In its never-ending quest to nickel and dime Houstonians out of every last dollar, the City of Houston recently announced that it will begin charging for some of the parking spaces at Memorial Park. The City has said that the revenue will help maintain the park. This is absurd on so many different levels that I hardly know where to start.
First, the numbers. The plan is to meter 572 spaces, about a quarter of the total spaces in the park. The charge will be one dollar for three hours. So, let’s assume all of the spaces were used 12 hours a day, 365 days per year. That would bring in about $800,000. Of course, it will not be anywhere close to that. From my experience going to Memorial Park, I would guess that a third of that time would be a generous guess. If so, that would bring in $200,000-$300,000 per year.
But, of course. all of that is not “profit.” According to the City’s latest budget, it spends about 63 cents for every dollar of parking fees it collects. So, in other words, the City will be lucky if it clears $100,000 per year from this venture.
That is about 2 thousandths of one percent of the City’s annual budget. Eliminating just one of the thousands of bureaucrats at City Hall would save us more than the revenue this incredible inconvenience will net.
Of course, the need for more money to maintain Memorial Park begs the question of where is all the money that the Uptown TIRZ was supposed to kick in as part of the 2013 deal to add ten years to its life (and to the misery of the Galleria residents). The current City-approved budget for the Uptown TIRZ has a measly $280,000 (less than 1% of its budget) for “Park Project Program Management.” God save us any more City project managers. How about hiring some guys to pick up the trash or maintain the roads and the trails?
Also, charging for parking is incredibly discriminatory against those who do not live close enough to walk or bike to Memorial Park. The City already spends a disproportionate amount of its parks budget on the “Golden Bowl” (a term dubbed by community activists for Buffalo Bayou, Hermann and Memorial parks – more on that in the near future). Charging outlying residents for access to Memorial Park exacerbates the discriminatory effect of City concentrating its park investments in the Golden Bowl.
Lastly, let me just assure you that this is the proverbial nose under the camel’s tent. What do you think the odds are that the City will be back in no time increasing both the number of spaces that will be metered and the hourly rate? And, of course, be prepared to pay a few parking tickets along the way.
The City does not seem to understand that most people have a choice of where they live and open businesses. For the last twenty years, the City’s growth has been declining, outpaced by its suburbs and other major cities in Texas. Last year it virtually ground to a halt, with the City only adding only 7,000 net new residents. And that was before Hurricane Harvey took its toll.
According to the Greater Houston Partnership, Harris County suffered a net domestic out-migration of over 45,000 residents last year.[i]
Obviously, the decision to charge for parking in Houston’s most iconic park is a trivial matter in and of itself. But it is symbolic and symptomatic of a larger issue. When you have high property taxes, widespread drainage problems despite residents paying $100 million per year in drainage fees, a police force that does not patrol most neighborhoods and only solves 6% of the burglary cases, streets that look like they should be in the Third World, ambulances breaking down on the way to the hospital . . . I could go on . . . at some point residents reach a breaking point and decide to vote with their feet. Clearly, for many residents, Houston has already reached that point.
[i] “Net Domestic Migration” is the number of individuals who move to Houston from other areas of the United States. It does not include individuals who moved here from a foreign country. The GHP reports that the net international migration for the County was a positive 34,000, resulting in a negative net migration for the County of just over 10,000. The Census Bureau does not break this down municipalities, so we cannot determine how much of out-migration for the County was attributable to the City only. [click here to full report].
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Last night a flood victim received a political Pro Pension Obligation Bond live land line phone call. Somehow the pro pension bond people have a list of flood victims. The flood victim was told they needed to keep our promise to the first responders, the flood victim then hung up.
There is a concern that a FEMA flood list or a City of Houston list is being used for political purposes. The question is how the pro pension obligation bond campaign being run by Sylvester Turner got the list and who authorized it’s use. There are others collecting information on flood victims, including the City of Houston. Any number of organizations could have given the list to the pro pension obligation folks.
Using this list is obscene and I sure hope the tactic back fires on the pro pension bond campaign. Victimizing people twice or really three times when you include the amount of taxes squandered by the City of Houston is despicable.
*PLEASE SHARE!* TONIGHT this year's 3rd Quarterly Executive Committee meeting of the Harris County Republican Party is broadcast *LIVE* right here on Facebook. Watch gavel to gavel coverage of this momentous gathering as new precinct chairs are sworn in, issues affecting all of Harris County and Texas are discussed, and resolutions are debated and adopted. Send us your comments and questions!
