From: Patrick Sullivan <patk.j.sullivan@gmail.com>
Date: Sun, Dec 13, 2020 at 7:08 PM
Subject: Vote no/abstain vote on NYCSBUS contract due to pension risk
To: <AChapman7@schools.nyc.gov>, <GChacon@schools.nyc.gov>, <ICarmignani@schools.nyc.gov>, <DDillingham@schools.nyc.gov>, <NGreenGiles@schools.nyc.gov>, <MKraft2@schools.nyc.gov>, <VLeung@schools.nyc.gov>, <GLinnen@schools.nyc.gov>, <LPodvesker@schools.nyc.gov>, <kparkprice@schools.nyc.gov>, <SWaite3@schools.nyc.gov>
Dear Panel for Educational Policy Members,
I am writing to express my concerns about the contract with the new NYCSBUS entity for school bus services. I ask you to abstain or vote against the contract.
The contract is part of a two-pronged program to create a DOE-controlled busing company. One component is the new non-profit intended to buy Reliant from its parent MV Transport. The non-profit has a board controlled by the Chancellor and his appointees. The non-profit will get Reliant's assets including buses owned outright and leases for both buses and bus depots. The non-profit will also be responsible for Reliant's pension obligations. The pension is a private one for the union's members and funded by all the bus company employers. Like most pensions, it's underfunded. The responsibility to make up any underfunding is with the employers. When NYCSBUS buys Reliant, it becomes responsible for the pension. Their share of the underfunding is about $140 million.
I do not believe the DOE has been either comprehensive or candid in explaining the risks involved in their plans:
NYCSBUS fails to deliver services - the company only exists on paper right now so a number of scenarios could derail operations including inability to staff management, CONTINUE READING: NYC Public School Parents: Patrick Sullivan on the DOE's acquisition of Reliant bus company: Why the PEP should vote no.
