08.31.09 UPDATE RE THIS WEB PAGE:  Here in Texas the head of our state DOE is appointed by the governor,
not elected.   In 2007 when it came time for a new education commissioner there was a large field;
one of the
contenders was Democrat
Sandy Kress, tied to Texas' TEKS accountability system and NCLB; hats off to him, and to
anyone who wants to work hard and achieve success in this life.  However, many folks preferred Republican Robert
Scott, who was already doing the job and to his credit, together with Gov. Perry, took Texas in a different direction by
posting TEA's check register online, the first DOE in the nation to do so; just as important, Robert's
NOT a lobbyist.  
While  
Robert Scott's support ran the gamut of Republicans -- conservative and progressive alike -- plus TASA, TASB,
PTA moms and even many Democrats, and he was already possessed of a unique skillset, having already run the
Texas Education Agency behind the scenes for years, it was felt that because he had no conflict of interest, Scott could
easily pass the upcoming Senate confirmation process, which indeed occurred when the Lege met again this year.  By
contrast,
Sandy Kress's fan base appeared to center on the Governor's Business Council whose members according
to reports were in frequent, active and generously supportive communication with the Governor and his staff.  I'm leaving
this page online for both historical purposes and because Pearson continues to be a major accountability player.
What Al Scardino
has done:
o  Advisor to fellow Democrat Bill
Clinton's presidential campaign
o  Bought England's oldest soccer team;
within a year or two it was bankrupt.
OR  MATH  OR   ABLE TO READ
OR    UNDERSTAND     HISTORY
Marjorie Scardino's
husband Albert Scardino
By Peyton Wolcott
Sat., Sept. 1, 2007 - 1:00 am
                                                                       H o w   w e   t a k e   b a c k   o u r   c h i l d r e n ' s    e d u c a t i o n :  o n e   p e r s o n ,  o n e   q u e s t i o n ,   o n e   s c h o o l   a t   a   t i m e   -   Copyright 1999-2009 Peyton Wolcott                     
P E Y T O N   W O L C O T T

How we take back our children's education:
one person, one question, one school at a time.
FAIR USE NOTICE:
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.   We are making such material available in our efforts to
advance understanding of education issues vital to a republic.  We believe this constitutes a "fair use" of any such copyrighted material as provided for in section 107 of the US Copyright
Law.  In accordance with Title 17 U.S.C., Chapter 1, Section 107 which states:  the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any
other means specified by that section, for purposes such as criticism, comment, news reporting, teaching, scholarship, or research, is not an infringement of copyright,"  the material on
this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.   
If you wish to use copyrighted material from this site for purposes of your own that go beyond "fair use" you must obtain permission from the copyright owner.
ATTENTION EDUCATORS AND ADMINISTRATORS:
Every attempt possible has been made to verify all sources and information.   In the event you feel an error has been made, please contact us immediately.  Thank you.
Copyright 1999-2009 Peyton Wolcott
Following the money:
From Sandy Kress to Akin Gump to U.K.-
owned Pearson to NCLB--the collision of
lobbyists, edu-vendors and government
By Peyton Wolcott
Updated Monday, September 3, 2007 - 10:00 a.m.
Pearson Education facts
(from Pearson site)

Pearson Education is
the global leader in
educational publishing.
 
Our international business
(outside the US) is three
times bigger than that of our
nearest competitor.
18m US school students
learn English and Maths with
a Pearson programme.

Scott Foresman's Dick, Jane
and Spot series have taught
generations of Americans to
read since 1930.

24,000 US schools are using
Pearson Education
technology to instruct children
and monitor their progress.

Half a billion people are
learning English with Pearson
Longman materials.

10,000 primary schools in the
UK use digital materials from
Pearson Education.

3.6m college students in
America are using one of our
online services.

Nearly 100 million
constructed response scores
and 40 million exams were
scored by Pearson Education
in the US last year.

Edxecel marks 9.4 million
examination scripts each
year, of which 3 million were
marked on-screen in 2005.

1 in 3 US school children
studies English or Maths
with a Scott Foresman or
Prentice Hall textbook.  
 3.5m
people qualified in our testing
centres in 2005.
Pearson programmes and
testing centres

Scott Foresman

Pearson Education  

Pearson Longman

Edxecel

online services

Prentice Hall
2006
Pearson to acquire Chancery
Software Ltd
31 May 2006
(Pearson press release)

Pearson, the world's leading education
company, today announced the
acquisition of Chancery Software Ltd.,
a leading provider of student
information systems (SIS) in the K-12
US school market.

Over the past 20 years, Chancery has
built a range of software tools to help
schools and districts collect and
manage student information such as
enrollments, scheduling, attendance,
grading, and student performance.
Chancery is the second largest SIS
company in the US market with an
installed base of 6,000 schools and
recognized capabilities in building,
installing and supporting customized
systems for large school districts.

Pearson is the market leader in the
enterprise and student information
systems business with an installed
based of more than 16,000 schools. It
provides SIS solutions for K-12 school
districts combining student
information, assessment, reporting,
and business solutions to
fulfill the
accountability requirements
set by No Child Left Behind

through its SASI school server-based
product and its Centerpoint web-based
offering. These products lead the SIS
market for small- and mid-sized
school districts.

Last week Pearson also announced
the acquisition of PowerSchool, the
third largest school SIS provider, from
Apple. Chancery and PowerSchool will
be integrated into a single company,
Pearson School Systems, operating
under the leadership of Mary McCaffrey.

Steven Dowling, president of
Pearson's School Companies, said:

"Student information is central to our
goal of helping schools raise student
achievement through personalized
learning. The acquisitions of
PowerSchool and Chancery transform
our SIS business, doubling its size
and enabling us to offer the
pre-eminent software solutions for all
levels of schools and districts (small,
medium, and large). All three
businesses have a long and
successful history of investment and
innovation, and together we will
continue to develop new services to
help schools achieve their goals."

"The large districts that Chancery
supports require a very high level of
customization and support as they
build and install their systems.
Chancery has a great deal of
experience and talent in this area and
will bring a lot to Pearson."

About Pearson Education
Educating 100 million people
worldwide, Pearson Education is the
global leader in educational
publishing, providing scientifically
research-based print and digital
programs to help students of all ages
learn at their own pace, in their own
way. Virtually all students and teachers
in America learn from a Pearson
program at some point in their
educational career. In the U.S., nearly
25,000 schools use Pearson
technology to help instruct K-12
students and manage how they are
doing. Pearson Education is a
business of Pearson, the international
media company (LSE: PSON; NYSE:
PSO).

About Chancery Software
Chancery Software
(www.chancery.com) is one of the
leading providers of Student
Information Systems for K-12 schools,
districts, classrooms, and homes.
Chancery solutions offer accurate
real-time information on more than
thirteen million students to one million
educators every day. Built to address
the challenges faced by today's
districts, Chancery Student
Management Solutions are
uniquely
aligned to meet the
accountability and reporting
requirements of the No Child
Left Behind Act.
With over 20
years of industry firsts and
implementations, Chancery's
customized SIS solutions meet the
needs and budgets of diverse schools
and districts throughout North America.

For more information:
Pearson
Simon Mays-Smith/ Deborah Lincoln:
+44 (0)20 7010 2310

Wendy Spiegel: +1 (212) 782 3482
Corporate
(from Pearson site)

For over 20 years, Chancery has been
in the business of creating Student
Information Systems (SIS). Working
first at the school site level, we
designed solutions for the Mac and
Windows platforms—our award
winning Mac School® and Win
School® SIS.

Over six years ago, we introduced
"Open District®," our first web-enabled
solution and began moving the key
features of our site-based products
over to this new platform. During that
time we also recognized the need for a
fully web-based, centralized, totally
integrated solution using web services
and employing n-tier architecture. Four
years ago, we began building a new
and integrated SIS solution from the
ground up—Chancery SMS™.

This architecture separates the user
interface (browser) from the back-end
database, giving you flexibility in your
platform and database selections as
well as critical business logic in the
middle tier (which is where our
application resides). This allows for
flexibility, integration, security, and the
enhanced functionality we've spent
years developing.

We are very proud of the experience
we've gathered during our more than
20 years of developing SIS, which
manages data on over 13 million
students. And we're excited about our
Chancery SMS solution—which we
believe will take your student
information to new levels and help you
not only meet, but also exceed NCLB
and state reporting requirements.

We also believe it takes more than just
a great product to help your school
district get the most from the
technology you are using. This is why
we offer the industry's widest and most
flexible range of technical support and
customer services to help you get the
highest benefit from your partnership
with Chancery.
More about Houston
ISD's dropout rate
www.nottscountyfc.pr
emiumtv.co.uk
ISSUES RAISED
RE SANDY KRESS,
AKIN GUMP
"A powerful
Washington, D.C., law
firm
with unusually
close ties to the White
House
has earned hefty fees
representing controversial Saudi
billionaires as well as a
Texas-based Islamic charity
fingered last week as a terrorist
front....
Another longtime
partner is Barnett A.
'Sandy' Kress,
the former
Dallas School Board president
who Bush appointed in January
to work for the White House as
an 'unpaid consultant' on
education reform.... In addition to
the royal family, the firm's Saudi
clients have included bin
Mahfouz, who hired Akin,
Gump when he was indicted in
the BCCI banking scandal in the
early 1990s."
Per Scott Parks re
Sandy Kress:
"Lobbyist
a go-to guy on
school policy,  but some question
his motives."  
Asked about the serv-
ices Kress provides to
corporate clients, he
says,
"I don't want to talk too
much about what I do for my
clients because I don't think they
like that."
EDUCATIONAL
TESTING SERVICE
SANDY KRESS BIO

Sandy Kress, Partner
skress@akingump.com
1-512-499-6234            fax: 1-512-703-1112
Austin; Practice Areas: Public Law and Policy
Telecommunications and Information Technology

Sandy Kress served as senior
advisor to President Bush on
Education with respect to the No
Child Left Behind Act of 2001
. Mr.
Kress previously served as president of the
board of trustees of the Dallas Public Schools.
He has served on two statewide committees
to recommend improvements to Texas public
education. His practice focuses on public law
and policy at the state and national levels.

Appointed in 1998 by Governor George W.
Bush, Mr. Kress serves on the Education
Commission of the States. He has also
served as counsel to the Governor's Business
Council and Texans for Education, and as a
member of the Texas Business & Education
Coalition and the Telecommunications
Infrastructure Fund Board, which will spend
more than $1.5 billion over the next 10 years to
bring technology to Texas schools.

