Idiots or Liars?


By DIA, Section News
Posted on Wed Jun 11, 2008 at 04:58:34 AM EST

Time once again to play the game. At this point we may have to add a category. I can not believe that the Times Union and everyone on it's staff isn't well aware that they are promoting a blatant lie regarding the city finances and the dump. Which begs the question - why is it so important for the local powers that be to keep the garbage money flowing into Albany? Who is getting all that money?

To the big lie. As discussed here many many times before the dump only makes the city around $5 million a year ($5 million in profit on $13 million in revenue.) Now for a city like Albany with a budget of $165 million or so, that is real money. But to put that in perspective, this year the city borrowed $9 million to fill the hole in the budget. Based on current numbers, by 2011 the city will be at least $15 million short for that year's budget. Those numbers don't include any shortfall for the dump. So, to say that not having another $5 million for the budget is some sort of crisis that just showed up this week is to display some pretty top notch ignorance. Or is an attempt to mislead. The financial crisis the TU is talking about today has been evident for years. And the dump is maybe one third or one quarter of the problem. Chump change. And yet the TU insists upon making it seem like the city is facing the possibility of losing $13 million a year if the dump isn't expanded. Wrong. Exhibit A:
when Albany's best counterargument is that it desperately needs the $13 million a year
Never one to be outdone when it is time to defend Jerry Jennings and failed economic policy, Fred Lebrun returns from retirement with a real gem. And Fred couldn't even be happy with the big lie of $13 million. He upped it to $15 million. Really, why not? If you are going to lie, lie BIG!
Garbage as a revenue stream may seem unconventional, but realistically the city of Albany can't live without it.

Between $13 million and $15 million a year in tipping fees and related revenues support the city's strapped finances, the price paid for bringing to the Rapp Road landfill waste generated by 220,000 Capital Region residents. Besides Albany's own garbage going there, 11 surrounding communities rely on that landfill.

So the prospect of losing that revenue stream if that landfill is closed is unthinkable. Not only would the city go into economic crisis because of the lost revenue, but there also would be the added expense to city residents of shipping the garbage elsewhere. In a city watching its middle class slip away, this would be one more reason for them to leave.
Wow. If we don't have the dump, the middle class will leave! Not having the dump is unthinkable!! The city currently has an $8-$9 million deficit which I won't mention but I will say that losing $5 million will be a "crisis"!
An entire house of cards called Albany city finances would come fluttering down.
At least he got the house of cards bit correct.

Why the ongoing blatant lies about the economic reality of this situation from the Times Unions reporters, editorial writers and their Hunting and Fishing writer? I have to bet that at this point it is something more than ignorance. So I will return to an earlier bit of writing on this subject. First we will have a little tutorial so that people can understand basic economics. But the real part i'm interested in is the extra credit assignment.
Homework Assignment for Times Union Reporters, Editorial Writers, Mike Spain and Fred the Fisherman:

A Times Union reporter generates $50,000 a year in take home salary (Gross Income). The reporter then pays state and federal taxes along with some FICA bits. The reporter also chips in for his health insurance plan. When all is said and done, the Times Union reporter takes home about $35,000 in actual pay.

The Times Union reporter has a wife, 1 kid, a mortgage and one car payment. When all of the Times Union reporter's bills are added up for the year (let's call this The Budget) they come to $40,000.

At the end of the year, how much money does the times union reporter have.

A) $50,000-$40,000 = $10,000 (whohoo!! party!!)

