Auditor, Education Commissioner call for school superintendent data to be more transparent to taxpayers

 


The Bluegrass Institute has pointed to serious problems with the transparency of information about public school superintendents for several years now with our Rewarding Failure expose.

Our efforts are now being vindicated.

In a press conference today, Kentucky Auditor of Public Accounts Adam Edelen and Kentucky Commissioner of Education Terry Holliday called for greatly increased public access to information about local school superintendents. The auditor and commissioner want every superintendent’s employment contract, total benefits package and annual evaluations to be readily available in a one-stop source at the Kentucky Department of Education’s web site.

Holliday and Edelen also called for better training of local school board members regarding their duties to effectively oversee operations of their superintendent and schools. In the news release for the press conference, Holliday said:

“We’re seeing far too many cases where adults are making choices that are right for them rather than what’s really right for students and their future.”

The immediate impetus for these new public transparency improvements is a recent series of what the auditor has sometimes called “scandalous” audits. These audits found superintendents in several school districts were taking the taxpayer for a ride.

In the worst case uncovered so far, which involves the Dayton Independent School District’s former superintendent, Edelen’s findings are so bad that the case has been referred to the FBI. Edelen actually used the term “fraud” during his absolutely shocking Dayton Schools audit press conference.

As veterans of many open records requests for superintendent evaluations, the Bluegrass Institute is only too familiar with the difficulty the public has encountered in trying to obtain this critical information. We are also well aware of the vacuous and unrevealing reporting that has far too often been the hallmark of those annual superintendent evaluations.

Holliday also said:

“I have always been an advocate for openness and transparency. I welcome the auditor’s recommendations and hope this will result in a greater level of fiscal oversight and responsibility in our school districts. It is the duty of us all to be accountable and good stewards of the taxpayer’s money.”

As Edelen said at the Dayton audit press conference:

“The kids don’t exist to support the bureaucracy. The bureaucracy exists to support them.”

To all of this, we can only say, “Amen!”

Auditor: Former Dayton Independent superintendent got almost $250,000 in unauthorized payments

Case being referred to FBI

New superintendent asked for audit

In the latest of an on-going stream of highly revealing audits of improper activities in local school systems around Kentucky, Kentucky Auditor of Public Accounts Adam H. Edelen just released a new shocker on highly questionable payments to the recently retired superintendent in the Dayton Independent School District.

According to the Kentucky Enquirer’s coverage, which names Gary Rye as the former superintendent, the auditor says the former superintendent got nearly a quarter of a million dollars in unauthorized benefits.

Providing evidence of the seriousness of the findings, the Enquirer says:

“The findings have been turned over by Edelen to the FBI, Kentucky Teachers’ Retirement System and the Kentucky Department of Revenue.”

Go to the Enquirer’s article to see a really dramatic clip from the auditor’s press conference.

Bill would let Kentucky school districts buy health insurance for school board members

I’m having trouble wrapping my mind around the thinking in House Bill 283.

This bill would allow locally elected school board members join the health care plan their school district offers to employees at taxpayer expense.

That is problematic.

For one thing, local school board members are not full time – or even part time – school employees. In fact, an Attorney General opinion says local school board member legally cannot be an employee in the system. Board members are supposed to earn their livelihoods elsewhere in the community.

For another, the bill creates a conflict of interest problem. Board members are supposed to represent the taxpayers’ interests, but if the board members also benefit from one of the staff benefits, those board members may be tempted to unreasonably increase that benefit to the detriment of the voters.

Finally, with legislators and school people all saying that school dollars are tight, why are we making this change?

By the way, Kentucky law (KRS 160.280) apparently already allows local board members to join the district’s health care plan at the member’s own expense. Even that provision creates a conflict of interest problem and needs review.

