Jack Mundie's Attempt To Financially Cripple Hazleton



As last night's Hazleton City Council meeting Sam Galski reports that Councilman Jack Mundie proposed extending the rebate period for Hazleton property owners to pay their tax bill to the City. Despite his twelve year tenure as a councilman Mr. Mundie tried to replace the taxing ordinance with a resolution, something not allowed under the law.  His obvious pandering to the property owners of Hazleton met with credible resistance.  His fellow council members exposed his "playing up to the public" for political gain.

Most property owners have their tax money placed in escrow waiting to be dispersed to the proper taxing bodies. His suggestion would only injure the City of Hazleton who saved taxpayers by not seeking a tax anticipation note for 2012 or 2013.  The City also saved taxpayers money on mailing costs by incorporating the city tax bill with Luzerne County.  Mr. Mundie's proposal would negate those savings thereby necessitating another tax increase on the people.

Mr. Mundie's political vendetta against Mayor Joseph Yannuzzi and other City Council members is reaching new lows. Mr. Mundie voted "NO" on paying Hazleton's debt at the beginning of the year. He voted "NO" on the property tax increase necessary to replace lost revenue from the mine reclammation project. He voted "NO" on collecting the correct earned income taxes from out of town employees working in the City that would fund the City's pension obligations. He told residents to fight parking tickets at the Magistrate level to deprive Hazleton of its income.

Mr. Mundie opined that Hazleton should hire someone to negotiate union contracts for the City.

"I just want to know, shouldn't we have somebody with experience negotiate with the unions," Mundie asked. "If they thought they did a good job negotiating, health insurance (contributions are) $20 per month and we're getting a 24-percent (overall cost) increase."

From the Minutes of 1-25-2012

Resolution 2012-19 Authorizing the City of Hazleton to Utilize the Services of Special Legal Labor Counsel on an As-Needed Basis Presented by Perry. Seconded by Cabell.

On the Question:

Mundie asked Lieb if she knows what the hourly rate is for this service. Lieb said all the rates are listed in the letter from Hourigan, Kluger & Quinn, which was given to Council. Lieb said a partner of the firm charges $250.00 per hour, with a 10% courtesy discount, and half of the travel time involved. Lieb commented that this firm is located in Kingston. Mayor Yannuzzi said we are able to go to Attorney Goldberg with questions, personnel issues, to negotiate contracts, etc., because this is his specialty. Lieb said he is a labor attorney.

Roll Call: Bast-yes; Cabell-yes; Mope-no; Mundie-no; Perry-yes

His policitally motivated attacks and votes are part of Mr. Mundie's orchestrated campaign to financially cripple the City of Hazleton just as he did to the Hazleton City Authority in the 90's.

Despite proclammations that he would put together a budget for the City he contributed nothing in the process.  He told City Council to pass the budget so he could make amendments.  That never happened.

During the budget debate of 2009 then Mayor Barletta had this to say about Mr. Mundie's "NO" votes. 

Speaking in the general direction of council, Barletta said, "Anybody can vote 'no.' That's easy. Why vote 'no' if you have no better ideas. Everyone who voted 'no' is being very irresponsible. I hope you're satisfied. Good job."

Mayor Leighton vs. Mayor Barletta

According to general election results in 2007 on file in Luzerne County Tom Leighton received 4,625 votes out of 7,053 cast or 65.57% of the vote. Mayor Lou Barletta received 3,530 out of 3,964 cast of 89.05% of the vote.

Leighton's salary- $90,000+
Barletta's salary- $58,000

Leighton's pension- close to $1 million
Barletta's pension- $0.00 (Hazleton does not provide a pension to any elected official)

Governor Rendell Helped Pittsburgh's Financial Woes

Todd Eachus stated publicly that he would not pass legislation "specifically" for Hazleton. Governor Rendell and Todd Eachus had no problem passing not just one but a package of bills specifically for the City of Pittsburgh.