Lt. Dan and Senator Huffman speak in the beginning of the video and a series of votes on the resolution language begins at the 2:18.55 mark (or -21:29, depending on how your viewer works).
Dan Patrick and his political consultant Allen Blakemore were working the room when I arrived. I visited with a couple of folks trying to see if I missed anything.
Patrick definitely misread the room. I watched Lt. Dan speak with folks, making his point and moving on to the next person. Folks would nod in agreement and Patrick would move over to someone else. I knew Patrick and Huffman would not bother to stay until the resolution was heard, they didn’t. Of course, the Exec Committee would do what Dan said he did not need to stay. “I am Dan Patrick, and you know Hurricane Harvey was really bad and I am off to get an update from the Governor.” And then there was poor Senator Huffman who Lt. Dan left helplessly trying to explain all the good work of the elitist Republican establishment types. You know, the big government, pro-illegal immigration, C-Club contractor crowd – self-interest types. The folks who have completely messed everything up to date, those guys. Senator Huffman kept pointing over to her left at some of these folks. I am still convinced that Joan has noclue what her pension bill does or how it works. Her nails and hair looked good though.
The new number in cuts is now $2.54 billion in cuts from the unions, according to Senator Huffman. I am going to find the guy who can explain them to me. I am pretty sure I can’t go to Senator Huffman. Sly Turner says the number is $1.4 billion, he’s real liberal you know. Ole Sly used to tell folks it was $1.9 billion. I am pretty sure you would hear no number if their audiences contained both Republicans and Democrats.
The grassroots of the Republican Party had lost their way in the wilderness, but they found their way home last night. This was a big defeat for Dan Patrick who has lost his way too. I am tired of being upset with Dan and Joan. I just want them to find their way home or not. The grassroots of our local party is smart, and they figured out that they may not be able to afford to be friends with the police anymore. Dan and Joan don’t see this because the police pay them to hang out. It’s kind of like a neighbor who has joined a new country club and they only invite certain of their old neighbors to come hang out. Some friends are invited for their company while others are invited because they are expected to pay up and join. Of course, there are those that just can’t afford it.
Hurricane Harvey had suddenly re-prioritized the importance of good fiscal government. Government thinks they are the answer to everything, they are not. We are the can-do spirit that made Houston and Texas great. The politics of hurricanes is always interesting. The grassroots activists who are the Harris County Republican Party are fighters. A lot of folks in the room had been flooded out and had lost their homes and businesses. The last thing anyone wanted to hear about was pension bonds. Where are Kevin Shuvalov and Chris Beavers when you need them?
I would like to thank the Harris County Republican Party Executive Committee who voted against the pension obligation bonds. In case you don’t know there are 600 plus members. This was a big message and I appreciate it! Thank you! Special shout out to Rolando Garcia who spoke eloquently to defeat the proposal. Again, congratulations to the men and women of the Harris County Republican Party.
Mayor Sylvester Turner is moonwalking back the proposed “disaster tax”. The Mayor announced at this mornings Houston City Council meeting the rate will be cut in half. The debris removal costs are the supposed impetus of the proposed “disaster tax”. The total costs are estimated to be 259 million dollars of which 26 million is not reimbursed by the Feds for debris removal. According to the Mayor, general contractors are being paid $11.69 a ton for debris removal, the original contract was for $7.69. Many sub contractors are involved in the process. Turner sought to blindly hand a 60 million dollar emergency item contract to an obscure contractor that has been paid 98 million dollars under an evergreen contractor with the City. The contractor is DRC out of New Orleans who owns no trucks?
Councilmember Mike Knox is the hero again pointing out that the City has a catastrophic insurance policy to cover the damages associated with Hurricane Harvey. Councilmember Knox has repeatedly asked for the policy from City of Houston finance director Kelly Dowe. Councilmember Knox has been all over this and his work has not gone unnoticed. Councilmember Knox, Please let us know what the policy covers so we can determine the amount of lying going on about the cost of Harvey.
Councilmember Dave Martin is very worried about the billion dollar pension bond and the City’s credit rating. US Attorney look here too! Council Member Martin has been a big proponent of big spending and now his major concern is preserving a fund balance so the credit rating agencies do not raise the rate for the pension obligation bonds. His time would be much better spent telling Kingwood residents that the billion dollar pension bonds will cause a tax increase and makes millionaires out of police officers and in many cases multi-millionaires. The bond does nothing for Harvey recovery, it is a direct transfer of your wealth to employees of the City. Martin is a very large recipient of campaign contributions from public employee unions.
