Thanks to the disrespectful PTSA email, the school board received a break from me for a few days. I am back on track now. In today's Trib article Upper St. Clair district, teachers to consider concessions, pay freezes for PA Numero Uno Superintendent, Patrick O'Toole and the USC finance director have opened up the door for more discussions with the teachers' union over concessions that could help close a $3.2 million deficit anticipated in the next school year.
In Mt. Lebanon, we're considering cutting back on maintenance again (that is what got us into trouble with our school buildings) and eliminating towels. The List v 2.0 shows $879,000 in cuts. Whoopie. Of course, everything is hush-hush here in Leboland. The public knows more about what is going on in Upper St. Clair than what the Mt. Lebanon School Board has shared with its stakeholders. We are told nothing. We have a right to know, folks.
A TALE OF TWO SCHOOL DIISTRICTS
ReplyDeleteOR
WHY ONE IS #1 AND WHY THE OTHER SHOULD RECOGNIZE - "WE'RE #2 AND SHOULD "TRY HARDER"
Thanks for the tip on the TRIB article Elaine.
Here's info from the USC article, which I'm sure the reporter was probably given by the district. "The gap in the $60 million budget stems from a large pension obligation, contractual pay raises, debt payments from a pair of middle school renovation projects and declining revenue from state aid."
Now contrast that with MTL's President Posti Center Court post February 21st, concerning the district's budget crisis.
"Last week we began discussions about the 2012-13 budget and will continue those discussions until May when we will approve our operating budget for next year. While we were able to pass last year’s budget without any millage increase despite state funding cuts, further state cuts this year place a greater burden on local taxpayers. As a result, the Board will discuss what combination of program reductions, use of reserves and millage increases will best serve our community’s needs. We look forward to your feedback."
Notice the difference. Order of problems contributng to their budget crisis in USC... 1. large pension obligations, 2. contractual pay raises, 3. debt payment on construction projects... and then 4. declining revenue from state aid.
Posti's order of contributing factors... state funding cuts PERIOD!
That pretty much sums up why we're in the position we're in for me. Absolutely no recognition that the board spent too much.
Dick Saunders
Elaine,
ReplyDeleteYou are right on about the maintenance. Painting, roofs, landscaping, all of that is important to keeping safe, good-looking, property value keeping schools. That's not building new schools, bricks and mortar. It's taking care of what you have.
We've been down this path before. Look at the high school for one. Years of cries from people about leaky roofs helped lead us towards and unaffordable high school project. If we would have just addressed the problem in the first place (replace bad roofs!) then we would have had fewer cries from the "the roof is going to cave in on our english students while they are studying" crowd. But the board either by force or by choice did not address the problem and for a decade (at least) let the roof leak with only minor repairs year after year.
Look at what is happening at the Public Safety Building. Leaky roof. A couple of tries at repairs has not fixed the problem. Will the commission find a warranty for the roof or will we be building a new public safety center in a few years because commission after commission refuses to address the real problem.
Look at the pool. Plan after plan after plan has been proposed to replace or update that pool so that it can continue to be used. And plan after plan after plan has been tossed aside with the same disregard that we got on the high school.
Folks, it ain't hard. Fix what you got so you don't have to borrow what you don't got to build what you can't afford.
In just a few years we will start to talk about the middle school renovations. They are coming up on 20 years. How does the board plan to pay for that? Is it even in their 5-year projection?
They are cutting some real important parts of the budget this year when all they have to do is what USC has done. Freeze some salaries and save some of the important initiatives from the past. But, instead, they wish to look at paint and software that helps hire qualified teachers, and mandatory vacation time. No real pain here. Just more of the same.
Albert Brenneman
Did anyone notice the cuts are close to the amount required to pay the grievance THIS YEAR?
ReplyDeleteThe cuts still don't address the $1.8MM budget shortfall the District had BEFORE the grievance was factored in.
Also, the cuts don't factor in any recurring payments due to the grievance.
How much is the solicitor being paid to defend the District?
When will PK present their findings to the District?
David Huston
Shhhhhhh, David. It is a secret.
ReplyDeleteElaine
Let's not forget to add the fact that these guys are going to use fund balance to close the hole.
ReplyDeleteThat only makes sense if you KNOW that next year you will have funds to plug that gap...otherwise you will simply have this year's hole PLUS next year's hole.
Fact is, next year is probably going to be worse.