B) $35,000-$40,000 = -$5,000 (oops)

Choose A or B (Please do not choose C again, Fred)

The fact is that the landfill brings in income BEFORE EXPENSES of about $13 million. It isn't clear what the true expenses to operate the landfill and service the landfill debt are but it is likely in the neighborhood of $5-$7 million a year (Update [2008-6-11 4:58:34 by DIA]: Actually it is more like $8-$9 million based on more recent reports.) Some years it is more since we have spent a couple million on legal bills. So, one more time, I will point you to the facts.
You raise a very valid point about the revenue from the Albany landfill as it relates to the city’s budget. The $13M is a figure that is nice to see on the revenue side of the budget, but take out the cost of repaying debt service, operation costs such as the almost $1M for cover material, and the net profit is around $6M. In a $155M budget, $6M is about 4%, not the 10% that the city keeps putting out there as the economic benefit of operating the landfill. Add in the proposed $25 million in bonding for the landfill over the next two years, and it is easy to see that the revenues are not all they are cracked up to be.
Times Union Extra Credit Project: Each year the city of Albany spends $6-$9 million to operate the landfill. Please provide a detailed report of who those people are who are getting this money, how much money they receive, and how they are personally connected to the Mayor.
I believe the real reason that the TU and the Mayor and their ilk continue to perpetrate this lie is hidden somewhere in that extra credit project.

BONUS EXTRA CREDIT PROJECT: Most of the garbage going into the dump comes from other municipalities (and from private haulers getting cut rate deals). It is very clear that Albany has no viable plan to continue the landfill as is. Some reporter should contact the other 11 municipalities and ask them about their back up plans. It would be interesting to see how many have viable alternatives to shipping their junk to Albany and what the cost implications of that might be. I think the results would probably surprise Albanians who get their news from our local media.

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Idiots or Liars? | 3 comments (3 topical, 0 hidden)
gobsmacked (none / 0) (#1)
by albany layman on Wed Jun 11, 2008 at 08:30:11 AM EST
I haven't had time to read the whole LeBrun column, but from the first few paragraphs, it looked like a case study in how not to write an opinion column about public policy.  What is the point of giving a person a prominent platform when that person tends to say, "I like the status quo."  Or, "hey, this guy who is getting paid consultant money to keep the dump going says that the dump is going just fine."  Yeah, thanks for sharing his take, LeBrun.  Very helpful.

Awful.

more (none / 0) (#2)
by albany layman on Wed Jun 11, 2008 at 11:19:51 AM EST
LeBrun's column was so bad, I had to take a few more whacks at it.  My comments are in italics.

Garbage as a revenue stream may seem unconventional, but realistically the city of Albany can't live without it.  [That's right.  Mr. Opinion Column writer starts off by saying, I will only be considering one option here.  And yes, that option is ... the status quo.  Such insight!]

Between $13 million and $15 million a year in tipping fees and related revenues support the city's strapped finances, the price paid for bringing to the Rapp Road landfill waste generated by 220,000 Capital Region residents.  [DIA has got these numbers covered, check out his previous posts.]  Besides Albany's own garbage going there, 11 surrounding communities rely on that landfill.

So the prospect of losing that revenue stream if that landfill is closed is unthinkable.  [Other options?  Who needs 'em!]  Not only would the city go into economic crisis because of the lost revenue, but there also would be the added expense to city residents of shipping the garbage elsewhere.  [Again, DIA has covered the numbers.]  In a city watching its middle class slip away, this would be one more reason for them to leave.  [I can't tell you how many middle class residents have said to me, "If our city's proud garbage operation isn't making money, I am out of here!"  All the time, I hear that.  I wish you all would stop, frankly.]

Yet that is the specter raised by an unfortunate and unexpected May letter from the state Department of Environmental Conservation concerning the city's ongoing application process for a 15-acre landfill extension.

A process Bill Bruce, the city's former Department of General Services commissioner and now a consultant in the matter [Now there is a source for you - a guy who is making money on the garbage operations!  Huh, I wonder what he'll say ...], thought was working smoothly [Working smoothly!  Who would have thought the consultant would say something like that?] toward the desired goal of approval for what is called a solid waste management plan modification.  The landfill would give Albany another six or seven years to solve the riddle [Riddle?  What? Riddle?  You mean, a municipality making a responsible plan for its waste? That riddle?] of where next. The city thought it had solved future garbage problems with plans for a big, new landfill on what then seemed appropriate land in the town of Coeymans. But that plan has gotten strong local resistance and a belated thumbs down from the DEC over what later were deemed wetlands.  [Hey, LeBrun.  Was it a belated thumbs down, or was it a premature purchase by the city?  How about looking at it from the other angle?  Also, I don't know that the DEC has ruled yet on Coeymans.  The Army Corps of Engineers stated that the land is wetlands.  But don't sweat it - it was only in your own paper.]  It looks less and less doable as time goes on.