Mr. Kress was appointed by Lieutenant
Governor Bob Bullock to the Educational
Economic Policy Center. He was later asked
to chair the Center's Accountability Committee.
This committee produced the public school
accountability system that was later adopted
into Texas state law and recognized as one of
the most advanced accountability systems in
the nation. Mr. Kress was also appointed by
Lieutenant Governor Bullock to serve on the
Interim Committee to study the Texas
Education Agency.

Prior to joining Akin Gump, Mr. Kress was a
partner in the Dallas law firm of Johnson &
Wortley, P.C. He also served as deputy
assistant secretary for legislative affairs at the
U.S. Treasury Department.

Mr. Kress received his A.B. in 1971 from the University of
California, where he was a member of Phi Beta Kappa. He
received his J.D. with honors in 1975 from the University of
Texas School of Law, where he served as president of the
student government.

Mr. Kress is a member of the State Bar of Texas and the
District of Columbia Bar, and is involved with many civic
organizations. He serves on the board of directors of the
Gladney Center. Mr. Kress has also served on the boards
of the North Dallas Chamber of Commerce, the Jewish
Federation of Greater Dallas and the University of Texas
Law School Association, and as a member of the board of
governors of the Dallas Symphony Association.      
___________________________________________________
NOTE:  The above was published on ETS' site with no date.
Educational
Testing Service
Sandy Kress' $150
million a year plan
Leaders of the newly
formed
Texans for
Excellence in the
Classroom
--an offshoot
of sorts of the Govern-
or's Business Counci
l--
visited the Chronicle late last
week to rally support for a
comprehensive reform initiative
that they hope will put an
''excellent teacher in every
classroom'."  ...Leaders say the
plan would cost Texas an extra
$100 million to $150 million a
year. It's money well spent,
they say, because research
shows that highly effective
teachers can close achievement
gaps over five years.  "That's
how serious this is," Sandy
Kress, once a senior education
adviser to President Bush, told
the Chronicle. "We cannot lose
another generation."
Results in Dallas:
Dropouts, cheating
"Sandy Kress...has a lot in
common with George W. Bush.  
Their 'involvement'  with
education reform has nothing to
do with children and everything
to do with their own personal
agendas.
Both men  continually
misrepresent or distort the truth
even when confronted with the
cold, hard facts.

Sandy's
"accountability"
measures created a
system that gave
principals and teachers
the green light to falsify
and cheat on test
scores and attendance
records.
...And what did
DISD have to show for all of
Sandy's "great" work? Hispanic
dropouts and pushouts, low
graduation and retention rates,
soaring truancy, and the saddest
result of all...illiterate graduates
who tested well on TAAS!
"I have just three 'go to'
websites: The Texas
Legislature, Texas
Longhorn sports, and
Eduwonk" -- Sandy Kress
NOTE:  EduWonk is run by  
Andrew Rotherham, a former
Clinton White House advisor
who is also connected to The
Broad Foundation (below, 2002).
EDUWONK.COM
The elephant in the room
is how much the testing
process itself is costing
us.  
Remember that
NCLB was sold to a
Republican White House
by a Democratic lobbyist,
surely the lobbying coup
of the century.  E
stimates for
developing, publishing,
administering, grading, and
reporting NCLB-required
statewide tests: $517 million
during the 2005-06 school year.  
(SOURCE-- Eduventures)  Per
Education Sector, "some testing
company executives peg the
number somewhat higher, at $700
million to $750 million."
N C L B
Here's the thing with Sandy Kress.  You
never quite know when he discusses public
education--whether he's worrying aloud or
cheerleading--which hat he's wearing.

A good example would be this past spring
when Sandy was alerting folks across the U.S.
to the danger of any changes to the No Child
Left Behind Act, of which he is generally
credited as being the architect.  David Sanger
wrote in The New York Times in May that,
"President Bush's senior education adviser,
Sandy Kress, warned today that a movement in
Congress to modify the president's education
plan by removing requirements to test
students annually would 'cut out the heart and
soul' of the effort to overhaul America's
schools."
The question
Now, then.  Was Sandy worried as
NCLB's architect about his pet
project's being diminished by
those--including conservatives and
schoolteachers and their
administrators--who don't get
NCLB, those who maybe think any
collaboration undertaken with
Democratic Senator Teddy "Don't
worry about the pregnancy, Mary Jo,
we'll cross that bridge when we
come to it, I've inherited enough
money to support two families"
Kennedy is inherently suspect?  Or
was Sandy speaking as a lobbyist
for his client Pearson which
Mary Jo
Kopechne,
Teddy
Kennedy
company's revenue stream would dry up
considerably if our public schools suddenly
quit buying Pearson's tests?
A CLOSER LOOK:
PEARSON'S CHANCERY
SOFTWARE
June 1, 2006
eSchool News
" Making its second
acquisition of a major
competitor in less than a
week, Pearson School
Systems announced
yesterday that it is
purchasing Chancery
Software Ltd., a leading
publisher of student
information systems... "
Dear Friends:  While I very much
appreciate the inclusion by Harvey
Kronberg and his staff in today's
above-named QR commentary,  no
one from QR contacted me in the
course of their researching or writing
this report; I would have
characterized my questions and
comments differently regarding
Sandy Kress, whom I have
contacted on multiple occasions in
order to invite correction of anything
factually incorrect.   Further, not sure
how QR arrived at the statement that
Mr. Kress, "is not Pearson’s lobbyist
in Texas," given the information
below available at time of this writing
on the Texas Ethics Commission
website.   Have we entered the area
of defining "is"?   Perhaps a change
has been made to the TEC webpage
not reflected in this list below copied
this past hour from the TEC site.
                       -- Peyton
TEXAS ETHICS
COMMISSION
2007 Lobby List
with Concerns
(Employers and Clients)
Sorted By Concern Name         Part III -
(M-S) Printed August 28, 2007

Pearson Education
1 Lake Street  Upper
Saddle River, NJ 07458

Bryan, Beth Ann   (00055189)
300 West 6th Street Suite 2100  Austin,
TX 78701
Type of Compensation: Prospective
Amount: Less Than $10,000.00
Client - Start: 01/19/2007    Term Date:
12/31/2007

Carter, Janis L.   (00039065)
401 Congress Avenue Suite 2100
Austin, TX 78701
Type of Compensation: Prospective
Amount: $10,000 - $24,999.99
Client - Start: 01/10/2007    Term Date:
12/31/2007

Foster, Wendy M.   (00056685)
401 Congress Ste 2100 Austin, TX
78701
Type of Compensation: Prospective
Amount: $10,000 - $24,999.99
Client - Start: 01/22/2007    Term Date:
12/31/2007

Kress, B. Alexander   
(00032037)
300 West 6th Street Suite 2100  
Austin, TX 78701
Type of Compensation: Prospective
Amount: Less Than $10,000.00
Client - Start:
01/08/2007    Term
Date: 12/31/2007

Valenzuela, Joe D.   (00050742)
401 Congress Ste. 2100  Austin, TX
Type of Compensation: Prospective
Amount: $10,000 - $24,999.99
Client - Start: 01/10/2007    Term Date:
12/31/2007

www.ethics.state.tx.us/tedd/conlob2
007c.htm
QUESTION: Why would Gov. Perry--elected as a
Republican by Republican voters--appoint a Democratic
lobbyist whose edu-vendor clients include Pearson as
Texas' next education commissioner?  Especially if they've
made millions from  government programs like NCLB he
helped design? What if the kicker is that he sends his own
son to a private school?
Pearson logos
Houston ISD dropout
rate whistleblower
Bob Kimball  
(PHOTO--CBS)
"HISD's software system gets an 'F' for
frustration," wrote Jennifer Radcliffe last
October in the Houston Chronicle, citing
$600,000 in overtime expenses for
district employees.  "Houston's launch of
Pearson School Systems' Chancery soft-
ware has been troubled since August,
when thousands of student schedules
weren't done in time for the start of
school."
 
REPORTS OF
PROBLEMS WITH CHANCERY
FLORIDA - "Orange County Public
Schools is jettisoning a glitch-prone
software program that gave the parents of
middle-school students headaches rather
than their children's grades. After nearly
two years of waiting for the company to fix
the problems, the district is looking for a
new vendor to create a program that will
give parents, teachers and students
access to critical information."  COST:  
$3.8 million
(SOURCE--Orlando Sentinel)

MARYLAND - "The Howard County
district...has reported repeated problems
since installing Chancery last summer.  In
that district, report cards were late and had
errors."
 (SOURCE--Houston Chronicle)

TEXAS - "I wonder why the Klein ISD
problems were not mentioned in this story.
There were quite a few very heated Klein
ISD School Board discussions about the
failure of this software to deliver on what it
promised, and the resultant extra costs to
the district. I remember hearing that
Pasadena ISD was not happy with it
either. I wonder just how many school
districts out there bought this software."  
(SOURCE--Anonymous entry/Houston
Chronicle blog)
QUESTIONS RE HOW CHANCERY IS
PURCHASED BY PUBLIC SCHOOLS

(1)  Why did Reggie Moore, Gledich
and Thompson purchase "flawed"
software with "poor reviews"?
"Orange County Public Schools Chief
Operations Officer Nick Gledich....and Chief
Information Officer Charles Thompson
acknowledge the software rollout was flawed
from the start.  The district went ahead with the
middle-school system despite poor reviews
from other schools testing the program."  
(SOURCE--Orlando Sentinel)

(2)  Was Pearson a TAS/MUS
sponsor
in April at the Boerne Tourney?  
Who did the Pearson vendor play golf with at
the
TAS/MUS conference?
Fast forward: Chancery HISD champion resigns
Houston ISD has announced that "Reggie Moore, the
46-year-old chief operations officer, was leaving 'to pursue
other opportunities.'  Moore, who came to the district from the
private sector in 2004, oversaw the district's police,
transportation, food service, maintenance and technology
departments.  Most recently, Moore, who earned $164,424 a
year, made the news for overseeing the rollout of Chancery."
Reggie
Moore
QUESTION:   Is a "big
bet" really a bet when
Pearson's lobbyist is
friendly with the White
House?  And its lobbyist
helped draft NCLB?
QUESTION RE EDU-VENDOR  PEARSON
How did Houston ISD purchase $18.4 mil in 'flawed'
Canadian Chancery  software with 'poor reviews' from
U.K. vendor Pearson?  Will it help HISD's 40-50%
dropout rate?
By Peyton Wolcott
Wednesday, September 5, 2007 - 8:38 a.m.
How Chancery connects with HISD's dropout rate
We won't know for some years if Chancery has succeeded in providing
the district with sufficient student information that the actual dropout
rate drops to the 1.3% level it claimed in 2002 when then-HISD
administrator Bob Kimball blew the whistle on the district's dropout
reporting practices.  For now, Kimball confirmed by telephone last night
that Houston ISD's actual dropout rate had been determined to be in
the 40-50% range by a group of scholars who met at last October at a
conference at Rice University; sponsors included the Rice University
Center for Education, Children at Risk, and the Civil Rights Project at
Harvard University.  Hats off to Fox News in Houston for highlighting
this issue by interviewing Bob last week as the new school year began.
60 MINUTES /
CBS
The 'Texas Miracle'
60 Minutes II Investigates
Claims That Houston
Schools Falsified Dropout
Rates
Aug. 25, 2004

It was called the “Texas Miracle,” a
phrase you may remember
because President Bush wanted
everyone to know about it during his
2000 presidential campaign.

