Knox County Mayor Ragsdale is asking HUD to review "all federal entitlement funding":
Providing public health services to persons oflow to moderate-income is a fundamental duty of this office. Helping revitalize blighted buildings and seeking to create positive change in economically disadvantaged communities is another. The Hardy Clinic restoration and health department lease are important steps in helping us meet these duties. I am unwilling to see the good work that is being accomplished here undermined by the concerns that have been raised over the project and I am seeking your assistance.
I request that the Knoxville office of HUD immediately conduct a monitoring review of all programs and processes involving federal entitlement funding. I would also ask that if necessary, BUD utilize any and all of the resources available to support this monitoring, including Technical Assistance, consulting specialists and/or subject matter experts from HUD's national headquarters.
A copy of Mayor Ragsdale's letter to HUD is attached.
B, and D. I would have taken all of the above except for A. I don't think he wants to get to the bottom of this mess.
I saw a short clip of Tennessee this week. He did not impress me with his whine altitude about John Werner it's my choice and the voters can just be damn.
Or maybe he wants to clear all this up and get out of the line of fire, but he knows at this point he doesn't have much credibility with the media or anyone else so he brings in outside help (i.e. HUD, the TN Comptroller's office, etc.) as impartial observers, and he's confident they will vindicate him.
Either way, there are some who will see this as as a sign of weakness, i.e a perceived lack of control in his office that he now has to bring in outsiders to clear up, and there are others who will see it as proof of his wanting to be open and get to the bottom of it.
He's been maneuvered into a tough spot between a rock and a hard place, partly by the people who work for him, partly by commission, partly by the media, and partly by his own apparent lack of oversight (or his "trust", depending on your point of view) and leadership example.
If HUD and the Comptroller's office do come in, it will certainly be interesting to see what they find.
While he asked HUD to step in to review the grants program, Ragsdale also expressed confidence in Finch’s office, saying staff members “understand the needs of our community, they are knowledgeable about the agencies best equipped to meet those needs, and they are absolutely committed to creating partnerships that make the best possible use of scarce federal resources.”
Anyone care to pick this one apart?
Unlike Sandra, I'll be very surprised if Ragsdale doesn't finish his term. Maybe there's more and that will be 'enough'. Maybe it gets so bad that some business folks ask him to step down. But, that's not likely unless it affects their interests.
Also, think of the practicalities. If it were someone like Bredesen, he's independently wealthy. He doesn't need the job. That's no slam at Ragsdale, but I'm guessing he would need a place to land. He was a PR guy before Mayor and Dean of something at Pellissippi State before that (right?). Any of those jobs around for a Mayor resigning in turmoil?
Same for Cynthia Finch and the rest of the upper level folks in 615, save Mike Arms who's part time job pays him handsomely. None of those will quit (giving up the $130k+) and all will go if Ragsdale quits. So, if he quits he takes all those people with him.
Maybe he limps and deals with the nagging scandals for 3 years. Maybe some new faces get elected next year who are a bit more friendly to Ragsdale. But, it will be more difficult to get those friendly faces with all the improper and illegal conduct in the Mayor's office. Any Commission candidates signing up Ragsdale, Arms, and Finch to host committees?
It will be interesting to see what else comes out. I don't think it's over. Death by a thousand cuts? That's not certain at this point.
That's no slam at Ragsdale, but I'm guessing he would need a place to land. He was a PR guy before Mayor and Dean of something at Pellissippi State before that (right?).
IIRC, Ragsdale was the business manager at Barber McMurray before he was elected.
Submitted by Brian Hornback on Thu, 2007/08/09 - 9:37pm.
at BMI (Barber McMurry) was Vice President of Business Development. Before that he was Dean of Admissions at Pellissipi State. He earned a Dr. in Education. Beanster, what slap can you give him for that?
Mayor, Michael R. Ragsdale, why are you hiding behind Cynthia Finch’s skirt?
The race card is no longer the prima facie issue. Something more provocative? Some AKA sisters are concerned. But will the past be successfully covered up? Usually is...
This latest political maneuver with HUD is just that - the mayor and his sidekick are living in a political Disney world. Yet so are many of the commissioners. Will HUD respond?
Though the mayor needs to, he will not clean house -for his political house appears to be from Toonsville and he sees nothing wrong except the angst of being caught. Meanwhile, "Ms. Roger Rabbit" from his Toonsville past, is just around the corner peeking inside. Won’t the Mayor be surprised if and when she knocks on his door?
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 5:54am.
This morning's news coverage raises the question of how grant monies are distributed to organizations, as a lump sum or possibly at regular (quarterly?) intervals? That is, are these compliance officers in the difficult position of having to go back to "offenders" and try to get back funds already distributed, or are they able to just cease making future distributions (the latter appears to be the case)?
While he asked HUD to step in to review the grants program, Ragsdale also expressed confidence in Finch’s office, saying staff members “understand the needs of our community, they are knowledgeable about the agencies best equipped to meet those needs, and they are absolutely committed to creating partnerships that make the best possible use of scarce federal resources.”
