2009 School Board Budget Vote & Election

I am convinced, with President Obama, that the future of America depends on the quality of education. In White Plains, the School Board Budget Vote and Election on Tuesday, May 19, 2009 gives us the chance to support both excellent quality and continuing improvement.

The Budget and the Election this year are both contentious and more important than ever. They deserve a few minutes of your time now to read about them, and on Tuesday, to vote at the Mamaroneck Ave School at 7 Nosband Ave off Bryant Ave between noon and 9:00 pm. (Voters who don't live at Bryant Gardens can call 422-2071 to find their polling location.)

The Budget The 2009-2010 budget totals $185,778,149. Because of strong pressure from the community, including from the White Plains Council of Neighborhood Associations , of which Bryant Gardens is a member and I am the Co-President, the increase over last year is the smallest ever -- 0.74% (less than 1%).

The confusing thing this year is that the proposed budget and the state-mandated contingency budget are the same amount, so whether the budget passes or fails the increase in school taxes will be the same, about 2.41%. So why bother voting?

You need to vote YES on the budget because the contingency budget curtails much-needed extracurricular activities due to state-required cuts in use of the school buildings.

The proposed budget, which you can examine for yourself , isn't perfect. But it is a carefully-crafted program that maintains quality and growth consistent with Federal and State mandates and contractual obligations.

The Board The School Board, which is not a City agency, consists of seven members who serve staggered three year terms without pay. This year three seats, or nearly half the Board, will be elected.

The six candidates, in my order of preference, are:

• Peter Bassano, a local attorney (a Board of Education Member since 2002)

• Donna McLaughlin, Board of Education President
• Jim Hricay, former White Plains Deputy Budget Director, now Stamford Budget Department
• Reynolds Longfield, a former cosmetics sales and marketing executive, now an educator
• Elsie J. Lahrmann, retired Director of Emergency Planning and a natural medicine practitioner
• Augie Zicca, Jr., a retired Westchester County Correction Officer and former IBM analyst

The controversy, unusual in a School Board Election, comes from two sources -- the Teacher's Union and the politicians.

The Teachers, who might be expected to know better, have decided to blackball the two strongest candidates, the incumbents Bassano and McLaughlin, both of whom are committed, knowledgeable and experienced -- qualities that will be very important in guiding new Superintendent Clouet, when he takes over July 1. The Teachers Union endorses Hricay, Lahrmann and Zicca.

What's the beef? The Teachers have been working without a contract since last June, and the incumbents, at the direction of the community, have been taking a strong stance on cost of living increases. The Teachers want to "teach them a lesson." But at what cost?

Jim Hricay, whose wife teaches at the Highlands School and who has children in the White Plains system, is qualified by motive and training, and besides, is a friend and next door neighbor to Kerry Broderick, the Teachers Union president.

Elsie Lahrmann apparently "qualifies" by friendship, too. Her family is friends with the Brodericks. But nobody can figure out how Augie Zicca qualifies.

Certainly not the Democrats, who got into the fray by regurgitating some of Augie's past sins, including alleged intolerance towards immigrants. Which would be bad enough in itself, but Augie and Ms. Lahrmann are Republican stalwarts, which led the Donkey to bray about the Elephant.

No one has endorsed Reynolds Longfield whose business and educational credentials would make him a strong candidate if his motive were clear. Now in his second career, he teaches in what he calls "The Inner City," where he has qualified as a potential principal and potential district leader. I'd guess he'd like to use the School Board as a stepping stone to a Superintendent's slot.

The Journal News Editorial Board has endorsed , with sound logic, Bassano, McLaughlin and Hricay. I agree with their endorsement and urge you to return two great educators to the Board and start grooming another in Hricay.

You can decide about the candidates for yourself by watching the Candidates Night sponsored by the League of Women Voters, which originally took place Tuesday, May 12, and which is airing on community access channels 46 (Verizon Fios) and 77 (Cablevision). Unfortunately, Zicca and Lahrmann, were no-shows, so you won't be able to evaluate them for yourself.

