DRUG AGENCY EXEMPLIFIES CITY WASTE

A couple of state officials visited City Hall not long ago with a question.

Albany sends more than $600,000 a year to prop up the city's Division of
Substance Abuse Services. That money was long gone, and by year's end
nearly $800,000 more was spent. The state people wondered how that $800,000
hole would be filled.

The commissioner, Don Allen, said not to worry. He took the state people to
the second-floor budget office, where Director Jim Milroy said yes,
property tax dollars would fill the $800,000 hole. Just as they always do.

Substance Abuse Services is typical of what drives people nuts about City
Hall: too much waste, too little control and too many patronage jobs.

It's a $1.4 million drain. Sources say its three neighborhood clinics serve
mostly nonpaying clients, with mainly uncredentialed counselors. A dozen
private or nonprofit agencies, many with inner-city clinics, do the same
work - and better. Dollars that could keep cops on the street instead
detour to drug treatment. But City Hall is addicted and can't pry the
monkey off its back.

It's a business a pauper city has no business being in. Sources say three
of every four clients are uninsured, with city taxpayers covering the bill.
Unlike at private or nonprofit agencies, there's little push to get clients
on Medicaid, which pays for treatment.

"Other agencies try (to get clients on Medicaid) because they need to watch
dollars," said a source familiar with the department. "In the city, you
knew the paycheck was coming no matter how (few) patients you saw, or how
many (didn't have) insurance."

There's no sign the money-draining times have changed. The city just closed
its Fillmore clinic for space in Central Park Plaza, at a rent increase of
$1,000 a month. Starting salary for counselors is nearly $30,000 - about 10
grand more than at other agencies.

Sources say the 28-person division eroded under politically appointed
directors with little background in drug treatment.

"There was no leadership, no follow-through, no long-range goals," said a
former employee. "Skilled people had their careers hindered, so they didn't
stay.

"There are good people there, but over the years the balance shifted more
to do-nothings than do-gooders."

Forget about confidence in City Hall. People just want a sign of hope.
Amputating money-sucking agencies gives taxpayers a reason to believe. Just
say go.

Tony Masiello cut Substance Abuse Services out of his proposed budget. But
the Council, led by throwbacks Jim Pitts (who sources say shares the
patronage jobs with Masiello) and Rose LoTempio, is fighting to keep it
alive. Meanwhile, the city may jettison 90 cops and close three fire companies.

Counselors routinely do intra-agency mail runs. One inner-city clinic had a
perpetually leaking roof. Another has a toilet that overflows when it rains
and staffers who don't feel safe.

"There were times I'd be alone with 10 parolees, with only one (exit) door
in the room," said a female ex-staffer. "I'd keep my cell phone keyed to 911."

City Hall has to cut to basics - picking up garbage, putting out fires,
protecting citizens. What happens with Substance Abuse Services is a litmus
test. If it survives, it's a sign that times haven't changed.

It's a sign not just to taxpayers but to anybody - the county, Albany -
being asked for a hand. Why pull a guy up a hill who won't take the rocks
out of his pocket?

Allen claims half the clients have insurance and most counselors are
certified, though he "couldn't give a number offhand."

Allen wants to raise money by drug-testing cops and firefighters. But it
takes a lot of urine to fill an $800,000 hole, staffers can't do the lab
work, and it's doubtful the unions or Albany would sign on.

Other than that, it's a good idea.

Milroy, the city budget director, said the department drained millions of
dollars the past decade.

"Now they say they can turn a profit," said Milroy, "and they think they
have credibility with anybody?"

It's hard to believe. What's even harder is that anybody wants to keep this
thing alive.