The above is admittedly a repeat of the quote above. However, after reading the stories in today's KNS concerning Finch, this quote makes Mayor Ragsdale look like a buffoon. It's revealed in today's News-Sentinel that thousands more in taxpayer dollars are going to groups with ties to Finch and her family. Finch claims not to know about what groups are operating in the building she owns and groups which claim to operate under TennCorp, which she operated for nine years prior to being hired by Ragsdale and which Finch's sister now runs. And, compliance officers detail thousands being wasted with no apparent services being provided, but Finch's relatives received thousands in salary.
While it may not be exactly clear, it appears poor Dwight VanDeVate is once again being hung out to dry. VanDeVate states Finch, the county finance director, Ragsdale and Arms discuss the community grants. Yet, Finch is quoted as saying 'she does not review the grant applications or recommend them to Mayor Ragsdale'. So, which is true? Are we parsing words such as 'discuss' v. 'review'?
Kudos to the News-Sentinel (Ansley Haman) for investigative reporting. We know from past stories that Finch lied to a KNS reporter about her ties to TennCorp. Now, this:
A copy of the compliance officer’s memo detailing the May 22 visits was viewed Tuesday by the News Sentinel in Fam-Sec’s file.
The file was taken to Finch’s office that night for review and was returned to the Community Development office the next morning. The memo was missing when reporters again looked at the file Wednesday.
“I looked at it because they had a question about it yesterday,” Finch said. “I didn’t pull anything out of there.”
So, according to the News-Sentinel's reporter, she looked at the memo in the file one day, asked Finch to comment, the file was sent to Finch and the next day the incriminating memo was missing.
So, Mayor Ragsdale, these are the people in your office who “understand the needs of our community, are knowledgeable about the agencies best equipped to meet those needs, and are absolutely committed to creating partnerships that make the best possible use of scarce federal resources"?
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 7:29am.
Betty, my reference was to a Tuesday, August 7 headline in the N-S which read "County funds going to corp. linked to Finch." I believe the wording lead readers to a mistaken impression that these HUD funds were derived from county tax revenues.
HUD funding is "free" to Knox County in that it does not tap county tax revenues.
(You'll note that I placed the word "free" in quotation marks in this and earlier posts.)
No county tax revenues involved
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 8:29am.
Betty, my reference was to a Tuesday, August 7 headline in the N-S which read "County funds going to corp. linked to Finch." I believe the wording lead readers to a mistaken impression that these HUD funds were derived from county tax revenues.
HUD funding is "free" to Knox County in that it does not tap county tax revenues.
(You'll note that I placed the word "free" in quotation marks in this and earlier posts.)
I have no idea who you are, but do you not realize that this money is not free, whether it comes from Knox County or HUD?
It comes out of everyone's purse. Please don't take too much offense, but your comment is really, really bad. That's like saying this war in Iraq is free because it does not tap Knox County tax revenues.
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 9:36am.
"...do you not realize that this money is not free, whether it comes from Knox County or HUD?"
Cletus (and Defiant), I certainly do realize this, which is why (again) I have consistently placed that word "free" in quotation marks in my posts.
My intention wasn't to advocate for mismanaging federal tax revenues (a HUD review will hopefully determine if that has happened). My intention was to acknowledge lingering resentment from some factions over the wheel tax vote.
That is, I suspect that voters resentful of the wheel tax vote would harbor even more resentment to think that county tax revenues have funded grants now under investigation. Wouldn't you agree?
It's Friday, soon will be another Friday afternoon....
Another Friday afternoon has come and gone, and Mayor Ragsdale is still circling the wagons around Finch.
It's starting to sound like Bush and Gonzales, and just as inexplicable.
And that reminds me.
Why isn't the local Democratic Party making hay out of all this? Yeah, they may be sitting back watching local Republicans hammer on each other.
But might this be an opportunity to serve the electorate by taking a leadership role, and start asking "when is enough enough?", and offer some alternatives?
Qualifying deadlines are coming up soon, and while the p-card/non-profit scandals may have distracted voters from Black Wednesday, Commission round two is up for grabs.
Submitted by mbradley on Fri, 2007/08/10 - 8:13am.
HUD funding is "free" to Knox County in that it does not tap county tax revenues.
Would you think any differently of these pass through federal grants if Knox County had spent thousands of dollars on travel and entertainment to obtain them?
Considering the Federal Government takes a good percentage of my pay checks(among the multitude of other taxes), I don't consider HUD money to be 'free.'
Submitted by Up Goose Creek on Fri, 2007/08/10 - 8:40am.
I'm not here to bash fiscal conservatives, having a bit of that tendency myself. But I have to wonder if the recent posters disply a proportional amount of outrage at the money our government is blowing in Iraq, farm subsidies, corporate welfare, etc.
___________________________________
Less is the new More - Karrie Jacobs
But I have to wonder if the recent posters disply a proportional amount of outrage at the money our government is blowing in Iraq, farm subsidies, corporate welfare, etc.
You don't even have to reach to higher levels of government to see that the outrage is out of proportion to the dollars. The sheriff has been fighting for years to keep his drug-war money secret, so who knows what kind of waste and fraud remains hidden there? Hutchison's real estate holdings are far more extensive than Cynthia Finch's. County commission tosses huge bones to favored developers as a matter of routine. Waste and fraud occur throughout county government, so this current fixation on the mayor's office seems less motivated by principle than by factionalism.
Goose Creek is right that the silence of so-called fiscal conservatives in the face of out-of-control federal spending casts doubt on their commitment. Their principles are just a front for more tribal loyalties.