November 2004

Governor Edward G. Rendell today signed a package of bills that will help restore Pittsburgh to fiscal health and provide it with stable sources of funding. The bills include reforms to the city’s business taxes, a phased reduction in the city parking tax, an increase in the city’s occupational privilege tax and an increase in the earned-income tax on visiting athletes.

Those bills contained taxation issues while Eachus claims finding a fix for the City's(Hazleton) problem right now is impractical. Evidently it wasn't impractical for Pittsburgh.

IssuesPA has a great article highlighting the problems faced by Pittsburgh. One of the problems detailed. The largest single factor in its rising debt service payments has been the city's bonding of unfunded pension liability. Annual expenditures for pension costs, benefits and debt service are expected to have increased $119 million between 1993 to 2005. Most cities in this Commonwealth are in the same boat defined in a report submitted by James McAneny of the Public Employees Retirement Commission..

It is no secret that Todd Eachus is using unprecedented legislative tactics for inexcusable political retribution. His use of scare tactics with the police and fire unions in Hazleton over unfunded pension liability is wagging the dog. The unfunded pension liability is due to losses in the stock market that every pension faced in the current financial meltdown. It is time Eachus remembers who put him in office. Arrogance that the office will always be his blinds him to the realities of mankind. Be kind and kindness will be a reward. Being arrogant lulls one into a false sense of competence and entitlement.

Mr. Eachus- Are You Misleading The Public About Senate Bill 961 That Would Help Hazleton?

Eachus seeks guidance on Hazleton pension fund woes by Mia Light for the Citizen's Voice published June 29,2009.

Here is what Mr. Todd Eachus had to say:

House Majority Leader Todd Eachus, D-Butler Township, reached out to the office of the Pennsylvania auditor general Friday for guidance in correcting Hazleton's $2.5 million debt to its pension fund.

It was reported in the Times Leader by Bill O'Boylethat Eachus has sent a letter to state Auditor General Jack Wagner that condemns Barletta’s action in removing money from the city’s pension fund and asks Wagner for help to resolve the issue.

Mr. Eachus, a simple freedom of information request would find that the Auditor General supported Senate Bill 961 on June 10, 2008 in an email to Sam Monticello, then Hazleton City Administrator. Why do you want people to believe otherwise?? What is your motive?


Click on Image
Email from Robert Teplitz, Chief Counsel/Policy Director, Deparment of the Auditor General

You can read Robert Teplitz's bio here. It seems clear to me that the legal advisor from the Auditor General saw no legal or constitutional problems with Senate Bill 961. It is hard to understand why Mr. Eachus would make claims to the contrary.

James Mcaneny, Executive Director of the Public Employee Retirement Commission gave this conclusion on page 5 in his testimony before the House Finance Committee on August 18, 2008.

We believe that Senate Bill Number 961 provides a better way to provide for Hazleton's financial need than the method currently being employed. PERC supports Senate Bill 961. Mr. Eachus, again why are you misleading the public about support on this issue?

Eachus "DOA" Non-Responsive To Constituents- Won't Help Just Hazleton

Click On Image Ad Appeared In Standard Speaker Page A7 July 1, 2009

"I Won't Back Legislation Specifially For Hazleton"- Representative Todd Eachus- 116th Legislative District- June 14, 2009 WYLN He essentially states the Pennsylvania budget is more important than Hazleton- June 25, 2009.

Bankrupt The City Of Hazleton- An Active Effort By The Dems

In the latest bully pulpit spewed by Todd Eachus to the news media over the City of Hazleton's pension woes Steve Mocarsky writes in the Times Leader as stating "Eachus said he’s busy working to try to balance the state budget, which he said is “facing the largest deficit since the Great Depression” – $3.2 billion – and trying to find a fix for the city’s problem right now is impractical. He also said case law wouldn’t allow for retroactive reimbursement even if the bill were passed. so the city would still owe the pension funds $3 million." Can one imagine that the Legislator for a district is too busy doing something else that working on an issue in his disctrict is "impractical"?

