Conflicts of Interest

It's important not to have pension board members with serious conflicts of interest, such as a personal interest in the board's investments, or acting as providers of investment products (see my blog post on California reforms prohibiting such conflicts).

Yesterday, I wrote a blog post about intimidation, but I forgot to mention what might be the greatest fear among citizens relating to their local government:  the fear that if they speak out against local officials, especially school officials, it will affect their school-age children.

In March I wrote a blog post about a situation in La Crosse, Wisconsin where the mayor brought his father, who runs a refuse business, to meet with a county official about a county solid waste assessment. A council member sought advice from the city attorney rather than the city ethics board, and then the mayor said he would put the matter before the ethics board. His father's company has a refuse contract with the mayor's city.

According to an article in the Tidewater News, a Franklin (VA) council member said at his first council meeting that he felt the city should stop charging interest on delinquent property taxes, since so many taxpayers are under financial duress. The council member happens to be one of those delinquent taxpayers.

Update: August 2, 2010 (see below)

In researching a recent ethics complaint in Harlingen, Texas (pop. 67,000), I came across some disturbing ethics matters. The most disturbing can be seen from the minutes of the city development corporation's September 29, 2009 meeting (pp. 3-4).

It's important to be careful when it comes to conflicts of interest, but it's also important not to be too careful. When you're too careful, you send the wrong message to members of the community and you miseducate them about government ethics.

Here's an interesting modern spin on an old-fashioned nepotism/conflict of interest matter. According to an article in Tuesday's Milwaukee Journal-Sentinel, the husband of a member of a charter school's board was hired to teach at the charter school, and there is disagreement over whether there is a conflict or not.

A failure to deal responsibly with one's conflicts of interest has ramifications beyond the loss of public trust, and all the serious problems that arise from this loss. This failure can also lead to litigation and the overturning of actions by local government officials.

There is nothing more important in local government ethics than timely, independent, professional ethics advice.