Poverty industry flourishes as budget cuts shred the safety net

Poverty industry flourishes as budget cuts shred the safety net

AARP double-crosses the elderly and the poor

By Lynda Carson -- June 19, 2011

Oakland -- During the month of June, 2011, letters were directly sent to over 1.3 million elderly and disabled people on SSI (state disability program) throughout California, including Oakland and Alameda County.

The letters from the state are advising the elderly and disabled that on July 1, 2011, that they will receive less funding on a monthly basis to cover their needs. They have had their benefits/income slashed to less than the federal poverty level, due to another vicious round of state budget cuts by the Democrats and Republicans.

SSI recipients will now only receive $9,960 annually, being $930 less than what the federal poverty level per year is estimated to be, and are facing dire poverty consequences on a level not seen in years.

Reverend Ben Fulcher Sr. of Oakland receives disability payments from SSI/SSP and said, "The effect of the on-going budget cuts may result in more displaced citizens onto the streets. We have had over $90 cut per month in assistance out of the SSI disability program in California during the last 18 months or so, and it's pretty devastating in total. People now have to choose between paying for food or their rent."

Oakland SSI recipient Naja Strand said, "I know damn well they are not spending our tax dollars right. We have to cut back on military spending and give back more money for the schools, and public education."

The latest round of budget cuts have the poor feeling like they are being exploited as their income decreases while their monthly rent payments keep skyrocketing, resulting in less money for food, health care services, public transportation and keeping the lights turned on in their homes.

Meanwhile, as the poor continue to be devastated by the never ending budget cuts shredding the safety net, the poverty industry in Oakland and across the nation flourishes for key staff and employees in the nonprofit sector, that are exploiting the poor.

The huge salary and wage compensation increases for many of those in the poverty industry have accelerated during the same period in recent years that massive budget cuts to local, state and federal programs have been taking place all across the nation.

The Poverty Industry & The Poor

As recent as Friday June 17, the American Association of Retired Persons (AARP) made national news headlines after it double-crossed and sold out the elderly poor and women and children across the nation, by joining right-wing Republicans and Democrats in supporting budget cuts to peoples Social Security benefits.

Since SSI disability recipients in California will now only receive $9,960 annually, in contrast to many employees in AARP that are payed around $300,000 annually and more, it appears that the salaries and wage compensation for those in the non profit sector have reached obscene limits that are no longer acceptable.

AARP's policy chief John C. Rother was quoted in the Wall Street Journal on June 17, saying that AARP was dropping it's longtime opposition to cutting Social Security benefits, a position that will hurt the poor. During 2009, John C. Rother was payed $290,089 in salary, plus $40,269 in other compensation by AARP, and may have lost touch with the poor. Many supporters of Social Security now believe that Rother opened up the doorway for conservatives and right-wing crusaders to solidify their on-going attack on Social Security, and against women and the poor all across the nation.

With offices in California and members in Oakland and Alameda County, AARP is a wealthy billion dollar corporation with non profit status and 37 million American members. AARP generated $2,182,262,128 in gross receipts during 2009.

AARP claims it's mission is to enhance the quality of life for the aged, with emphasis on those at greatest social and economic risk. In reality, those that benefit the most from AARP's various activities are the top employees of the nonprofit organization that are raking in a small fortune in salaries, and compensation annually.


A Few AARP Salaries According To Latest 990 Tax Filings

During 2009, Robert R. Hagans Jr., Chief Financial Officer of AARP was payed $317,324 in salary, plus $46,703 in other compensation. Thomas C. Nelson, Chief Operating Officer was payed $492,320 in salary, plus $48,609 in other compensation. Nancy A LeaMond, EVP Social Impact was payed $343,656 in salary, plus 39,453 in other compensation. Emilio Pardo was payed $326,639 in salary, plus $46,184 in other compensation. Joan S. Wise was payed $325,690 in salary, plus $42,360 in other compensation. James Laney was payed $325,962 in salary, plus $12,411 in other compensation. Shereen G. Remez was payed $300,429 in salary, plus $38,805 in other compensation, John C. Rother was payed $290,089 in salary, plus $40,269 in other compensation. Kevin J. Donnellan was payed $278,707 in salary, plus $40,955 in other compensation. Ellen Hollander was payed $261,546 in salary, plus $48,599 in other compensation. Harroll Backus was payed $258,828 in salary, plus $38,751 in other compensation, including at least 5 others that are payed around $300,000 annually in salaries and other compensation by AARP.

The Poverty Industry In The East Bay


In Oakland, 990 tax filings also reveal that the salaries and compensation have been steadily rising at a rapid pace for the non profit affordable housing sector, including key staff employees working for the Oakland based non profit housing organization, East Bay Asian Local Development Corporation (EBALDC).

EBALDC claims that it's mission is to develop affordable housing and community facilities, including integrated services focused on tenants and neighborhood residents, with an emphasis on Asian and Pacific Islander communities and the diverse low income populations of the East Bay.

Records show that in 2009, Executive Director of EBALDC, Lynette Jung Lee, earned as much $140,536 that year, including an additional $5,942 in other compensation from EBALDC.

In contrast, records also reveal that during FY 2007 - 2008, EBALDC only paid Lynette Jung Lee $87,265 plus other compensation of $3,055, meaning that in 2009 Lynette Jung Lee's compensation from EBALDC skyrocketed by more than $50,000 in a single year. Since then, Lynette Jung Lee has retired and been replaced by Jeremy Liu, as the Executive Director of EBALDC.

