Not to be outdone by a fellow scribbler, Donn Esmonde, of the same Snooze, waded in and slammed Too Tall Tony for being a lousy basketball player and a failure to become a Rhodes Scholar and an intelligent mayor. At least, Heaney spread the failure to include the administration of former mayor Jimmy Griffin and didn�t mention how mediocre 3T was as a basketball player. In fact, Heaney didn�t mention any names connected to the disappearing funds, but he did manage to quote the beady-eyed, mustachioed troll who is the resident expert on all things governmental and heads an outfit called the Buffalo/Niagara Partnership/Enterprise.

Should it really surprise any of us that public monies disappear down rat holes dug by corporate elites and the politically connected? Our world�s history is a richly woven tapestry of corruption and scandals and the bold buccaneers who stole more with a slap on the back and a firm handshake than all of the armies since the time of Alexander. Our very own Empire State was an important player and training ground for generations of thieves since before the time of Aaron Burr. The legacy of Boss Tweed and Tammany politics lives on in Albany and in all of the little burgs that comprise our great state.

Reformers have risen from the pits of the political cesspool, promising to restore democracy and fair play and to restore trust in governmental functions, and the media, that great champion of the people, have shouted their huzzahs and have spread the mantle of honesty to the shoulders of those visionaries who will soon fall back into the slime from which they arose. Ah, yes, even the readers of history succumb to the sins of the past, and editors and writers seem to be at the greatest peril, excepting myself.

Dorothy and Toto are no longer in Kansas, and Alice has returned from Wonderland, but we are still imprisoned in a world of our own design. Why don�t we or why can�t we just admit that change is one thing that we refuse to accept. We are comfortable with the devils we know rather than with the idea of venturing into the unknown world of ethics and personal responsibility.

Fear not, brothers and sisters, the revelations embedded in Jim Heaney�s series appearing in The Buffalo News only serves to remind us of the immortal words of Pogo: �We have met the enemy and he is us.� The great lamentations over the recent elections for various public offices should remind us forcefully that we are neither all on the same page nor do we read from the same book. George W. Bush is in and trees are out, and the war will continue, and the money will still flow into the subterranean coffers of Tweedle Dee and Tweedle Dum. How I wish that I could be tight with either one and proudly say, I got mine you�ll have to get your own. But, alas, I am too lazy to petition HUD or to smooch backsides in search of loot from Kellogg Brown and Root.

The calculus of individuals and human psychology does not allow for quantum leaps into perfection, so do not be amazed that one can be anything more than what he or she is. In other words, when choosing leaders, be assured that what you see is what you�ll get and, as the old clich� repeats, �You can�t make a silk purse out of a sow�s ear.� Just relax, lean back, and remember that there will always be another election, and you can vote for the clown of your choice, maybe.

The treasures that I have discovered in the public libraries may be lost to Erie County residents. County Executive Joel Giambra�s �red budget� cuts funding for the Buffalo and Erie County Public Library system from a requested $29,154,123 to $6,082,879. The result would be that the entire system of 52 libraries would be forced to close on January 1, 2005. Borrowing from libraries will discontinue on December 7, 2004.

Busy Year for the Library

Buffalo and Erie County�s library system recorded a successful year for 2003 with 52 locations, mobile outlets, and remote access via the internet. According to the library systems website (www.buffalolib.org), nearly 350,000 people are regular customers of the library. The trend continues into 2004, with a six percent increase in circulation over 2003, a 24 percent increase in computer use, and a 12 percent increase in materials shipped among all of the library system�s locations.

The red budget, however, would decimate these services, said Michael Mahaney, director of the Buffalo and Erie County Public Library system. It would provide �barely enough money to lay off the staff and lock the doors of all 52 libraries, including the central library.� Any remaining money would be used for climate control, to ensure that the pipes do not freeze in the vacated buildings.

Ironically, according to the Erie County Legislature, in a prepared handout to attendees at its four public hearings, $14 million has been budgeted for library supplies, including books, media, and capital projects.

�This is the first time in American history that an entire library system has been threatened with shut down. Sometimes individual libraries are shut. (Closing the libraries are) unthinkable things that our community should not have to contemplate. It is shocking and unacceptable,� Mahaney said.