PSERs isn't getting any better. They have to float that second bond sometime (assuming Pursue Ketchup doesn't find it's $30million in private donors---which come to think of it, wouldn't they already have come forward if they wanted to donate?). Salaries and expenses aren't going down.
Here's the thing. They can cut $800k from their salary slush fund and cut $200k from their budgetary reserves and there's $1m right there. Maybe that little cat in the bag is why the admin refuses to discuss (or make public) a pay freeze.
Rumor has it that a former school director asked Dr. Steinhauer to forgo his raise the last year said director was in office so that Steinhauer could show that he felt the pain of the community. It would have given him the credentials to cut anything he wanted. It would have been a symbolic, political, and meaningful gesture all at the same time and it would have come just when the community needed to have it. The director was the only one to vote against the raise but to vote to extend the contract.
Instead, the raise was given, not an eyelash was batted and now this summer we will see the third consecutive 5% or so raise.
Dr. Tim needs to show he is not about the money and that he does this for the kids. Otherwise, who is going to lead us if not the superintendent?
My hope is that those discussions are the ones that the board has decided shouldn't be let out of the bag (even though they are openly discussing it in USC).
Albert Brenneman
If you think things are dire now, wait until 2014-15.
ReplyDeleteHere are some scary numbers from the MTL districts 5/23/11 budget projects.
Salary & fringe benefits:
2011-12 $56,809,566
2012-13 $58,709,231
2013-14 $63,357,530
2014-15 $67,392,627
2011-12 fringe benefits totaled $14,766,130.
In 2014-15 fringe benefits alone skyrocket to $21,887,592.
That means in just two short years, the district will need to find - whether its from - the state, donors or taxpayers, over $7 million in new revenue JUST FOR FRINGE BENEFITS.
Plus that amount doesn't reflect the debt incurred on the second bond of $30 million to complete the high school.
Oh yeah, charging students for parking and cutting fresh towels in the locker rooms are going to balance the budget.
Dick Saunders
I haven't received my copy yet, but I understand Josephine Posti sent out a letter concerning the budget. Again, no reference was made about the MLEA grievance as a recurring cost.
ReplyDeleteI hear she is blaming it on charter schools too. I guess the Governor, Bush, global warming, and Hurricane Katrina are also at blame.
From what I remember, James Fraasch was the only board member who did not vote to give Dr. Tim a raise. I miss James...
Elaine
Looking at 'The List' item #20 - add one additional 4 day week in summer - $3,500 savings. How many 4 day weeks do we have now?
ReplyDeleteThen there is #44, my favorite. Close all buildings 1 week in July for a savings of $17,500.
Maybe if all these adminstrative people worked a full 5 day week like normal people we wouldn't need so many.
And if they worked that 1 week in July and the Superintendent cut out his monthly lunch with the kiddies and his reenactment of the Council of Nicea at the local Panera's we wouldn't need a $15,000 strategic plan facilitator and two assistant superintendents.
Giffen Good
Under Budet Impacts, Posti lists as the contributing factors to the district's financial woes
ReplyDelete1. PSERS (and is quick to point out its all the States' fault)
2. Cuts in State funding
3. No State increase in funding for special education (since when does Posti care?)
4. Elimination of charter school reimbursement by, you guessed it, the State.
5. Increase in charter and cyber school costs
6. The sluggish economy (no, I'm not making this up)
7. Low interest rates on government securities
8. The increase in debt service this year due to an "old bond issue" ( you know, "I found it this way)
10. A grievance filed by MLEA
Nowhere in there does she admit poor planning or lack of expertise on the part of the school board.
Under "The Good News"
1. 13 teacher retirements (and she crosses her fingers we don't have to replace them)
2. Favorable natrual gas and electricty rates (again, I'm not making this up)
3. As she makes a plug for Obamacare by stating "As others in the community see health care rates go up...", she touts that the district is keeping theirs low through a county-wide insurance consortium. Oh, and increasing contributions from "our staff".
4. The staff is working to find reductions in the budget and cheaper ways of providing services.
And the topper:
5. "The high school renovations project is being funded through the Capital Projects Fund...This year will not require an increase in the budget to fund the project."
There's so much more deliciousness but yo'll have to taste that dish yourself.
We cut a Superintendent and spent $500,000.
ReplyDeleteWe did a Contract Extension we can't pay for.
We built a HS we can't pay for.
We drove off the Directors who understand finance.
We ignored all qualified advice.