It was an approach to education that
was showing amazing results,
particularly in Houston, where
dropout rates plunged and test
scores soared.

Houston School Superintendent Rod
Paige was given credit for the
schools' success, by making
principals and administrators
accountable for how well their
students did.

Once he was elected president, Mr.
Bush named Paige as secretary of
education. And Houston became the
model for the president’s “No Child
Left Behind” education reform act.

Now, as Correspondent Dan Rather
reported last winter, it turns out that
some of those miraculous claims
which Houston made were wrong.

And it all came to light when one
assistant principal took a close look
at his school’s phenomenally low
dropout rates – and found that they
were just too good to be true.
---------------------------------------------------
“I was shocked. I said, ‘How can
that be,’” says Robert Kimball, an
assistant principal at Sharpstown
High School, on Houston’s West
Side. His school claimed that no
students – not a single one – had
dropped out in 2001-2002.

But that’s not what Kimball saw: “I
had been at the high school for three
years, and I had seen many, many
students, several hundred a year,
go out the door. And I knew that
they were quitting. They told me
they were quitting.”

Most of the 1,700 students at
Sharpstown High are under-
privileged immigrants -- prime
candidates for dropping out.

One student was Jennys Franco
Gomez. She dropped out of
Sharpstown in 2001 for an all-too-
familiar reason: she had a baby.
“My baby got sick, and I don’t have
nobody to take care of my baby and
take it to the doctor,” she says.

The high school reported that
Gomez left to get a GED, or
equivalency diploma, which doesn’t
count as a dropout. But Gomez
says she never told school officials
anything of the sort.

All in all, 463 kids left Sharpstown
High School that year, for a variety
of reasons. The school reported zero
dropouts, but dozens of the students
did just that. School officials hid that
fact by classifying, or coding, them
as leaving for acceptable reasons:
transferring to another school, or
returning to their native country.

“That’s how you get to zero
dropouts. By assigning codes that
say, ‘Well, this student, you know,
went to another school. He did this
or that.’ And basically, all 463
students disappeared. And the
school reported zero dropouts for the
year,” says Kimball. “They were
not counted as dropouts, so the
school had an outstanding record.”

Sharpstown High wasn’t the only
“outstanding” school. The Houston
school district reported a citywide
dropout rate of 1.5 percent. But
educators and experts 60 Minutes
checked with put Houston’s true
dropout rate somewhere between 25
and 50 percent.

“But the teachers didn’t believe it.
They knew it was cooking the
books. They told me that. Parents
told me that,” says Kimball. “The
superintendent of schools would
make the public believe it was one
school. But it is in the system, it is
in all of Houston.”

Those low dropout rates – in
Houston and all of Texas - were
one of the accomplishments then-
Texas Gov. George Bush cited
when he campaigned to become the
“Education President.”

At that time, Paige was running
Houston’s schools, and he had
instituted a policy of holding
principals accountable for how their
students did. Principals worked
under one-year contracts, and each
year, the school district set strict
goals in areas like dropout rates and
test scores.

Principals who met the goals got
cash bonuses of up to $5,000, and
other perks. Those who fell short
were transferred, demoted or forced
out.
---------------------------------------------------
Kimball took his findings about
Sharpstown High to CBS affiliate
KHOU-TV, which first reported the
dropout scandal.

Then, he went to State Rep. Rick
Noriega. In Noriega’s largely
Hispanic, mostly poor district, many
kids start high school, but never
finish.

“In my district in particular, where I
have many of my high schools,
1,000 ninth-grade students, yet only
approx 300 or so will walk the stage
four years later and receive a
diploma. A big question should go
off in people’s heads, where are the
other students?” says Noriega, who
asked the state to find out.

Investigators checked half of the city’
s regular high schools. They
reviewed the records of nearly
5,500 students who left those
schools, and checked how the
schools explained it. They found that
almost 3,000 students should have
been, but weren’t, coded as
dropouts. The audit substantiated
Kimball’s allegations.

“The problem is the lack of integrity
that’s being demonstrated when you
say there’s such a low dropout rate,
when we know, everyone knows,
that 30 to 40 percent of the kids are
dropping out of schools," says
Kimball.

60 Minutes wanted to ask Houston
school officials about Kimball’s
charges, but they wouldn’t talk on
camera. They said they wouldn’t
“get a fair shake.” But they did meet
off camera, and they argued that the
audit proved outright fraud only at
Sharpstown High.

At the other schools, they
contended, the false statistics were
due to “confusion” about the
complex state system for coding
students, and sloppy bookkeeping.
They conceded, however, that
Houston’s “official” 1.5 percent
dropout rate was not accurate.

Those officials also urged 60
Minutes to get a better picture of the
Houston school system on by
talking on camera to Rob
Mosbacher, a Houston
businessman, school supporter and
Republican activist.

“I think the district looks at the
challenges it has, and sets high
expectations. And that’s something
that makes all of us very proud.
Because they’ve been making the
progress that shows that
expectations can be realized,” says
Mosbacher.

60 Minutes also tried to talk to Paige
himself, but he declined. His
spokesman said the dropout
controversy broke after Paige left
Houston to become education
secretary. And he said the phony
statistics at Sharpstown were the
work of a few individuals.

Paige’s spokesman suggested that
60 Minutes talk to Jay Greene, a
leading expert on dropouts at the
Manhattan Institute. Greene
supports the kind of accountability
reforms Paige enacted in Houston.

But this is what Greene said when
asked what he thought about
Houston’s “official” dropout rates: “I
find that very hard to believe. It is
almost certainly not true. I think it’s
simply implausible. I think a
reasonable guess is that almost half
of Houston’s students do not
graduate from high school.”

Greene also points out that Houston’
s dropout problem is no worse than
that of school systems in many
other large American cities: “I think
they are doing about as well as
most urban school districts, which is
to say not very well … I don’t think
they’ve been doing super well.”
---------------------------------------------------
Houston also won national acclaim
for raising the average scores on a
statewide achievement test that was
given to 10th graders. Principals
were judged on how well their
students did on the test.

But at Houston schools, Kimball
says, principals taught addition by
subtraction: They raised average
test scores by keeping low-
performing kids from taking the test.
And in some cases, that meant
keeping kids from getting to the 10th
grade at all.

“What the schools did, and what
Sharpstown High School did, they
said, ‘OK, you cannot go to the 10th
grade unless you pass all these
courses in the 9th grade,” says
Kimball.

What's wrong with that? Wouldn't
this help students get the basics
down before moving on?

“Because you failed algebra, you
may be in the ninth grade three
years, until you pass the course.
But that’s not a social promotion if
you just allowed the student to go to
10th grade, just you know, let him
take algebra again, and work on it
there.”

That’s just what happened to Perla
Arredondo. She passed all her
courses in ninth grade, but was then
told she had to repeat the same
grade and the same courses.

“I went to my counselor’s office,
and I told her, ‘You’re giving me the
wrong classes, because I already
passed ‘em,” says Perla. “So she
said, ‘Don’t worry about it. I know
what I’m doing. That’s my job.’”

Perla spent three years in the ninth
grade. She failed algebra, but
passed it in summer school. Finally,
she was promoted – right past 10th
grade and that important test -- and
into the 11th. Without enough credits
to graduate, Perla dropped out.
While she worked as a cashier, a
secretary, and a waitress, she
learned an important lesson: “I
know I can’t get a good job without
a high school diploma. You know? I
can get a job as a waitress. I mean,
and I don’t wanna be doing that all
my life.”

Why? “For my dad and mom. You
know, I wanna give ‘em, I want
them to be proud, you know,” says
Perla. “That’s another thing I want. I
want them to be, you know, proud
of what I am.”
---------------------------------------------------
Gilbert Moreno has seen many
Perla Arredondos. He runs a school
filled with dropouts.

“There are some horrible stories,”
says Moreno, who is director of the
Association for the Advancement of
Mexican-Americans, which
operates a private, non-profit charter
high school for disadvantaged kids.

“A youngster passed, say, five
different subjects, passed the
English, but wasn’t given the
algebra, and then was later told, at
the end of the year, ‘Well, you’re not
gonna pass to the 10th grade. You
never passed algebra. You never
took algebra,’” says Moreno. “And
the youngster goes, ‘I never knew
this.’ And it looks almost that there
was an attempt to maybe identify
some certain students and not give
them the required curriculum.”

There is no state audit to back up
this claim, but Moreno points out that
many Houston high schools have
bulging ninth grades, and very small
10th grades. One school, he says,
held back more than 60 percent of
its ninth-graders.

School officials say students are
held back because they’re not ready
for the next grade. They deny that
they were held back to avoid the
test.

Students and teachers at Moreno’s
charter school showed 60 Minutes
that dropouts are not a lost cause.
Former dropouts get help here to
stay in school. Classes are small,
there is daycare for students with
children, and programs to combat
drugs and gangs.

There was determination, ambition
and hope in their voices.

Roscio dreams of becoming a
cartoonist. “I’m really good at
drawing,” he says.

“Right now, I want to go to med
school and continue to become a
pediatrician,” says Victor.

