Barletta: Eachus hurting Hazleton in effort to tarnish me

Hazleton Times // News

June 30

Barletta: Eachus hurting Hazleton in effort to tarnish me

Mayor accuses representative of getting bill that would help city stalled in state House.

BILL O ’ BOYLE boboyle@timesleader.com

Hazleton Mayor Lou Barletta on Monday said House Majority Leader Todd Eachus is playing politics in trying to discredit him and the result could be bankruptcy for the city.

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Eachus has sent a letter to state Auditor General Jack Wagner that condemns Barletta’s action in removing money from the city’s pension fund and asks Wagner for help to resolve the issue.

Barletta, a Republican, said Monday the issue would have been resolved two years ago had it not been for Eachus, D-Butler Township. Barletta said Senate Bill 961 would have enabled the City of Hazleton to fund post-retirement health care benefits for retired city employees by “shifting” to the city’s general fund a portion of the revenues available under the special taxing authority created by Act 205 of 1984.

The state Senate approved the bill 49-0 and it went to the House. That’s when Eachus stopped the measure, Barletta said.

“Senate Bill 961 wouldn’t cost the state one penny,” Barletta said. “It won’t cost the taxpayers anything.”

Barletta charged that Eachus got the bill stalled in the House Finance Committee.

“On more than one occasion, I have asked Rep. Eachus to support the bill,” Barletta said. “Instead it sat in the House for almost two years and died. Eachus didn’t do one thing to get this bill passed; he raised one objection after another. Now time is up and the Auditor General has to move forward.”

State Rep. John Yudichak, D-Nanticoke, said he remembers Barletta coming to Harrisburg in 2007 to try to work out a legislative solution to the issue.

“I thought we had one,” Yudichak said. “It passed the Senate 49-0. I offered a discharge resolution in the House to get it out of committee and I was told that a solution was being worked on with Mayor Barletta and Rep. Eachus to resolve the issue. Now here we are two years later and the problem continues to threaten the health and welfare of the residents of Hazleton City.”

Barletta said Hazleton is facing bankruptcy if the issue isn’t resolved.

Hazleton is in the throes of a financial crisis, facing an approximate $500,000 budget deficit this year. Additionally, the city must repay $1.5 million in improperly spent pension money to the state. Wagner said the city improperly used a portion of special tax revenue designated for police and firefighter pensions to pay for retirees’ health-care benefits and to buy back unused vacation and sick leave from employees who accepted an early-retirement incentive.

The city appealed Wagner’s determination and an administrative hearing officer last month upheld the auditor general’s determination. Barletta said the city will appeal that decision to Commonwealth Court.

Barletta said the auditor general agreed that the bill, if re-introduced and passed in the state Legislature, could be retroactive. The mayor said he has asked Eachus to re-introduce the bill, but Eachus has refused.

“Not only has (Eachus) refused to help Hazleton, he has gone out of his way to destroy the city by writing to the auditor general,” Barletta said.

In that letter, Eachus asked Wagner for help in resolving the issue.

“Specifically, between 2003 and 2006, Mayor Barletta diverted $1,593,122 out of the city’s pension fund, knowing that legal grounds for this transfer were questionable at best,” Eachus wrote to Wagner. “After you ruled the transfers improper in 2006, the Mayor diverted an additional $1,391,558 in the 2007, 2008 and 2009 budgets. This amounts to a total of $2,984,680 diverted from the city’s pension fund.”

Eachus told Wagner that he is “deeply concerned” that Barletta pursued what he called an unusual practice.

“And he did so without regard to its legality,” Eachus wrote. “And I’m troubled that he escalated it for three years after you ruled it improper.”

Eachus said Hazleton police officers, firefighters and other city employees “should not be held victim to the Mayor’s policies,” nor should city taxpayers be left to foot the bill.

Eachus asked Wagner to meet to discuss the issue to identify the legal and financial boundaries that apply to the issue.

“There are Republicans and Democrats in Harrisburg who are concerned about this,” Eachus said. “Of course I want to help the taxpayers of Hazleton, but there is more than one way to do it.”

