Tuesday, June 30, 2015

Judge Taft Carter should Vacate Providence Pension protection Plan

On April 30, 2012 this announcement was a bald faced lie and Judge Taft -Carter should vacate the agreement. I will produce a report showing that Taveras and others knew of  facts  presented to the court that were Materially misleading  should make this agreement null and void.


Mayor Taveras Signs Providence Pension Protection Plan
Monday, April 30, 2012


Surrounded by youth leaders from across Providence, Mayor Angel Taveras today signed a comprehensive pension reform ordinance into law that saves city pensions and positions Providence for the future. The Mayor signed the ordinance less than an hour after the structural, sustainable pension reform plan was unanimously approved in a second and final vote of the City Council.
"The Providence Pension Protection Plan is a big step toward the necessary structural changes we must make to put Providence on a sustainable fiscal path and position our city for the future. These reforms have overwhelming support from the community, business leaders and the Local 1033 Laborers union," said Mayor Taveras.
During his budget address one week ago, Mayor Taveras called on the City Council to pass the Providence Pension Protection Plan. City actuaries expect the reforms to save at least $16 million and reduce the city's unfunded pension liability by more than $236 million.
The reforms suspend all guaranteed annual raises (COLAs) for retirees until the pension system is 70 funded and caps all future pensions at one-and-a-half times the median state household income. The reforms also reduced the disability benefit from 66.6 percent of an employee's final salary to 50 percent. Lastly, the reforms changed current rules regarding payments into the system and will now require employees to pay into the pension system for as long as they are earning credit toward a pension.
Mayor Taveras and the City Council have spent months examining the city's pension crisis and have developed a comprehensive plan to save Providence's pension system for current employees and retired city workers. The Providence Pension Protection Plan will save pensions for current employees and all of Providence's retirees and will allow the city to protect and improve the health, safety and quality of life for all Providence residents.
"I want to thank the Mayor for signing this important piece of legislation," said City Council President Michael Solomon. "More than six months ago the City Council set out to fix the pension system with the goal of forming recommendations that would result in a sustainable system for the city, taxpayers, and retirees. After much testimony and deliberation, our Subcommittee on Pension Sustainability made a series of recommendations that will substantially reduce our unfunded liability and put our city and pension system on a path towards fiscal stability."
"Comprehensive pension reform was critical to addressing the city's dire financial situation and protecting retirement benefits for current employees and retirees. With an unfunded liability over $900 million and an annual required contribution skyrocketing, we recognized that the system was unsustainable and chose to act," said City Councilor David Salvatore (Ward 14), who chaired the Subcommittee on Pension Sustainability. "I thank the Mayor and my colleagues for supporting this reform and ensuring that Providence's brightest days are yet to come."

Superior Court Associate Justice Sarah Taft-Carter has issued a ruling that Providence’s pension settlement is “fair, reasonable and adequate,” according to...
Judge Carter did not have the facts straight because the truth was withheld by significant city and State leaders. By the time this investigation is finished we could see dozens of law suits and criminal charges.

Wednesday, June 17, 2015

Rhode Island Governor and Treasurer Mislead Municipal Bond Markets

                               Governor Raimondo and Treasurer Magaziner have  joined  Providence in misleading municipal bond markets and rating agencies as to the true financial condition of the State Capitol.
The state is a cesspool of insiders.

  Image result for mattiello ri     Image result for mattiello ri  Image result for mattiello riImage result for mattiello fox

I live in Rhode Island a state where the elected leaders consider it moral to unilaterally alter the terms of employee benefits and also consider it moral to obligate state taxpayers to pay off a debt that is legally not theirs ,the $100 million in insured bonds of the EDC for 38 Studios were paid so that assembly members and insiders are not investigated by the insurance company. This is massive public corruption. Had the assembly or Governor or Attorney General actually instituted an investigation ,as they all promised, anytime in the last 18 months they could make a case that they were pursuing the truth, but the fact is that the purpose of these payments is to protect insiders.This budget included yet another appropriation for 38 studios payment by taxpayers. It wasn't highlighted by the Governor and it wasn't even mentioned by the Speaker. They consider this a closed subject. Now their brethren and fellow insiders in Providence have been found to have been stealing money from the police and fire pension fund. Again the speaker and the Governor are silent because they know Providence can't pay back the fund the money they stole ,in this case $62 million plus interest. To illustrate how desperate Providence has been to hide cash flow problems and mislead Municipal bondholders they have been crediting 8.5% interest to the pension fund for this unauthorized loan. They are ,with good reason , afraid to open their books to outsiders. There can be no rational explanation for this misappropriation of $62 million , secret borrowing at 8.5% and accounting that has recently been ruled inappropriate. This has been going on for ten years at least. Who knows what else is going on and what is being covered up?
In just two weeks Providence will default of a loan (short term IOU) , to the pension fund in the amount of $62 million dollars. This technical default should bring in ratings agencies and the Feds but Providence and the Elorza administration will try to do exactly as the Taveras Administration before and double talk and mislead the municipal bond market as to the true financial condition of the pension plan and the city. the regulators can then watch them mislead municipal bondholders in "real time". I will be issuing a 40 page report to the media and regulators on June 29 for everyone's review. Not everyone in city hall is or has been misleading but many are guilty and they need to come clean.