That statement is only one in a series of moves on Eachus's part that points to an active campaign which involves bankrupting the City of Hazleton. Let us examine his claim.

On October 8, 2008 Senate Bill 1093 was passed and signed into law in Pennsylvania. Information about the bill is found in the state's portal system. The act is more commonly known as Act 92. Here is synopsis from the portal document.

Act 2008 – 92 (Senate Bill Number 1093, Printer’s Number 2038). Signed into law on October 8, 2008, Act 92 amended the Municipal Police Pension Law (Act 600 of 1956), as amended by Act 30 of 2002, further clarifying eligibility and applicability of survivor benefit provisions for certain beneficiaries. Act 92 closed an unintentional gap in the survivor benefit coverage provided in Act 30 of 2002 for a small number of surviving spouses of police officers who retired before the effective date of Act 30 of 2002, and died after the act's effective date.

Act 92 declared that survivor benefits were payable to the surviving spouse or dependent child, as applicable, provided that the surviving spouse was not remarried on April 17, 2002. The surviving spouse is entitled to receive a pension of no less than 50% of the pension the member was receiving at the time of death, provided the spouse was a member of the police force or a former member of the police force who: 1) prior to April 18, 2002, retired on pension and dies subsequent to retirement; or 2) after April 16, 2002, retires on pension and dies subsequent to retirement. This act applies retroactively to April 17, 2002.

Eachus voted YES on this bill. So there is a pension bill passed in 2008 that is retroactive to 2002 that Todd Eachus voted YES on but Eachus makes the claim to John Q. Public that case law wouldn't allow for retroactive reimbursement.

His earlier attempt to thwart progress in Hazleton centered on the dredge issue and Hazleton Creek Properties. He worked with Clean Water Action to prevent the dredge from making it to the site. He issued a "Health Alert" from his official House Office using taxpayer dollars stating that the dredge would risk public health. Yet, the Department of Environmental Resources cleared the use of the dredge material by Hazleton Creek Properties.

It's statement: “The company’s proposal meets DEP’s strict regulations and includes conditions to ensure the safe and effective use of this material in construction,” DEP Northeast Regional Director Michael Bedrin said.

Governor Rendell supported the plan with a $250,000 investment through the Rail Freight Assistance Program. “Hazleton Creek Properties will receive $250,000 for construction of new track to serve a bulk unloading facility adjacent to Humboldt Industrial Park; the facility will dispose of dredge material from the Delaware River".

As a result of that project over $4 million dollars have or will come to the City of Hazleton. Hazleton was paid $1 million dollars to date for material brought to the Hazleton Creek Properties site. In November, 2006 Mayor Lou Barletta was interviewed by Steve Kroft of 60 Minutes. In that interview he stated there were 31 police officers on the force. By March, 2007 the number of police officers increased by 2 to 33 keeping pace with a pledge he made in December, 2006 to increase the force by ten officers. Hazleton eventually went on to hire the ten officers meeting Barletta's goal with salaries for six of those officers paid for from the revenues generated by the dredge project.

It appears there is a concerted effort to make the City of Hazleton, its residents, firefighters, police, children, and senior citizens suffer over a political slugfest.

Eachus feigns support. “Something must be done to get the city out of this bind, but I want to make it clear that any solution must be within the confines of the state law and the state Constitution. It will be a challenge to fix the city’s mistakes, but I have asked my staff to determine what options, if any, we can take. While we work to find a solution, I suggest you also begin examining alternative options,” Eachus wrote.

The solution is already in a bill that Eachus failed to support. He sat silent during a hearing held by Rep. Dave Levdansky's committee. Representative Dave Levdansky made the statement during that hearing on Hazleton's pension issue he was opposed to a bill that only addressed one city. Yet in that same portal article a pension bill was passed for members and former members of the Allegheny County Redevelopment Authority. Eachus has made a similar claim.

