NEW YORK (WPIX)—
Was Metropolitan Transit Authority Chairman Jay Walder wise to hire a cost-cutting czar and restructuring czar with a record of "wasteful spending" and lax management practices?That's the question PIX 11 News reporter Greg Mocker is asking all 22 MTA board members. Mocker emailed every member (and talked with some on the phone) Wednesday after MTA brass ignored his requests for an explanation of what it is arguably the most important hire Walder has made.
Diana Jones Ritter will join the MTA as managing director on July 19 after wrapping up as commissioner of New York's Office of Mental Retardation and Developmental Disabilities. The MTA job comes with a tremendous pay raise. While Jones Ritter has earned $136,000 as a state commissioner, she'll pull in $217,000 annually at the MTA.
At the MTA, in addition to overseeing cost-cutting and restructuring, Jones Ritter will also be responsible for: day-to-day operations at headquarters, corporate affairs, government relations, procurement, real estate, human resources policy and pensions, capital programs, planning, sustainability and environmental compliance, and information technology.
Mocker started digging for information about Jones Ritter after MTA Chairman Jay Walder announced his hiring of Jones Ritter on July 1 – in a press release buried on the MTA website – as reporters were checking out for the holiday weekend.
"Diana Jones Ritter is exactly the type of seasoned government professional who can help the MTA attack our cost structure and operate more efficiently," Walder said in the release. "Diana has a stellar track record at all levels of government and will hit the ground running overseeing this vital effort. Diana will be critical to our ability to cut costs and provide value to taxpayers and riders."
The MTA press release touted Jones Ritter's background: "She is credited with leading significant transformation and restructuring of OMRDD resulting in expanded services, improved partnerships, millions of dollars of cost savings and increased efficiencies in operations all across New York State. She has served in numerous senior positions in State government for more than 26 years, and was previously the Executive Deputy Comptroller in the New York State Office of the State Comptroller."
The release did include one glaring mistake. It said "she is accountable for an $8 billion budget" when in fact the OMRDD budget is about half that, just over $4 billion.
Mocker quickly discovered there was plenty the MTA didn't say about Jones Ritter.
Most glaring was a June 2010 investigation of OMRDD by the New York Senate Task Force on Government Efficiency. The report cited millions of dollars in wasteful spending on overtime, housing, and poor cost containment by the OMRDD. It found the OMRDD ranks 3rd in overtime among all state agencies with $69.8 million in fiscal year 2009-2010.
Sen. Jeffrey Klein (D-Bronx/Westchester), chairman of the Task Force on Government Efficiency, said of his findings: "Massive, unregulated overtime is plaguing our state coffers and will continue to bleed our state dry if we don't get it under control."
Klein told Mocker he holds Jones Ritter responsible for the runaway overtime -- "she's the boss," he said -- and he's surprised the MTA hired hire her to cut costs.
Also of concern to the Task Force on Government Efficiency was "a shockingly wasteful history at OMRDD with regard to purchasing properties for use as group homes." One example cited: When the OMRDD wanted a new group home in Westchester County, it bought a mini-mansion for $845,000. That was 63 percent over the average price of homes in the area. The house came with a pool and a hot tub -- which Ritter's office filled in with concrete.
Another eye-opening report came from New York's State Inspector General. It found "apparent nepotism and undue influence in employment practices at the OMRDD New York City Office's Fiscal Unit. In response to the investigation, Jones Ritter "noted that the Inspector General's findings highlight the need for clear guidance from OMRDD to its employees regarding nepotism."
In response to a flurry of questions from Mocker about Jones Ritter, the MTA issued this statement late Tuesday:
"Diana Jones Ritter was selected for the job after an extensive internal and external search. An exhaustive check of her background and references reaffirmed her excellent credentials and track record. Governor Paterson played no role in her hiring, nor did the activities of her husband. We are very confident that she is more than qualified."
As of late Wednesday, only two MTA board members had responded to Mocker's question about Walder's wisdom. Board member Andrew Albert told Mocker he could not speak about the matter. But board member Vinnie Tessitore said Walder made a mistake.
"As a representative of labor and an operations employee by craft, I cannot support Ms. Ritters hiring at a time when we are laying off service employees," Tessitore said via email. "There has to be ample talent within the agency to take on the needed takss of the position. We are sending mixed messages when we take on more Management, while sending hard working employees to the street."
Greg wants to hear from you. Email him at mocker@wpix.com