At this point, the short of it is that Albany has no long-term alternative for Rapp Road, not even a prospect. That has to change, obviously.  [That's why they pay him the big bucks, folks!]

But the short-term alternative of losing Rapp Road in 18 months because an extension is denied is simply unacceptable. An entire house of cards called Albany city finances would come fluttering down.  [This would be a good place to criticize the city for setting up its finances this way, or for suggesting that it's better to change the city's finances sooner rather than later.  * crickets *  Um, Mr. LeBrun?  Never mind.]

The letter in question from Ed Dassatti, who heads the DEC's Division of Solid and Hazardous Materials, termed the city's new waste disposal plan incorporating the landfill extension "deficient." In essence, it suggested the city isn't acting in good faith to meet goals for recycling and waste stream reduction. Albany Mayor Jerry Jennings was taken aback. This is serious stuff for his administration. No one wants to calculate what residents would have to come up with in tax revenues to compensate.

Bill Bruce was nonplussed as well. He thought issues raised by the DEC and others, the Pine Bush Commission, were being addressed and progress was being made.  [Yeah, I think it's time to ask for a refund from Mr. Bruce for those consultant dollars.]  The Pine Bush, for example, would undergo $15 million in habitat restoration from the landfill revenue stream, if the extension is approved.

Maybe this is just the DEC's way of getting the city's attention, in terms of preparing good documentation for the landfill extension application, and a long-term waste management plan that doesn't include Rapp Road.

Those from the city who have poured over the critical letter, including Bill Bruce, say the city can and will meet any of the expectations raised by Dassatti.  [Then they bought LeBrun another drink.]

Strangely, after such a provocative letter, a meeting between the city and Dassatti's staff office this week was again collegial, cordial and productive, Bruce says.

So it seems all is not lost. The city should take the implied criticism to heart and carefully, diligently, go forward.  [Wait.  What?  Forward where?  With the Coeymans plan that has pretty much been denied?  Or with the Pine Bush plan that has pretty much been denied?  Forward!]  Regardless, we are surely witnessing perilous progress [What??  Seriously - what?] for something that should have been dealt with long before this. Maybe that's the frustration the DEC is expressing.

Rapp Road [LeBrun will not give you malcontents and complainers out there the satisfaction of calling it the Pine Bush, so stuff it!], for all its value as a revenue source, has been nothing but trouble for the city in recent years. As it has filled, opposition has grown to expanding it in a variety of directions, until the only direction left -- to the east -- also happens to be the most expensive to build out. For the last couple of years, the foul odor from the Rapp Road landfill during the heat of summer was enough to tip over a turtle.

Millions of dollars later, the city has solved the odor problem by re-engineering the cover and venting system. Complaints from despairing local residents are down to zero.  [LeBrun thought it would be best to wait until the closing paragraphs to discuss the landfill itself, as opposed to approvals and finances.  Interesting, that.]

Still, Rapp Road's time is running out, even odor free. Eighteen months is too short a time for the city to find another landfill, but I'm not sure without a little incentive like it just got from the DEC, that seven years would be any better.  [Strong finish!  We better hurry, continuing on our current course.  Or something.]

Awful.

Turtles (none / 0) (#3)
by Roscoe on Wed Jun 11, 2008 at 04:35:50 PM EST

Great posts!

Would someone please contribute some doggerel verse on turtles? Turtle turning by evil kids?  Maybe to the tune of 'Happy Days Are Here Again'?

Idiots or Liars? | 3 comments (3 topical, 0 hidden)
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