We’re constantly told that policing in Fullerton is physically demanding work that necessitates extreme financial compensation. Without multi-million dollar pensions, we’re warned, our city may not be able to afford the best of the best. And so for decades we’ve been paying, and we’ve been paying quite a bit.
At least it’s good to know we’re getting the best.
A while back some anonymous Friend dropped off what appears to be leaked financial statements from Rusty Kennedy’s non-profit, the Orange County Human Relations Council. The files didn’t receive much attention from FFFF at the time, but this week one of our readers recently pointed out Rusty has been down at the county begging for a new $250,000 infusion to fund additional employees for his private non-profit.
OK, let’s take a look at his financial statements. If you believe that this leaked budget is authentic (I do), an additional $250,000 per year from the county taxpayers would conveniently cover the Council’s projected loss for 2016.
Now that’s not very good, is it? Running a non-profit at a 20% annual loss is cause for concern. But of course this is a private 501(c)(3), so that’s normally a problem for Rusty’s private board members to worry about.
Or is it? What if Rusty is groveling for cash at the county just pay for existing expenses, rather than hiring the three new people as promised? The group already receives substantial funding from the county and local cities. Why should the county give more money to a group that can’t balance its budget? Furthermore, it’s hard to tell if there’s any real value in Rusty’s services, or if his organization offers any sort of efficiency. Program expenses aren’t identified in this budget at all. Why not?
Here’s one clue hidden within the documents: Salaries, Benefits, and Payroll Taxes account for 98.1% of their budgeted revenue. With salaries eating up the entire budget, one might wonder if this whole operation isn’t just some make-work project for Rusty and his friends.
There’s one more concern. Rusty has collected a lot of donations over the years by pretending that his non-profit is actually an empowered county agency. Many of his donors are misinformed, which is why the county recently insisted he stop using the county logo and misappropriating the name of the similarly-named Orange County Human Relations Commission. Furthermore, there is at least one board member who hold seats in both organizations – a glaring conflict of interest that the county has yet to resolve.
Altogether, these documents paint a pretty dim picture for Rusty’s personally lucrative public/private amalgamation. Will county supervisors continue to dump money into Kennedy’s opaque and unaccountable mess of an organization? And how much are individual OC cities paying into Rusty’s perpetual self-employment apparatus? Do Orange County residents receive any real value from this public/private partnership, or is it time to scrape this useless barnacle off the county barge?
FFFF was just sent a few pages from the latest budget proposals, which the Fullerton City Council will soon vote on. The true costs of Fullerton’s pension debt are coming to bear, as the proposals call for the elimination for firefighters, police corporals, maintenance workers and security guard services.
These reductions will be necessary in order to offset significant increases in CalPERS pension payments for existing employees. Most of the budget is allocated to staffing, so city staff claims there are very few non-staffing cuts to be made.
From here, it will only get worse. CalPERS will continue to lower its discount rate, triggering higher bills for cities across the state. We are looking at many more reductions in services and increases in taxes and fees over the next few years.
Will our council have the guts to pull the trigger and start making severe cuts now? Or will they postpone action until insolvency becomes inevitable?