Monday, January 04, 2016

Houston Area Leadership Vacuum: Did Former-Controller Green Withhold the City Audit Report to Help Turner?

Bill King sent out the following via e-mail:

On New Year's Eve the City released its annual report for the fiscal year ending June 30, 2015.  Because of new accounting rules that require the City to more accurately report its pension liabilities, the audit showed a massive increase in those liabilities which have pushed the City to the brink of (and possibly into) insolvency.
 
State law requires that all municipalities conduct an annual audit.  This report must be issued within 180 days of the fiscal year end.   The City this year issued its literally the last possible moment on New Year's Eve, undoubtedly because it wanted to draw as little attention as possible to abysmal condition of the City's finances that it reveals.  And of course, the report was conveniently issued after the runoff election even though it was dated December 2, ten days before the runoff election.  New York, which has the same fiscal year end as Houston, issued its annual audit (which is far more complex than Houston's) on October 30.


He's offered more on Twitter and I'm sure he'll have a lot more to say on the very real problem of Houston's finances.

There are real questions that should be asked regarding the delay in the City publishing the audit however. Questions that, if asked, should lead to better public policy regarding city audits.  Right now the office of the Controller is only required, by law, to issue an annual report. for much of his tenure as Controller Ronald Green did just that, and little more.  His offices audit plan had many more deferments than it did completed audits, items that he would only release when an election was approaching and he was forced to in order to quell rumblings about his ineffectiveness.

Now we have some confirmation that Green was a political animal as well.  New York and other cities routinely have their annual reports published by the end of October. Houston, on the other hand, waits until the 11th hour, when people are busy with the holiday, in hopes that the fiscal picture will go ignored. Also, one would think that the release of this audit, which validated a key point that King was making in the election regarding pensions, might have helped the King campaign.

Strangely, the Chronicle, who on New Year's Eve implored Houstonians to "get involved" in elections and local politics, has chosen to remain largely silent on this non-transparent Houston political tradition. For all of the talk of "inclusion" and "governing together" when it comes to taking a peek under the hood of the city our elected officials and so-called watchdogs would rather you not.

One disconcerting thought: Chris P. Brown, the newly elected City Controller, was a deputy Controller under Green, and his election is widely thought to signify "continuity" from the previous regimes.  If this is the case then don't expect Houston's political transparency to improve any going forward.

Your elected betters would like to remind you that they encourage your vote, provided you agree with their policy priorities, but if you would please keep your nose out of their business they would like that as well.

Meanwhile, as King notes, the City is nearing insolvency.  Strangely that hasn't been reported on either.


Hang on Houston, you're in for a bumpy 2016.