Act 2002 –185 (House Bill Number 2595, Printer’s Number 4633). Signed into law on December 9, 2002, Act 185 amended the Second Class County Code to permit a member who became an employee of the county to receive service credit for prior service with the former Allegheny County Redevelopment Authority (ACRA); and permit an active member of the system to receive up to three years of service credit for prior military service without regard to the minimum age or service requirements currently mandated by the Second Class County Code, and to be exempted from paying statutory interest of 6% per annum for the service purchase provided the member pays the required sum in full within three years of the effective date of the legislation. This bill passed 200-0 in the House so Eachus supported it was well.

Eachus acknowledges that the pension issue could cost Hazleton $3 million dollars. If the House Majority Leader cannot get a resolution through his chamber to help the largest city in his district why should the people of Hazleton support his reelection?

His opposition to the dredge project, had it been successful, would have added another $4 million dollar loss. If Eachus fails to support and intervene on the pension issue it will show that his priorties have been clouded with stinkin thinkin in an effort to "get Lou Barletta." Eachus has the audacity to call Barletta "reckless." His actions and inactions point to reckless disregard for the citizens he is paid to represent. It is time to call him out on his actions.

Baker, Yudichak "Halt That Pension Request"

Area legislators want to halt Ciavarella's pension request. Bill O'Boyle of the Times Leader wrote a story today about the efforts of Senator Lisa Baker and Representative John Yudichak.

State Sen. Lisa Baker and state Rep. John Yudichak have asked the State Employees’ Retirement System to “use all of its powers” to freeze former Luzerne County President Judge Mark Ciavarella’s pension request.

In a letter dated April 2 to Nicholas J. Maiale, chairman of the state agency, Baker and Yudichak said they “respectfully urge in the strongest possible terms” that Ciavarella’s request be denied.

“This disgraced judge is arrogant and continues to show contemptible behavior,” Baker said Thursday. “He doesn’t get it.”

Now let's count. 5, 4, 3, 2, yep in keeping with history it will probably be about two days when Todd Eachus announces a request to halt the pension. His silence and being two steps behind on this matter is deafening to the conscience. Of course, he was more concerned with partisan politics in asking Attorney Tom Corbett to step down in the midst of one of the biggest public corruption investigations in the history of Pennsylvania. Probably makes sense to someone, just not me.

Fast Eddie's Shuffle- Education Pays The Price

The money from the Porkulus Spendulous bill didn't leave the gate however our illustrious governor has made some eye opening decisions. He will use the discretionary money to plug holes in his budget. Okay so what's the big deal?

Rendell, who is relying on an infusion of federal money to balance the state budget, warned this week that if Congress approved the Senate's pared-down version of the stimulus package, Pennsylvanians should be prepared for severe pain from state budget cuts.

In the end, discretionary funding for governors to plug budget holes was reduced from $79 billion in the House bill to $39 billion, the amount contained in the Senate version.

But Rendell said that by drawing $600 million over two years from the stimulus package's school-district funding, the state would be able to meet its budget estimates without hurting Pennsylvania school districts.

"I thought what we got in House bill was very generous and helpful," he said. "But we roughed out with essentially the same as the House bill.

He is going to use the money for education to balance his ridiculous budget. What a Sham!!

Fast Eddie's assessment of the Porkulus Spendulous bill- "On balance, the relief that goes to citizens, the jobs created, the amount put into the economy, I'd give it a B-plus," he said.

How about trimming jobs rather than raid education? Pennsylvania is second in the nation. for number of legislators and cost.

With all that spending, it’s little wonder that in 2007, the cost to run the Legislature amounted to $25 for each Pennsylvania resident.

Pennsylvania’s per capita cost is far higher than that of legislatures in neighboring states, according to an analysis by the National Conference of State Legislatures. New York’s legislative per capita cost is $11; New Jersey’s $8.89; Maryland’s $11.85 and Ohio’s $2.75.

Adding to the state's problems are pension costs. In 2001 the legislature voted a 50 percent increase in its pension and a 25 percent increase to teachers. The market crash has annointed our pension system as its latest victim. But more on that in a separate post.