William Floyd hire spurs inquiry

By Sandra Peddie | Staff Writer

July 13, 2004

When Daniel Cifonelli retired with a $133,430 pension in 1998, the William Floyd school board immediately rehired him as a highly paid consultant. But, in an apparent violation of state pension law, school officials never got state approval for a deal that allowed Cifonelli to be paid handsomely while also collecting his pension.

The unapproved arrangement earned Cifonelli $743,394 on top of his annual pension during the last five years, according to school district records.

State pension rules bar a retiree hired as a consultant from performing the functions of a regular employee. Cifonelli held the title of superintendent for business after he retired, according to a school directory.

Consulting deals for retirees must be approved by the New York State Teachers Retirement System. In Cifonelli's case, the state never received a contract to review, said David Daly, the system's spokesman.

After Newsday's inquiry, state officials requested records on Cifonelli because the deal appeared to violate the law, Daly said. "Because there appears to be questions about the arrangements of his employment, we have requested the specific details of his employment in retirement," he said.

His pension could be reduced pending review, Daly said.

Cifonelli, contacted at his home on West Meadow Beach in Stony Brook, declined comment. His lawyer did not return calls.

School officials said last week that they could not locate a contract for Cifonelli, but said the arrangement had been approved by the school board in August 1998, the same month he retired.

School officials refused further comment, citing an ongoing criminal investigation by Suffolk County District Attorney Thomas Spota.

Cifonelli, 69, was terminated by the district last month for financial irregularities that school officials declined to specify. Prosecutors have confirmed that they are investigating Cifonelli.

The district's former treasurer, James Wright, has been charged with grand larceny for allegedly stealing at least $700,000 in school funds. Wright has pleaded not guilty and has agreed to cooperate with the District Attorney's investigation, prosecutors said.

William Floyd Superintendent Richard Hawkins previously told Newsday the district retained Cifonelli after he retired because of his expertise in capital construction, describing him as "tops in the region."

According to newspaper stories and school officials, Cifonelli had problems at two school districts where he worked previously.

Prior to coming to William Floyd, Cifonelli was assistant superintendent for business in the Homer school district, near Syracuse. John Grant, former Homer superintendent, said Cifonelli resigned before charges against him could be "finalized."

In January 1988, the Homer school board voted that there was probable cause to file charges against Cifonelli, according to the Cortland Standard newspaper. At the time, officials declined to detail the charges citing a desire to protect his privacy. Cifonelli was quoted then saying he knew little about the charges, except that one was "ridiculous."

A former Homer official, who asked not to be named, said the charges were not related to financial wrongdoing.

A month later, Cifonelli resigned with a settlement worth more than $50,000, according to the newspaper. No charges were forwarded to the state Education Department, according to Homer officials.

Prior to working at Homer, Cifonelli worked in the nearby McGraw school district. His contract was not renewed there after five years for unspecified reasons, according to a former district official.

William Floyd has sought state approval for other retirees working in the district. Susan Steinman, a retired teacher, said the district had to request a waiver so that she could work as a teacher for one extra term after she retired.

Told of Cifonelli's consulting deal, Steinman said she was angry. "I'm a retired teacher," she said. "I feel upset when people steal from children."