Congressman Crowley Schedules Visit to James Monroe Senior Center
|
Monday, August 1, 2011
Sunday, July 31, 2011
JOINT AUDIT BY DiNAPOLI AND LIU CONCLUDES MTA’S EXPANDING SUBWAY DIVERSIONS HEADED DOWN A WASTEFUL, CONFUSING TRACK
A joint audit released today by New York State Comptroller Thomas P. DiNapoli and New York City Comptroller John C. Liu takes the Metropolitan Transportation Authority (MTA) to task for leaving subway riders in the dark about wasteful and unproductive service diversions. Under MTA’s New York City Transit (Transit), subway service diversions are on the rise and over budget with little explanation or instruction to riders.
“When the MTA fails to manage its service diversions properly, it's more than an inconvenience; it's a waste of taxpayer money and it derails local businesses,” Comptroller DiNapoli said. “Our audit found that MTA’s service diversions are increasing in frequency and leaving taxpayers on the hook for millions of dollars in cost overruns. The subway system is showing its age, but the MTA has to do a better job managing all aspects of these diversions, from rider notification to budgeting.”
“Sadly this confirms the nagging suspicion of riders, residents and business owners alike, that subway service is taken down more than necessary,” Comptroller Liu said. “The MTA must understand that the City never sleeps and weekend service is neither ancillary nor expendable. We expect the MTA to maintain and repair the tracks, while keeping disruptions to a minimum.”
The first joint audit conducted by the State and City Comptrollers in more than a decade recommended that Transit make significant improvements when it comes to budgeting, scheduling and managing service diversions. The audit, which covered a period from January 2009 to January 2011, brought together the expertise of the staffs of both offices and expanded upon the series of ongoing audits both have conducted of the MTA.
Transit Doesn’t Do Enough to Inform Riders of Service Diversions Transit’s budget for advertising diversions is woefully inadequate and Transit management failed to notify riders of diversions consistently or effectively. In 2010, its budget for informing its 2.3 billion annual riders of service diversions was $228,000. In comparison, the Long Island Rail Road, with 81.9 million annual commuters, spent $742,432 to notify its riders of service diversions that year.
In June and July 2010, auditors visited 39 stations that were affected by diversions. They found:
No more than 20 signs at any station, despite Transit’s claim of posting 50 on each platform;
No signs in any language besides English at all 39 stations, despite Transit’s policy;
One sign in each of 10 stations on the 1 and 2 lines, but no signs at street level, in cars or on platforms;
Only two of 13 Americans with Disabilities Act stations checked had signs in elevators, despite Transit’s policy;
Transit’s only written policy for informing riders of diversions consists of newspaper advertisements, which are required to run forall diversions. Newspaper ads were only created for two of 50 sampled diversions (Fulton Street Station and World Trade Center E line).
More Diversions, Scheduled Poorly: Work Starts Late, Ends Early The frequency and duration of Transit’s subway diversions are increasing. Between 2008 and 2010, the number of weekend diversions rose from 47 to 74 and the number of diversions lasting for at least one month increased from 7 to 57.
Transit often reroutes riders’ trains even when no work is taking place. When asked for the General Order Worksheets that track time spent on each diversion, Transit management could only provide auditors with 29 of the 50. Of those 29 diversions, work started late on 28 and stopped early on 21. Unproductive work time ate up anywhere from 10 to 27 percent of the time trains were diverted, though there was no cost mitigation. Transit management wasted an estimated $10.5 million in this manner over the 3,332 diversions in a sample period from January 1, 2009 and July 14, 2010.
$26.6 Million Over Budget
Spending on diversions is not properly managed. The Comptrollers reviewed 15 diversions covered by 12 contracts budgeted at $141.7 million. Four of these contracts went over budget by a combined $26.6 million and cost a total of $83.1 million. The MTA’s financial constraints demand that Transit properly monitor costs during diversions and keep them within budget.
Shuttle Bus Schedules Based on Six-Year Old Rider Numbers
The audit team sampled six diversions in which buses were used to transport the riding public. Transit management could not document how ridership estimates were used to decide how many buses to put into operation or for how long. Transit could provide only one ridership estimate and that was six years old.
