Despite $3 million in budget cuts last year, a Louisiana city is still spending approximately $100,000 a year on illegal car payments for city employees, WDSU reports:
ANCHOR: The states chief attorney says over two dozen Kenner City government employees are improperly receiving thousands of dollars in extra payments. WDSU investigative reporter Travers Mackel went to Kenner to see how widespread the problem is why it’s still happening.
REPORTER: Outside Kenner City Hall, there are dozens of cars. Some belong to members of the general public who are here for business, others are owned by employees. The city of Kenner provides very few "take home" cars to its employees, but the WDSU I-Team has learned that the city does offer a "car allowance" to more than two dozen staffers. The amounts vary monthly from $500 to $200 depending on the employee’s position. In all, the city of Kenner, which went through serious budget cuts last year, is shelling out more than $8,000 every month or almost $100,000 a year in car allowance payments. Loyola law professor Dane Ciolino specializes in government ethics.
DAN CIOLINO: It probably needs to stop.
REPORTER: That’s because, according to this opinion from Louisiana Attorney Gen. Buddy Caldwell’s office, the payments to many employees are not legal. The attorney general says the only people who are approved to receive a car allowance in Kenner are the seven members of the City Council. All receive $500 a month. Everyone else should get nothing according to the attorney general.
CIOLINO: It seems to me pretty clear that this not a proper payment.
REPORTER: In the opinion, which was sent to Kenner mayor Mike Yenni in February of 2011, the AG’s office says, "Any increase in compensation, including extra benefits, for elected officials of the city of Kenner and employees of the city of Kenner with supervisory responsibilities can only be accomplished by a special ordinance adopted by the city council." That has not been done—so any employee, outside of a sitting city council member, should not be able to collect several hundred dollars each month as a car allowance.
CIOLINO: In order to do this the city council would have to pass the special ordinance and go through the typical legislative process. That hasn’t been done.
REPORTER: Kenner mayor Mike Yenni, a Naval Reserve officer, is out of the state on military business, but a spokesman for his office says the mayor is aware of the issue and the opinion of the attorney general, and will address the matter in the near future. The car allowance is not something Mayor Yenni started, in fact. According to the attorney general, many of the "extra benefits" in Kenner, like the car allowances were started by Aaron Broussard when he was mayor in the early 1990s and have been passed along through different administrations in Kenner. Ciolino says even though Mayor Yenni didn’t start the problem, he needs to stop now that he’s well aware it’s improper.
CIOLINO: This is not something that doesn’t seem to rise to the level of a crime or a major ethics violation, although it does need to be fixed.
REPORTER: Last year, a committee assembled by Mayor Mike Yenni recommended $3 million in spending cuts for the city in an effort to balance the budget. Those cuts were approved. If the city does away with the car allowance, it could save an additional $100,000 a year.