EXCLUSIVE: Internal Auditor—Illegal Payments and Benefits in Providence
Tuesday, June 07, 2011
Top officials in the Providence Fire Department have received $267,000 in pay and benefits in violation of city ordinances, according to a new report from the Internal Auditor obtained exclusively by GoLocalProv.
The report confirms a previous GoLocalProv probe into extra benefits provided to non-union employees. It shows that top managers received overtime pay, extra holiday pay, and even a clothing allowance and attendance bonus over a three year period—in violation of city ordinances. The benefits mirror those that union members receive, but they are not authorized for non-union employees. (See below chart.)
“The city is paying them illegally to the detriment of the budget,” said city firefighter union President Paul Doughty, who is currently in negotiations with the city over how to save $6 million in the fire budget. “It’s black and white right now. … The Mayor is violating the ordinances by the payment of these benefits.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTCouncilman demands an investigation
City councilmen yesterday said they were outraged to learn of the extra benefits.
“Now isn’t the time for any department to spend money that we don’t have,” said Councilman David Salvatore. “In any economic time this should never happen. With the city facing unprecedented financial hurdles we can’t afford to go down this road anymore. I think the taxpayers deserve much better than the irresponsible spending practices.”
“I think we need to send a message to taxpayers that we are serious about it—that we are thinking about them,” said Councilman Miguel Luna, who co-authored a letter in January that prompted the audit. (Councilman Davian Sanchez was the other signatory.)
Luna is calling for an immediate halt to the payments—but he says the city shouldn’t stop there. He said the City Solicitor should immediately begin the process of recovering the money that was paid out.
After that, he said the city should hold an investigation into who approved the payment of benefits that are not allowed by city law. “There has to be an investigation,” Luna said. “Changing the rules and stopping it is not acceptable. We shouldn’t allow people to get away with this.”
Ordinances outdated?
Internal Auditor Matt Clarkin told GoLocalProv that the city faces two choices. “One of two things needs to happen. Either we need to change these ordinances to reflect what is going on or we need to stop what the past practice has been—taking non-union employees and keeping them on par with the [Local 799] contract,” Clarkin said.
A spokesman said the city is currently in the process of doing the second option.
“Several of these ordinances pre-date collective bargaining and have the unintended effect of creating a disincentive for firefighters to cultivate their leadership skills and become managers in the Fire Department,” said David Ortiz, Press Secretary for Mayor Angel Taveras. “The Law Department is working to update these ordinances, so that managers receive benefits more consistent with what rank-and-file firefighters who are in the union receive.”
Doughty told GoLocalProv he believes the ordinances—which date back to the 1960s—should be updated.
In the meantime, like it or not, he said the city has to follow the ordinances. “What do we have ordinances for if we’re not going to follow them?” Doughty said. “Someone made the comment, ‘The ordinances are old.’ I responded, ‘So is the United States Constitution, but we still follow it.’”
Fire chiefs try to unionize to protect benefits
It turns out that the top managers in the Fire Department have been trying to get the extra benefits codified into a city ordinance. But after a so-called Equity Ordinance never came up for a vote last year, about a dozen non-union officials took a different tack: earlier this spring they petitioned the state Labor Relations Board to be recognized as their own union. (Click here to read the exclusive GoLocalProv report.)
Acting Fire Chief Michael Dillon declined to comment on the issue yesterday, referring calls to Public Safety Commissioner Steven Pare, who has said he is reviewing the matter with the City Solicitor.
Union president: ‘A black mark on the administration’
Doughty questioned why it has taken so long for the city to address it, saying the administration was notified of the illegal benefits six months ago. “I can’t understand why it’s taking so long when we are in such dire budget straits,” Doughty said.
The fact that the practice has continued under Mayor Angel Taveras, Doughty said, calls into question the transparency and integrity of the budget process under the new administration. He said the issue should raise eyebrows among members of the General Assembly—who are being asked to help pitch in to save the city from its fiscal crisis.
He said the continued payment of the extra benefits invite comparisons between the current administration and former Mayor David Cicilline. “This is what David Cicilline did in spirit and in fact and that’s why we’re in the mess we’re in now,” Doughty said. “I think this is a black mark on the administration.”
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