From Ragsdale's perspective maybe he should take the same approach as County commisioners, etc. Just do not acknowledge when anything wrong happens. Just keep bee-bopping along. The lack of response effectively muffles it. When they say something it is about Ragsdale. Combined with him providing headlines via his extreme responses he is digging his own hole.
Honestly, I find it infuriating whenever the government (Federal or local) mismanages taxpayer funds. Back O/T, I'm just curious to see the results of the audit. If Camp Ragsdale tries to throw Cynthia under the bus, I'm sure she will try and scorch the earth.
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 10:01am.
I'm very curious to see these audit results, too, Defiant, particularly if we can get this "outside" auditor involved.
Meanwhile, provided the audit affirms the prudence of the project(s) under review, any county is smart to leverage state and federal funding to achieve local results, that's all.
Submitted by Sandra Clark on Fri, 2007/08/10 - 9:58am.
I think that folks who SUPPORT county programs such as public schools, the Sheriff's Office, public health, libraries, codes enforcement & roads, and parks & recreation would be annoyed at the waste and fraud in these insider grant programs and no-bid contracts.
You would hope to have a CEO and senior staff who are resourceful and dedicated to making government better every day. Instead, we've got waste, fraud and a slogan. -- s.
I think that folks who SUPPORT county programs such as public schools, the Sheriff's Office, public health, libraries, codes enforcement & roads, and parks & recreation would be annoyed at the waste and fraud in these insider grant programs and no-bid contracts.
Will the audit tell us if there are former county employees
who are running non-profits and other entities that receive grants and contracts, or is it just going to show us family connections between those who give and those who receive?
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 1:02pm.
"Will the audit tell us if there are former county employees who are running non-profits and other entities that receive grants and contracts, or is it just going to show us family connections between those who give and those who receive?"
Gary, I haven't been sure whether I should infer from media coverage that these family relationships between grantor and grantee are forbidden by HUD, or whether media are simply pointing to a liklihood that these grants have been extended recklessly, to organizations not worthy of them.
Since media have not to date told us specifically that the grants are forbidden, I've been wondering if HUD forbids the relationships, requires through some sort of "conflict of interest" statement that they be revealed, or perhaps even does not address them at all?
When I asked this question of HUD's Mark Brezina this morning, he said only that a waiver process might apply in some situations, and he asked for more time to determine relevant concerns in the matter.
I have the same question, then, in regard to your thought about former employees, namely, does HUD make this an issue?
I hadn't mentioned here that I have previous work experience with an east Tennessee utility that was subjected to an audit through the State Comptrollers Office (and less than a month after I arrived on the job as their Business Manager, yikes!). In over six months of daily interaction, I got to know Dennis Dykus pretty well.
In that setting, I found that the Comptroller's Office was obliged to confine the scope of their investigation to just those stipulations imposed on the utility by law or its own written policies. I expect any HUD audit of Finch's office would be conducted under similar limitations.
I will tell you that, in my personal experience with the Comptroller's Office, the utility received a "clean bill of health," but I chose to voluntarily change a great many of our office and recordkeeping practices--and I think most of us here would have chosen to, too!
(In sharing my own experiences with an audit of this sort, I don't in any way intend to discount or trivialize questions surrounding practices in Finch's office. I suggest only the likely scope of any Comptroller's Office audit or, presumably, any HUD review--not what any audit or review might conclude.)
Submitted by Joe Taylor on Fri, 2007/08/10 - 1:17pm.
HUD's Mark Brezina... why are we letting the local guy head up the investigation... I hear he is a friend of Ragsdale attended fund raisers, events etc...
I think county commission should ask Office of Inspector General in Washington DC to head up the investigation...
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 1:35pm.
From text of letter:
"I request that the Knoxville office of HUD immediately conduct a monitoring review of all programs and processes involving federal entitlement funding. I would also ask that if necessary, HUD utilize any and all of the resources available to support this monitoring, including Technical Assistance, consulting specialists and/or subject matter experts from HUD's national headquarters."
I have the same question, then, in regard to your thought about former employees, namely, does HUD make this an issue?
Thanks for your response. My question was also more generally directed to county employees, which I guess would be answered by the charter, are there any rules about former employees receiving grants and contracts from the county, which is like being re-hired by the government?
My knowledge of the specifics of the charter, or other relative regulations, on this is limited.
It seems like that Knox Co., as does Washington, D.C., has a revolving door that for some revolves pretty fast.
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 2:13pm.
"My question was also more generally directed to county employees, which I guess would be answered by the charter, are there any rules about former employees receiving grants and contracts from the county, which is like being re-hired by the government?"
I did understand that you were referring to county employees, Gary--I just got in a hurry and left that word out.
I just looked through Article VIII of the charter, which is where all the conflict of interest instruction is, and I didn't see any reference to former county employees.
That doesn't mean, though, that state or federal law, or in the case of these block grants, HUD's own policies, don't make some stipulation.
I'm frustrated that after this much media attention on the issue, we readers don't yet have a very clear understanding of HUD's grant application "ground rules." I think that omission has contributed to some misunderstanding here.
Lord knows I've pored over that (huge) HUD website...
Submitted by Bird_dog on Fri, 2007/08/10 - 1:54pm.