And Vanessa dreams of becoming
a journalist.
---------------------------------------------------
Noriega says Houston school
officials focus on statistics instead of
real problems: “That’s the issue. It’s
the kids, stupid. And people
continue to wanna spin around it all,
and lose sight of it all. And it’s
Kimball, and it’s just one school,
and it’s this and it’s that. And it’s not.”

If that sounds like a political
statement, it’s because questions
about the Houston school miracle
are now being raised in Washington.

And Education Secretary Paige,
who declined to give 60 Minutes an
interview, responded to those
questions in a speech in Houston
just before Christmas 2003: “Critics
come after the school district in
Houston. Not Sacramento, not
Denver, Boston or Los Angeles. It
is Houston that they put on the front
page. They come after you, not
because of an interest in quality
education, but because of where
you live.”

And in the case of whistle-blower
Kimball, school officials have
denounced him as incompetent, and
transferred him to a primary school
for kindergarten through second
grade, where he is the second
assistant principal.

“The district felt that, by sending me
down there, somebody who’s taught
at university level, taught at high
school level, and middle school
level, would be humiliated at a low
primary school, but I’m telling you
that I love it,” says Kimball, who
adds he isn’t going to quit.
---------------------------------------------------

After 60 Minutes broadcast that
story, Robert Kimball filed a whistle-
blower suit against the Houston
School District for retaliating against
him.

The school board dropped its
reprimand and paid Kimball
$90,000. Kimball resigned and is
now teaching at a local university.

A few weeks later,
three top school
board officials,
including
Superintendent
Kay
(sic) Stripling,
resigned their
posts.

State Representative Rick Noriega,
a major in the Army Reserves, is
now on active duty in Afghanistan.
Supes golfing with
vendors during TAKS week
THE WORLD ACCORDING TO PEARSON
(From Pearson's site)

Pearson at a glance
Pearson is an international media company
with market-leading businesses in education,
business information and consumer
publishing. We lead our markets in quality,
innovation and in profitability. We draw on
common assets, capital, processes and
culture. With more than 29,000 employees
based in 60 countries, we are a large family of
businesses that are alike in sharing the same
aim: a focus on making the reading and
learning experience as enjoyable and as
beneficial as it can possibly be.

Pearson is listed on the London (PSON) and
New York (PSO) Stock Exchanges. In 2006 our
businesses had sales of £4,423m ($8,669m)
and adjusted operating profit of £592m
($1,160m).

Pearson Education
The world's leading education company. From
pre-school to high school, early learning to
professional certification, our textbooks,
multimedia learning tools and testing
programmes help to educate more than 100
million people worldwide - more than any other
private enterprise....


Financial Times Group
The Financial Times Group, one of the world's
leading business information companies,
provides a broad range of business
information and multimedia services to the
growing audience of internationally-minded
business people....

The Penguin Group
The world-famous Penguin brand is the label
of quality from novels and classics to
cookbooks - and much more - around the
world. We publish an unrivalled range of fiction
and non-fiction, bestsellers and classics,
children's books and illustrated reference
treasure chests in over 100 countries.
(SOURCE--Pearson)
CHANCERY
Student Management Software
(From Pearson's website)

District Administrator Challenge
Need to secure district funding, ensure
district performance, and
meet
NCLB requirements.

As head of the district, you are
invariably looking for funding sources—
much of which is dependent upon the
schools under your jurisdiction
meeting state and federal achievement
and reporting requirements. Your
performance is under constant scrutiny
by both the school board and the
community. These groups want to
know how your district is performing
and they want to know that the money
invested in student achievement has
been wisely spent.
Solution
The reporting and data mining capabilities in Chancery SMS lets you
respond quickly to inquiries, create effective funding applications,

meet No Child Left Behind requirements
, and make better
decisions for the district. Chancery SMS helps you understand and
analyze student data and ensure district funds are employed in ways
that have a direct impact on your students’ educational achievement.
PEARSON EDUCATION
(from Pearson site)
Through acquisitions,
strategic alliances, and
organic growth, we have put in
place all the pieces necessary
to create the world's leading
learning company.

These pieces include the
most comprehensive range of
educational programmes;
leadership in testing,
assessment, and enterprise
software; and the very best in
online consumer and
professional learning.

We are engaged in these
activities for every age and
level of student - from
pre-school through
kindergarten, primary and
secondary school, college and
university and on into
professional life.

Pearson Education's
international business has
been growing rapidly in recent
years, and we now have a
presence in over 110
countries.
UPDATE:  final FY 2005-
2006 numbers now in
TEA checks in the
mail to Pearson:
$135,500,000
Raising questions for any
consideration of Pearson
or other lobbyists (inclu-
ding Sandy Kress) as
Texas' next edu-missioner
By Peyton Wolcott     
Updated Fri., Sept. 7, 2007-5:32 p.m.
2006-10-13 4,299,072.35
2006-10-18 102,554.25
2006-10-19 88,672.55
2006-10-20 157,571.47
2006-10-25 62,750.46
2006-10-26 280,216.09
2006-10-27 64,679.81
2006-10-30 4,990.50
2006-11-02 70,107.08
2006-11-03 231,793.67
2006-11-08 259,421.55
2006-11-09 116,172.27
2006-11-10 126.00
2006-11-13 17,591.36
2006-11-15 26,547.00
2006-11-16 80,825.27
2006-11-17 58,026.91
2006-11-21 201,201.62
2006-11-24 22,956.09
2006-11-29 31,972.30
2006-11-30 10,049.20
NCS PEARSON INC
2006-09-28 3,831,697.00
2006-10-19 1,847,622.00
2006-10-31 2,905,758.00
2006-11-09 447,486.00
2006-11-21 3,192,006.00
2006-11-30 1,280,785.00
2006-12-19 3,726,515.00
2007-01-18 2,851,141.00
2007-01-25 206,420.05
2007-01-26 89,767.00
2007-02-14 5,000.00
2007-02-20 6,087,045.00
2007-03-01 27,377.00
2007-03-21 8,667,964.00
2007-04-19 13,364,700.00
2007-04-20 484,421.00
2007-05-10 6,869,667.00
SUBTOTAL  FIRST 3 QTRS.
$ 55,885,371
2006-12-06 44,612.80
2006-12-07 42,672.68
2006-12-08 11,852.13
2006-12-13 21,520.23
2006-12-14 34,267.87
2006-12-15 4,882.83
2006-12-20 2,884.75
2006-12-21 61,666.84
2006-12-27 387.38
2006-12-28 8,690.14
2007-01-03 722.00
2007-01-04 25,464.33
2007-01-05 5,005.14
2007-01-10 2,077.00
2007-01-11 35,941.82
2007-01-18 25,100.36
2007-02-01 121,344.08
2007-02-07 202,853.44
2007-02-08 10,325.96
2007-02-09 60,371.34
2007-02-12 33,908.54
2007-02-15 416,540.50
2007-02-20 509.60
2007-02-21 24,689.15
2007-02-22 4,635.20
2007-02-23 18,721.53
2007-02-27 42.10
2007-03-01 27,635.16
2007-03-02 9,691.83
2007-03-14 28,742.55
2007-03-15 14,862.70
2007-03-22 31,029.87
2007-03-23 1,210.00
2007-03-28 1,507.25
2007-03-29 1,614.68
2007-04-04 13,135.69
2007-04-18 78,978.25
2007-04-20 2,789.14
2007-04-27 2,012.10
SUBTOTAL
FIRST 3 QTRS  
$ 7,622,196
The following represent
$135,500,000 in checks paid to
Pearson Education/NCS
Pearson by Texas taxpayers
via the Texas Education Agency
during the most recent fiscal year
(09/01/06 - 08/31/07); these
checks are posted on
TEA's
website.   For the record, as of
this week, the Texas Ethics
Commission lists Sandy Kress
as Pearson's paid lobbyist.
 (Full
current list of Pearson's Texas
lobbyists below far left in
greybar.)

Many thanks once again to
Gov. Rick Perry and to Interim
Commissioner of Education
Robert Scott for posting TEA's
check register online earlier this
year -- the first and only state
department of education to do so
in the U.S.!
2006-10-10 48,500.00
2006-12-14 137,781.00
2006-12-15 29,110.00
2006-12-22 46,995.30
2007-01-25 1,140,739.50
2007-02-14 46,130.60
2007-04-12 1,394,031.70
2007-04-26 106,506.90
2007-05-02 45,710.50
EDUCATIONAL TESTING
SERVICE SUBTOTAL
FIRST 3 QUARTERS
$ 2,995,505.50
And many thanks to the
alert late-night reader who
suggested a revisit of the Texas
Ethics Commission lobby lists,
where we find other Sandy
Kress clients, Educational
Testing Service and Edvance
Research, Inc.; here are some
of the checks TEA wrote to
these two businesses during the
first three quarters of the current
fiscal year.
NCS PEARSON
PEARSON EDUCATION
2007-03-29 41,878.73
2007-04-27 42,380.63
2007-05-29 47,535.41
EDVANCE RESEARCH
INC
SUBTOTAL FIRST 3
QUARTERS
$ 131,794.77
EDUCATIONAL TESTING
SERVICE
EDVANCE RESEARCH
Lobbyist Sandy Kress (L) Pearson's
"Big Man on School Reform"
(Caption source--Scott Parks/Dallas M. News)  
(R)  Marjorie "Marj" Scardino, Pearson's CEO
TEXAS EDUCATION AGENCY  -
FISCAL YEAR FY 2006-2007 TOTALS
NCS PEARSON INC                              
    
$   93.6+ million
PEARSON EDUCATION TOTAL:      
  
$   41.9+ million
TOTAL PAYMENTS                                
 
 $ 135.5+ million
A closer look at
Edvance Research, Inc.
By Peyton Wolcott - Friday,
September 7, 2007 - 5:41 pm
THE GOVERNOR'S
BUSINESS COUNCIL, THE
COMMISSION
FOR A COLLEGE READY
TEXAS, and EDVANCE
RESEARCH, INC.
Sandy Kress is registered lobbyist
for the first two, chair of the third
By Peyton Wolcott      
Updated Thursday, September 13, 2007
2003 PRESS RELEASE
re TCCRT
"2003 Governor Perry has directed
the Governors Business Council to
organize the series of College
Ready Summits around Texas to
unite the business community and
the education establishment in the
common goal of lowering dropout
rates and improving college
readiness of graduating high school
students....The College Ready
Summits build upon the Texas High
School Project (THSP), a $130
million public-private initiative
organized by Governor Perry.
THSP partners the State of Texas,
the Michael and Susan Dell
Foundation, and the Bill & Melinda
Gates Foundation to benefit at-risk
students and encourage high school
graduation.  "The public sector and
the private sector must work
together to solve the problem of high
school dropouts," added Perry. "If
we expect the Texas economy to
be prosperous tomorrow, we must
first equip our high school graduates
to succeed today."
 