What the Community Stands to Lose

The proposed closure of the library system is �taking the heart out of the community. It�s leaving the community an empty shell in a way that it never was before. We�re in so many different communities, and we serve so many people, who have limited options. I can�t imagine what they could find to fill the void. The library system is 168 years old. It has survived everything from a great depression through world wars. It is inconceivable to think that it could come to an end,� Mahaney said.

The things that would be lost include story hours, computer training, and free lunchtime concerts, as well as public access to the libraries� vast storehouses of books, CDs, videos, and other materials. Rare books would be pulled from exhibition and would be placed in a vault for safekeeping.

Far More than a Job

Mahaney, 52, has found a career and a home amidst the books, videos, and CDs. Thirty-one years ago, he was hired to shelve books in the Central Library. In 1977, just after graduating from SUNY at Buffalo with a master�s degree in library science, Mahaney became a reference librarian. He has worked in administration since 1990 and has been the system�s director for two years.

The library system is where Mahaney said that he found his closest friends and where he first met his wife. Mahaney said, �I have affection and respect� for the libraries and for their staffs and patrons.

The library systems has been through difficult times in the past, Mahaney said. In 1976-1977, the system went through a fiscal crisis, which resulted in the layoff of 40 percent of its staff. �Back then, a lot of really bright, talented, capable people were laid off, and they left. They became the leaders of libraries around the country. I would hate to lose more talent and commitment to something like this. These are people who are not just library assets; they are community assets. Erie County will be poorer if they have to leave,� Mahaney said.

Mahaney said that he intended to finish his career in the library system in Erie County, a community that has been his lifelong home. If the library system closes, however, he would have to look for options out of town. �I can�t bear the thought of this collapsing around us. It�s one of the finest library systems in the country. This is the best staff that I�ve ever encountered anywhere. It would be shameful to allow this to die.�

Citizen Responses to Proposed Elimination of the Library System

On November 28, at Erie Community College�s South Campus in Orchard Park, more than ninety individuals addressed the many budget cuts that have been proposed by the red budget. Many of them discussed the public library system. Mercedes Russow, a retired teacher, wanted to know, �What kind of tumor in the brain caused this?� She said that the county executive has proposed �taking away everything that makes life worthwhile.�

Ed Arnold said that his two children go to the library twice a week and that his wife meets friends regularly in the library. He said that Erie County�s excellent library system is a factor that keeps his family in the area. His wife is a native of Poland and libraries are a high priority in that country. �In Poland, every town, no matter how poor, has a library.�

Joseph, who held his small daughter as he tearfully addressed the members of the Erie County Legislature, said that he had just been at the Angola branch of the library. He said that he �loves taking the baby to the library, the botanical gardens, and the zoo. �She goes to the botanical gardens every Sunday, and she runs up and down the steps.�

Marsha of Orchard Park said, �Libraries are not expendable. They are where community happens. At the library, you find the greatest diversity of people.� She said that she recently took a Microsoft Word class with a group of older people at the library.

Abraham (Abe) Kenmore, a nine-year-old home schooler from Clarence Center, said straightforwardly, �I really like libraries. I like to browse. I have lots of interests.� As an example of the value of libraries to him, Abe said that he recently became interested in the history of music and was able to borrow fifteen books on the subject. �It�s hard to buy books and have money left over.�

�Libraries are fun places,� Abe concluded.

Donn Esmonde has led The News in criticizing Masiello, but prior to the Heaney series, his columns always seemed to leave Tony with some wiggle room. Esmonde�s follow up column to the Heaney series, however, was blistering. Later that week, the editorial staff of The News published an editorial that was more genteel but essentially confirmed the obvious: The News will no longer continue to make excuses for Masiello. The Heaney series would never have been published as written if the editors at The News had any intention of allowing Tony to stick around for another four years.

