Attached for your review are the following items:

1) - UTU Local Division 77's Labor Management Reports (LM2's) from 1999. Included is the front page and a listing of officers' salaries – many of these former Local 77 officers now hold office in ACRE.

2) - The LM2 Report for Local Division 77's General Committee of Adjustment. Included is the front page and a listing of officers' salaries for the last year reported – 1998.

3) - A copy of page 1 of the synopsis from ACRE Local Division 1's LM2 report for 2004, including a listing of officers' salaries and year ending deficit.

4) - A copy of ACRE Local Division 1's initial budget for 2000.

Upon review of items 1&2 and a comparison of item 3, it is very simple to detect the discrepancy between the salaries paid under UTU Local 77's operation and ACRE Local Division 1. ACRE officers' could not have received their current salaries in the UTU format. Bottalico would not be allowed to be compensated in this manner, with the majority of his compensation coming from MTA Metro-North. In 1998, Bottalico in office as a UTU General Chairman earned $102,691.79. In 2004 Bottalico as the ACRE General Chairman earned approximately $160,000.00, a 60% salary increase .

Ralph Sanzari usually marks off 3 times a week “company business”. With no lost earnings, Ralph earned $8,000.00 above his ACRE Local Division 1 approved salary. Ralph claims the overage is for “General Committee” days – again – no lost earnings.

ACRE Local Division 1 By-laws and LM2 reports offer no distinction or distribution of funds between Local or General Committees. These documents verify that for ACRE officers', it's always been about the money .

Item 4 is a copy of ACRE Local Division 1's first “budget”. Notice the projected year ending surplus figure of $72,551.64. If this figure is multiplied by ACRE's five years (until the end of 2004) of operation, based on ACRE Local Division 1's projections, ACRE Local Division 1 should have $362,758.00 in their account. Instead, at the end of 2004 (the 2005 LM2 reports will not be available until June 2006) ACRE Local Division 1 had approximately $50,000.00 - $55,000.00 cash on hand. Where is the huge budget surplus? The salary overages paid to ACRE officers have occurred each year and depleted the cash reserves for ACRE Local Division 1.

During ACRE's promotion, a $5.00 per month dues decrease was promised to the membership . This event did not happen, but ACRE Local Division 1 does intend to raise your dues now, and each year forever, unless the members stop this fiscal malfeasance .