To have increased the salary of Lynette Jung Lee by $50,000 or more in a single year during FY 2009, that means that at least 1,000 poor low-income households in the EBALDC Empire may have had to contribute a minimum of $50 out of their rent payments, just to cover the cost of a $50,000 salary increase.

During 2009, La Netha Oliver, Director of Human Resources for EBALDC earned $80,221, plus an additional $8,184 in other compensation, but in FY 2007 - 2008 she only earned $68,547 plus $1,227 in other compensation, meaning that her compensation increased by around $18,000 in a year.

The records also reveal that in 2009, Carlos Castellanos, Director of Real Estate Development for EBALDC, had earned $91,280, plus $11,228 in other compensation, but in FY 2007-2008 Castellanos only earned $71,865 plus $2,415 in other compensation, meaning that his wages jumped by around $28,000 in around a year.

Additionally, in 2009, Don Piyathaisere, EBALDC's Chief Financial Officer earned $98,265, plus an additional $8,472 in other compensation. However, records show that in FY 2007 -2008, Piyathaisere earned $91,138 annually plus an additional $2,236 in other compensation, meaning that in one year his compensation leaped more than $12,000. Since then, Piyathaisere has been replaced by Peter Sopka as the Chief Financial Officer for EBALDC.

Records also reveal that Mary Hennessy, Chief Operations Officer for EBALDC is raking in $129,220 annually, plus $8,134 in other compensation, and that the wages of Charise Fong, Director of Economic Development for EBALDC, have risen in 2009 to $81,828, plus $308 in other compensation, from $69,751 annually plus $2,099 in other compensation, during FY 2007 - 2008, meaning her compensation jumped to around an extra $10,000 in a year.

In total contrast to the huge leaps in salaries and compensation for the top staff at EBALDC, records reveal that during FY 2006 - 2007, Lynette Jung Lee was the top wage earner at EBALDC, pulling in a mere $87,156 annually, with no extra compensation.


The Poverty Industry & Some More So-Called East Bay Affordable Housing Developers


Eden Housing, Inc.

Salaries & Compensation

From 7/1/2008 through 6/30/2009, Linda Mandolini, Executive Director, was payed $162,393 plus $14,368 in other compensation and works only around 28 hours per week. Jan E. Peters, Chief Operating Officer, was payed $136,500 plus $13,177 in other compensation. Terese Mcnamee, CFO, was payed $133,743 plus $6,167 in other compensation. Andrea Papanastassiou, Director of Development, was payed $131,455 plus $6,618 in other compensation.


Satellite Housing

From 10/1/2008 through 9/30/2009, Ryan Chao, Executive Director, was payed $163,893 plus $6,377 in other compensation. During 10/1/2007 through 9/30/2008, Arion Chao, Executive Director, was payed $167,000, and Joyce Boyd, Director of Finance, was payed $81,760, and Miriam Benavides, was payed $85,000, and Analisa Anthony, Director of Property Management, was payed $87,550, and Dori Kojima, Director of Housing Development, was payed $92,000, and Patricia Osage, Dir. Res. SVCS, was payed $80,000.


Resources for Community Development (RCD)

From 7/1/2008 through 6/30/2009, Dan Sawsilak - Executive Director, was payed $112,900 plus $9,814 in other compensation, and Peter Poon, Finance Director, was payed $69,505 plus $1,362 in other compensation. From 7/1/2007 through 6/30/2008, Deni Adaniya, Senior Project Manager was payed $90,000, and Eric Knect, Asset Manager was payed $73,438, and Kate Mckean, Controller, was payed $70,825, and Elizabeth Eckstein, Director of Fund Development was payed $68,542, and Peter Poon, Finance Director, was payed $65,840.


Affordable Housing Associates (AHA)

From 7/1/2009 - 6/30/2010, Susan Friedland, Executive Director of AHA, was payed $133,731, and a year earlier was payed $130,393. From 7/1/2007 through 6/30/2008, Susan Friedland was payed $116,660, and Leland Chin, Finance Manager was payed $76,514, and Teresa Clarke, Construction Manager was payed $84,413, and Kevin Zwick, Director of Development was payed $84,460, and Eve Stewart, Project Manager was payed $67,000, and Angela Cavanaugh, Director of Property Management was payed $68,000.


EAH Inc. (EAH Housing)

From 7/1/09 through 6/30/2010, Stephen Lucas, was payed $182,197 plus $6,951 in other compensation, and Peggy Franklin was payed $331,371 plus $12,460 in other compensation, and Matt Steinle was payed $162,410 plus $9,453, and Mary Murtagh was payed $254,030 plus $10,733 in other compensation, and Laura Hall was payed $186,136 plus $6,951 in other compensation, and Kevin Carney was payed $135,667 plus $6,951 in other compensation, and Cathy Macy was payed $132,931 plus $6,951 in other compensation, and Alvin Bonnet was payed $122,471 plus $8,669 in other compensation.


Bridge Housing

From 1/1/2008 through 12/31/2009, Carol Galante was payed $203,860, and Lydia Tan was payed $316,611, and Susan Johnson was payed $255,001, and D. Valentine was payed $231,615, and Ann Silverberg was payed $173,319, and Rebecca Hiebasko was payed $271,683, and Brad Wiblin was payed $212,823, and Tom Earley was payed $224,432, and Corinne Morrison was payed $178,312, and Thomas Casey was payed $163,939, and James Valva was payed $165,097 (Husband of Officer, Susan Johnson), and Kim Nash-Patchen was payed $157,054, and Elizabeth Nahas-Wilson (The daughter of Director Ron Nahas) was payed $127,979 plus $29,075 in other compensation.

Lynda Carson may be reached at tenantsrule [at] yahoo.com