Recommendations
The Comptrollers issued five recommendations. The MTA and Transit should:do
1. Reevaluate its budget for alerting the riding public about planned subway service changes due to diversions;
2. Monitor expenditures for service diversions and justify spending over budget amounts;
3. Ensure that diversions adhere to scheduled start and end times for service diversions and restore normal subway service as soon as possible after diversion work is completed;
4. Use updated ridership data to determine shuttle bus deployment for transporting riders during a subway diversion;
5. Adhere to Federal law and Transit procedures related to communicating with the public regarding diversions.
“When the MTA fails to manage its service diversions properly, it's more than an inconvenience; it's a waste of taxpayer money and it derails local businesses,” Comptroller DiNapoli said. “Our audit found that MTA’s service diversions are increasing in frequency and leaving taxpayers on the hook for millions of dollars in cost overruns. The subway system is showing its age, but the MTA has to do a better job managing all aspects of these diversions, from rider notification to budgeting.”
“Sadly this confirms the nagging suspicion of riders, residents and business owners alike, that subway service is taken down more than necessary,” Comptroller Liu said. “The MTA must understand that the City never sleeps and weekend service is neither ancillary nor expendable. We expect the MTA to maintain and repair the tracks, while keeping disruptions to a minimum.”
The first joint audit conducted by the State and City Comptrollers in more than a decade recommended that Transit make significant improvements when it comes to budgeting, scheduling and managing service diversions. The audit, which covered a period from January 2009 to January 2011, brought together the expertise of the staffs of both offices and expanded upon the series of ongoing audits both have conducted of the MTA.
Transit Doesn’t Do Enough to Inform Riders of Service Diversions Transit’s budget for advertising diversions is woefully inadequate and Transit management failed to notify riders of diversions consistently or effectively. In 2010, its budget for informing its 2.3 billion annual riders of service diversions was $228,000. In comparison, the Long Island Rail Road, with 81.9 million annual commuters, spent $742,432 to notify its riders of service diversions that year.
In June and July 2010, auditors visited 39 stations that were affected by diversions. They found:
No more than 20 signs at any station, despite Transit’s claim of posting 50 on each platform;
No signs in any language besides English at all 39 stations, despite Transit’s policy;
One sign in each of 10 stations on the 1 and 2 lines, but no signs at street level, in cars or on platforms;
Only two of 13 Americans with Disabilities Act stations checked had signs in elevators, despite Transit’s policy;
Transit’s only written policy for informing riders of diversions consists of newspaper advertisements, which are required to run forall diversions. Newspaper ads were only created for two of 50 sampled diversions (Fulton Street Station and World Trade Center E line).
More Diversions, Scheduled Poorly: Work Starts Late, Ends Early The frequency and duration of Transit’s subway diversions are increasing. Between 2008 and 2010, the number of weekend diversions rose from 47 to 74 and the number of diversions lasting for at least one month increased from 7 to 57.
Transit often reroutes riders’ trains even when no work is taking place. When asked for the General Order Worksheets that track time spent on each diversion, Transit management could only provide auditors with 29 of the 50. Of those 29 diversions, work started late on 28 and stopped early on 21. Unproductive work time ate up anywhere from 10 to 27 percent of the time trains were diverted, though there was no cost mitigation. Transit management wasted an estimated $10.5 million in this manner over the 3,332 diversions in a sample period from January 1, 2009 and July 14, 2010.
$26.6 Million Over Budget
Spending on diversions is not properly managed. The Comptrollers reviewed 15 diversions covered by 12 contracts budgeted at $141.7 million. Four of these contracts went over budget by a combined $26.6 million and cost a total of $83.1 million. The MTA’s financial constraints demand that Transit properly monitor costs during diversions and keep them within budget.
Shuttle Bus Schedules Based on Six-Year Old Rider Numbers
The audit team sampled six diversions in which buses were used to transport the riding public. Transit management could not document how ridership estimates were used to decide how many buses to put into operation or for how long. Transit could provide only one ridership estimate and that was six years old.