(SOURCE--Gov. Perry press
release)
Sandy Kress
(PHOTO--PBS)
________________________
"No Child" graphic source:  
Pennsylvania Citizens for Science
*  "Multiple Case Study of the Fiscal Conditions that Exist in Five
California School Districts under State Receivership," by Christine
Lizardi Frazier (2006).
What are REL's?
In an effort to help educators and policymakers use research
as a basis for improving schools and ensuring that all
students receive a challenging and effective education, the
U.S. Department of Education has awarded $51 million to
operate 10 regional educational laboratories in FY 1996, the
first year of a 5-year contract.

The laboratories will operate along two major themes. One
will be to examine ways in which the various pieces of
comprehensive reform programs (e.g., standards, curricular
alignment) can be put together to effectively support high
levels of learning for all children. The second will be to
develop workable strategies for "scaling up" effective
teaching and learning practices. In addition, each of the labs
has been assigned a specialty area that will serve to expand
and direct its development and applied research activities
and to develop national prominence in its respective area.
The regional laboratories are currently authorized under the
Educational Research, Development, Dissemination and
Improvement Act of 1994 and were initially funded in 1966
The Broad Foundation's Broad Prize for
Urban Education, Capitol Hill (Oct. 2, 2002)
(PHOTO and CAPTION--US DOE)
And while it's easy to see that
the Democratic governor who
hatched GBC in 1994 (grey
box above) might have needed
some assistance in creating a
more business-friendly
climate, you might also
wonder why then-Gov. Bush
continued the GBC -- until you
THE GOVERNOR'S
BUSINESS COUNCIL INC
816 CONGRESS AVE STE 1100
AUSTIN, TX 78701-2471

Status: IN GOOD STANDING -
EXEMPT CORPORATION  
Registered Agent:
JUSTIN YANCY
515 CONGRESS AVENUE,
SUITE 1780
AUSTIN, TX 78701
Registered Agent Resignation
Date:  
State of Incorporation: TX
File Number: 0131395601  
Charter/COA Date: May 25, 1994
Charter/COA Type: Charter
Taxpayer Number:
17525800607
PRESIDENT  LEE M. BASS
201 MAIN ST., SUITE 3200
FORT WORTH , TX 76102   

CHAIRMAN LOUIS BEECHERL
5950 CEDAR SPRINGS ROAD,
SUITE 200
DALLAS , TX 75235   

CHAIRMAN ROBT. G. DAVIS
9800 FREDERICKSBURG ROAD
SAN ANTONIO , TX 78288  
Handcuffed 1994 Governor's Business
Council chair Ken Lay  escorted by FBI
agent into Houston courthouse, 2004
  
(PHOTO--Richard Carson/REUTERS)
1994 Texas Governor's
Business Council  chair
Ken Lay 10 years later,
handcuffed en route to court

(PHOTO--Michael Stravato/AP)
MARCH 21, 2007 PRESS RELEASE
THE BROAD FOUNDATION
Eli Broad names 13
"distinguished leaders in the
fields of education, science, the
arts and business" to Broad
Foundation Board of Governors
Among those named were  
Barry Munitz and Rod Paige.
Barry Munitz  (PHOTO--LA Times)
Barry Munitz is described in
the above press release  as
"trustee professor, Califor-
nia State University, Los
Angeles, former president of
The J. Paul Getty Trust,
former chancellor of the
California State University."   
Compare that with this 2004
LA Times headline:
Getty Deal Raises
Questions:  Conflict-of-
interest specter haunts
land sale to Eli Broad, a
close friend of the trust's
CEO.  
 (More here)
About Rod Paige, Broad has this to say:  
"chairman of Chartwell Education Group LLC, former
U.S. secretary of education."   

Others, however, remember Mr. Paige as having been
the Houston ISD supe-in-charge credited with
producing the "Houston Miracle" or the "Texas Miracle,"
which has since been discredited as in this 2003
Washington Post article (below) thusly:  "Houston
Independent School District — showcase for the
'Texas educational miracle' that President Bush has
touted as a model for the rest of the nation — is
fending off accusations that it inflated its achievements
through fuzzy math."
Scandal in an education ‘miracle’
Bush critics cite disputed Houston school system data
The Washington Post
By Michael Dobbs
Updated: 5:39 p.m. CT Nov 7, 2003

HOUSTON, Nov. 8 - When the state of Texas
bestowed “exemplary” status on Austin High
School in August 2002, ecstatic
administrators compared the honor to winning
the Super Bowl. There was more cheering
and pompom-waving a few weeks later when
a private foundation honored Houston for
having the nation’s best urban school district.


JUST a year later, the high school has been
downgraded to “low-performing,” the lowest
possible rating. And the Houston Independent
School District — showcase for the “Texas
educational miracle” that President Bush has
touted as a model for the rest of the nation —
is fending off accusations that it inflated its
achievements through fuzzy math.

Austin is one of more than a dozen Houston
high schools caught up in a burgeoning
scandal about the reliability of their dropout
statistics. During a decade in which, routinely,
as many as half of Austin students failed to
graduate, the school’s reported dropout rate
fell from 14.4 percent to 0.3 percent. Even a
Houston school board member calls the
statistic “baloney.”

If this were any other school district in the
nation, few people would pay much attention.
But Houston is the political springboard for U.
S. Education Secretary Roderick R. Paige. He
was school superintendent here before
moving to Washington, and what originally
began as an argument over dropout data has
expanded into a debate about the
administration’s entire approach to
educational reform.

Opponents of the Houston system of
business-style accountability have seized on
the dropout scandal as evidence that some of
Paige’s most cherished accomplishments —
including narrowing the “achievement gap”
between white and minority students — rest
on false or manipulated data. They have
raised questions about the validity of test
results that purport to show spectacular
progress by Houston students in reading,
writing and arithmetic.

“It is all phony; it’s just like Enron,” said Linda
McNeil, a professor of education at Houston’s
Rice University, referring to the bankrupt
Houston-based energy services company that
boosted its stock price by covering up losses.
“Enron was concerned about appearances,
not real economic results. That pretty much
describes what we have been doing to our
children in Houston.”

ACCOUNTABILITY

Paige, in an interview, called such remarks
“inflammatory, very unfair.” He vigorously
defended his record as Houston school
superintendent between 1994 and 2000,
saying the criticism came from people who
believe it is “fundamentally wrong” to measure
student achievement and who have a “vested
interest” in preserving a dysfunctional status
quo.

During his tenure, Paige formed a political
alliance with Texas Gov. George W. Bush, who
became an ardent advocate of accountability
and high-stakes testing. After Bush was
elected president, Paige’s ideas became the
inspiration for the administration’s “No Child
Left Behind” plan, aimed at raising
educational standards nationwide. Schools
now face penalties for failing to show
improvement in such things as dropout rates
and reading scores.

Conceding that individual “indiscretions” may
have occurred in a school system that serves
more than 200,000 students, Paige described
the Houston Independent School District as
“the most evaluated school district in the
history of America.” He said he places great
stock in the credibility of an accountability
system that demands quantifiable results
from administrators, teachers and children.

“The whole system for me rode on integrity,”
Paige said.

The Houston accountability controversy
reflects a rift that cuts to the heart of the debate
about the future of American education. Paige
and other proponents of high-stakes testing
say it is scandalous that many American
children lack basic academic skills, and they
contend this can be remedied by an
emphasis on bottom-line results. Skeptics
say Paige’s reforms are causing a dumbing-
down of the curriculum and douse any spark
of creativity in the classroom in a flood of
dubious data.

MANAGEMENT TECHNIQUES

Springtime is testing season for the 200,000
or so students who attend Houston public
schools, and it is approached with the kind of
enthusiasm normally reserved for sporting
events. There are pep rallies and marching
bands, and results are blared from billboards
and bumper stickers. The tests determine
whether students advance to the next grade,
whether teachers are promoted and whether
administrators earn annual bonuses.

‘He (Roderick R. Paige) and George Bush made it
acceptable in conservative circles to talk positively about
public education.’   — SCOTT HOCHBERG  [Democratic
state representative from Houston]

Although the system of high-stakes testing
predated his appointment as school
superintendent, Paige quickly became a
symbol of the accountability movement. A
former college education dean, Paige joined
forces with local business leaders who
favored a results-oriented approach to
education that included rewards for success
and penalties for failure. Soon after he
became superintendent, he introduced a
system of one-year contracts for school
administrators, effectively tying their job
security to the accomplishment of measurable
goals.

In revamping the school district, Paige said,
he spent a lot of time studying the works of
management gurus at the Houston-based
American Productivity and Quality Center,
which provides training courses for executives
of Fortune 500 companies.

By applying modern management techniques
to the school system, Paige said he could
explode “the conventional wisdom that big
school districts could not work . . . that they
were crime-ridden, underperforming and
overexpensive.”

The low point for Houston schools came in
1996, when voters turned down a proposed
$390 million education bond issue. Two years
later, with the help of the business community
and public goodwill generated by steadily
improving test scores, Paige secured voter
approval for $678 million in new loans to
rebuild many of the district’s decrepit schools.

Even Paige’s critics credit him with helping to
reverse the traditional Republican disdain for
public education. “He and George Bush made
it acceptable in conservative circles to talk
positively about public education,” said Scott
Hochberg, a Democratic state representative
from Houston who is critical of many aspects
of the accountability system.

SKEWED STATISTICS

After years of relying on dropout statistics as a
key component in their annual accountability
studies, school officials concede that they
were worthless all along.

At Paige’s confirmation hearing in January
2001, senators from both parties hailed him
for rescuing a troubled urban school system.

Last year, Houston became the first
winner of the $1 million Broad
Foundation prize for the best urban
school district.

But there were always dissenters, locally and
nationally, who argued that the Houston
miracle rested on skewed statistics and artful
public relations. They claimed vindication
earlier this year, when local television station
KHOU uncovered a dropout-reporting scandal
at Sharpstown High School.

Under pressure to produce results,
Sharpstown administrators had changed the
withdrawal codes for at least 30 students to
make it appear that no one had dropped out in
the 2001-2002 school year.

