Big Apple taxpayers could save more than $160 million a year if the city’s 108 union-administered benefit funds — most of which are operated separately — consolidated their management and purchasing, according to a report released Thursday.
That’s because many of the funds have sky-high administrative expenses, build reserves much larger than needed, and are beset by costly mismanagement, according to the Citizens Budget Commission.
“Audits of individual union benefit funds often show serious mismanagement issues — including lack of documentation for millions of dollars in payments,” said CBC President Carol Kellermann.
“Increased scrutiny is necessary to save taxpayer funds in the short term, but the city must consolidate these funds to provide better benefits at a lower cost.”
The funds pay for supplemental health benefits and other perks, such as legal and education expenses.
They’re expected to get $1.1 billion from taxpayers this year, growing to $1.4 billion by 2022.
While the CBC rapped city Comptroller Scott Stringer for not auditing the funds often enough, his reviews over the years have identified numerous questionable practices.
Past audits found dental assistants who were reimbursed for sneakers at $288 a pop by one fund, and no documentation to explain benefit payments of
$3.1 million by another.
Officials in the Comptroller’s Office said the funds are independently audited every year.
“There’s no fiercer watchdog of taxpayer dollars than Scott Stringer, and we’re proud of our record of rooting out waste in city government,” said spokesman Tyrone Stevens.