Recommendations
The Comptrollers issued five recommendations. The MTA and Transit should:do
1. Reevaluate its budget for alerting the riding public about planned subway service changes due to diversions;
2. Monitor expenditures for service diversions and justify spending over budget amounts;
3. Ensure that diversions adhere to scheduled start and end times for service diversions and restore normal subway service as soon as possible after diversion work is completed;
4. Use updated ridership data to determine shuttle bus deployment for transporting riders during a subway diversion;
5. Adhere to Federal law and Transit procedures related to communicating with the public regarding diversions.
Friday, July 29, 2011
LIU ISSUES DEBT CEILING ADVISORY
Memo to Mayor and City Council Outlines Possible Effects on NYC’s Finances,
Puts Forth Contingency Plans if Debt Talks Fail
City Comptroller John C. Liu today issued a Debt Ceiling Advisory outlining potential effects on the City’s finances, and offered recommendations to help offset the potential risks, if a deal is not struck in Washington to raise the nation’s debt limit.
“As inconceivable as it seems, Washington appears stuck in a quagmire just days from the hard deadline for a debt ceiling resolution. The irresponsibility and ineptitude being demonstrated in our nation’s capital could cause profound damage to our City, first and foremost with more than one million seniors and disabled New Yorkers being cut off from their primary source of income,” Comptroller Liu said. “After weeks of monitoring the situation, my office issued an advisory outlining the financial threat to our City and calling for an immediate mobilization of our resources to evaluate and shore up our preparedness.”
We have been closely monitoring this situation and as a result, my office has outlined actual consequences that the inaction in Washington could have on our City’s finances, programs and benefits,” Comptroller Liu said. “Due to the irresponsibility in our nation’s capital, New York City’s seniors could feel the brunt of the pain if a deal is not reached, putting their much relied upon benefits in jeopardy. New York City should view this as a financial threat, and I am calling for an immediate mobilization of our resources to discuss our preparedness.”
Liu has recommended the creation of an emergency Debt Ceiling Task Force, comprised of representatives of the Comptroller’s Office, Mayor’s Office of Management and Budget, New York City Council, and other relevant parties to begin meeting immediately to discuss the City’s options.
In addition, Comptroller Liu has put forth recommendations for discussion in the event that an agreement in Washington is not reached.
Since a failure to extend the debt ceiling could potentially result in a stoppage of federal payments, including Social Security benefits to 1.1 million New York City seniors and disabled persons, Liu is calling for the Task Force to explore any and all possibilities for the City to temporarily help finance these payments to ensure that the City’s most vulnerable are cared for.
Comptroller Liu has also recommended that the City work together with banking institutions to establish mechanisms to open credit to seniors in the event that an agreement is not reached and has requested an analysis of how City-funded service providers to the elderly and disabled could receive additional support if their client load increases.
A review of the City’s finances has highlighted five impact areas that may be affected by the lack of a deal in Washington. Each area was assigned delegation of “HIGH, MEDIUM or LOW” depending on the potential impact.
IMPACT ON NYC SOCIAL SECURITY BENEFICIARIES – HIGH
Liu said that New Yorkers who will feel the brunt of the inaction in Washington are the City’s seniors, many of whom rely solely on Social Security as their main source of income. The lack of an agreement on the debt ceiling could result in more than 1 million seniors and disabled persons being denied their payments each month, totaling $1.1 billion. See the chart below
NYC Social Security Recipient Population Profile, December 2010 | |||
# Beneficiaries | Total Benefits | Per Recipient | |
Monthly Benefit | |||
Bronx | 176,450 | $169,942,000 | $963 |
Brooklyn | 301,475 | $298,082,000 | $989 |
Manhattan | 235,805 | $276,498,000 | $1,173 |
Queens | 300,695 | $324,533,000 | $1,079 |
Staten Island | 81,015 | $95,707,000 | $1,181 |
NYC Total | 1,095,440 | $1,164,762,000 | $1,063 |
Source: OASDI Beneficiaries by State and County, 2010, U.S. Social Security Administration. | |||
*Note: This estimate shows a deviation of 20 recipients greater than reflected in NYC Aggregate Profile | |||
IMPACT ON MEDICAID, MEDICARE AND PUBLIC ASSISTANCE PROGRAMS – MEDIUM
Several major social service programs in New York City could be at risk if the debt ceiling is not increased. Federal Medicaid support totals more than $1 billion monthly. A delay could affect the state’s ability to pay Medicaid service providers on a timely basis. This could also affect health care providers.
IMPACT ON NYC CASH POSITION – LOW
Because of the City’s financial strength, our cash position is such that it will be able to sustain the delay of federal and state aid receipts. The City currently has $6.9 billion in cash on hand and is expected to continue to meet its normal obligations, including payroll, vendor payments and interest payments on outstanding debt.