The television station tracked down one such
student, Juana Juarez, behind the counter of a
local Wendy’s. Juarez had informed
Sharpstown officials that she was leaving
school to find work, but they changed her
record to show she had transferred to a
private school. Exactly who changed the
dropout codes at Sharpstown High School
remains a mystery.

An investigation by state auditors showed that
at least 14 other Houston high schools,
including Austin, reported unusually low
dropout rates in 2000-2001, although there is
no evidence administrators falsified data. By
reporting a dropout rate of less than 0.5
percent, school principals increase their
chances of winning bonuses of as much as
$10,000 and earning top accountability ratings
for their campuses.

After years of relying on dropout statistics as a
key component in their annual accountability
studies, school officials concede that they
were worthless all along. “The annual dropout
rate was a crock, and we’re not [using] it
anymore,” said Robert R. Stockwell Jr., the
district’s chief academic officer.

Katie Haycock, director of the Washington-
based Education Trust, a nonprofit group that
supports strict accountability standards, said
dropout statistics are notoriously unreliable, in
Houston and across America.

“We have been lying to the public for a very
long time about how many kids leave high
school by using a dropout-reporting system
that is crazy,” she said.

Officials from the Houston school district
provided The Washington Post with a different
set of data, based on graduation rates, which
show that Houston’s dropout rate fell from
19.2 percent in 1998 to 9.2 percent last year.
But even those numbers paint a more positive
picture than official enrollment statistics.
Typically, about 13,500 students make it to the
eighth grade in Houston, but fewer than 8,000
earn high school diplomas.

Paige said Houston filed its dropout data
according to Texas state regulations, and he
expressed confidence in the integrity of the
statistics collected while he was school
superintendent. He said he is unable to
comment on developments in Houston after
he accepted the post of education secretary in
December 2000.

RISING NUMBERS AT AUSTIN

Austin High, one of Houston’s oldest public
schools, offers a window into Paige’s tenure
as school superintendent, and the
achievements and failings of the
accountability movement. It serves a poor,
predominantly Hispanic neighborhood within
sight of glistening downtown skyscrapers.
Nine of 10 students qualify for free or reduced-
price lunches.

Since the early 1980s, the school’s enrollment
area had experienced an influx of Mexican
immigrants and the flight of white residents to
the suburbs. Built to accommodate 2,000
students, the school was desperately
overcrowded. In 1989, students staged a
walkout to protest conditions.

By many accounts, the atmosphere at the
school improved significantly during the
1990s. A new principal, Jose Trevino,
tightened discipline by introducing school
uniforms and expelling troublemakers. Enron
became a corporate sponsor. Two new
schools opened in the neighborhood with
funds generated by the school bond issue,
relieving overcrowding at Austin.

‘The secret of doing well in the 10th-grade tests is not to let
the problem kids get to the 10th grade.’  — ROBERT
KIMBALL

Academic accomplishment also shot up, at
least according to annual test results. In 1995,
at the end of the first year of Paige’s tenure as
superintendent, only 26 percent of Austin 10th-
grade students passed the Texas math test.
By 2000-2001, the year Paige retired, 99
percent of 10th-graders were passing.

In the wake of the dropout scandal, some
local residents are questioning whether those
results are as unreliable as the dropout
statistics.

They point out that the Texas test is
administered in the sophomore year. Austin
High, like many other Houston schools,
routinely holds students back in the ninth
grade under a policy that effectively allows
school administrators to exclude weaker
students from the 10th-grade test results. In
2001, for example, there were 1,160 students
in the ninth grade and 281 in the 10th grade.

Perla Arredondo, the daughter of Mexican
immigrants, took ninth grade three times
before being moved up to 11th grade. By then,
she was so discouraged she dropped out of
Austin High, along with many of her friends.
She regrets her decision, after discovering
she needs a high school diploma even for
jobs such as secretary or cashier.

“I felt school was a waste of time because I
had to go over the same thing over and over
again and wasn’t moving up,” she said.

Because Arredondo skipped 10th grade, she
was never included in Austin High’s
accountability statistics. According to Robert
Kimball, a former Sharpstown High assistant
principal who provided KHOU with much of its
information, that is common practice in
Houston. “The secret of doing well in the 10th-
grade tests is not to let the problem kids get to
the 10th grade,” he said.

While declining to discuss individual cases,
school district officials defend the policy of
holding back students who are not ready to
advance because they do not speak English
well enough or cannot meet minimum
academic standards. The alternative, said
district spokesman Terry Abbott, is the
discredited system of “social promotion” that
pushes students “through a pipeline until they
fall out the other end.”

“This is not a Houston phenomenon, it is a
national phenomenon,” Paige said of the
sharp spike in ninth-grade enrollment figures,
and the equally sharp drop-off in subsequent
grades. “If you look at the data, every school
system has a spike like that.”

But an analysis of ninth-grade enrollment data
suggests that the spike is more pronounced
in Houston than elsewhere. In the 2001-2002
school year, the size of the ninth-grade class
in Texas was 1.6 times the size of the 12th-
grade class. In Houston, there were 21/2
times as many ninth-graders as 12th-graders.

© 2003 The Washington Post Company
(Top) Houston ISD HQ;
(below) former Houston ISD
superintendent Kaye
Stripling
(PHOTO--Texas Music
Project)
'Education  reform
Mafia?   No,  Vito,  it's
just some goodfellas'
By John Young/Waco Trib-09.09.07  
Editorial  mentions Neil
Bush, Sandy Kress, more.
RE:  QUORUM REPORT
September 4, 2007/1:36 p.m.
"Some on Governors (sic)
Business Council
promoting Sandy Kress for
Commissioner of Education
;
Education community has
reservations considering lobby
background and lack of hands on
experience in public schools"       
Dallas Morning News
09.09.07
"How do we acknowledge
districts that do a really good
job of advancing students,
particularly disadvantaged
students?  "That is something
that we probably as a state
and a country need to keep
working on in terms of
refinements in our
accountability system."
---Sandy Kress, "a former
education policy adviser to
President Bush who helped
design the state and federal
accountability systems.
"
Did you know that when
then-Enron CEO Ken Lay
(right)
"was the head of The Governor's
Business Council, the GBC
employed Sandy Kress for
$10,000 a month to push Bush's
education agenda around
Texas"
? (SOURCE--R.G. Ratcliffe/Polly
Hughes /Houston Chronicle, March 2004)

I didn't, either, until last week.   
When I see two or more
Although according to the corporation's site, "Edvance Research is a
woman and minority-owned small business and is HUB (Historically
Underutilized Business) certified in the state of Texas," its CEO is Dean
Nafziger, who appears (see above) to be not a woman but a man.

the company "was established in 2005 with a mission to be a leader in the
advancement of rigorous education research."   



Edvance's CEO was
Workforce Summit speaker
Dean Nafziger, founding partner & CEO of Edvance Research, Inc., was a
speaker at last year's U.S. Chamber of Commerce "Education and
Workforce Summit" in Dallas; Nafziger appeared on the same panel as
Charles Miller, who chairs the Commission on the Future of Higher
Education/US DOE, and is the former chair of UT's Board of Regents.


is quoted as saying, "a system that is simple and transparent showing
funding from the state to the district and from the district to the school,
would enable the general public to understand how much money their local
schools receive, how they spend it, and who to hold responsible for
expenditure decisions.  It would also make it easier for policymakers to
evaluate the impact various expenditure decisions have on student
performance and adjust school expenditures accordingly."  *
President/Harcourt Educational Measurement (San Antonio)
Director/Regional Education Lab Southwest
Senior VP/Sylvan Teachers Institute
Executive VP/Educational Testing Service
CEO/WestEd
Ass't assistant to the superintendent of the San Diego City Schools

000000000000000000000000000000000000000000'
DGL  

Following the money

business, t

EOC CONTRACT
WHO'S GOING TO GET IT

JIM NELSON - VOYAGER
MIKE MOSES -       



ase don't get me wrong; I'm a
free-market pro-business kind of
girl, and am all for anyone and
everyone legally here, men and
women alike, pursuing the
American dream with as much
gusto and integrity as they can
generate.

Why I'm taking exception to
Pearson and Marjorie Scardino
is the same reason I take
exception to other education
vendors and executives who


are doing way more business
with our school districts than our
children need in order to get a
good basic education.


properly answer this question,
we first have to look at the many
companies which comprise
Pearson today.

Pearson:  The new British
Empire
Trying to regain America?

Bigger and bigger slices of the
pie chart
advice, research and
counsel in the develop-
ment and implementa-
tion of laws, regulations
and programs to
improve the business
climate in Texas; pro-
viding advice &
counsel with respect
to the elimination and
The Governor's Business Council (GBC)
was created in 1994 by then-Governor Ann Richards
as a non-partisan 501c(6) non-profit corporation.  The
GBC was designed to assist the Governor of the State
of Texas with economic development by:  providing
The late Gov. Ann Richards
modification of statutory, regulatory and structural
impediments to economic development in Texas;
providing support for legislative and congressional
initiatives which further economic development in
Texas; and actively participating in the governor's
economic development outreach efforts.
 (SOURCE--The
Colorado Business Roundtable)  
 
FIRST GBC CHAIR:  Ken Lay, CEO/Enron.
Ann Richards
Geo. Bush
CONTRIBUTIONS: KEN LAY/ENRON
Mr./Mrs. Ken
Lay:
$12,500;
Enron PAC:
$19,500





(SOURCE ALL
FIGURES--DDay)
Mr./Mrs.Ken Lay $47,500
Enron PAC:  $146,500

From 1994, the Lay's gave $122,500
for both Bush guberna-
torial campaigns; $100,000 for his
inauguration; $250,000 for the Bush I
presidential library. Enron and Enron
executives gave $736,680 to Bush for
his political campaigns, his election
recount, and his inauguration.
"Voyager has been helped by government policy changes like that mandated by the Texas Legislature in 2003, which attached
a little-known rider to an appropriations bill to give the Texas Education Agency $12 million to spend on reading — that is, to
spend on a single intervention program for struggling readers in kindergarten and elementary schools. All districts had to use the
one program chosen by TEA or pay for their own. The TEA’s choice: Voyager."
 (SOURCE--Betty Brink/Fort Worth Weekly)
Ken Lay
(PHOTO--CNN)


The Commission for
a College Ready Texas
Gov. Perry has appointed Sandy Kress as chair.  