Tax commission: Politicians ‘loathe’ to reduce spending

“The only solution is to focus on reducing government spending, but politicians are loathe to do that. They’re reelected because they confiscated some private wealth, declared it to be public money, and then redistributed it to some voting constituents or to some financial contributors to their political campaigns.” –Bruce Layne (comment on Pure Politics tax commission story)

Kenton County Attorney’s lawsuit involving Tea Party ballot effort tossed ‘with prejudice’

It’s a win for citizens and taxpayers

Over a year ago, sharp-eyed researchers from the Tea Party in Northern Kentucky raised serious questions about the continued need for the Northern Kentucky Area Planning Commission (NKAPC). This zoning and planning commission appears redundant in the one remaining county it now serves and there are even questions about the legality of its continuing operation as a separate, taxing agency.

Based on what it found, the Tea Party launched an effort in accordance with state law to place a voter recall item of the NKAPC on the Kenton County election ballot.

The Tea Party along with Northern Kentucky area contractors, who also felt the NKAPC had outlived its usefulness, began collecting the thousands of signatures needed – more than 19,000 Kenton County residents needed to sign – to place the recall on the ballot.

Collection of so many signatures, one quarter of all the votes cast in the last presidential election, was a daunting task. So the contractors brought in a commercial canvassing firm, AZ Petition Partners, to help.

Collection was made more difficult when several signature collectors reportedly were harassed by local law enforcement at the instigation of the Kenton County Attorney, Gary Edmonson.

Despite the challenges, Kenton County Clerk Gabrielle Summe was eventually presented with over 24,000 signatures from citizens requesting an NKAPC recall item on the next ballot. It looked like significant signature overkill, but never count out politics.

Clerk Summe eventually ruled thousands of the signatures were invalid, so many that too few valid ones remained to place the issue on the ballot. That triggered a lawsuit from the outraged Tea Party, which is still in court over this extremely contentious clerk action.

However, that wasn’t all the legal activity involved. A second lawsuit was also filed. This one was filed by Kenton County Attorney Gary Edmondson. He charged the Petition Partners firm and independent contractors who supported it with racketeering under the federal Racketeer Influenced and Corrupt Organizations Act (RICO) for collecting fraudulent signatures. Although only the commercial firm and its contractors were named in the suit, many Tea Party members also felt threatened. After all, if the commercial firm were found guilty, might Edmondson then place Tea Partiers to his litigious sights?

On August 22, 2012, US District Judge David L. Bunning of the US District Court in Covington rendered his verdict. He found in favor of Petition Partners. The Edmondson suit was dismissed with prejudice, which may block Edmonson from bringing the same lawsuit against Petition Partners again.

[Read more...]

Clear battle lines in tax commission town hall

The Governor’s Blue Ribbon Tax Commission made a stop through Lexington last night to hear from concerned citizens about reforming thestate’staxing structure. You can learn more about who serves on the commission and how it is structured here but in a nutshell, the stated goals of the commission include fairness, competitiveness, simplicity and compliance, elasticity and adequacy.

A packed auditorium at Bryan Station High School was in attendance with dozens of people signing up to speak to the commission. Essentially, the messages of everyone could be broken down into one of two camps:

  • Those who identified themselves as state or public employees asking for increased funding for their specific interest area OR
  • Business owners informing the commission about over-burdensome taxes

Basically it was the age old question: Does Kentucky have a revenue problem or a spending problem?

Kentucky has a spending problem.

The Courier Journal reported that The Kentucky Chamber of Commerce weighed in on this fact at the commission hearing:

Gov. Steve Beshear’s commission studying tax reform should consider ways to curb some soaring state expenses before thinking about raising taxes, the Kentucky Chamber of Commerce’s president said Tuesday.

And the chamber leader suggested easing taxes on businesses to make Kentucky more competitive with other states.

Dave Adkisson, president and CEO of the Kentucky Chamber, told the Governor’s Blue Ribbon Commission on Tax Reform, that additional money for education could be found by “addressing unsustainable state spending” in areas like Medicaid, public employee benefits and corrections.