The question of DRC as the general contractor for debris removal came up on a contract for 60 million dollars as an emergency item. The fact they own no trucks was brought up by Councilmember Kubosh. Mayor Turner was brow beating Councilmembers to vote for the contract. The councilmembers questioned the details of the contract. Turner threatened the members that they are being evaluated. Fiscal responsibility is not a strong suit of the City. Again US Attorney’s office pay attention because apparently this company is re-trading the previous negotiated deal at $7.69 per ton. DRC is a company out of New Orleans Louisiana. The item for was tagged by Councilmember Larry Green, the tag was upheld.
There was a lot of unseen politics occurring and the obvious question is where did DRC come from, who are they, and whose pockets are being lined. Again, think federal inmate Ray Nagin, now federal inmate number 32751-034, at the federal prison in Texarkana.
Mayor Turner wants to raise your property taxes by 15.3{997ab4c1e65fa660c64e6dfea23d436a73c89d6254ad3ae72f887cf583448986} to pay for storm related debris removal. The Federal government has agreed to reimburse the City of Houston for debris removal.
There are three public hearings necessary to enact the tax. Here are the dates and times on the hearings;
September 26th, at 6:00pm October 3rd, at 6:00pm and October 11th at 9:00am.
All will be held at City Hall
I will be writing more on this shortly. Please mark your calendars and if your home flooded please come tell the Mayor and the Council how you feel about money grabs. You may want to ask the Mayor what happened to the 900 million dollars collected for the “Rain Tax”.
Houston Community College Board Trustee Christopher W. Oliver was indicted in the Southern District of Texas on March 9, 2017. In May, Oliver pleaded guilty to count 2 of the indictment. This is arguably the most important public corruption case in the Houston area since Commissioner Jerry Eversole admitted to lying to FBI agents in 2011. One interesting connection – both cases involve the ESPA Corporation.
Count 1 of the Oliver indictment contains a weird reference to K.S. – a “victim” who paid Oliver over $77,000. People paying bribes are typically not referred to as victims; so, this is rather curious. Another interesting tidbit is the ESPA Corporation, formerly owned by Harris County Commissioner El Franco Lee, was sold to a man by the name of Karun Sreerama a.k.a. K.S. Former Harris County Commissioner Jerry Eversole was also a paid employee of ESPA Corporation.
Sreerama serves on the boards of the Houston Downtown Management District, Houston Community College Foundation, the American Council of Engineering Companies of Houston, and the Indo American Political Action Committee of Greater Houston. All of these affiliations denote lots of money being handed out to politicians, probably for very little work. Think pay to play. In 2011, Mr. Sreerama’s company, ESPA, did a two million dollar facility study for HCC. Basically, he was paid two million dollars to determine whether another HCC campus should be built. The answer is clearly no because HCC cannot fill up the classrooms they have now.
Getting back to Mr. Oliver, realize that he pleaded guilty on May 15 in Judge Vanessa Gilmore’s court. This means that Mr. Oliver has been walking the free earth after pleading guilty to a federal felony bribery charge. Mr. Oliver has been attending HCC board meetings and voting on board items after pleading guilty to bribery. HCC had a board meeting on May 25 and June 15. There was also a board retreat he presumably attended. You can bet your bottom dollar that he was wearing a wire. Looking at the board minutes, Vice Chairman Christopher Oliver voted on a number of issues.
Reading the minutes Oliver noted that he attended the HCC graduation and various community activities in his district. He left out a few important activities such as his arrest and his appearance before federal Judge Vanessa Gilmore where he pleaded guilty to federal felony bribery charges involving HCC. This will no doubt win him the adoration of his fellow board members. Were they aware of his arrest? Were they aware of his plea? Did Oliver tell Jarvis Hollingsworth, the board’s lawyer, about his arrest and plea? What board votes were taken following Oliver’s guilty plea?
If you are a fiscal conservative, Monday May 1, 2017 will forever be known as Bloody Monday in the Texas Senate.
Never let it be said that Dan Patrick cannot move legislation. If you have a bill that makes multi-millionaires out of City of Houston employees and is promoted by the most fiscally liberal mayor in our lifetime, Lieutenant Governor Dan Patrick is your guy. All of the campaign contributions from HPOU finally paid off like a slot machine making the Service Employees International Union (SEIU) and the Houston Police Officers’ Union (HPOU) the kings of the Texas Senate. The faux conservative gig is up. Yesterday, Dan cashed in his conservative bona fides for Sylvester Turner and his big union buddies.
