The longest quiet phase E V E R

Mt. Lebanon School Board extends consultant's contract

The campaign, conceived in early 2013 to offset some of the cost of the nearly completed $109.65 million high school renovation, has been moving along behind the scenes with the formation of committees and the quiet courtship of potential large donors. But there has been no public outreach, nor any announcement of what's been collected or what the district has paid.

District spokeswoman Cissy Bowman said the campaign remains in its “quiet phase,” with organizers planning “awareness events” for potential donors during the summer and into the next school year.

Pursuant Ketchum Going...Going...

Looks like Pursuant Ketchum is on their way out, according to the article in the Trib, Vote set on hiring of new advisor for Mt. Lebanon School District Alyssa DeLuca, who just returned from family leave, will continue to lead the fundraising campaign at $82,500 per year. Maggie Schmidt will replace Pursuant Ketchum and will be advising Alyssa DeLuca at a rate of $62.50 per hour for as many as 32 hours per month.

Schmidt would replace staff from consulting firm Pursuant Ketchum, which has been advising Mt. Lebanon on the campaign since March 2013. Pursuant Ketchum recommended Schmidt to the district, and she will replace consultants who had been traveling about once a month from Pursuant's Boston offices at Mt. Lebanon's expense, said Superintendent Tim Steinhauer.

Also from the Trib article:

The board also discussed hiring former employee Stephen Schuerer as a human resources consultant, also at a rate of $62.50 per hour, to work with the district on a new contract for its teachers. The current contract runs through June 30.

If Steve Schuerer is not currently working for the district, who is the director of human resources? He is currently listed as the Title IX compliance investigator on the MTSLD calendar and in other places. Every school that receives federal money is supposed to have one. Is Steve Schuerer an attorney? If not, why is he being hired to work with the district on a new teachers' contract? Nice that he can double dip.

Speaking of teachers and administrators, we can find out how much administrators and teachers earned in 2012-13 here: Pa. posts school administrator, teacher salaries to website The salary information is difficult to find. To view individual teacher salaries, choose Allegheny County, then Mt. Lebanon School District. View district information. In the top right of the next page, view fiscal information. Scroll down on the right, and go to School Personnel Salary Date. It's a downloadable spreadsheet.

Spending more money to raise money

In tonight's agenda:

*(11) DonorPro Software Contract: RESOLVED, That the Board approves entering into a contract with TowerCare Technologies, Inc. for DonorPro software for donor information management for the capital campaign at their stated price of $6,550 plus monthly fees based on usage.

*(12) Wealth Screening Software: RESOLVED, That the Board approves an annual subscription to FindWealth software for donor qualification for the capital campaign at their discounted price of $8,999 for the first year.

The asterisk represents new agenda items. They were not considered or discussed by the Board at its Discussion Meeting on September 9, 2013.

A weight room without weights is just a room

An email sent by Athletic Director John Grogan made its way to me this morning. It appears that there is no money available to equip the state-of-the-art weight room that is going in the high school. Here is his letter:

Hi everyone, 

I am writing with a favor to ask. As many of you know, we will be getting a terrific new weight room in our new facility. However, the equipment for the new facility was not part of the project. Therefore, we have had to privately raise funds to pay for the equipment. Our goal is to put the best equipment in the space to meet the needs of our student athletes! Unfortunately, due to unforeseen circumstances, our fund raising efforts have fallen short and we still have to raise a significant amount of money. 

The good news is that we received a terrific lead gift from a gentleman named Preston McMurry from the class of 1955. Preston donated $50,000 dollars toward the weight room!! However, we still have a ways to go. 

Please find attached a letter that I put together that I would ask that you send to your parents, alumni, or any other groups that support us to help raise the money we need to equip the room properly for our student athletes. Feel free to change the letter as you see fit – just wanted to provide an example. If you have any questions, feel free to contact me. 

As you will see in the letter, donations can be sent to the Blue Devil Club and we would ask that they fill out the donation card or make sure that they write weight room in the memo line. I have worked with the Blue Devil Club to ensure that all donations for the weight room are put into a separate account to be specifically used for the equipment to go into the room. 

Again, I know this is unusual but as you have seen in the past we have a good plan for that room and I’m hopeful that we can raise the money to provide the equipment our teams need to succeed. 

In advance, thanks for any help that you provide!!

John

---

MTLSD DISCLAIMER: THIS TRANSMISSION IS INTENDED ONLY FOR THE USE OF THE ADDRESSEE AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL, AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF YOU ARE NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, RETENTION, DISTRIBUTION, OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY THE SENDER IMMEDIATELY.

Looks like it is a go.

