by Jay A. McCalla

A couple of weeks ago, I wrote a commentary for The Philadelphia Inquirer calling upon Mayor Kenney to close down the little known Mayor's Fund, which is not subject to review by City Council and is loosely “chaperoned” by an intimate board chosen by the Mayor largely from among senior employees who already “serve at his pleasure”.

As of December 2014, the Mayor's Fund had assets of over $15 million and roughly $5.5 million in liabilities. These aren't pennies.

The Mayor's Fund is sustained by money regularly siphoned from the Philadelphia Marathon and has existed for many years, through several mayors. On its website, we’re told “the Mayor’s Fund is a non-profit organization that seeks to improve the quality of life for all Philadelphians.”

Behind many self-promoting websites lurks an audit that reveals the truth.

City Controller Alan Butkovitz performed just such an audit shortly after the departure of Mayor Nutter and found approximately $400,000 had been spent without authorization and, in some cases, without documentation. A pricey “goodbye party” for Nutter and an open bar for the NAACP were both paid for from the fund to “improve the quality of life for all Philadelphians.”

Most troubling about the Controller's audit was the revelation of a Mayor's Fund credit card and $100,000 in undocumented charges. One nugget amongst the details was the purchase of a $50 pair of shoes from Macy’s. Unless a soul-stirring explanation is offered, this appears to be a simple case of pigs romping in the public trough.

A “slush fund” containing millions is but one of our governments several “secret secrets”.

Many citizens are familiar with public authorities such as the Philadelphia Redevelopment Authority and the Philadelphia Housing Authority. But, who on earth has ever heard of the Hospitals and Higher Education Facilities Authority of Philadelphia?

I've spent a career in government and only learned of it a week ago.

According to its website (always go to the website for a chuckle), the mission is to “assist not for profit healthcare and educational institutions get low cost financing for construction, equipment, renovations and other needs.” It is self-sustaining by charging fees of its clients and requires no tax dollars. In its 35 years, the surreptitious HHEFAP has generated $6 billion for its clients and pocketed fees commensurate with such a stupendous sum.

They are legally able to pursue institutions/clients anywhere in the Commonwealth.

Like the Mayor’s Fund, HHEFAP is a nifty little nonprofit corporation that is totally controlled by the Mayor, via his appointment of board members and whose operations aren’t reviewed by City Council.

Given that fees on $6 billion are likely to be substantial, how was it spent?

Why not redirect a portion of its income to the public schools or our pathetically underfunded pensions?

We are helping institutions with billion dollar endowments obtain low cost financing, all the while giving them a pass on local taxes?

The chairs of Temple University, Thomas Jefferson and Wills Eye hospitals must daily pinch themselves over their good fortune.

It may be that the Mother of All Secret Honey Pots is our Board of City Trusts, which rigorously defies transparency.

This a mega-trust that administers 100+ other trusts that were left to the city for charitable purposes dating back to 1869.

It's defiance of transparency begins with the almost clandestine way board members are chosen. They are selected and supervised by Judges of the Common Pleas Court. Of course, the Mayor and City Council president sit as ex-officio members.

In addition to other juicy investments and fancy transactions, these nameless, uber-connected “power players” oversee Girard College, Wills Eye Hospital and hold ownership of prime Center City real estate.

Possessing enormous wealth and inscrutable by design, the board wields serious power in our city, and we'll likely never know if they are benign or malignant.

That our local government quietly controls vast sums and businesses in the midst of all our Sunshine Laws, should be discouraging to “good government” types everywhere.

It appears there are two separate and unequal local governments. One struggles to educate kids and just had its credit rating lowered. The other is this bright, cheery place where City Hall is guardian to fortunes great and small.