Lieutenant Dan was not alone in wrecking the finances of the City of Houston – he had accomplices. There is always Senator Joan Huffman who never fails to demonstrate her liberalism when it counts. Senator Huffman waived to all the Houston police officers in the gallery as she lined their deferred retirement option plan (DROP) accounts with her vote.
It is no secret that Sylvester Turner intends to lift the property tax cap in order to pay for all of this nonsense. When Turner lifts the tax cap, please send a love note to Lieutenant Dan for the pension Napalm bomb. We supposedly have a “conservative” legislature; however, Lieutenant Dan cannot make things happen on conservative issues like education and property tax reform. Lieutenant Dan should not captain a shrimp boat let alone preside over the Texas Senate.
Allen Blakemore, Lieutenant Dan’s political consultant, proudly displays on his website that he has also served as a consultant for HPOU. Finally, HPOU and SEIU’s political contributions to Dan, Joe Straus, and House Pension Committee Chair Dan Flynn have paid off like a million dollar slot machine.
The Greater Houston Partnership (GHP) and C Club joined in on Lieutenant Dan’s corruption of Houston finances. Both GHP and the C Club were somehow allowed to represent Houston taxpayers in the pension bill negotiation. This is like sending Bill Clinton to chaperone Miss USA contestants. I wonder if C Club member and Greater Houston Partnership Infrastructure Chairman Jim Dannenbaum participated in these negotiations. Or was he too busy dealing with the FBI?
Fiscally conservative Houstonians are without a voice in our Texas Legislature. As usual, Houston taxpayers are left holding the bag for the worst piece of legislation to come out of Austin in years. It is a sad day for Houston.
State Representative Dan Flynn from Van, Texas ran the Houston pension bill hearing last Monday. Speaker Straus has appointed Flynn to serve as Chair of the House Pensions Committee for the past two legislative sessions. Although Flynn claims that he has “never voted for a bill to raise taxes” he does not seem to mind increasing the tax burden of Houstonians. All for his good buddy Sylvester “Sly” Turner.
Last Monday, I attended the House Pensions Committee meeting. Flynn ran the meeting like an autocracy, which is just the way Turner wanted the meeting to function. Although opponents to the Flynn/Turner bill were permitted to speak, they were not allowed to sit in the hearing room until their turn to speak. When I attempted to enter the hearing room, I was told that I would have to go to one of the overflow rooms. I quickly learned that the city lobbyists were controlling the seating and only those supporting the bill were allowed to sit in the hearing room during Mayor Turner’s presentation and those of the resource witnesses.
The large overflow crowd took up two committee rooms and a large auditorium located in the Capitol extension. The red Houston firefighter t-shirts contrasted with the HOPE t-shirts worn by the City of Houston Organization of Public Employees. Some city employees drove to Austin in city vehicles.
Flynn is carrying Houston’s pension bill, HB 43, in the House and put words into the mouths of speakers before his committee. Flynn made every speaker announce their name, state whether they are for or against the bill, and asked all the speakers to acknowledge that they were speaking on the committee substitute to HB 43. I am sure that Flynn’s directions were confusing to the numerous witnesses who were new to the legislative process.
HB 43, as substituted, is the companion bill to Senator Joan Huffman’s pension bill, SB 2190. The two bills, as substituted, are identical except for the provision in SB 2190 that requires a vote on the process. These two bills contemplate a billion dollar pension obligation bond. Huffman’s bill 2190 requires a vote for the pension obligation bonds. It should be noted that the firefighters receive no proceeds from this bond. Turner and the police and municipal employee unions object to the voting requirement in Huffman’s bill. I believe this is because they know that Houstonians would not vote in favor of more debt. Please note that Turner does want to place a referendum on the November ballot that would allow him to lift the revenue cap.
Turner, the first witness, described how the world would end without the approval of HB 43. The truth is if HB 43 failed, several scenarios could play out. The city could:
File for bankruptcy;
Dramatically raise taxes;
Continue to borrow money from unions running up the unfunded liability – or layoff union workers.
The bankruptcy option is never discussed because this process would remove the mayor as the decision maker on spending. Raising taxes would require lifting the revenue cap. Thanks to Bruce Hotze, lifting the revenue cap requires a vote by Houstonians. Mayor Tuner wants folks to vote on the revenue cap but not the pension bonds. If hypocrisy had a vote, the lifting of the revenue cap would fail. It is not an accident that Turner labeled his cap a corridor.
