What a difference a few days can make! Last week at this time, LVEDC was happily chirping away on Twitter. But on Friday, it sung off key. "We start summer hours today. That means most of the staff leave at noon, many to hit the links. Do you observe summer hours? What do you do?" This corporation is publicly funded to create and retain jobs. It was incredibly tone deaf to brag about hitting the links when many LV residents are on reduced wages or laid off.LVEDC spent the rest of the day backtracking. Then LVEDC "Business Relations Manager" Steve Althouse predictably took it upon himself, in a mass email, to accuse me (without naming me) of "sensationalism" for accurately reporting what was said.
Today, the LVEDC tweets suddenly stopped.
Apparently, their tweeter has been silenced, and may even be fired. I sure hope that's not true. Yes, I am a bastard, but I'd hate to see someone lose his or her job for one ill-advised remark that was picked up by a disreputable blogger.
Besides, now that they have my attention, I think the problem is much deeper than their tweeter. I'm amazed by how much money is spent on key employees, or for travel to conventions in Arizona ... or Europe.
Yes, I said Europe. During a Recession.
I've sent Althouse a request for their travel information over the last three years, and COO Jean Mateff is getting the information ready.
That's nice of her.
Unfortunately, you won't find any of that information on the heavily sanitized financial statements posted on LVEDC's web page. But you can get a clue looking at the Form 990s filed with the IRS. In 2008, it looks like the travel budget was $75,314. In 2009, it shot up to $96,256. That's right. In the midst of a recession, they were whooping it up.
I've already told you that CEO Phil Mitman's salary went up 14% in 2009, from $117,788 to $134,366.
I can't tell you what Jean Mateff, the COO, was paid in 2008 because I can't find it. I've looked high and low, but just don't see it. But here's what Jean and some of her pals were paid in 2009.
Jean Mateff - $96,880
John Kingsley - $88,070
Peter Reinke - $81,450
Stephen Melnick - $81,363
Robert Wendt - $63,883
Robert Bilhemer - $56,307
It gets better. In 2008, $50,550 went to a "public affairs firm" to represent LVEDC interests throughout the Commonwealth. In 2009, $42,500 was spent for "direct contacts" with legislators. What the hell are these? Three-martini lunches? Tickets to the Phillies?
Needless to say, there's a lot going on at LVEDC, and it appears that it has very little to do with creating or retaining jobs.
I'll be back in touch when I hear from Mateff.
2008 Form 990
2009 Form 990
Unfortunately, you won't find any of that information on the heavily sanitized financial statements posted on LVEDC's web page. But you can get a clue looking at the Form 990s filed with the IRS. In 2008, it looks like the travel budget was $75,314. In 2009, it shot up to $96,256. That's right. In the midst of a recession, they were whooping it up.
I've already told you that CEO Phil Mitman's salary went up 14% in 2009, from $117,788 to $134,366.
I can't tell you what Jean Mateff, the COO, was paid in 2008 because I can't find it. I've looked high and low, but just don't see it. But here's what Jean and some of her pals were paid in 2009.
Jean Mateff - $96,880
John Kingsley - $88,070
Peter Reinke - $81,450
Stephen Melnick - $81,363
Robert Wendt - $63,883
Robert Bilhemer - $56,307
It gets better. In 2008, $50,550 went to a "public affairs firm" to represent LVEDC interests throughout the Commonwealth. In 2009, $42,500 was spent for "direct contacts" with legislators. What the hell are these? Three-martini lunches? Tickets to the Phillies?
Needless to say, there's a lot going on at LVEDC, and it appears that it has very little to do with creating or retaining jobs.
I'll be back in touch when I hear from Mateff.
2008 Form 990
2009 Form 990
Can you blame them? You attack them for doing exactly what county DCED officials are doing. both groups feed at the public trough.
ReplyDeleteDon't be a hypocrite
Last time I checked, there were no County DCED officials making anywhere near these sums of money, nor were they going on these trips, nor were they spending money to schmooze with state legislators. You are nuts.