Candidates Night broadcasts:
Friday, May 15 - 8:00 pm
Saturday, May 16 - 12:15 pm & 4:00 pm
Sunday, May 17 - 9:00 a.m., 3:15 pm & 7:00 pm
Monday, May 18 - 12:00 pm, 3:00 pm, 5:15 pm, 8:00 pm & 10:00 pm
Tuesday, May 19 - 9:00 a.m., 12:00 pm & 3:00 pm

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More Reading:

• White Plains teachers target 2 trustees over stalled talks, job cuts
• Party leader contacts White Plains Dems over school board race
• Teachers contact (sic) at center of White Plains school board race

Let's Ban Smoking -- Really

Everyone knows smoking contributes to heart, lung and other diseases. You can see why in the picture of a healthy human lung, left, and a blackened smoker's lung. But smokers aren't the only ones affected.

Most people know secondhand smoke is harmful, too. Andy Spano knows it. He banned smoking in Westchester workplaces in 2003. The people in Pueblo, Colorado know it, too. Their 2003 ban on smoking in public places is credited with a 30% drop in heart attacks.

At Bryant Gardens, House Rule 1(b) says:

Smoking is prohibited in the public areas of the buildings, including halls, stairways, basements and laundry rooms.

But a violation of Rule 1(b) is NOT "deemed to be a violation of a substantial obligation of the tenancy of the lessee." Translation: it's not enforceable.

We know smoking is harmful. We have a ban against it in public places at Bryant Gardens. Now we need to make it real by making it a violation of the lease, and enforcing it.

And perhaps the Board of Directors should consider turning down prospective shareholders and sub-letters who smoke!

What is a Board of Directors?

The Board of Directors governs the co-op community, planning its growth, monitoring its progress, and resolving problems. Its role in the co-op is crucial, not ceremonial. Its members, elected by the shareholders, need be both willing and able.

The annual shareholders meeting is set for Tuesday, November 29, 2005, and people are talking. Since the primary purpose of the meeting is to elect a new Board of Directors, a lot of the talk is about the Board -- what it is and what it does.

Quick Definition. The Board of Directors is a group of individuals elected by the shareholders to promote their interests through the governance of the corporation.

Not Like Non-Profits. A co-op Board is not like the Boards of non-profit institutions, such as museums, friends of the arts, and charities. Those Boards serve primarily to raise funds. Their members need not be versed in the business of the organization, nor in governance. They have Directors to do that.

Oversight Body. Like those of major public companies, a co-op Board of Directors is primarily a high-level oversight body, which delegates the day-to-day running of the corporation to management -- in our case, Robert Orlofsky Realty, Inc. The Board has a fiduciary responsibility for issues of ownership, strategy, and financing.

Powerful or Powerless. The power exerted by a Board varies from co-op to co-op. In some, the Board is a powerful body, providing strong direction to the management it selects. In others, the Board is a virtual formality, rubber-stamping management's decisions.

Citizen Directors. Whether a Board is powerful or not has a lot to do with its makeup. Powerful Boards tend to include outside directors and shareholders selected for their expertise. Weaker Boards often consist of conscientious citizen shareholders whose chief credential is a willingness to serve in what many view as a thankless cause.

Role of Management. Weak Boards tend to occur when management sits on the Board. Some hold it is inappropriate for management to be included since this gives it too much power over the Board -- which is supposed to provide oversight of management. Others think without management, the Board would be without direction.

Local Government. No matter who controls it, a co-op Board is unique in its responsibility. Unlike most corporate Boards, it is concerned both with the governance of the corporation, and the governance of the community. Its decisions impact not only the financial well-being of the shareholders, but also their comfort, convenience, and the relations among them. Charged with making and enforcing community rules, it is a de facto local government.

Strong Credentials Needed. The judicial, ethical, and fiduciary responsibilities of a co-op Board are so daunting -- director's liability insurance notwithstanding -- it's amazing that anyone runs for the Board. Nevertheless, shareholders must look past their amazement and gratitude to seek Directors whose expertise and experience match the awesome responsibilities. The Directors of our $7 million corporation with its $3 million annual budget need to be a lot more than willing, open-minded and fair.

Good Governance Needs Good Guidance

Co-ops Are For Living In

There are lots of wrong reasons to buy a co-op at Bryant Gardens. The only right reason is to live in it. One of the worst, but popular, wrong reasons is because "real estate is a better investment than the stock market."

Prices Match Inflation. It's true that Bryant Gardens prices have increased at double-digit rates for several years, but they haven't always. Historically, real estate has lagged stocks, usually just beating inflation by one or two points. But there were times, not so long ago, when prices dropped more than 30%, and didn't recover for nearly ten years.