Unsustainable state spending is identified as the problem NOT senseless theft from businesses in the form of increased taxes.

If you are interested in learning more about the tax commission, John Garen, the chairman of the Bluegrass Institute’s Board of Scholars discusses it here.

Jefferson County Schools central office cleanup saves millions

The Courier-Journal reports an extensive clean-up of the bloated central office at the Jefferson County Public School District is likely to save $4 million, apparently each year. That, according to district superintendent Danna Hargens, is money she can now plow back into education in the schools.

It’s about time. Things are so bad even the very militant, protect-every-job-you-can teachers’ union in Louisville agrees with the cuts.

Of course, concerns about bloat in Louisville’s school management organization, including not only excessive staff but serious salary inflation for that staff, have circulated for some time. This was old news back when now-departed former superintendent Dr. Sheldon Berman was still at the helm.

But, it took Berman’s ouster and replacement with Hargens to make things start happening. A management audit of the district supported by Hargens and completed last fall only confirmed the obvious – too many people, too much being paid. However, the audit gave Hargens the ammunition and political cover she needed.

Now, Hargens has reduced her highly paid administrative cabinet from 16 people to just six. Across the entire central office, Hargens either outright eliminated or froze job action on 89 positions. She did create 21 new positions, but a lot of people still are apparently leaving. And, the Courier points out, the departing administrators all had annual salaries of more than $100,000 each. When the dust settles, even after filling 21 new positions, the Courier claims savings will be in the multi-millions of dollars. That’s still ‘small potatoes’ savings when you consider that the district’s total financial receipts in 2010-11 from all sources – local, state and federal – totalled $1.1 billion, but it is a start.

It’s clearly way too early to determine if this shake-up at the district office will have much impact on the classrooms in Louisville and such things as the significant achievement gaps we recently pointed to in many schools there.

However, at the very least it looks like the taxpayer just might have a good chance to get a bit more bang for the incredible amount of bucks the Louisville system spends each year.

So, you have to give superintendent Hargens credit for taking on the status quo in her own central office. I wish we were seeing more of this in Frankfort.

Heritage Foundation on Teacher Compensation

Here’s some food for thought.

Economic dreaming

I have a problem with people who somehow think certain sectors of the economy can magically be shielded from the realities of economics. The facts are that sooner or later, when real resources are not available, every area of society suffers.

A case in point of the magical thinking viewpoint about economics came out today in the News-Enterprise newspaper.

That paper opines:

“It’s time to start creating new solutions to protect schools, even go so far as to make them recession proof.”

I’m sorry, but real life does not work that way. You cannot cancel the facts of life about economics. And, you cannot create magic protection for an especially large enterprise like our public school system that absorbs an amazingly large part of every tax dollar we send to Frankfort (somewhere around 40%).

Actually, overly extreme attempts to somehow protect schools from recessions could create inducements that produce and sustain inefficiency in schools. That just adds more stress in a recession.

We might also create some very severe negative attitudes about schools in the minds of those involved in other areas of our economy (such a public safety and health, to name just two of many) that are not receiving such special treatment.

Do we need new, cost-saving solutions for our schools? You bet we do, especially solutions that get us more recession fighting “Bang for the Education Buck.” Some answers may include charter schools (which generally operate more cheaply than traditional schools) and really creative use of digital learning.

But, will workable solutions include a magic wand that somehow insulates schools from the economic realities that impact all our lives? No way! Not going to happen.

Education Commissioner admits increase in health care benefits unsustainable

Kentucky Commissioner of Education Terry Holliday has some sobering comments about how increasing health care costs for state employees and retirees are unsustainable.

In his discussion of the ballooning costs, Holliday simply declares:

“The current path is not sustainable.”

Holliday candidly admits this is “well above my pay grade” to solve, but his department and the education system it supports clearly is feeling the brunt of the legislature’s continuing failure to address this mushrooming problem.