Apparently some employees think so! Perhaps Ragsdale could practice review and oversight by asking for a show of hands on this question - except that some former employees, who have not paid in several years (!) may have already left the building...
No wonder the man did not want to be called County Executive - he can't live up to the title.
Finch is a Democrat. Should the Knox Co. Dems call for her to be fired?
If all the info that's coming out is true, then yes. They should at least be asking the tough questions. Just like the local GOP party should be asking the tough questions and calling for action and resolution. But they, too, are curiously silent (present company past party executives notwithstanding).
But more important, local Dems should start thinking about taking a leadership role in calling the long-time GOP GOB control of local government to account, and not leave it up to the papers to do the dirty work or the local GOB/GOP to spin it.
Political parties don't take stands like that, particularly local parties. Well, seems that I recall Jim Gray did on term limits and ended up not being Chairman for long. Like it or not, political parties are caught in a bind because they have to 'support' the party officials. That applies to Democrats and Republicans. Frankly, none of this stuff with the County Mayor has anything to do with partisan politics.
And Randy, there are plenty of Democrat GOB's in county and city government. Probably not as many as Republicans. But, there's quite a few. Republicans don't have a monolopy on GOB's. In local politics, they all play together, R's and D's. Maybe not the grass roots workers. But, elected officials sure do.
Submitted by Bbeanster on Fri, 2007/08/10 - 8:37pm.
Last summer I attended a Harold Ford Jr. rally and observed Finch working the hard core Demo crowd.
When she got around to my side of the room, I saw that she was trying to get people to come to a Mike Ragsdale campaign event at Jeff Talman's house in 4th&Gill.
It was one of the odder moments last campaign season.
Just like the local GOP party should be asking the tough questions and calling for action and resolution. But they, too, are curiously silent (present company past party executives notwithstanding).
As a mere commoner, I tend to agree with Chad and Brian, but I also think that in general, on both sides of the aisle among party supporters, not necessarily party activists, a lot of people are just waiting for more information. If these issues are entangled by racial and legal questions,tough questions and calling for action and resolution may just interfere and complicate what any number of auditors and attorneys may end up resolving.
Submitted by mbradley on Fri, 2007/08/10 - 9:26pm.
Well, I have a little different take on it... Elected (and some appointed) officials and their staff seem to be doing a pretty good job of self destruction without anyone making hay. Why jump in now? Wait until this winter and drag it all out in the campaigns. If I were a future candidate, I'd already have a seamstress somewhere working on a lobster suit...
And, things are coming too fast and furious. The whole P-card thing seems like it was a long time ago, doesn't it? You barely have time to evaluate one report when here comes another one...
Its not going to end anytime soon and that's sad...
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 10:29pm.
"And, things are coming too fast and furious."
Was it Dilbert who defined the term "Doppler Effect" as the tendency for garbled and nonsensical ideas introduced in rapid succession to be hugely persuasive?
It's happening, or else someone here would have scrutinzed that Flow Chart from the Fifth Dimension in today's N-S, the one that cites $1.2 million having "been awarded" (but they didn't say "by Knox County," you'll note) to organizations tied to Finch.
To arrive at that dollar amount, they've double-counted funds awarded by the county when the recipients then contributed some small amount to TennCorp (or, in one instance, to AME Zion), they've aligned with TennCorp one organization on their chart that has no financial ties whatsoever, and they've tossed in *future* monies payable to AME Zion, on this, a supposed recap of *past* transactions since Finch's hire.
Nor do the amounts add up to $1.2 million.
Nor is the context of total budget for community grants, community services, and economic/community development budgets during this same period offered.
Nor does this or any previous N-S story outline HUD's policy on these familial relationships which they presume will startle.
Mr. McElroy, will the N-S be explaining to readers anytime soon what HUD guidelines apply to these transactions and in what budget context we are to consider them, or are we just to be "doppled?"
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 11:54pm.
Let me try sharing this example of why I remain baffled at today's news coverage, in particular, and I'm off to bed...
I manage a loan portfolio of $5,197,850. I produce uncollectable loans, or "bad debt," of $33,454, resulting in a .64% "bad debt ratio" for my employer. That high level of performance earns me a nice quarterly bonus and a round of applause at the company picnic.
Cynthia Finch manages a department budget of $5,197,850 for community grants, community services, and economic and community development grants (adopted FY 2007, Link...). She extends a questionable grant to Fam-Sec Inc., the "glorified babysitting service," of $33,454, resulting in a "bad grant ratio" of .64%. That level of performance earns her...muckrackers???
Submitted by Carole Borges on Sat, 2007/08/11 - 7:11am.
Corruption is everywhere---in our government, our school systems, our churches and our workplaces. Trying to make it look like Finch is somehow unique is absurd. The true lesson to be learned is the same old lesson we all should have learned years ago--power corrupts. Therefore it seems important to work on laws that demand accountability rather than wasting time on partisan politics or expressing shock and awe when one particular person is suspected of possible corruption. Too much focus on personalities detracts from the real issue which is to work hard to create local, state and national laws that help curb abuses of this kind.
Why did Mike Ragsdale ask HUD to investigate Knox County?