Also on this Monday's agenda:

Issuance of Bonds – Tim Frenz, our financial advisor, and Jim Webster, our bond counsel, will be at the Board meeting to give an update concerning the sale of the second round of high school renovation project bonds next week. The structure and size of the bond issue will be discussed before the sale. Assuming good market conditions, the sale will occur on Monday, August 19th with Board action to approve the sale at the meeting that evening.

No discussion of level funding, no update on the fundraising hire since the job posting has been removed and no news of the Final 2013-14 Budget.

Larry is excited, but so is Mary

I uploaded both meeting podcasts, but only had a chance to watch part of the discussion meeting.

No surprises. The Board is going to move forward with fundraising. Naturally, Larry is excited, but so is Mary. Surprisingly, Elaine Cappucci is skeptical, yet supportive. She has concerns with staff concentrating on fundraising instead of education. Dr. Steinhauer volunteered the services of taxpayer-funded clerical staff.  Perhaps Larry will bring in adult foreign workers at minimum wage to do the actual staff and fundraising grunt work to keep the costs low.

More power to these folks. If they can raise the money, then go for it. It is unfortunate that the Board will not admit to making a mistake by proceeding with a high school renovation of such grandeur without figuring how to finance it. It was revealed last night that the State is eighteen months behind in state reimbursement for construction. Mary and Jo will blame Corbett, Bush, the Mayans, and Hurricane Katrina. No word on the MLEA grievance.

PK has quite a racket going

Greater Latrobe School District had hired Pursuant Ketchum in 2011 to do a feasibility study to raise $15 million.  Sound familiar?

Through a Right To Know (I didn't realize this could be done), the results and contract follow.
Greater Latrobe Fundraising Study
Of Counsel Philanthropy

What I find interesting is how thorough PK was with Greater Latrobe. The first link is 42 pages. Either our school board is holding back or PK didn't put as much effort into our study as they had with Greater Latrobe. The second link is the 8 page consulting agreement.  I guess this is what we are in for...

Are you in the 7%?

The School District website has released the SPECIAL STUDY AND REPORT ON THE FUNDRAISING POTENTIAL OF MT. LEBANON SCHOOL DISTRICT With twenty hours remaining to vote on poll, fifty one votes have been cast. So far, there are four individuals (7%) who are willing to donate.

In concert with creating communications materials that explain the strategic vision, the School District must heighten the community’s awareness of the importance of philanthropy, now and in the future. An integrated and multifaceted Awareness and Cultivation Program should be planned and implemented as an integral part of pre- campaign activities and procedures.

To initiate a Targeted Awareness-Building and Cultivation Program, I am asking those four individuals to send an email to schoolboard@mtlsd.net explaining that you were in the 7% of the Lebo Citizens poll and would like to donate. Thank you so much for understanding the importance of philanthropy. With your help, it could mean only $18 a month for me. If those 7% do come forward, I just identified four donors for free. That is my donation - that and heightening the community's awareness.

To read more about this in the School Board President Reports, don't go here.  Go here.  Or here.

Pursuant Ketchum Summary

Someone was nice enough to summarize the PK presentation for Blog Readers.

Oshry talks and notes that PK was invited to test feasability of $15 million capital and endowment campaign for high school and creation of endowment.

Conducted:

27 confidential interviews

16 parents or alumnni

9 current or former board members

11 suggested by someone else in study

1 recommended to make lead gift in campaign

70% had positive view of district

School board does not make decisions that are always popular

78% rate project as high or reasonably high

67% think capital and endowment plan is the right plan

74% think campaign is best way to raise money

5 people think it is not and should share cost via tax

81% advocated proceeding with campaign

Caution about proceeding because there was confusion of where funds would go- pay down debt or endowment

Some people only interested in capital

Some only interested in endowment

Possibility of $15 million

67% felt 15 million attainable

People did not have answer to "who" would come up with the money.

Higher degree of confidence by those who have done major gift giving before

Did not uncover first hand evidence of top ten gifts they were looking for

1/3 felt they could find $3 million gift

When asked for who six of the 30 named $50,000 was largest gift identified

Some did not indicate if they would give money...needed more info

24 of 30 were not interviewed

37 people suggested named people with 11 people suggested multiple time

interviewed 12 of the 37. 9 of 12 indicated they would take a leadership role in fundraising

85% said they would serve in some capacity.

89% said they would be willing to give something

These were good results

Board is untested in its ability to lead a campaign

Recommendations:

1st is to proceed with campaign with $6 million capital and endowment as goal.

Campaign would move community to be positively influence (cultural change)

Address structure to do campaign-small task force to define scope of responsiblity...mlfe/mt lebanon endowment

School district must define its scope of campaign

Enlist steering committee- focus on campaign chair, participating in expanded case for support, prospect cultivation, etc

Update expand existing policies with regards to endowment

Plan and implement a targeted awareness program. 

