Callahan Already Knows Dodgeblame

Bethlehem, already drowning in $298 million of debt, has two ordinances requiring city council approval before spending casino revenue or borrowing from the Treasurer's Escrow Account. Back in January, I told you that the Callahan administration had broken both of these city laws, spending $335,000 in casino revenue and then borrowing $2 million without a green light.

City Council member Jean Belinski said, "I don't think that anybody should be above the law." Bethlehem Mayor John Callahan countered, "I think we should be applauded ... ." He promised it would never, ever, ever, not ever, ever, ever, ever, ever happen, ever, ever a-gain. Ever.

It just did.

City Controller Meg Holland has decided to keep an eye on the Treasurer’s Escrow Account to make sure Callahan is following City Ordinance Section 121.08(c). Turns out he's been a bad boy.

"Based on my review, I determined that as of December 31, 2009 the General Fund owed the Treasurer’s Escrow Account $4,234,538.69, which includes $434,538.69 in pension payments made directly from the Treasurer’s Escrow Account (i.e. checks were written from the account rather than a transfer to the General Fund). As of today [March 10, 2010], the General Fund owes the Treasurer’s Escrow Account $4,084,538.69."

So now, Hizzoner is going to reprimand Business Manager Dennis Reichard, who has fallen on the sword so many times for Callahan he's beginning to look like a pin cushion.

If Callahan is to be believed, Reichard – a 30-year city financial professional who has served numerous administrations - has twice misled City Council on major fiscal matters without Callahan’s knowledge. Callahan may just be learning Dodgebill, but he's already a pro at Dodgeblame.

The Bethlehem Mayor had to admit to the embarrassing fact that he did not know – or won’t admit that he knew -- about key city financial dealings undertaken by one of his top aides.

“We already knew that John Callahan has limited knowledge of the key issues facing the country. Now we know that he also has limited knowledge of the day-to-day operations of his own city,” said Shawn Millan, campaign manager for Representative Charlie Dent, in a news release late yesterday. “He’s displayed a lack of leadership by refusing to state his positions on matters like health care or economic growth in this campaign and it has become apparent over the last few weeks that his leadership skills don’t extend to making certain that his Administration obeys city ordinances either.”

Since the treasurer’s escrow account was owed $4.2 million by the City’s General Fund at the end of 2009, how the hell can he claim he’s balanced budgets as Mayor of Bethlehem?

Had Bethlehem’s Business Administrator approached City Council properly about transferring the funds to cover shortfalls in the City’s budget, they might have raised questions about shortfalls in Bethlehem’s finances.

“If it became known that John Callahan needed to drain escrow accounts and was scrambling to find money to cover a multi-million dollar deficit in the City’s budget, it certainly wouldn’t square with the story he tries to sell about fiscal prudence. Under John Callahan, Bethlehem’s budget and finances are a fiscal train wreck,” said Millan.

“The public has the right to know what exactly was involved in this situation. Mayor Callahan did not know what his subordinate was doing because he failed to supervise him. The truth is John Callahan is absent without leave as Mayor because he’s spending too much time campaigning for a new job and too little time working at his current one,” said Millan.

And playing Dodgebill.

”There is no part of this story that looks good for John Callahan,” said Millan. “Either the City’s Business Administrator actually acted with John Callahan’s knowledge, misleading Council and violating a city ordinance to maintain a fiscal illusion, or else John Callahan is so clueless and remote from the management of the City’s finances that an aide was able to move millions of dollars of funds around while leaving Callahan in the dark.”

“There’s just an amazing lack of respect by John Callahan for the checks and balances that City Council has over his Administration,” Millan observed. “For the sake of good government, City Council should exercise its considerable oversight responsibilities and more closely examine the Mayor’s actions in this matter.”

Yeah, like that's gonna' happen.

“John Callahan has consistently and recklessly increased City spending as Mayor and it falls to the people who work for him to find creative financing tricks and dodges to cover all that excessive spending. If anyone deserves a letter of reprimand for these actions, it’s John Callahan,” Millan concluded, and then continued instructing his growing campaign staff in the 5 D's of Dentball.

"Son, you're about as useful as a poopy-flavored lollipop! You couldn't hit water if you fell out of a boat!"