The revenue cap, approved in 2004, limits the increase in the city’s annual property tax collections to the combined rates of inflation and population growth, or 4.5 percent, or the lower of the two. Voters in 2006 adjusted the cap, allowing $90 million above the cap for public safety spending. Turner has not made his desire to spend above the cap a secret. Turner’s attempt to cap pension expenses and remove the property tax cap will be difficult for city voters to stomach.
The real story of Monday’s hearing was the testimony from the firefighters and their families. Many firefighters spoke, far more than any other employee group. The firefighters were respectful, polite, and prepared. The firefighters told compelling stories of the impact of HB 43. Firefighters argued that they negotiated with the city over wages and benefits and agreed to lower wages and higher benefits. Conversely, the police and municipal employees argued for higher wages. Now, the police and municipal employees want the firefighters to help them make up their pension liability shortfall.
Recently, the city has hired 700 new employees; but, hardly any police or fire employees. The city’s public works department has 4,000 employees compared to the more efficient county’s public works department that operates with 500 employees. The county’s public works department builds roads faster and better.
The city’s ability to borrow large sums from the unions by not paying them has allowed the bloated bureaucracy to breed inefficiency, redundancy, and a lack of accountability. Turner’s plan punishes the firefighters when they have been the responsible adult in the room for many years. Instead of bloated salaries, Houston fighters have been fiscally responsible by requiring a fully funded pension. Now, the pay scale between police and fire is significant.
Truth be told, the police cut a very fat hog and now they want their firefighter brothers to pay for it. Turner will do anything possible to pass HB 43 because it allows him to spend money at an irresponsible pace. The police and municipal employees want HB 43 to pass because it gives them a billion dollars to allow escaping union members to retire. Those left behind will have to deal with the increasing realization that their pensions may not be funded.
Some union members have figured out that the defined contribution plan (in contrast with the defined benefit plan) actually costs less and gives more than Turner’s plan. Social media is interestingly enough playing a role in disseminating information about the cost of the corridor. Huffman’s bill has been placed on the intent calendar for floor debate in the Senate this week. It could be called at anytime. Will Bettencourt filibuster the bill? It will also be important to watch what happens to SB 2190’s voting requirement. This is where Turner and the city’s lobby team will attempt to get rid of the voting requirement.
The City of Houston gotsta get paid. For years, city leaders have operated with the philosophy of spending money that the city just doesn’t have. The Turner administration is no different.
Under Mayor Annise Parker, the media looked far and wide for a way to blame Republicans for the sins of liberal spending by a series of Houston mayors. Last legislative session, Mayor Parker took the position that Republicans refused to give her local control over the City of Houston pensions. Conversely, Parker promised the Houston Police Officers’ Union (HPOU) that she would not seek local control or use the city’s sizable lobbying forces to seek local control. Although Turner’s legislative strategy is a little more sophisticated and he is certainly more eloquent, he shares the same objective as Parker – keep on spending money and kick the can down the road.
Last session, State Representative Jim Murphy offered a bill for local control, which never made it out of committee. This was always the plan. Mayor Parker had to fool people for her last two years in office in order to keep spending money the city did not have in their accounts.
Mayor Turner’s dilemma is different because he was just elected to a four year term with a potential second term in his sights. After many years of working to assist city leaders in the legislature, Turner knew that his sneaky bastard plan had to be far more creative than Parker’s 2015 plan. Turner’s plan is simple: involve all three unions (police, fire, city employees), lobbyists, patsy legislators, and the Lieutenant Governor in the ultimate goal of spending money that the city doesn’t have in the coffers. I will count lining the pockets of lobbyists as a goal for discussion purposes.
Bill King has done yeoman’s work in holding Turner’s feet to the fire for a real solution to the pension problem. King ran on a platform of meaningful pension reform with the solution of moving all new employees to a defined contribution plan. Turner was endorsed by all three unions after he promised to oppose King’s defined contribution plan.
The three unions strongly oppose defined contributions because defined benefit plans are easily manipulated by politicians to benefit the unions. Defined contribution plans remove the politics from the equation. Thankfully and in the face of unfair criticism, King has remained engaged at the legislature in the defined contribution cause. March madness is in full effect and the Houston bracket of bad guy liberal spending is winning the tournament.
Turner knew that he had to employ a kick the can down the road strategy without being obvious. Turner’s first feat was to get Lieutenant Governor Dan Patrick and Senator Joan Huffman to agree with HPOU officials to take defined contribution off the table this legislative session. Ray Hunt, HPOU President, is a smart guy and is always covering bases. I like Ray even though I disagree with him all the time. He is a nice guy who does a very good job for his officers. They are lucky to have him.