But before we can look at TCCRT, we have to look at The
Governor's Business Council--for which Mr. Kress is also a
registered paid lobbyist here in Texas--and how it intertwines
with the Texas Education Agency.  Such looks are revelatory.



Back to the beginning


Ken Lay was chair in 1994
Okay, maybe Vance wasn't such a great example of GBC membership.  Let's
keep looking.  
Here's another familiar name:  Randy Best, the fellow who brought us via Rider
51(a) an earmarked $12 million edu-program in 2003 called "Voyager Expanded Learning,"
which later employed both Texas edu-missioner Jim Nelson and his wife Karen.  
 
Randy Best
Jim Nelson
recently completed her second
term as chair of the Texas State
Board of Education.

And who is Vance, here chairing a
2005 benefit
(right) with Tincy?  
Vance is CEO of Herman S.
Miller, a real estate outfit founded
by his grandfather in 1914 and  
calling itself  "the largest
independent commercial real estate
services firm in Texas." Looks like
he and Tincy are living large;
according to Dallas CAD, their
Highland Park home is valued at
$1.8 million.  
Geraldine 'Tincy' &  Vance C. Miller at 2005
charity gala in Dallas
  (PHOTO--The Social  Whirl)
Governor's Business Council members -  2007
Here's a familiar name:  Vance C. Miller, husband of Geraldine "Tincy" Miller, who  
The Governor's Business
Council, Inc. - 1994
You might wonder why a Republican
governor would need a formal
organization of business leaders to help
him out.   Don't they by definition already
kind of hang together?
according to his profile on Texans for Public Justice,
Vance was able to contribute $20,000 to Bush’s
gubernatorial campaigns."
 (SOURCE--SourceWatch)
"Vance Miller lives in a Highland Park mansion, carries
weight in the GOP, and parties with high society. He
owes you, the taxpayer, $26 million, and he ain't
paying," wrote Thomas Korosec in the Dallas Observer
in 1998, noting that Vance claimed he was "tapped out."  
As the only settlement offer I have been able to locate
from Vance is $50,000 -- to cancel the entire $26,000,000
-- and contact information for Vance is sparse, I have
today emailed both Tincy and Vance to find out if and how
they finally settled.  

In the meantime, we have scenes of their family playing
polo with the Prince of Wales (left).
Vaughn Miller (2nd from left),
Prince of Wales
(2nd from right)
Subject:  Your e-mail of Sunday September 09, 2007 10:58pm
Date: Mon, 10 Sep 2007 17:47:12 -0500
From: "Valorie Hubler" <vhubler@henrysmiller.com>  

September 10, 2007

Ms. Wolcott:

The 10 year old article in the Dallas Observer is typical of the
slanted, highly embellished “hatchet jobs” in which they have
consistently portrayed conservative businessmen and republican
elected officials.

I never owed the amounts stated to the government. The disputed
claim was purchased by a collection lawyer who conspired with the
author in an effort to induce me to settle this spurious claim by
writing this highly critical and misleading story in the Observer.

All claims were paid or reasonably settled nearly 10 years ago, and I
have no debts or obligations whatsoever. As you recall, nearly all of
our major financial institutions failed in the early 1990’s, taking with
them many prominent real estate professionals. However, I worked
through all of my obligations very successfully with a lot of hard
work and integrity. Today I am Chairman and CEO of Texas
largest independent Commercial Real Estate firm with over 200 real
estate professionals doing over a billion dollars a year in
transactions, and managing more than one hundred major
commercial properties.

Mr. Vance C. Miller
QUESTIONS FOR SANDY KRESS, THE MAN
WHO WANTS TO BE TEXAS' NEXT
EDUCATION COMMISSIONER
First asked:  Aug. 16, 2007
Response to questions:  None
Asked again:  Aug. 31, 2007

Q:  Have you drafted any sort of model for
your leadership
should you be named Texas' next edu-
missioner?   
Answer received:  None.

Q:  You are already by all accounts a very
wealthy man; would you
keep your TEA
salary?
 Would you perform all TEA-related travel
functions at your own expense?  
Answer received:  None.

Q:  What changes might you make to TEA
and the ESC's
as an education entity?  Answer
received:  None.

Q:  What you would do about our state's
rampant TAKS cheating?
 Answer received:  None.

Q:  PEIMS?  Answer received: None.

Q:  TEA salaries and expenses?   Answer
received:  None.

Q:  How transparent are you prepared to be--would
you post your calendar online?   
 Answer received:  None.

Q:  Finally, it appears from veteran Texas teacher
Donna Garner's published accounts that she approached
you ten years ago about endorsing the Texas Alternative
Document (TAD) which would have brought true
accountability standards to Texas public education.  Instead
of endorsing the TAD, from all that I've been able to
discover,
you went along with the education
establishment with the result that we now
have the TEKS,
which are subjective and therefore
cannot truly be tested.  The TEKS brought millions of dollars
to your clients including Pearson.  And millions of Texas
schoolchildren now cannot read and cannot tell you what six
times nine is because they were not drilled and instead were
encouraged to talk about their feelings about six and nine and
math.  This is a sincere question:  No matter how
well-intentioned you might have been ten years ago,
it
appears you were dead wrong, and
benefited financially to boot, and Texas
schoolchildren were harmed.  Why should
you be rewarded now by being named
Texas' next education commissioner?   Why
do you deserve a do-over?
Answer received:  
None.
____________________________________
PW note to Sandy Kress:  If  these statements above are
incorrect and any of the facts as stated above are incorrect,
please show me where and how.  As a side note, you will
note from my site that I have been similarly careful to keep
all issues on topic, and business related, not personal, as it
is my assumption and expectation that any future
communications from you will be also.

September 10, 2007

Ms. Wolcott:

The 10 year old article in the Dallas Observer is typical of the slanted, highly
embellished “hatchet jobs” in which they have consistently portrayed conservative
businessmen and republican elected officials.

I never owed the amounts stated to the government. The disputed claim was
purchased by a collection lawyer who conspired with the author in an effort to
induce me to settle this spurious claim by writing this highly critical and misleading
story in the Observer.

All claims were paid or reasonably settled nearly 10 years ago, and I have no debts
or obligations whatsoever. As you recall, nearly all of our major financial institutions
failed in the early 1990’s, taking with them many prominent real estate
professionals. However, I worked through all of my obligations very successfully
with a lot of hard work and integrity. Today I am Chairman and CEO of Texas
largest independent Commercial Real Estate firm with over 200 real estate
professionals doing over a billion dollars a year in transactions, and managing more
than one hundred major commercial properties.

Mr. Vance C. Miller
UPDATE:  The following response was emailed September
10, 2007/5:47 p.m. by Valorie Hubler, here with Vance
Miller's original spelling, grammar and punctuation:
Follow-up questions for Vance C. Miller:

Re:  3:94-CV-00912-Stonehenge/FASA v. Vance C. Miller - Default of Loan by Promissory Note

1.  According to the article written in 1998 by reporter Thomas Korosec, the judgment against you
in question was the result of "a one-day trial before U.S. District Judge Joe Fish and two
subsequent appeals" which resolved that with interest  you owed a total of  "$ 26,635,742.71."  

2.  For the purpose of clarification, are you stating that the amount of the default of loan by
promissory note in the above-captioned suit -- the final legal judgment against Vance C. Miller --
was $ 26,635,742.71?

3.  For how much did Stonehenge/FASA settle, meaning of the either $23 million or
$$26,635,742.71 judgment, how much did you finally repay the federal government and American
taxpayers?  

4.  What was the final date of the settlement?  Do you have any documents confirming that you
discharged your debt to the federal government as determined by the courts in full?

=============MORE QUESTIONS DEVELOPING===============
UPDATE:  The following response
has been received from Tincy
Miller, here with original spelling,
grammar and punctuation:
Your information is incorrect.  
Follow-up questions for
Geraldine "Tincy" Miller:

Re:    Geraldine Miller v. Stonehenge/FASA-
Texas, JDC, L.P. 993 F. Supp 461, 464-465
(N.D.Tex. 1998)

1.  You say that "your information is
incorrect."  What do you believe in this 1998
article in the Texas Observer is incorrect?
2.  Statement please regarding the above-
captioned lawsuit; it appears that your suit
was dismissed by the jury.
3.  Please confirm or deny that you called
the attorney appointed by Stonehenge/
FASA-Texas to collect on the judgment
against your husband a "Nazi" during the
trial; it is possible for there to have been an
error in the transcript.  Would you
recommend such practice to Texas
schoolchildren? Would you say that this is a
suitable practice for SBOE members?  
DALLAS OBSERVER ARTICLE:
Deadbeat
Vance Miller lives in a Highland Park mansion, carries weight in the GOP,
and parties with high society. He owes you, the taxpayer, $26 million, and he
ain't paying.
By Thomas Korosec     Dallas Observer - Published: January 15, 1998     
SCROLL DOWN to bottom of page FOR ENTIRE ARTICLE
Deadbeat
Vance Miller lives in a Highland Park mansion, carries weight in the GOP,
and parties with high society. He owes you, the taxpayer, $26 million, and
he ain't paying.
By Thomas Korosec  
Dallas Observer
Published: January 15, 1998



This should be a routine collection matter. Two federal marshals, a locksmith, several
appraisers, and a lawyer armed with a court order approach the two-story mansion at 3815
Beverly Drive, making ready to seize art, jewelry, antiques--anything of value to satisfy a judgment
that has remained outstanding for far too long.

They move past the matched set of maroon Cadillacs and a Halloween harvest display cast
against the French colonial backdrop, and toward the floor-to-ceiling windows adorned with
plantation shutters. One of the marshals makes his way to the front steps, but hesitates as if
awed by the majesty of the Highland Park address.

Suddenly, as if from out of nowhere, a diminutive, blonde steel magnolia of a woman stands
defiantly in their path, catching everyone off guard. The marshal mutters something about his
authority, saying a federal judge has given them the legal right to come in and search the house.

"Oh no you're not," says the 62-year-old woman standing her ground. "You're not coming into my
house." She then turns to lock the door shut, giving a parting glance to her would-be intruders
that dismisses them with a "Who the hell do you think you're dealing with" resolve.

"We know this is Henry Miller's son's house," says one of the marshals to Brenda Collier, the
attorney attempting to collect the judgment. To her amazement, the marshals put their hands in
their pockets and amble about the property, instead of using the force of law and the locksmith to
break into the house. In deference to the family, to their position on high, the marshals decide to
wait the woman out.