Staff reduction, program reductions, and building closures are the only ways out of our mess. Yet at the last meeting Josephine said she would like to save some of the cuts for next year.
Right Jo, save the cuts for an election year and have election pressure on the board members to not make the proper cuts. Makes sense from a District Asset point of view but it is TERRIBLE business practice.
John
How many folks know the Policy Committee had a discussion with the Solicitor's office on
ReplyDeletedestroying district documents? - after we
Fired a Superintendent,
Passed a Contract Extension we couldn't afford and Designed a HS we can't afford?
John
Samuel,
ReplyDeleteLebo has the lowest State reimbursement of any school district so we will suffer the least.
The State didn't:
1) Fire a Superintendent,
2) Vote for a Contract Extension,
3)Design a High School,
4)Destroy District documents,
5)Give 6% cost sharing on health benefits,
6)File a grievance because the younger teachers got screwed by the Union and the Board in the last Contract Extension,
6) Issue bonds too early and spend $10,223,677 in unnecessary debt service through the end of June 2012,
7) Vote for debt service that increased from $4,771,886 in the 2010 school year to $$10,085,298 in the 2012 school year,
8) Add programs instead of cut programs,
Posti is complaining about her own voting record and she got caught.
John
I am honestly starting to wonder whether the actions of the Board have reached the point where Malfeasance and/or a determination of fiduciary negligence is a possibility. Certainly, fraud is a real possibility.
ReplyDeleteHas anyone thought about contacting the State Attorney General or Auditor General? I know it's an unusual scenario, but scope and scale of the mistakes of the Board is completely mind boggling. And it's suspicious, in my opinion too.
Capt. Anonymous.
There has to a lawyer or two who reads this blog. What are the legal factors and standards that the Board members need to breach in order to have civil liability? Are they covered by D&O - type insurance? Will they be covered if they INTENTIONALLY broke the school code or other laws?
ReplyDeleteCapt. Anonymous.
Capt. Anonymous,
ReplyDeleteI would someone has called the hotline. I have posted it several times. I haven't called because I would hope there are others out there who are angry enough to call. I am pretty busy with recording meetings and blogging.
Elaine
Capt. Anonymous.
ReplyDeleteAre you suggesting a lawsuit against school directors based upon personal liability?
Personal liability has been an issue in a former lawsuit against the District and Board Members and at least one Administrator were sued.
We lost the lawsuit so we paid our legal costs in an unknown amount plus the other side's legal costs of about $160,000. We would have to retire two teachers to cover $160,000.
John
John
I just heard a rumor that the commissioners have the power to take over the school district. I am not sure if that must be a super vote, or that it only takes three votes.
ReplyDeleteElaine
John,
ReplyDeleteI am simply asking whether the board members have performed at the minimum standard of care. I dont think they have. It's almost like a board of directors of a company on the verge of bankruptcy, and yet they keep spending irresponsibly. And lying to the auditors. Wouldn't that be a crime, or subject the directors to civil liability?
Capt. Anon.
Elaine,
ReplyDeleteIf a district faces bankruptcy, it can be taken over by a State Board of Control to run the district. This actually happened in one of the Districts I have blogged about.
The purpose of the Board is to avoid bankruptcy.
Also, if a district defaults on their bond issue(s) the debt service money is taken from the State Education Subsidy and given to the bondholders instead of the school district. If that happens Posti & Co. will have to face the reality of their voting record because the debt service would eat a large chunk of the Subsidy.
Capt. Anon.
Loss of Subsidy to bondholders is an area that might qualify as not meeting a standard of care.
You might also look at Section 1205.1 of the School Code on Continuing Professional Development. The Board is to review this annually to see that it meets the needs of needs of the school entity and its professional employees . . . and the strategic plan. The plan shall specify the continuing professional educational courses, programs and activities covering the academic standards listed in 22 Pa. Code Ch 4 relating to academic standards and assessments.
The continuing professional education plan shall specify the professional education needs that will be met by completion of each continuing education option and how it relates to the areas of assignment and certification or potential administrative certification . . .
The Section says, "the plan shall be approved by the board of directors of the school prior to submission to the department for approval."
I don't recall ever seeing this on the Agenda nor do I recall the Board ever appointing a committee of teachers, educational specialists, administrators, parents, local business representatives, and other representatives representing the community that is called for under this Section of the School Code.
It appears we need a new standard of care from our elected representatives.
John