Turner also lucked out when Patrick gave Huffman the position of chairwoman of the Senate State Affairs Committee where she is tasked with getting Turner’s bill through the senate.
Word started leaking out last summer that Turner’s scheme would employ a cap on city pension payments. So, the next time you hear Turner say he does not like caps – a la the property tax cap – remind the mayor that he is supporting his own version of a cap on city pension expenses, albeit a fake one. Beginning last summer, policy wonks immediately began speculating how Turner’s cap would work and whether it would it be enforceable. Turner was smart enough to call his cap a “corridor” – but, it is really a cap. Turner doublespeak.
State representative Dan Flynn chairs the House Pension Committee. Flynn’s bill, all 246 pages, has been circulated in the business community in order to garner the support of downtown types who are beholden to the mayor for handouts. Thankfully, King and members of the Arnold Foundation began analyzing the bill and sought edits that would tighten up the language. The devil is always in the details. King, Arnold Foundation representatives, and business leaders met with Senator Huffman in order to make crucial and necessary changes to Flynn’s bill. King and his crew spent hundreds of hours analyzing and tightening the corridor/cap language. The goal of these edits is to force the unions to adhere to Turner’s supposed principals. Anything else bankrupts the city.
Needless to say, after all the hours spent by King and others to tighten up the language, Huffman’s substitute filed on Monday is an exact copy of Flynn’s bill. None of the recommendations by King, the Arnold Foundation, and the local business community made it into Huffman’s bill. The good guys were played – Huffman was the secret agent.
Huffman had probably been informing Turner and his lobby team of King and the gang’s recommendations all along. It should be noted that Huffman and her husband are longtime friends with Ray Hunt and Mark Clark, HPOU’s top lobbyist.
King has vowed to spend his time next year running against Huffman. King does live in her district and I believe that he is seriously considering the possibility. I will support him for his attempt to do the right thing on this issue alone. We will need to work with him on some other conservative issues but don’t forget that Trump came along too.
On Monday, I was present in the Senate chamber and testified on Senator Bettencourt’s SB 151 that was heard immediately prior to the Huffman pension bill. SB 151 requires a vote on the billion dollar pension bond by city voters. Huffman’s bill did contain this language but I suspect it will be stripped out in conference. Huffman has proven that she is not to be trusted.
Robert Miller, lead lobbyist for the city and law partner of Senator Whitmire, has covered his bases. Miller knows that Turner’s goal is a sleight of hand – appear as though he is doing something without actually doing anything. This was also true for Parker.
The goal is to keep spending money and lining the pockets of cronies. This fraud cannot happen if the bill actually worked because the unions would have to abide by paying their fair share. It was never the intention of Mayor Parker, Turner, Miller, or anyone in Austin to have this pension bill work as advertised. The goal was to grab the billion dollars and hand it over to the police and municipal employee unions so their retiring officers can make a fast break with their multimillion dollar pensions. Did you know that city taxpayers are making millionaires out of city workers? You know now.
Notice that I did not mention anything about the firefighters. The firefighters are actually the fiscally responsible adults in the room. Although their pension is far from perfect, it is financially much better off than the other two pensions. The billion dollar pension obligation bonds (POBs) proposed in Turner’s bill go to police and the municipal employees union. The firefighters get none of it.
The story gets worse for the firefighters because their pension is almost fully funded; but, they are being treated like the bad guys by city leaders. The city is asking for large concessions from the firefighters who are being punished for being good stewards of their funds. I say this because the firefighters always stood their ground and made the city fully fund their pension. The other two pensions did not and allowed a succession of Houston mayors to rack up a ten billion dollar unfunded liability.
Basically, the other two pensions have turned a blind eye to the out of control spending at the City and have taken lots of IOUs. Turner’s goal in all of this is to keep spending money that the city simply does not have. Turner’s pension plan is bogus and falls far short of his claims. Even worse, we really do not know the real fiscal health of the private equity investments held by the unions. The billion dollar pension bond could just be a starting point for the taxpayers. We need an audit by qualified, competent auditors who can be held responsible for erroneous financial information of both funds.
Either way, all of the actors in this year’s legislative tournament are behaving badly. Both Dan Patrick and Joe Straus have lined their pockets with union money. Do not think for a second that Joan Huffman acted without Pappy O’Patrick’s approval. Governor Abbott’s campaign has taken lots of money from unions; so, don’t expect him to do the right thing for Houston taxpayers.
