dipper. As of Sept. 2008 re-hires are not allowed to start a second pension or become vested.
The pitiful part of this story is the employees didn’t have enough sense or political savy to know this was an article waiting to happen. One of the deadly sins got in his/her way “Greed”.
Shame on the Mayor’s office for: paying beyond the 40 day rule that applies to everyone else under the same “Metro Umbrella”.
13 slim // Jul 29, 2009 at 10:12 pm
OK, is this too far fetched? The Dems are looking hard to find Lt. Dan a spot in the Obama administration so they can clear the decks for Jack. They find a spot in the next month or two and Jerry is sworn in to replace him right away.
People need to start running for Mayor right now for the special election. Possible?
Leave a Comment