We know from previous articles by Bob McCarthy, top political reporter for The News, that the business community has been desperately seeking an alternative candidate to support in next fall�s mayoral race. If Masiello does run, Byron Brown and Sam Hoyt will present him with determined competition for his job. Perhaps Joel Giambra�s prophecy that Tony will be the last mayor of Buffalo may be fulfilled with the elimination of the office altogether. Eliminating that office will take some doing, however.

Tony�s Discreet Charms Finally Wear Off

When we look back, there is something particularly odious about the fulsome lies and nauseous flattery that filled The Buffalo News� copious editorials in praise of Tony in election years past. But then, certain power brokers wanted a Governor George Pataki-dominated control board in charge of the city�s finances. To arrive at that point, a good measure of malfeasance was necessary, and it�s obvious now that Masiello was equal to that task.

Several points need to be made about the Heaney series and Alt�s coverage of this story.

First off, when we attempted to obtain some of the information that Heaney presented, people in the local HUD office told us that no loans were in default. Then, our appeal to Washington for information on all current outstanding loans in full was returned as a partial list showing only good loans.

Grant + Loan = Groan

A source who wishes to remain anonymous and is very familiar with local development issues told Alt that this was merely a language issue. The Masiello terminology morphed the word �default� into �aging.� This is why there were no loans in default to be found.

This person related the following inside riddle about the Masiello crew�s chicanery: What do you call a cross between a grant and a loan? A groan. This little rib tickler implies that Masiello and company knew that, when they were gifting some of their developer friends with section 108 loans, there was an implicit understanding that they were really going to turn out to be grants in the long run. Hilarious, isn�t it?

The partial information that this person was able to provide us with about some of the defaulted Section 108 loans was largely confirmed by the Heaney series. Many questions remain, however. First and foremost on our minds is that if there were a pattern of deliberate abuse for political payoffs, why isn�t this a law-enforcement issue? Why isn�t anyone even thinking about bringing the mayor and his cronies up on charges? We published a story about a very similar situation in Hoboken, N. J., which resulted in several convictions. Are we in Buffalo more corrupt than the folks in New Jersey?

Heaney presents an array of information that the Masiello administration had kept quiet, particularly the abysmal record of the HUD Section 108 loan program.

Favored Developers and Political Influence There are points of interest that Heaney does not elaborate to our satisfaction, however. While the series avoids certain critical questions in our minds, we agree that it represents a good start in making people aware of what a terrible job the Masiello administration has done in managing federal aid intended to alleviate inner-city poverty, not to sock an already impoverished city government with even more debt.

A major problem with the series is that Heaney fails to mention developers by name, again and again. Who were these mysterious developers? Were they plugged into the mayor�s political campaign? Was there a pay to play understanding? Heaney sidesteps these questions.

Heaney failed to mention that the Buffalo Economic Renaissance Corporation pumped more than a quarter million into the Pillar�s hotel AFTER it was clear that the hotel was in default. The medical corridor was not Tony�s brainchild. When it came time to secure capital for a pet project on the campus of Roswell Park, however, it�s doubtful as to whether Masiello could have refused or not. There was enormous political pressure to keep Roswell pumping money into political coffers, along with forecasts of irrational exuberance about the market for high-priced cancer treatment. No one questioned a government-sponsored hotel on the Roswell campus.

While naming several of these businesses and some developers, Heaney leaves some notable absences. He omits information on James Cosentino and Harry Williams, for example. Have they repaid their loans? There are ethical concerns with some of the recipients of Section 108 loans and their political and personal relationships with Masiello. Were these deals legal? Are there ethical violations that can be pursued against Masiello? Heaney fails to explore the nexus of political-business relationships that led to this sorry state of affairs and, therefore, in our opinion, misses the point of this story.

Bi-Partisan Complaints Are Ignored

Heaney shows that even a community activist such as Kim Harman and a Business big shot such as Andrew Rudnick can agree that Masiello has done a horrible job with the Section 108 program. This kind of agreement across the political spectrum is unusual these days. You would think that this would not bode well for any effort to re-elect Tony next year, but Tony doesn�t seem to be too concerned. "I wish we had more private-sector investment. It's coming in dribs and drabs, but it's coming," Masiello told The News.

Tony is satisfied.