Now is the time to fill out your bracket. My money is on the taxpayers losing bigly. The bottom line is that March madness has nothing on the drama at Texas Capitol. The next big game is Monday when Flynn’s bill is heard in the House.
The Kingwood Tea Party recently hosted a debate between Bill King (against) and Councilmember David Martin (for) on the subject of Mayor Turner’s pension plan scheme. I was curious to see why a “conservative” would support Turner’s scheme to continue to spend money at a level that has sent our city into insolvency. Following the debate, research of Martin’s campaign finance reports led me to understand why he supports Turner on this issue.
Date of Contribution
Contributor
Contribution
9/26/2012
HPOU
$ 2,500
10/22/2012
Baker Botts PAC
$ 1,000
10/19/2012
Houston Retired Police PAC
$ 500
10/23/2012
Locke Lord
$ 500
1/31/2013
Houston Fire Fighter PAC
$ 3,000
6/21/2013
HPOU
$ 2,500
4/1/2013
HPOU
$ 2,500
2/25/2013
Houston Retired Police PAC
$ 500
1/24/2013
HPOU
$ 2,500
9/11/2013
HPOU
$ 2,500
12/12/2013
HPOU
$ 2,500
9/11/2013
Houston Retired Police PAC
$ 500
8/12/2013
Houston Fire Fighter PAC
$ 7,000
10/30/2013
Locke Lord
$ 500
9/11/2013
Locke Lord
$ 500
10/30/2013
Seafarers Intl Union
$ 250
3/4/2014
Baker Botts PAC
$ 1,000
11/30/2015
Seafarers Intl Union
$ 250
5/11/2016
HPOU
$ 2,500
5/11/2016
Plumbers PAC
$ 500
5/11/2016
Locke Lord
$ 500
5/11/2016
Houston Retired Police PAC
$ 500
11/15/2016
HPOU
$ 2,500
TOTAL
$ 37,000
Nothing I heard during this debate changed my belief that the best and most fiscally conservative way to solve Houston’s pension problems is to file for bankruptcy and dissolve the city. The County does a much better job at running local government and they steal less.
The most disturbing new revelation is that the four actuaries hired to work on the Turner scheme have entered into a non-disclosure agreement (NDA). Say what? Yes, you read that right. Even though the taxpayers are responsible for the city’s poor financial decisions, you are not permitted to learn about the methodology behind the scheme. With that decision, you can be certain that the deal is going to be bad – really bad.
The person drafting Turner’s bill is uber-liberal “Republican” Dan Flynn, a Straus henchman from Van, Texas. Flynn, House Pension Chair, reportedly drafted a 150 page bill for his union friends that promises to burn a huge hole in the pockets of every property taxpayer in Houston. The City has distributed the proposed legislation to the Greater Houston Partnership and the Arnold Foundation; but, you, the taxpayer, aren’t good enough to see it. Bill King made an open records request to the city, which was sent to Ken Paxton to delay release of the information. There is not a siren loud enough to alert taxpayers to these shenanigans.
As a state representative, Turner carried much of the union legislation; so, in reality, he is trying to “fix” his own mess. Turner along with Senators John Whitmire and Mario Gallegos (deceased) drafted and sponsored the chaos now being inflicted on the city’s finances. It should be noted that Gallegos was a city firefighter, so his support was self-help.
Turner’s conflicts include receiving political endorsements and contributions from these unions as a state representative and (three-time) mayoral candidate. Whitmire has actually served as an administrator of one of the unions. The conflicts, self-dealing, and corruption are fundamentally grotesque.
Now if the actuaries won’t tell you how they got their numbers and the politicians won’t let you see how this scheme is to be implemented, it is time for bankruptcy and dissolution. Our city government has failed.
Readers need to know that David Martin admitted during the debate that he has seen neither (1) the actuarial figures nor (2) Flynn’s bill. Yet, Martin defended Turner’s plan until the end.
This legislative session, the city is frantically attempting to add a 30 billion dollar mortgage onto the already heavy backs of Houston taxpayers. Thankfully, Senator Paul Bettencourt, the Tax Man, is trying to come to the rescue. Uncle Paul has sponsored a bill that would require a vote on the pension bonds that belong to Turner’s scheme.
Martin completely rebuffed Senator Bettencourt’s efforts, claiming that the Tax Man was meddling in the city’s affairs. So, I guess it is okay for senators who favor Turner’s plan to “meddle” but conservatives need to stay home and sit on their hands. Martin wants the taxpayers, including his constituents, to sit down and shut up.