A. He really, really wants to get to the bottom of this mess.
B. He's ready to push Cynthia Finch under the bus but wants somebody else to actually do the deed.
C. He's now able to stonewall media inquiry by saying, "Gee, I can't comment while an investigation is underway."
D. Mark Brezina at the Knoxville Office of HUD has as much reason to shut this down as Ragsdale does and will investigate accordingly.
E. All of the above. --s.
F: He's trying to get out in front of what's coming out tomorrow to be seen as doing something about it.
B, and D. I would have taken all of the above except for A. I don't think he wants to get to the bottom of this mess.
I saw a short clip of Tennessee this week. He did not impress me with his whine altitude about John Werner it's my choice and the voters can just be damn.
Or maybe he wants to clear all this up and get out of the line of fire, but he knows at this point he doesn't have much credibility with the media or anyone else so he brings in outside help (i.e. HUD, the TN Comptroller's office, etc.) as impartial observers, and he's confident they will vindicate him.
Either way, there are some who will see this as as a sign of weakness, i.e a perceived lack of control in his office that he now has to bring in outsiders to clear up, and there are others who will see it as proof of his wanting to be open and get to the bottom of it.
He's been maneuvered into a tough spot between a rock and a hard place, partly by the people who work for him, partly by commission, partly by the media, and partly by his own apparent lack of oversight (or his "trust", depending on your point of view) and leadership example.
If HUD and the Comptroller's office do come in, it will certainly be interesting to see what they find.
"If HUD and the Comptroller's office do come in, it will certainly be interesting to see what they find."
Regardless of what they find, it would be the best possible outcome.
No local and/or internal auditor, whether Walls or anyone else, could garner the confidence and respect from citizens that an "outsider" likely will.
While he asked HUD to step in to review the grants program, Ragsdale also expressed confidence in Finch’s office, saying staff members “understand the needs of our community, they are knowledgeable about the agencies best equipped to meet those needs, and they are absolutely committed to creating partnerships that make the best possible use of scarce federal resources.”
Anyone care to pick this one apart?
Unlike Sandra, I'll be very surprised if Ragsdale doesn't finish his term. Maybe there's more and that will be 'enough'. Maybe it gets so bad that some business folks ask him to step down. But, that's not likely unless it affects their interests.
Also, think of the practicalities. If it were someone like Bredesen, he's independently wealthy. He doesn't need the job. That's no slam at Ragsdale, but I'm guessing he would need a place to land. He was a PR guy before Mayor and Dean of something at Pellissippi State before that (right?). Any of those jobs around for a Mayor resigning in turmoil?
Same for Cynthia Finch and the rest of the upper level folks in 615, save Mike Arms who's part time job pays him handsomely. None of those will quit (giving up the $130k+) and all will go if Ragsdale quits. So, if he quits he takes all those people with him.
Maybe he limps and deals with the nagging scandals for 3 years. Maybe some new faces get elected next year who are a bit more friendly to Ragsdale. But, it will be more difficult to get those friendly faces with all the improper and illegal conduct in the Mayor's office. Any Commission candidates signing up Ragsdale, Arms, and Finch to host committees?
It will be interesting to see what else comes out. I don't think it's over. Death by a thousand cuts? That's not certain at this point.
That's no slam at Ragsdale, but I'm guessing he would need a place to land. He was a PR guy before Mayor and Dean of something at Pellissippi State before that (right?).
IIRC, Ragsdale was the business manager at Barber McMurray before he was elected.
Call it what you want... but Ragsdale was paid to play golf and to wine and dine folks to try to get their business...
Sound familar...
Here's WBIR's latest story from tonight's news:
Link...
at BMI (Barber McMurry) was Vice President of Business Development. Before that he was Dean of Admissions at Pellissipi State. He earned a Dr. in Education. Beanster, what slap can you give him for that?
And at Pellessippi State, he was Director of Admissions.
Edit: (Oops--did you add to that post as I was typing the same thing, Brian?!)
sorry.
Mayor, Michael R. Ragsdale, why are you hiding behind Cynthia Finch’s skirt?
The race card is no longer the prima facie issue. Something more provocative? Some AKA sisters are concerned. But will the past be successfully covered up? Usually is...
This latest political maneuver with HUD is just that - the mayor and his sidekick are living in a political Disney world. Yet so are many of the commissioners. Will HUD respond?
Though the mayor needs to, he will not clean house -for his political house appears to be from Toonsville and he sees nothing wrong except the angst of being caught. Meanwhile, "Ms. Roger Rabbit" from his Toonsville past, is just around the corner peeking inside. Won’t the Mayor be surprised if and when she knocks on his door?
This morning's news coverage raises the question of how grant monies are distributed to organizations, as a lump sum or possibly at regular (quarterly?) intervals? That is, are these compliance officers in the difficult position of having to go back to "offenders" and try to get back funds already distributed, or are they able to just cease making future distributions (the latter appears to be the case)?
Also, how often is compliance verified?
Anybody know?
While he asked HUD to step in to review the grants program, Ragsdale also expressed confidence in Finch’s office, saying staff members “understand the needs of our community, they are knowledgeable about the agencies best equipped to meet those needs, and they are absolutely committed to creating partnerships that make the best possible use of scarce federal resources.”