On the charge of politics, Eachus said, “The mayor is the one playing politics. For me, it’s about policy and numbers; we have to protect the pension first and develop a policy that guarantees protection for Hazleton and will not cause firestorms in other third class cities.”

Barletta said he will not back down. He said that if Eachus won’t help, he will find someone who will help Hazleton.

“If he wants to play political football with the future of Hazleton, then he will have to live with the destruction of this city at his feet,” Barletta said.

Barletta said petitions are being circulated in Hazleton asking city residents to sign and urge Eachus to reintroduce the bill. Barletta said Hazleton paid more into the pension fund than what was required by law. He said he never removed any pension funds, only those that were paid above what was required. Barletta said he fears having to lay off police and fire personnel.

Yudichak said he is sure the bill could get re-introduced in the state House and he is confident the Senate would again support it.

“The whole issue of pension reform needs to be addressed,” Yudichak said. “Too many pension funds are underfunded and municipalities are taking out bonds to pay for pensions and they don’t have any police on streets. I can see this happening now in Hazleton. We have to come to some resolution that can preserve the general welfare of that city.”

Bill O’Boyle, a Times Leader staff writer, may be reached at 829-7218.

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Rollie Ciffo said...

Eachus, Kanjorski...the list goes on. Luzerne County is famous for incompetent gov't officials backs by the get along gang...and voted for by the sheeps in the flock. The fact that Kanjo could find a bunch a dead voters to re-elect him is testament to the lemmings in Luzerne county who pass for citizens. I mean the guy was exposed on National television as corrupt and funneling money to family members at the expense of the voters. More of the same with Eachus. Bring back the pork and celebrate the lack of transparency Todd!

June 30, 2009 at 6:40 AM

Beezer said...

First Barletta spent pension money that he was not allowed to spend....he can call it "over-payments" or whatever he likes, but a court ruled he spent money he was not allowed to spend, money his own solicitor told him was "questionable". Then he included in his budget for this year the sale of airport land...land that has been on the market for 30 YEARS and never sold...but Louie put $300,000 in the budget all the while KNOWING this land would never sell.......he;'s been "cooking the books" so to speak, for YEARS, and now he wants Eachus to bail him out.....FINALLY THIS 1-TRICK PONY BARLETTA IS BEING SEEN AS THE PITIFUL MAYOR HE REALLY IS!

June 30, 2009 at 7:59 AM

J.Wallace said...

Sounds like todd is lining up to make a run for higher office

June 30, 2009 at 8:01 AM

Jesse Miller said...

Lou created this problem while knowing his actions were NOT legal. Now he accepts no responsibility and whines and cries for help. What a pitiful excuse for a mayor, but after all it's Luzerne Co.

June 30, 2009 at 8:11 AM

Jeff said...

Time for Mr. Eachus to be put in his place. I remember a public meeting a few weeks ago, other local politicians showed up or sent reps or called for more info..nothing from Todd..makes you wonder who Todd is for? His friends with the airport got his attention but locals dont. Thanks Todd

June 30, 2009 at 8:28 AM

Rob said...

Eachus=Obama, playing politics and hurting working families to further his own selfish agenda.

June 30, 2009 at 8:42 AM

August West said...

Barletta made his bed. Let him sleep in it. Typical GOP. They create the problem then beg Democrats to fix their illegal activities. Barletta can't even take responsibility for his own actions. And he wants to be in Congress. That's ludicrous.

June 30, 2009 at 9:50 AM

Kathy Dobash said...

I do not understand the motivation behind this lack of support. The only motive is political and advancement of House Majority Leader Todd Eachus's political career and the Democratic party agenda

June 30, 2009 at 11:13 AM

Mr. Reality said...

Lemme get this straight - the State's Auditor General told Barletta that his dipping into the pension fund was not only NOT just him dipping into "overpayments", but it was ILLEGAL!!!!!He got this right from the AG's office....and he STILL did it for three years in a row after the AG told him to stop because it was illegal? And now he's blaming Eachus? He (Barletta) should be tossed in jail for doing what he did! And most local TV news agencies seem to be taking Barletta's side, as if they really were "only overpayments" he was taking...and that is so not the case.