ReplyDeleteBetter check out the trips part.
ReplyDeletei think you're off base a bit.
ReplyDeletethe legislature contacts are, unfortunately, requisite.
the salaries are not outrageous.
the inquiry should be:
-is this irganization overstaffed;
and
-is this organization effective?
The LVEDC organization is out of control and too costly. Those salaries are exhorbinant and unrealistic in today's economy. Phil Mitman pulling down $134 grand!!! Give me a break. He was a politico put into that position with no experience in the economic development sector. And we wonder why are taxes are so high. LVEDC should look at the LVIP model. Three employees doing the deals and getting things done at a fraction of the cost. Its time for the Counties to reconsider this outfit and perhaps bring so called economic development back under the County umbrella.
ReplyDeleteIn another life, Althouse was a reporter and editor.
ReplyDeleteKeep pushing for those financial records.
ReplyDeleteAnon 6:00 AM, Tell you what. You run your inquiry and I'll run mine. I consider those salaries exorbitant. I am very disturbed by these "direct contacts" with legislators and the amount of money spent on them. I am disturbed that the 2008 990 fails to list the salaries of people making over $50,000, as required by federal law. And the trips make me want to hurl.
ReplyDelete"Its time for the Counties to reconsider this outfit and perhaps bring so called economic development back under the County umbrella."
ReplyDeleteThe way the state law is written, it can't go back to the counties. The hotel tax must go to a tourism entity. What we could do is do an end run around the Convention and Visitor's Bureau. That's the entity that has the contract giving money to LVEDC. We could find another agency to do our tourism and give them the hotel tax money.
Bernie,
ReplyDeleteDo your homework dilligently. See how much the staff raises were from 2008 through 2010.
I think you will see they were zero.
Joe, Between 2008 and 2009, I know that LVEDC reduced its payroll, and that would mean that some staffers rec'd no raises or may even have had their salaries cut. I think staff may have been downsized, too. But the one example I have shows a 14% raise. The other salaries are very high, but I am unable to compare 2008 and 2009 bc the 2008 990 is flawed.
ReplyDeleteBernie,
ReplyDeleteJust out of curiosity, which salaries do you beleive were high? Do you know what these people do? I don't know. Are these people with any ability, experience or professional designations? just asking...
Their tweets are not nearly as interesting as the tweets in Weinergate.
ReplyDeleteWould love to stay in Orlando {the seminar,conference and convention capital of the US} for a few days on the taxpayer dime. Could even have my wife along at my expense.In reality its just plain perks.You just gotta hit your CEO up for a trip to the next bloggers seminar.
ReplyDeleteThis topic is drifting to a war on staffing debate, which is a Catch-22.
ReplyDeleteThe bigger question is that despite numerous shots at various types of personalities for directing that organization, it still has a problem in being transparent and competent and seems to excel at shooting itself in the foot. If anything, it shows that you have the wrong leadership hiring the wrong staff, times over.
For other organizations and companies, taking trips to Europe during poor economic times and having "summer hours" is a flashing sign with neon arrows of bad idea, radioactive pubic relations nightmare. Yet, LVEDC does it anyway, and that calls into question the whole legitimacy and confidence in the capability of the organization.
The problem here is a very obvious one. You had an excellent Authority when you had the Northampton county Economic Development Authority and it cost the county peanuts to operate. You establish a Bureaucracy and then bitch about the costs and loss of control. They no longer answer to you (the County)and there is no system of check and balances in place to oversee the operation. You don't need that organization to bring business' into the area. Our location is enough to do that. We are within a 3 1/2 hour drive to about 60 million people. Throw these phony bastards out and save the money.
ReplyDeleteDitch the county DECED Departments, they are just busy work. Save the taxpayers.
ReplyDeleteMitman leaving before his work is over, its the 1980's all over again in Easton!
ReplyDelete