The above is admittedly a repeat of the quote above. However, after reading the stories in today's KNS concerning Finch, this quote makes Mayor Ragsdale look like a buffoon. It's revealed in today's News-Sentinel that thousands more in taxpayer dollars are going to groups with ties to Finch and her family. Finch claims not to know about what groups are operating in the building she owns and groups which claim to operate under TennCorp, which she operated for nine years prior to being hired by Ragsdale and which Finch's sister now runs. And, compliance officers detail thousands being wasted with no apparent services being provided, but Finch's relatives received thousands in salary.
While it may not be exactly clear, it appears poor Dwight VanDeVate is once again being hung out to dry. VanDeVate states Finch, the county finance director, Ragsdale and Arms discuss the community grants. Yet, Finch is quoted as saying 'she does not review the grant applications or recommend them to Mayor Ragsdale'. So, which is true? Are we parsing words such as 'discuss' v. 'review'?
Kudos to the News-Sentinel (Ansley Haman) for investigative reporting. We know from past stories that Finch lied to a KNS reporter about her ties to TennCorp. Now, this:
A copy of the compliance officer’s memo detailing the May 22 visits was viewed Tuesday by the News Sentinel in Fam-Sec’s file.
The file was taken to Finch’s office that night for review and was returned to the Community Development office the next morning. The memo was missing when reporters again looked at the file Wednesday.
“I looked at it because they had a question about it yesterday,” Finch said. “I didn’t pull anything out of there.”
So, according to the News-Sentinel's reporter, she looked at the memo in the file one day, asked Finch to comment, the file was sent to Finch and the next day the incriminating memo was missing.
So, Mayor Ragsdale, these are the people in your office who “understand the needs of our community, are knowledgeable about the agencies best equipped to meet those needs, and are absolutely committed to creating partnerships that make the best possible use of scarce federal resources"?
Maybe Sandra's right.
But Chad-- evidently some on this forum consider HUD funds "free money" rather than taxpayer money. That makes everything OK, evidently.
Betty, my reference was to a Tuesday, August 7 headline in the N-S which read "County funds going to corp. linked to Finch." I believe the wording lead readers to a mistaken impression that these HUD funds were derived from county tax revenues.
HUD funding is "free" to Knox County in that it does not tap county tax revenues.
(You'll note that I placed the word "free" in quotation marks in this and earlier posts.)
No county tax revenues involved
Submitted by Tamara Shepherd on Fri, 2007/08/10 - 8:29am.
Betty, my reference was to a Tuesday, August 7 headline in the N-S which read "County funds going to corp. linked to Finch." I believe the wording lead readers to a mistaken impression that these HUD funds were derived from county tax revenues.
HUD funding is "free" to Knox County in that it does not tap county tax revenues.
(You'll note that I placed the word "free" in quotation marks in this and earlier posts.)
I have no idea who you are, but do you not realize that this money is not free, whether it comes from Knox County or HUD?
It comes out of everyone's purse. Please don't take too much offense, but your comment is really, really bad. That's like saying this war in Iraq is free because it does not tap Knox County tax revenues.
"...do you not realize that this money is not free, whether it comes from Knox County or HUD?"
Cletus (and Defiant), I certainly do realize this, which is why (again) I have consistently placed that word "free" in quotation marks in my posts.
My intention wasn't to advocate for mismanaging federal tax revenues (a HUD review will hopefully determine if that has happened). My intention was to acknowledge lingering resentment from some factions over the wheel tax vote.
That is, I suspect that voters resentful of the wheel tax vote would harbor even more resentment to think that county tax revenues have funded grants now under investigation. Wouldn't you agree?
"free federal money" is a long-running joke on this forum and its predecessors. Tamara should not have to defend herself for playing along.
It's Friday, soon will be another Friday afternoon....
It's Friday, soon will be another Friday afternoon....
Another Friday afternoon has come and gone, and Mayor Ragsdale is still circling the wagons around Finch.
It's starting to sound like Bush and Gonzales, and just as inexplicable.
And that reminds me.
Why isn't the local Democratic Party making hay out of all this? Yeah, they may be sitting back watching local Republicans hammer on each other.
But might this be an opportunity to serve the electorate by taking a leadership role, and start asking "when is enough enough?", and offer some alternatives?
Qualifying deadlines are coming up soon, and while the p-card/non-profit scandals may have distracted voters from Black Wednesday, Commission round two is up for grabs.
Would you think any differently of these pass through federal grants if Knox County had spent thousands of dollars on travel and entertainment to obtain them?
Considering the Federal Government takes a good percentage of my pay checks(among the multitude of other taxes), I don't consider HUD money to be 'free.'
I'm not here to bash fiscal conservatives, having a bit of that tendency myself. But I have to wonder if the recent posters disply a proportional amount of outrage at the money our government is blowing in Iraq, farm subsidies, corporate welfare, etc.
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Less is the new More - Karrie Jacobs
But I have to wonder if the recent posters disply a proportional amount of outrage at the money our government is blowing in Iraq, farm subsidies, corporate welfare, etc.
You don't even have to reach to higher levels of government to see that the outrage is out of proportion to the dollars. The sheriff has been fighting for years to keep his drug-war money secret, so who knows what kind of waste and fraud remains hidden there? Hutchison's real estate holdings are far more extensive than Cynthia Finch's. County commission tosses huge bones to favored developers as a matter of routine. Waste and fraud occur throughout county government, so this current fixation on the mayor's office seems less motivated by principle than by factionalism.
