DOE has made another incongruous and costly busing decision to create a new non-profit that will acquire the Reliant company that apparently owes millions in unpaid pension and health insurance costs. This debt according to the NY Post may be as large as $148 million. The contract was about to be voted on tonight at the PEP but was postponed because of Panel members' unresolved questions.
As I said to the NY Post, "Without knowing the cost of the company and what kind of debt the city may be assuming, it is impossible to tell whether this is a good deal or not. In any case, for the DOE to take on more financial risks and obligations at this time seems irresponsible, given the economic crisis we face.”
DOE officials have so far refused to release the proposed contract with this new non-profit so the public can learn what financial obligations the city may incur, or the consultant's report from the TransPar Group that helped create this organization. They should do so as soon as possible; and also release full data as to how much debt and liability they are foisting on city taxpayers in the process, and explain in detail what the benefits to the DOE or NYC students may be. Otherwise we can only speculate that it may be related to the large donations of $100,000 bgiven to Mayor de Blasio's political PAC by Reliant's owner.