IMPACT ON MUNICIPAL BOND MARKETS – MEDIUM
The City has successfully managed its capital borrowing through prior periods of market turmoil, such as the fallout from the Lehman Brothers bankruptcy in 2008. However, higher interest rates would hit City taxpayers directly and for an extended period. The Comptroller’s Office is monitoring the capital markets very closely to minimize any impacts on the City’s capital borrowing from the current debt ceiling debate.
IMPACT ON CITY’S PENSION FUNDS – MEDIUM
It is assumed that any failure to raise the debt ceiling would have an impact on the financial markets. With over $7 billion of short term securities, the pension funds are well equipped to make their near term pension payments to beneficiaries regardless of the near term stock and bond market volatilities. As long-term investors, while the markets will readjust in the short term, the asset allocations may need to be reviewed for the longer term implications.
A full copy of Comptroller Liu’s advisory is available at http://comptroller.nyc.gov/
URBAN ENTREPRENE
BOEDC Welcomes the
New York City
URBAN ENTREPRENEURSHIP FORUM
Monday, August 1, 2011 - 9:00 a.m. to 5 p.m.
Registration 8 a.m. to 9 a.m.
Monroe College
King Hall (Bronx Campus)
2501 Jerome Avenue - The Bronx, NY 10468
Co-hosted by:
The White House Business Council
The White House Domestic Policy Council
The Office of the Honorable Michael Bloomberg - Mayor, New York City,
Monroe College
The Fund for Public Advocacy
Office of Russell Simmons
Minority Business Development Agency
Small Business Administration
100 Urban Entrepreneurs
Operation HOPE & multiple federal agencies
The Bronx Overall Economic Development Corporation's President
Marlene Cintron will be featured as a panelist in the
"Investing in Urban Entrepreneurs: Creating Funding/Financing Urban Entrepreneurs" workshop
Additionally, Bronx businesses, Astoria Coffee and Cappuccino Machine Inc. and Melita Corp., recipients of the SBA 504 Loan Program will provide conference participants with their products.
This invitation is non-transferable. The event is free.
Pre-event registration is required and space is limited.
Please RSVP at:
Visit us at: http://www.whitehouse.gov/
Thursday, July 28, 2011
Assemblywoman Rivera celebrates National Night out with Local Precincts
On Tuesday, August 2nd Assemblywoman Naomi Rivera will celebrate the 28th Annual National Night Out. In collaboration with the 49th and 52nd police precincts, this event is sure to promote the communal spirit of the Bronx through enjoyable programming as well as to encourage better relationships amongst residents and law enforcement officials in the area.
National Night Out 2011 will take place at two locations within the 80th Assembly District. The 52nd Precinct will hold their National Night Out at Williamsbridge Oval Park (206th and Bainbridge Ave) and the 49th Precinct’s National Night Out will be held on the Pelham Parkway Lawn located at Pelham Parkway North (Between Wallace Ave. and Barnes Ave). The event is anticipated to run from 6:00 to 9:00 pm.
National Night out was designed to heighten drug and crime prevention awareness, increase support and involvement towards anticrime programs, build neighborhood spirit and police-community partnerships, and send a message to criminals letting them know that neighborhoods are organized and fighting back. This year’s event is sure to carry on the tradition.
There are no financial obligations for residents who wish to participate in National Night Out. This event is family oriented and there will be food and refreshments for all to enjoy. National Night Out events are successful every year and they continue to transform communities into better places to live. This event is sure to be a great way to kick off the Assemblywoman’s Summer Event Series of 2011.
Statement by Senator Jeff Klein on SLA investigat
Local Downtown Manhattan Newspaper finds sales continue
Statement from Senator Jeffrey D. Klein, (D-Bronx/ Westchester), Chairman of the Senate Standing Committee on Alcoholism & Drug Abuse:
“News of a State Liquor Authority probe regarding on-going sales of caffeinated Four Loko proves that a simple gentleman's agreement is not enough to keep this dangerous product off store shelves and out of New York State. My legislation, (S.3889A), to outright ban caffeinated alcoholic beverages passed the Senate this session. The Assembly needs to do its part to protect New Yorkers from this product, which the FDA deemed 'unsafe,' and pass my bill as soon as possible.”