Goose Creek is right that the silence of so-called fiscal conservatives in the face of out-of-control federal spending casts doubt on their commitment. Their principles are just a front for more tribal loyalties.
From Ragsdale's perspective maybe he should take the same approach as County commisioners, etc. Just do not acknowledge when anything wrong happens. Just keep bee-bopping along. The lack of response effectively muffles it. When they say something it is about Ragsdale. Combined with him providing headlines via his extreme responses he is digging his own hole.
Honestly, I find it infuriating whenever the government (Federal or local) mismanages taxpayer funds. Back O/T, I'm just curious to see the results of the audit. If Camp Ragsdale tries to throw Cynthia under the bus, I'm sure she will try and scorch the earth.
I'm very curious to see these audit results, too, Defiant, particularly if we can get this "outside" auditor involved.
Meanwhile, provided the audit affirms the prudence of the project(s) under review, any county is smart to leverage state and federal funding to achieve local results, that's all.
I think that folks who SUPPORT county programs such as public schools, the Sheriff's Office, public health, libraries, codes enforcement & roads, and parks & recreation would be annoyed at the waste and fraud in these insider grant programs and no-bid contracts.
You would hope to have a CEO and senior staff who are resourceful and dedicated to making government better every day. Instead, we've got waste, fraud and a slogan. -- s.
I think that folks who SUPPORT county programs such as public schools, the Sheriff's Office, public health, libraries, codes enforcement & roads, and parks & recreation would be annoyed at the waste and fraud in these insider grant programs and no-bid contracts.
Will the audit tell us if there are former county employees
who are running non-profits and other entities that receive grants and contracts, or is it just going to show us family connections between those who give and those who receive?
"Will the audit tell us if there are former county employees who are running non-profits and other entities that receive grants and contracts, or is it just going to show us family connections between those who give and those who receive?"
Gary, I haven't been sure whether I should infer from media coverage that these family relationships between grantor and grantee are forbidden by HUD, or whether media are simply pointing to a liklihood that these grants have been extended recklessly, to organizations not worthy of them.
Since media have not to date told us specifically that the grants are forbidden, I've been wondering if HUD forbids the relationships, requires through some sort of "conflict of interest" statement that they be revealed, or perhaps even does not address them at all?
When I asked this question of HUD's Mark Brezina this morning, he said only that a waiver process might apply in some situations, and he asked for more time to determine relevant concerns in the matter.
I have the same question, then, in regard to your thought about former employees, namely, does HUD make this an issue?
I hadn't mentioned here that I have previous work experience with an east Tennessee utility that was subjected to an audit through the State Comptrollers Office (and less than a month after I arrived on the job as their Business Manager, yikes!). In over six months of daily interaction, I got to know Dennis Dykus pretty well.
In that setting, I found that the Comptroller's Office was obliged to confine the scope of their investigation to just those stipulations imposed on the utility by law or its own written policies. I expect any HUD audit of Finch's office would be conducted under similar limitations.
I will tell you that, in my personal experience with the Comptroller's Office, the utility received a "clean bill of health," but I chose to voluntarily change a great many of our office and recordkeeping practices--and I think most of us here would have chosen to, too!
(In sharing my own experiences with an audit of this sort, I don't in any way intend to discount or trivialize questions surrounding practices in Finch's office. I suggest only the likely scope of any Comptroller's Office audit or, presumably, any HUD review--not what any audit or review might conclude.)
HUD's Mark Brezina... why are we letting the local guy head up the investigation... I hear he is a friend of Ragsdale attended fund raisers, events etc...
I think county commission should ask Office of Inspector General in Washington DC to head up the investigation...
From text of letter:
"I request that the Knoxville office of HUD immediately conduct a monitoring review of all programs and processes involving federal entitlement funding. I would also ask that if necessary, HUD utilize any and all of the resources available to support this monitoring, including Technical Assistance, consulting specialists and/or subject matter experts from HUD's national headquarters."
Link...
I have the same question, then, in regard to your thought about former employees, namely, does HUD make this an issue?
Thanks for your response. My question was also more generally directed to county employees, which I guess would be answered by the charter, are there any rules about former employees receiving grants and contracts from the county, which is like being re-hired by the government?
My knowledge of the specifics of the charter, or other relative regulations, on this is limited.
It seems like that Knox Co., as does Washington, D.C., has a revolving door that for some revolves pretty fast.
"My question was also more generally directed to county employees, which I guess would be answered by the charter, are there any rules about former employees receiving grants and contracts from the county, which is like being re-hired by the government?"
I did understand that you were referring to county employees, Gary--I just got in a hurry and left that word out.
I just looked through Article VIII of the charter, which is where all the conflict of interest instruction is, and I didn't see any reference to former county employees.
That doesn't mean, though, that state or federal law, or in the case of these block grants, HUD's own policies, don't make some stipulation.
I'm frustrated that after this much media attention on the issue, we readers don't yet have a very clear understanding of HUD's grant application "ground rules." I think that omission has contributed to some misunderstanding here.
Lord knows I've pored over that (huge) HUD website...
(Gone to school to get the kids.)
Apparently some employees think so! Perhaps Ragsdale could practice review and oversight by asking for a show of hands on this question - except that some former employees, who have not paid in several years (!) may have already left the building...