I did speak with Senator Bettencourt who wanted me to quote him. Paul said, “It is frightening that the City of Houston is hiding the actuarial numbers and legislation. If the numbers worked, there would not be a need to hide them.” I concur.
I have linked the debate here for your own viewing pleasure-special thank you to Windi Grimes for making this available and recording the event!
Now, let’s discuss the debate. Before I do, I wish to thank the Kingwood Tea Party for hosting this event along with James Quintero, Director of the Center for Local Governance at the Texas Public Policy Foundation, for moderating the event, and a shout out to Windi Grimes for the use of the video. Since none of the participants had seen the numbers, the debate was highly philosophical and was really more of a discussion on policy.
Martin made a historical argument – the city previously issued pension obligation bonds or POBs without voter approval so the same practice should be a-okay now. The record should reflect that the city has never simultaneously issued a billion dollars’ worth of bonds.
Voters need to really think about this situation. Turner, et al. are dead set on issuing the largest bond ever NOT to repair or build one street, road, water or sewer treatment plant, or library. Every dime will go to the bank accounts of city employees.
Let’s analyze this for a minute. The unions – the same unions who hate investments because they do not like defined contribution plans – want a billion dollars for investments. The thought or idea that unions think investments are risky is blown out of the water by this request. So, the next time you hear a union rube tell you that defined contributions are risky because investments are risky, you should ask why they are demanding a billion dollars for investments. This concept is seemingly above Martin’s head, even though he is a financial executive.
Martin really does not like Senator Bettencourt’s proposed legislation (SB151), which demands a public vote by taxpayers. Martin kept stressing that the Teacher Retirement System of Texas (TRS) is an underfunded state pension. Senator Bettencourt and Bill King have repeatedly denounced the TRS financial problem. Martin somehow thought this argument would make it okay to hamstring city taxpayers because the TRS is underfunded. Faulty logic indeed.
King brought up the need for a public vote by city taxpayers; but, Martin was adamant that a vote is unnecessary and the time is insufficient. King responded that the city is already planning to put a revenue cap on the November ballot. Think about that for a second. Martin is telling his constituents that the time is insufficient to put the POBs on the November ballot; yet, the city is putting the revenue cap on the November ballot.
Make no mistake, this is the largest ‘kick the can down the road’ pension deal ever attempted by a Houston mayor. The fact the actuaries will not release their numbers combined with Chairman Flynn’s bill being hidden from Houston voters should cause all voters to sit up and pay attention. When you see Martin, a supposed conservative, arguing that a vote is unnecessary for the POBs but necessary for the revenue cap is the argument for bankruptcy itself. Are the cats sleeping with the dogs or is this something more?
that Mr. Oliver has been walking the free earth after pleading guilty to a federal felony bribery charge. Mr. Oliver has been attending HCC board meetings and voting on board items after pleading guilty to bribery. HCC had a board meeting on May 25 and June 15. There was also a board retreat he presumably attended. You can bet your bottom dollar that he was wearing a wire. Looking at the board minutes, Vice Chairman Christopher Oliver voted on a number of issues.
Reading the minutes Oliver noted that he attended the HCC graduation and various community activities in his district.
accomplices. There is always Senator Joan Huffman who never fails to demonstrate her liberalism when it counts. Senator Huffman waived to all the Houston police officers in the gallery as she lined their deferred retirement option plan (DROP) accounts with her vote.
The Greater Houston Partnership (GHP) and C Club joined in on Lieutenant Dan’s corruption of Houston finances. Both GHP and the C Club were somehow allowed to represent Houston taxpayers in the pension bill negotiation. This is like sending Bill Clinton to chaperone Miss USA contestants. I wonder if C Club member and Greater Houston Partnership Infrastructure Chairman Jim Dannenbaum participated in these negotiations. 
Mayor Turner’s dilemma is different because he was just elected to a four year term with a potential second term in his sights. After many years of working to assist city leaders in the legislature, Turner knew that his sneaky bastard plan had to be far more creative than Parker’s 2015 plan. Turner’s plan is simple: involve all three unions (police, fire, city employees), lobbyists, patsy legislators, and the Lieutenant Governor in the ultimate goal of spending money that the city doesn’t have in the coffers. I will count lining the pockets of lobbyists as a goal for discussion purposes.
On Monday, I was present in the Senate chamber and testified on Senator Bettencourt’s SB 151 that was heard immediately prior to the Huffman pension bill. SB 151 requires a vote on the billion dollar pension bond by city voters. Huffman’s bill did contain this language but I suspect it will be stripped out in conference. Huffman has proven that she is not to be trusted.