Tony wishes that there were business investment. It�s coming at some point in the future. Didn�t Heaney ask for comment on specific deals? In how many instances did section 108 loans result in significant investment in nearby properties? We don�t know because Masiello was not challenged on his assertion that many projects had significant spin-off.

Banko: Fox/Hen Housing Arrangement Not to Blame

Heaney stated, �The loans must be approved by the Common Council, development agencies controlled by the mayor, and the federal Department of Housing and Urban Development. Cities are responsible for paying them off, using block grant funds, in the event a developer defaults.�

This is pretty accurate. The system of checks and balances, however, was not as rigorous as it might first appear. The mayor had allies in the Common Council and, since block grant funding was important to the pet projects of councilmembers, there was little resistance to the mayor�s section 108 initiatives. In addition, after Masiello Chief of Staff Steve Banko was put in charge of HUD, there was no longer an arm�s length negotiating distance. In effect, the mayor�s 108 loans were generally rubber stamped.

Banko�s statements are enlightening: "The problem in Buffalo is developers have it backwards� Everywhere else, they put the deal together, get what they can from private sources, and come to the government if they have a gap. In Buffalo, they all come to the city first � �what can you give me?� - then they go get their financing." Is this because developers here are a breed apart, or is this because they know that this is the way the game is played?

Banko�s explanation shifts the blame from the Masiello administration, of which he was an integral part, and onto the community as a whole. It�s the culture of Buffalo that�s the problem, not the specific funding decisions that were made. We share communal guilt and change is unlikely. The �they� to whom Banko refers aren�t really identified by name. �They� are the same developers whom Heaney, for the most part, does not mention by name. From our experience, �they� are often the same people who supported Masiello and are an integral part of the political process. �They� are frequently hostile to outside investors out of fear of losing control of local development money that the mayor has spent so generously.

Tony�s Theme: A Legacy of Learned Helplessness

"Many of these (section 108 loans) were gap financing; no one else wanted to help," Masiello told The News.

The other way to look at this lavish lending is as politically driven. Masiello�s so-called �gap financing� statement was made to avoid the embarrassment of default. Loans made to the right people were allowed to �age� gracefully. In accounting terms, this is called knowingly presenting a false picture of financial information to investors. What do we call this in Buffalo? Heaney calls it �a half billion dollar bust,� which is a surprisingly polite euphemism for fraud, if you think about it.

The last article in Heaney�s series concerned the Masiello administration�s bad debts in the Theatre District. We here at Alt lovingly refer to the 600 Block of Main Street as Mayor Masiello�s �Potemkin Village.� The term came from a Russian politico, Grigori Potemkin, who created fake villages at huge expense to show Catherine the Great, Empress of Russia, how happy and prosperous the peasants were. The peasants in Russia, like their modern Buffalonian counterparts, were neither prosperous nor happy with the hand that was dealt them by their imperial overseers. As Masiello himself said a few years ago, �We need a revolution.�

Casino Buffalo � Chairman Masiello�s Long March Continues

Masiello�s idea of revolution appears to be more of the same, however. There are more section 108 loans being queued up. Heaney reported that, �One, of about $3 million, would be used to redevelop Central Park Plaza. Plans to convert Memorial Auditorium into a Bass Pro store call for a $7.3 million loan through the Section 108 program, plus an additional $2 million through another program.�

Heaney didn�t mention that Bass Pro has ties to casino gambling, in Las Vegas or that certain power brokers, such as Carl Paladino, would like to see a casino in downtown Buffalo. If this is going to be Tony�s last term, he might as well go out with one last big �Ka-ching� for himself and all of those friends of his whom no one else seems to want to help.

This could bring abuse of the Section 108 program up to a whole new level. Heaney reminds us in his first installment of this series that the HUD program was supposedly intended to alleviate poverty. How a massive fishing superstore (and possibly an inner city casino) would accomplish this goal is a mystery. Maybe it�s all part of Tony�s revolution. Pull quotes: �Loans made to the right people were allowed to �age� gracefully.�

� �They� are often the same people who supported Masiello and are an integral part of the political process. �They� are frequently hostile to outside investors out of fear of losing control of local development money��