Form a planned giving program (Estate planning with school district in mind)

Staffing and budget for the campaign...currently no staff and no budget for campaign

March 2015 finished with implementation and possibly finished with first fundraising efforts...long after second bond

Questions from Board:

Dale thanks Oshry and says he appreciates the blueprint given to the Board. Asks if the 27 interviews were statistically significant.  Oshry says that it is. They are NOT looking for a sample of the community but instead for a sample that represents the right portion of the community. Asks about how arrived at $6 million while recognizing only one gift of any substance.  Oshry says two ways, looking at what was heard or not heard when people had the $15 number in front of them. Good to hear about support in community.  Need to establish a culture of philantropy in Mt. Lebanon and the culure would grow.  Has Oshry seen that culutre grow in other of his jobs...Oshry says National Rehabilitation Hosptial in DC was case study given to say that it can be done. Started at $3 million, then moved to $5 million, then more.

Need to do major gift first to get the smaller gifts later...not the other way around.

Cappucci- Concern with spending money on staffing before money comes in. Do you have a record of how successful you have been...how close have you come to the amount that is expected to be raised.  Oshry says campaigns reach or exceed the goal with 87% of the cases.  The ones that fail, fail badly.  Often the engagement is either redefined or scoped changed.  Budget proposed is 14% budget.  Within industry standards. With relatively modest goal with no experience the 14% is at the high/safe range of what should be expected.  Cappucci says money would not come in for several years.  Years 2 and 3 would expect major committments.  But other gifts wouldnt be until 2019 and 2020.  When we set up to do report it was to offset the bonds.  Now that he says this can no longer be the goal, should we shift the focus/campaign.  He says no.

Kubit-Thanks for the report. Were there indications on what donors were doing for the endowment...arts, sports, etc? A lot of people said arts and athletics, their favorite program saved by the endowment.

Remely- Likes the report. Doesn't see anything for the small donation for the small family that wants to buy a brick.  Establish a endowment is important. It may be the endowment or lack of endowment but monies to capital campaign will be more important to the campaign because it saves interest.  Asks Oshry if he will meet the goal and come in on budget.  Oshry says yes.  Can't pay down bond. Not a lot of options if money is not raised for second bond for high school.

Posti- Asks about the DC Hospital. Asks if naming rights came up at all.  It was not a major focus of this study.

Dan asks question about money not coming in for 6 or 7 years....if in first year and a half they have to pay him the $800,000 how does that happen.  Consultants are not paid on how much is raised, they are paid on time...in 30 months will you have paid for yourself.  Will the district be upside down on this?  Yes, we will be in the negative.  Good, insightful question by Dan and the answer is worrisome. Dan's question at the end about whether the district will need to pay money and be out of pocket while all this fundraising goes on is a good one. Basically the district will need to find the almost $900,000 to pay PK to do the fundraising and that has to be budgeted for....and I don't believe that includes a school staff person to direct fundraising.

 

I don't usually post an entire article as a thread, but the following article from The Washington Post showed up just in time for tonight's budget meeting.

‘Rhee Effect:’ Why depending on private cash for reform is a bad idea

By Valerie Strauss

Michelle Rhee was a great fundraiser during the 3 1/2 years she was the chancellor of D.C.’s public schools.

During her tenure, from 2007 until 2010, when she resigned, she persuaded a handful of private foundations to pony up a total of more than $80 million to help cover a three-year labor contract she negotiated with teachers that included a performance-based pay assessment system.

But take a look at what my colleague Bill Turque reported on his D.C. Schools Insider blog:

“With Rhee gone and the three-year foundation commitment up, private largess is considerably more scarce. Grant funds are projected at just $3.8 million for FY 2013, an 82 percent drop. Officials have announced that the cost of the IMPACT bonuses has been passed on to the individual schools.”

Now Rhee has gone on to bigger things, becoming a national school reform advocate with her StudentsFirst organization and a goal to raise $1 billion to push for her agenda.

And back in D.C., the entities that had donated before — the Broad, Arnold, Walton and Robertson foundations — don’t seem to be opening their wallets quite as wide now that she’s gone. As Turque noted, the bonuses that teachers could earn under her IMPACT evaluation system now have to be borne by individual schools.

It is certainly true that public education funds ebb and flow with the health of state and federal budgets, and that programs funded with public dollars can be affected in a downward budget cycle. But that is far different from having private individuals pick and choose pet projects, with the effect, often, of redirecting public money and efforts toward them.

But the problem goes beyond pet projects. Last summer, New York City Mayor Michael Bloomberg announced that money was so tight in the city budget that he was turning to private philanthropists — including himself — to donate $250,000 each to pay for state standardized testing that had been eliminated. The dangers of depending on rich private citizens to cover such core functions are apparent. “The Death and Life of the Great American School System”:

As education historian Diane Ravitch wrote in her book “The Death and Life of the Great American School System”:

“There is something fundamentally antidemocratic about relinquishing control of the public education policy agenda to private foundations run by society’s wealthiest people. . . . These foundations, no matter how worthy and high-minded, are after all, not public agencies. They are not subject to public oversight or review, as a public agency would be. . . .The foundations demand that public schools and teachers be held accountable for performance, but they themselves are accountable to no one. If their plans fail, no sanctions are levied against them. They are bastions of unaccountable power.”

