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THE
PATRIOT
RETURNS

Vol. 32, No.3                                                      April 07, 2006

 

THE HARD NUMBERS BEHIND
THE WELFARE FUND BLAME GAME

Our Dear Leader, PSC president Barbara Bowen, and her trusty Welfare Fund sidekick, Steve London, have a ready-made answer regarding the collapse of the Welfare fund. Their response: "Don't blame us!"

Who do they blame? Mayor Bloomberg. Governor Pataki. The Republican Congress. President Bush. Globalization. Even "massive military aid" to the Israeli regime.

The figures below, assembled from the New York State Comptroller's Office, suggest a different explanation:

Year

Union Reserve

Operating Deficit

Deficit as % of Reserve

Notes

2000

UFT:
$130,073,660
---------------------
PSC:
$15,404,822

UFT:
$3,602,357
-----------------
PSC:
$615,181

UFT:
2.77%
-----------------
PSC:
3.99%

Steve London has no involvement with Welfare Fund.

2001

UFT:
$167,458,288
---------------------
PSC:
$12,765,307

UFT:
not available
-----------------
PSC:
$2,639,515

UFT:
N/A
-----------------
PSC:
20.68%

New Caucus takes a majority of WF board seats and implements new policies.

2002

UFT:
$162,712,073
---------------------
PSC:
$8,506,802

UFT:
$7,032,805
-----------------
PSC:
$4,028,635

UFT:
4.32%
-----------------
PSC:
47.36%

Bowen and London ASK for NO increase in WF contributions by management.

2003

UFT:
$148,633,106
---------------------
PSC:
$5,327,579

UFT:
$16,763,874
-----------------
PSC:
$3,411,912

UFT:
11.28%
-----------------
PSC:
64.04%

Welfare Fund reserves have continued to drop and now hover at roughly $1 million.

What's the same between the UFT and PSC?

  • They both work with Mayor Bloomberg and Governor Pataki.
  • They both operate under a Republican Congress and President.
  • They both experience the economic effects of globalization.
  • They even both exist in a country that gives "massive military aid" to the Israeli "regime."

What's different between the UFT and PSC?

  • Between 2000 and 2003, the deficit/reserve ratio of the UFT increased from 2.77% to 11.28%; at the PSC, the increase went from 3.99% to 64.04%.
  • The PSC is led by Barbara Bowen and Steve London; the UFT has competent leadership.

So, once again, who's to blame for the PSC's Welfare Fund collapse?

 

Sharad Karkhanis, Ph.D.
Professor Emeritus


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