Going Upside Down. Then, as long-term Bryant Gardens residents remember, people wound up owing a bigger mortgage than the co-op could be sold for -- "upside down" in real estate parlance. Some were forced to walk away from co-ops they couldn't sell, losing their investment and ruining their credit to boot.

Lure of Outsized Profits. The phenomenon of buying into a rising market on over-extended credit isn't peculiar to real estate, to Bryant Gardens, or to our times. John Train's lively and informative Famous Financial Fiascos, has examples in commodities, land, and stock stretching from 17th century Holland to 20th century America. The lure of quick, outsized profits has brought down ventures, companies and countries -- and untold millions of small "investors."

Beware Plunging Prices. Whenever a shareholder talks about his Bryant Gardens co-op as an investment instead of as his home, I get nervous. And I really hope that co-op prices don't plunge, that interest rates don't soar, that fuel prices don't keep increasing, that he's not already working two jobs, that he can delay starting a family, and that he borrowed from forgiving relatives, not a bank.

Banking on a rising market is a recipe for disaster, not profit.

Energy Conservation

Experts say fuel costs will continue to rise. The Board needs to seriously consider boiler upgrades, valve and window replacement, and insulation before it spends another dollar on renovation.

On October 14, 2005, the Board of Directors released to shareholders a memo about the "Fuel Oil Surcharge and Capital Project Update." It announced a doubling of the fuel oil surcharge from $12.00 to $24.00 per share annually -- the surcharge now is just shy of a month's maintenance after Star -- and simultaneously reported approval of the hallway renovation plan and the beginning of an entranceway renovation project.

Favorable Comments. The memo says, "The Board received many very favorable comments about the prototype hallway that has been completed in Building 7." It also reports, "Everyone that has seen the new entrance has complimented that it is beautiful and a welcome addition to Bryant Gardens."

Analysis Trumps Compliments. Wouldn't it be nice if we could turn all those favorable comments and compliments into fuel oil to heat our apartments this winter? Of course, we can't. Compliments don't pay the bills, and they're no substitute for the cost benefit analysis the Board should have done before approving the renovations.

Conservation First. It is unresponsive and irresponsible for the Board to proceed with renovation projects, compliments or no, without first providing for conservation projects to reduce our heating costs, and not incidentally, to make our apartments more comfortable. As the memo says "there are apartments in Bryant Gardens that are overheated during a typical winter season."

Heating Costs are High. At about $2.00 per gallon for #4 fuel oil, the cost for heating will be, on average, over $1100 per apartment this year. The memo says "Even by today's standards that number is considered to be excellent." The U.S. Department of Energy says "Heating and cooling costs the average homeowner around $600 a year." Who's kidding whom?

Aging, Inefficient Heating Plant. Our 25-year old heating plant, which our conscientious maintenance staff keeps working optimally, is nevertheless nowhere near as efficient as modern equipment. Any plant built over 15 years ago has a maximum efficiency around 80%; modern plants, using condensing boilers, top 95%. And there's more efficiency to be gained by changing from just two boilers with no backups to more sophisticated configurations of multiple smaller boilers. Never mind the possible savings from rebates and cogeneration. And let's not get started talking about insulation.

It's 2005, not 1995. The memo says "After review with Con Edison in 1995, it was Con Edison's conclusion that it was not cost effective for Bryant Gardens to convert to natural gas." Right, but... Hey guys, it's 2005. Fuel costs have increased 300% since 1995, but the cost of equipment and labor has increased only marginally. Back to the drawing board, Board. The real numbers will more than justify changing our aging boilers.

Experimentation, No. Consultation, Yes. The memo says "The Board has also experimented with Danfoss thermostatic control valves that help regulate the temperature in individual apartments." May we suggest that instead of experimenting the Board follow the lead of responsible boards everywhere and hire a consultant? Thermostatic control valves save energy while making our apartments more comfortable.

Two Panes Better Than One. The memo says "All of the apartments have replacement thermal break insulated windows." But that's not what the experts recommend today. We urge the Board to get expert advice on replacing the remaining single pane windows with energy efficient double pane windows mounted in non-conducting window frames. But let's get the valves replaced first. As others have noted, it doesn't make any difference what kind of windows we have, if we have to leave them wide open in the winter.

The Onus is On Us. After imposing an increased fuel surcharge, and without proposing any meaningful ways to reduce fuel consumption, the Board suggests in its memo that shareholders should "Limit hot water and dishwasher usage," to conserve energy. Well, at least they didn't suggest we shower with a friend.

Conservation should begin in the Board Room.