City official enjoys unusual benefit
Health insurance covers his girlfriend
Brian Reilly, the city’s economic development chief, enjoys a benefit bestowed on few City Hall employees — health insurance for the woman he lives with that’s paid for with public funds intended to promote economic development.
Reilly was hired in February 2008 as commissioner of economic development, permits and inspections, and, like his predecessor, initially obtained health insurance from the city, which also pays his salary and other benefits.
Reilly is single, and his city health insurance policy did not cover his girlfriend. However, by the end of last year, the Buffalo Economic Renaissance Corp., which Reilly heads as president, expanded its coverage to include nontraditional policies that included domestic partners of the opposite sex.
Reilly opted out of his city plan, which would have cost $3,730 for this year, and signed up for a domestic partner plan with the agency that costs $9,099.
His policy is being paid for with agency funds, which are intended to promote economic development in what is the nation’s third-poorest city. Most of the agency’s funding is derived, directly or indirectly, from community development block grant funds provided by the federal government to fight blight and poverty.
Reilly did not return telephone calls seeking his comment. But Divitta Alexander, agency attorney, who handled the health insurance issue, said the change was not done at Reilly’s instigation.
“Was this orchestrated for some sort of self-interest to Brian Reilly? No,” Alexander said. “And if you’re suggesting he orchestrated it for his own self-interest, I don’t think that’s true, either.”
Several Common Council members said they have concerns, however.
Council President David Franczyk questioned why the decision to offer expanded coverage wasn’t brought before the agency’s board, particularly since Reilly stood to benefit.
“I’m not saying he skewed it for himself, but it seems to me that if you’re dealing with city money, any public funds, the decision should be a board decision,” he said. “It raises questions, certainly. For his own protection, you think he’d want to bring it to the board.”
Majority Leader Richard Fontana, who represents the Lovejoy District, said the money for Reilly’s health insurance could have been better spent to promote economic development and is an example of why officials need to take a closer look at how the agency spends money.
“The more money that hits the street, the better,” he said.
Fontana also said the push to expand health insurance options, as evidenced by the inclusion of domestic partner coverage by the agency, increases the city’s expense.
“The more benefits you offer, the more expense you have,” he said.
Alexander said the action was not brought up for a vote because “the board just makes the policy-level decisions. Administrative- level decisions like this never go before the board.”
The city two weeks ago decided to bring the agnecy under its health insurance coverage, effective Aug. 1, which means Reilly and three others who signed on in January for the new policies will lose that coverage, said Janet Penksa, the city’s commissioner of administration and finance.
BlueCross BlueShield of Western New York has offered the agency the option of adding the domestic partnership coverage for at least the past five years, a company spokesman said, but the agency did not opt for it until last December.
Alexander, the agency attorney, said Paychex, the agency’s payroll and benefits manager, presented domestic partnership as part of a package of expanded benefits that also includes same-sex domestic partnerships and domestic partnerships that include children.
Alexander said she could not recall any specific conversations she had with Reilly over expanding the options of coverage. Reilly, as president of the agency, signed the contract with BlueCross, she said.
Reilly, 42, makes $88,507 as economic development commissioner and president of the agency. He also serves on the board of the city’s other economic development agency, the Buffalo Urban Renewal Corp.
As such, Reilly has a large portfolio, responsible for everything from downtown economic development and neighborhood revitalization to housing inspections and management of his agency.
The agency has been under fire since a Buffalo News investigation in May of One Sunset, a Delaware Avenue restaurant that the agency provided $110,000 in loans and grants and which agency Vice President Michelle Barron helped to manage. The restaurant closed in December after just one year in business, leaving behind a long trail of debt.
Reilly created a stir when he subsequently defended Barron and said she had been assigned additional duties before The News investigation was published. She remains on the agency payroll, and her role in the restaurant deal is part of an ongoing audit of the agency being conducted by the city comptroller.
In April, Reilly defended the city’s use of about $30,000 in block grant funds to provide 15 BlackBerry communication devices and three cell phones to employees of both economic development agencies. Reilly said the BlackBerries improved worker productivity; critics said the money would be better spent to combat poverty, as the block grant program is intended.
Log into MyBuffalo to post a comment
MyBuffalo is the new social network from Buffalo.com. Your MyBuffalo account lets you comment on and rate stories at buffalonews.com. You can also head over to mybuffalo.com to share your blog posts, stories, photos, and videos with the community. Join now or learn more.
Reader comments