June 30, 2009 at 12:04 PM

valleykay said...

looks like Barletta was so focused on the immigrants that he forgot about the city's financial well-being. and of course, its helps to distract the citizens too. what a great politician!

June 30, 2009 at 12:51 PM

Paulie said...

Frankly , many of you are missing the root cause of the shortfall. Hazleton has been suffering from the extraordinary costs of policing an influx of "lawless" visitors for the last decade. Hazleton is decaying economically and morally. If the mayor resorts to cutting the police force by 50% as has been suggested, it's good nite Irene!

June 30, 2009 at 1:33 PM

- To August West said...

Come ON! We all know the democrats have the market on illegal activities in Luzerne county. Are you a moron? You are probably in on the illegal democrat activities. Typical brain dead democrat. You people are like a bunch of lemmings.

June 30, 2009 at 1:44 PM

Just my thoughts said...

i dont blame Eachus for not helping, for to many years Lou has taught us in hazleton that "Illegal is Illegal" and now when it suits him he said it is ok to break the law. i wonder what lesson that teaches kids, and the person missing in all this is Senator Musto, he is always willing to help Mayor Lou..... i wonder why Lou doesnt reach out to Musto? Could it be politics, nah Mayor Lou wouldnt play that game.

June 30, 2009 at 3:24 PM

TGH said...

Thank God the 11th district did not send this man to represent me in Washington, DC. What law schools did Hazelton solicitors attend? The fact is Mayor Lou and his cronies think they are above the law. When things don't go their way, they blame other elected politicians. Too bad the big loser is the city Hazelton who will become a distressed city thanks to Mayor Lou.

June 30, 2009 at 3:55 PM

SMG said...

We can see that Eachus=Rendell. They resembel each other in more than one way. Eachus says "but there is more than one way to do it". Well, where is YOUR solution? Ah yes, you don't provide one, you just point fingers. Let the House vote on it Mr. Eachus and stop holding the taxpayers hostage. But of course YOU won't do it. We can all see when Eddie "I can't pass a budget" Rendell has a successor elected next year you'll be there to continue the foolishness.

June 30, 2009 at 5:14 PM

FRAN NELLIS said...

IF BARLETA WAS A DEMOCRAT EACHUS WOULD BE DEAF, DUMB AND BLIND!

June 30, 2009 at 5:47 PM

John said...

Here is the definition of a Pension Fund from the Third Class City Code Purdon's Statutes page 152- "The entity which is the repository for the assets amassed by a pension plan as reserved for present and future periodic retirement payments and benefits of active and retired members of the pension plan. How the Auditor General could rule that payments made for retirees' health benefits are incorrect with that definition is beyond me. BTW no court has ever ruled on this issue, only a hearing officer who works for the Auditor General so keep it straight.

June 30, 2009 at 5:55 PM

Taxpayer said...

Again a sitting politician screws up a community and then looks for someone to blame. Lou was only concerned with his TV image and ran the city right into the ground. Like Mayor Lombardo of Pittston, Barletta was too busy taking bows to pay attention to business. The simple fact is that Lou is not an administrator nor is he a quality mayor. He ignored the law, created non existent revenue and failed to balance a budget ....... GEEZ, maybe is qualified to go to Washington but thank the gods enough people saw through his self serving publicity.

June 30, 2009 at 7:00 PM

James Porter said...

I don't understand why people are attacking the mayor. There was a bill in the House of Representatives that could have been voted on and cured the problem, but TODD EACHUS killed it. Its one thing to make a mistake and do nothing. But when you try to fix it and someone from your own area kills it, how is that right??

July 2, 2009 at 8:03 AM

Getting it Right for JOHN said...

JOHN: read this section 607 (f) of Act 205 explicitly states that the proceeds of the special tax can only be used to defray the additional costs required to be paid pursuant to the act which are directly related to the pension plans of the muncipilities. NO reference to psit retirement health care benefits or unused leave buy backs is made in either Act 205 or the pension provisions contained in the Third Class City Code.

July 3, 2009 at 4:16 PM