The article from "The Local East Village" can be found here .
COMPTROLLER LIU: NYC BANKING COMMISSION MISSES OPPORTUNITY TO HELP NEW YORKERS FACING FORECLOSURE
Rubber-Stamps Approvals for Depositories,
Rubber-Stamps Approvals for Depositories,
Liu to Explore Legislation and Other Means to Spur Change at Mayoral-Controlled Commission
City Comptroller John C. Liu stated the following in response to questions about today’s New York City Banking Commission vote to designate 35 financial institutions as depository banks:
“Today the New York City Banking Commission rubber-stamped a motion to assign these banks the privilege to serve as depositories without first considering what, if any, role they are playing in the current foreclosure crisis. This obscure but powerful commission had the opportunity to engage financial institutions in a dialogue on how keep New Yorkers in their homes and they blew it by giving these banks a free pass.
“Most New Yorkers have never heard of the Banking Commission, which is controlled by City Hall and has been given broad authority to regulate financial institutions holding City deposits. As a result of today’s
development, my office will be working with the City Council to enact legislation aimed at holding banks designated as depositories accountable to New York City homeowners and taxpayers. In addition, my staff will be analyzing ways to restructure the Commission in order to better serve New Yorkers.”
Background:
Banks are designated as depositories every two years. The Banking Commission meets quarterly, is staffed by the Department of Finance and consists of one representative from the Mayor, the Finance Commissioner and Comptroller Liu.
Comptroller Liu’s representative on the Banking Commission, Deputy Comptroller Alan van Capelle, sent a letter to his fellow Commission members in March outlining specific questions to be added to the designation forms required to be filled out by the banks. Although the proposal was in full accordance with Title 22, Section 1-03c(4) of the Rules of the City of New York which gives the Banking Commission authorization to request information regarding foreclosures and other banking activities, the Mayoral-controlled Commission voted to not support the measure.
Comptroller Liu has made foreclosure a key issue since taking office, both for the devastating results to New Yorkers and because of lingering effects this crisis has had on the City and national economies. As custodian of the City’s Pension Funds, he has worked with the Pension Boards of Trustees to put forth shareholder resolutions calling on banks to enact investigations into their foreclosure practices and put controls in place to guard against any future foreclosure crisis. In addition, Comptroller Liu’s Office has assisted hundreds of New Yorkers facing foreclosure through its Community Action Center.
“Today the New York City Banking Commission rubber-stamped a motion to assign these banks the privilege to serve as depositories without first considering what, if any, role they are playing in the current foreclosure crisis. This obscure but powerful commission had the opportunity to engage financial institutions in a dialogue on how keep New Yorkers in their homes and they blew it by giving these banks a free pass.
“Most New Yorkers have never heard of the Banking Commission, which is controlled by City Hall and has been given broad authority to regulate financial institutions holding City deposits. As a result of today’s
development, my office will be working with the City Council to enact legislation aimed at holding banks designated as depositories accountable to New York City homeowners and taxpayers. In addition, my staff will be analyzing ways to restructure the Commission in order to better serve New Yorkers.”
Background:
Banks are designated as depositories every two years. The Banking Commission meets quarterly, is staffed by the Department of Finance and consists of one representative from the Mayor, the Finance Commissioner and Comptroller Liu.
Comptroller Liu’s representative on the Banking Commission, Deputy Comptroller Alan van Capelle, sent a letter to his fellow Commission members in March outlining specific questions to be added to the designation forms required to be filled out by the banks. Although the proposal was in full accordance with Title 22, Section 1-03c(4) of the Rules of the City of New York which gives the Banking Commission authorization to request information regarding foreclosures and other banking activities, the Mayoral-controlled Commission voted to not support the measure.
Comptroller Liu has made foreclosure a key issue since taking office, both for the devastating results to New Yorkers and because of lingering effects this crisis has had on the City and national economies. As custodian of the City’s Pension Funds, he has worked with the Pension Boards of Trustees to put forth shareholder resolutions calling on banks to enact investigations into their foreclosure practices and put controls in place to guard against any future foreclosure crisis. In addition, Comptroller Liu’s Office has assisted hundreds of New Yorkers facing foreclosure through its Community Action Center.