‘Rhee Effect:’ Why depending on private cash for reform is a bad idea

Three meetings...all on the same night

Mt. Lebanon needs to schedule more meetings for Monday evening.

1. In a Lebo Alert:

Free Seminar on the Allegheny Co. property tax assessment appeal process, 7 p.m. Monday, March 26, at Mt Lebanon Public Library.

2. The School Board will be holding a special budget meeting at 7:00 p.m. in the Jefferson Middle School Auditorium. Agenda is here.

Laurels & Lances On the “Watch List”: The Mt. Lebanon School Board. It's going to spend more than $41,000 on a study to predict the success of a prospective $30 million capital fundraising campaign. Good grief. We'll bet most residents of already tax-strapped Mt. Lebanon don't appreciate the implications of picking their pockets one way to see how amenable they might be to having their pockets picked another way. http://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_787814.html#ixzz1pxyn5gl0 

3. And finally, the regularly scheduled Mt. Lebanon Commission Discussion Session, 6:25 p.m., and the Mt. Lebanon Adjourned Commission Meeting, 8 p.m., will be held in the Commission Chambers in the Municipal Building.

Update March 23, 2012 7:00 p.m. From Center Court Blog

Time / Location Changes


There are a few location and time changes to some upcoming events. One is a recent change due to anticipated high attendance, one an error by the Post-Gazette and one an error on this blog.


Monday, March 26, 7PM: Due to anticipated attendance, we've moved Monday night's budget meeting to the Jefferson Middle School Auditorium.

Upcoming Community Coffees: The first one will be Saturday, March 31 from 9-11AM at Uptown Coffee on Washington Road. The second will be Wednesday, April 25 from 7-9AM at Orbis Caffe on Washington Road. [So those who were betting on Coffee Tree on Beverly Road lost. It is on Washington Road after all. Uptown Coffee.]

These are all opportunities to share your thoughts on the budget that we will take action on in May. We hope to see you there.

Raising $30 million might not be a piece of cake for the cake eaters

Front page of the Trib yesterday - Professional solicitors not always best choice for nonprofits

At a time when the Board is optimistic about raising $30 million for the high school renovation, others have not been so lucky.  Look at IUP:

Iowa-based RuffaloCODY raised $1,496,331 for The Foundation for Indiana University of Pennsylvania and gave the foundation $523,055, or 35 cents on the dollar.
Bill Speidel, the foundation's associate vice president of development, said the return satisfied him because the campaign targeted alumni. Most had not contributed to the university and may have attended IUP in the 1960s when it received 70 percent of its money from the state, he said. Now the school gets about 30 percent from the state.

Now the Board will be revisiting the naming rights policy during Wednesday's Policy Committee meeting. Here is Wednesday's agenda:


Agenda
1.  Policy Review
      A.  FF, Naming Rights
      B.  KCD, Donations to the Schools
      C.  KGD, Partnerships and Sponsorships
      D.  KHB, Advertising

2.  Questions and Comments from Residents


I emailed the chair of the Policy Committee to verify the time for Wednesday's meeting. The time has been posted as either 4:30 or 5:00.  Of course, I have not heard back.

Update 11:28 AM Scott Goldman confirmed the time.  The Policy Committee meeting will start at 4:30 PM at Jefferson Middle School Library.  Thank you, Scott, for your response.

A glimmer of hope

Currently, the poll regarding a feasibility study shows nine people are in support of the study.  After watching the school board meeting this morning and uploading the podcast to Lebocitizens.com, I see that the board decided to table the vote until next month. Directors Remely, Kubit, Ostergaard, and Goldman expressed concerns such as the tight budget, staff cuts, timing, and not enough information to make a decision. I believe it was Director Goldman who pointed out that Pursuant Ketchum did not meet with the directors and would like to see a presentation from them, as well as hearing from other fundraising firms.

The goal is to raise $30 million but the cost of fundraising could amount to $3 million. There was a lot of discussion about naming rights, which amazed me since we have a resident and frequent commenter on this blog who handled the naming rights of Heinz Field.

The other point to mention, in my mind, is that Pursuant Ketchum, out of Texas (travel costs??), will be contracted for the feasibility study only, and if Pursuant Ketchum or another party is retained to assist in a fundraising campaign, it will be pursuant to a separate contract to be negotiated at that time. Why not take bids for an actual fundraising campaign? Do we really need a study?