No wonder the man did not want to be called County Executive - he can't live up to the title.
Why isn't the local Democratic Party making hay out of all this?
Randy,
Finch is a Democrat. Should the Knox Co. Dems call for her to be fired?
Finch is a Democrat. Should the Knox Co. Dems call for her to be fired?
If all the info that's coming out is true, then yes. They should at least be asking the tough questions. Just like the local GOP party should be asking the tough questions and calling for action and resolution. But they, too, are curiously silent (present company past party executives notwithstanding).
But more important, local Dems should start thinking about taking a leadership role in calling the long-time GOP GOB control of local government to account, and not leave it up to the papers to do the dirty work or the local GOB/GOP to spin it.
be that KnoxDem Chairman Don Daugherty has his hands full with fighting within the KnoxDem party.
Remember, 1/31/07 when Democrat Mark Harmon and Democrat Billy Tindell got into a public fight over Johnathon Wimmer -vs- Amy Broyles.
The appointee? Republican Chuck Bolus.
Political parties don't take stands like that, particularly local parties. Well, seems that I recall Jim Gray did on term limits and ended up not being Chairman for long. Like it or not, political parties are caught in a bind because they have to 'support' the party officials. That applies to Democrats and Republicans. Frankly, none of this stuff with the County Mayor has anything to do with partisan politics.
And Randy, there are plenty of Democrat GOB's in county and city government. Probably not as many as Republicans. But, there's quite a few. Republicans don't have a monolopy on GOB's. In local politics, they all play together, R's and D's. Maybe not the grass roots workers. But, elected officials sure do.
Last summer I attended a Harold Ford Jr. rally and observed Finch working the hard core Demo crowd.
When she got around to my side of the room, I saw that she was trying to get people to come to a Mike Ragsdale campaign event at Jeff Talman's house in 4th&Gill.
It was one of the odder moments last campaign season.
Demo's field a candidate in the Primary or General for County Mayor? If not, why wouldn't the Democrats attend a Ragsdale event?
They evidently endorsed Ragsdale by not fielding a candidate.
Just like the local GOP party should be asking the tough questions and calling for action and resolution. But they, too, are curiously silent (present company past party executives notwithstanding).
As a mere commoner, I tend to agree with Chad and Brian, but I also think that in general, on both sides of the aisle among party supporters, not necessarily party activists, a lot of people are just waiting for more information. If these issues are entangled by racial and legal questions,tough questions and calling for action and resolution may just interfere and complicate what any number of auditors and attorneys may end up resolving.
Gary.
Well, I have a little different take on it... Elected (and some appointed) officials and their staff seem to be doing a pretty good job of self destruction without anyone making hay. Why jump in now? Wait until this winter and drag it all out in the campaigns. If I were a future candidate, I'd already have a seamstress somewhere working on a lobster suit...
And, things are coming too fast and furious. The whole P-card thing seems like it was a long time ago, doesn't it? You barely have time to evaluate one report when here comes another one...
Its not going to end anytime soon and that's sad...
"And, things are coming too fast and furious."
Was it Dilbert who defined the term "Doppler Effect" as the tendency for garbled and nonsensical ideas introduced in rapid succession to be hugely persuasive?
It's happening, or else someone here would have scrutinzed that Flow Chart from the Fifth Dimension in today's N-S, the one that cites $1.2 million having "been awarded" (but they didn't say "by Knox County," you'll note) to organizations tied to Finch.
To arrive at that dollar amount, they've double-counted funds awarded by the county when the recipients then contributed some small amount to TennCorp (or, in one instance, to AME Zion), they've aligned with TennCorp one organization on their chart that has no financial ties whatsoever, and they've tossed in *future* monies payable to AME Zion, on this, a supposed recap of *past* transactions since Finch's hire.
Nor do the amounts add up to $1.2 million.
Nor is the context of total budget for community grants, community services, and economic/community development budgets during this same period offered.
Nor does this or any previous N-S story outline HUD's policy on these familial relationships which they presume will startle.
Mr. McElroy, will the N-S be explaining to readers anytime soon what HUD guidelines apply to these transactions and in what budget context we are to consider them, or are we just to be "doppled?"
Let me try sharing this example of why I remain baffled at today's news coverage, in particular, and I'm off to bed...
I manage a loan portfolio of $5,197,850. I produce uncollectable loans, or "bad debt," of $33,454, resulting in a .64% "bad debt ratio" for my employer. That high level of performance earns me a nice quarterly bonus and a round of applause at the company picnic.
Cynthia Finch manages a department budget of $5,197,850 for community grants, community services, and economic and community development grants (adopted FY 2007, Link...). She extends a questionable grant to Fam-Sec Inc., the "glorified babysitting service," of $33,454, resulting in a "bad grant ratio" of .64%. That level of performance earns her...muckrackers???
Sigh. Good night.
Corruption is everywhere---in our government, our school systems, our churches and our workplaces. Trying to make it look like Finch is somehow unique is absurd. The true lesson to be learned is the same old lesson we all should have learned years ago--power corrupts. Therefore it seems important to work on laws that demand accountability rather than wasting time on partisan politics or expressing shock and awe when one particular person is suspected of possible corruption. Too much focus on personalities detracts from the real issue which is to work hard to create local, state and national laws that help curb abuses of this kind.
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