But Brenda Collier is tired of waiting. The man of the house, Vance Miller Sr., a member of the
city's power elite, owes the U.S. government $26 million on an old real estate debt from the
funny-money days of the S&L crisis. The debt has been wrangled over in legal battles for nearly
four years, gone up to the Supreme Court of the United States and back down again, and now
his creditors have come to call.

Yet in mid-October of last year, there is far more scraping and bowing by the authorities than
usual, far more than if the marshals had knocked on some bungalow in Mesquite. After all, this
is the home of the scion of a wealthy Dallas family, the first family of Dallas real estate, a dynasty
whose name is woven into the fabric of the last hundred years of Dallas history: Henry S. Miller.

About an hour and a half later, the lady of the house, Geraldine "Tincy" Miller, emerges again.
This time she is in the company of a chauffeur who is carrying two large suitcases. He deposits
them in the trunk of a white limousine. Walking gingerly, the 62-year-old socialite-cum-politico
heads to the car, waits while the door is opened, climbs into the back seat, and is driven away.

As they say on the "A-list" social circuit, h-o-o-o-o-o-w embarrassing.  Here was the queen of
Dallas' 1997 society season being rousted from the same home where she'd been hosting
teas, fashion fetes, and chic planning parties for the Crystal Charity Ball, the big mid-December
soiree that she chaired. Throughout the year, the many swell moments--the trip to Williamsburg,
Virginia, to research the waiters-in-powdered-wigs theme; the fashion show with Italian clothing
designer Gianfranco Ferre at Hotel St. Germain; the chic, sneak-preview luncheon at
Mediterraneo--were memorialized in The Dallas Morning News' society columns, or in D
magazine's unctuous coverage of the Park Cities' leisure class.

Before she fled, Tincy Miller had summoned her sons, Vaughn, 35, and Gregory, 31, both of
whom work for the family company, to take over protection of the fortress.

"Any reasons to have those moving vans parked in front of the house?" Vaughn asks the
invaders. On this stretch of the boulevard, fretting about what the neighbors might think means
worrying about investor Thomas Hicks, who last week bought the Texas Rangers, oilman-SMU
philanthropist Edwin Cox, and heiress Betty Hunt.

Until now, few people outside of the family and a circle of lawyers and judges knew anything
about the Miller saga.

To the untrained eye, real estate executive Vance C. Miller Sr. and his wife are extraordinarily rich.
They sponsor matches at the Dallas Polo Club and make the scene with Oscar de la Renta.
They are honored guests at fashion and jewelry shows at top-drawer boutiques like Hermes and
Cartier. He tees it up at the exclusive Preston Trail Golf Club, where memberships start at
$75,000.

Vance Miller, who is 64, is listed in public records as president or CEO of two dozen companies,
many under the umbrella of the Henry S. Miller Cos., the privately held real estate brokerage firm
begun by his grandfather in 1914. That's roughly one company for every five pairs of designer
pumps in Tincy's wardrobe. A videotape of the Miller home interior shows approximately 120
pairs of Ferragamos, Cole Haans, Manolo Blahniks, and other pricey footwear occupying their
closet--enough Italian leather to trigger at least a small tremor in Imelda Marcos' bosom.

Under oath, however, Vance Miller insists his existence is not as golden as it may appear. He is
tapped out, he says. Too poor to have a bank account. His dad lends him money to buy his
clothes. He's not even sure how the money in his wallet got there, living as he does on "petty
cash." Answering questions put to him in October by Collier, the lawyer attempting to collect the
$26 million he owes U.S. taxpayers, Miller says he lives on the charity of his wife--a former
schoolteacher who came to the marriage 40 years ago with no independent wealth--and his
father, Henry S. Miller Jr., who in the middle decades of this century turned the little family real
estate agency into a major corporate conglomerate.

His wife and father also give Vance the lucre he uses to back politicians, he says. His largesse
around election time has earned him considerable influence in the local GOP, where he favors
Republicans and fiscal conservatives such as Texas Sen. Phil Gramm.

Miller's protests aside, Collier and her employer believe he is holding far more wampum than he
lets on. He controls family companies easily worth $100 million, she says. But that's just a
guess. Her estimates come from standing on the outside of the Miller enterprises looking in,
with Vance's lawyer fighting her search for hard information every inch of the way.

The way in which Miller has avoided paying this decade-old debt--without declaring personal
bankruptcy--forms another of  those uniquely infuriating, but classic tales of "going broke"
Texas-style. Along with the legends born of booms and busts, tales of S&L bandits, blowin' and
goin' gamblers, and pyramid-scheme operators, one must add the story of a Dallas real estate
heir who thumbed his nose at his obligations for so long that he got a shot at getting rich all over
again. It features a cheeky lawyer and a legal system that protects those wealthy enough to
exploit its endless opportunities for delay and diversion. Such is the saga of Vance C. Miller,
Yber-deadbeat, the richest "poor" man in Dallas.

In the early 1980s, Vance Miller was on his way to becoming what former associates say he
always wanted to be: another Trammell Crow. Having split off from the family brokerage
business and operating on his own as a developer-investor, he soared.

He owned apartments in Houston, a construction company and prime land in Hawaii, business
parks at freeway corners in Dallas, housing developments along golf courses, hotels including a
Sheraton in Arlington, and his very own country club--Prestonwood in North Dallas.

In the overheated market that was fueled by easy money from S&Ls, riches just seemed to rise
up from the dirt. Oilman Clint Murchison, in an account of his days as owner of the Dallas
Cowboys, recalled how Miller got him into a real estate deal where he didn't have to put up a
dime. The transaction netted Murchison $8 million. He liked Miller.

In December 1982, in one of those grand gestures that fuel the myth of Texas' audacious "big
rich," Miller and car dealer W.O. Bankston put down $550,000 for the remaining tickets to a
Cowboys game so the local TV blackout would be lifted. The following year, the pair put in a bid
to buy the team--offering $90 million--but lost out to H.R. "Bum" Bright.

When real estate prices began free-falling in Houston in 1984, then in Dallas within the next two
years, Miller's wings melted. His joint ventures and partnerships defaulted on their loans, court
records show, and the loans, in turn, became the failed assets of the federal government after
the S&Ls cratered.

Typical was Miller's Mesquite I-30 Venture, a 55-acre business park he was developing at the
corner of Interstate 30 and Galloway Avenue. He and a partner took out a promissory note for $12
million in October 1984. Just over two years later, it was in default. By 1989 the lender--First
Federal Savings and Loan Association of Waco--had been taken over by the feds, who the next
year sold the property at auction.

Although the Dallas market was already slowing in 1986, Miller launched a grand plan to
enhance his prized possession, Prestonwood Country Club, by building a second golf course in
Collin County--and selling the surrounding land for luxury homes--as well as proceeding with a
major renovation of the old clubhouse in Richardson.

But the lingering downturn dried up new memberships, and as his debts came due, Miller
quietly went to federal court in 1992, put the club into bankruptcy, and began negotiating with his
creditors.

He may have owed millions, but that didn't stop him from renovating his Beverly Drive house that
year. County records show he put up a new detached garage, just beyond the pool.

The largest of Miller's country club creditors was the Resolution Trust Corp., the now-dissolved
federal receiver for the failed S&Ls. Miller, through family companies, somehow managed to
renegotiate about $10 million in debt and retain the club and its two 18-hole golf courses.

But because he had signed personal guarantees backing the original notes, government
attorneys asserted that Miller himself was on the hook for the rest of the debt: about $23 million.
The government sued him in May 1994, and a one-day trial before U.S. District Judge Joe Fish
and two subsequent appeals resolved that Miller indeed owed $23 million, plus interest. As of
October, the total came to $26,635,742.71--a figure that grows at more than $1 million per year.

Miller declined to comment for this story, although his attorney, Dallas bankruptcy specialist
Gerrit Pronske, says his client has "no ability to pay $26 million." Miller is like a lot of developers
who were hammered in the '80s, Pronske says. "They didn't end up writing checks for the full
amount. They got rid of these debts by doing one of two things: settling them for cents on the
dollar or filing bankruptcy."

The argument smacks of entitlement: This is how rich guys do it. When these gentlemen hit the
skids, they needn't pony up like the guy who's two months late on his rent-to-own TV. Somebody
else will pick up their tab.

Miller has never filed personal bankruptcy to clear himself of the debt, Pronske says, but he
declined to discuss why. Some speculate that Miller is too wealthy to seek bankruptcy protection;
others say he is too proud.

He has made offers to settle, Pronske says, although he declined to reveal how much Miller has
offered to pay.

Collier, the collection attorney, says the only offer Miller has extended to her employer over the
past two years was to wipe the books clean for $50,000. That amount brought laughter at
Stonehenge/FASA-Texas, which has attempted to collect the government's money since January
1996. Stonehenge, a kind of high-dollar collection agency, has formed a partnership with the
feds over Miller's debt: Stonehenge picks up all collection expenses and agrees to split any
recovery from Miller 50-50 with the federal treasury.

The government bail-out of the S&Ls in the 1980s--which ended up paying depositors whose
money had been loaned to speculative high-flyers such as Miller--came out of general federal
revenues and ended up being added to the national debt. In the grand scheme of things, the
government had to borrow money to pay Vance Miller's bills.

Collier, Stonehenge's current lawyer, is a tough-skinned litigator with experience in going after
fallen real estate barons and S&L execs. "Most people fight pretty hard to keep from paying large
outstanding loans," she says. "It's that arrogance that helped make them a lot of money in the
first place. But eventually they make peace with you.

"Miller is different. He's been doing this for more than a decade, and he's not tired of it yet."

Court records in Dallas show that the feds aren't the only ones lined up looking for money owed
by Miller, whose now-booming companies moved three years ago into the top-floor offices of the
slick, 11-story Providence Towers located at the Dallas North Tollway and Spring Valley Road.

A Houston lender tried unsuccessfully for 10 years to squeeze about $190,000 out of Miller--once
again a debt owed on money personally guaranteed by him. That obligation was also taken up to
the U.S. Supreme Court; it too remains outstanding.

In 1996, a local golf pro tried collecting a judgment against the Vance Miller-run Prestonwood
Country Club. The jury award had its roots in an incident involving Miller's eldest son, Vance Jr.,
who seriously beat up the pro's wife. Vance Miller Sr. and his lawyer then began moving assets
in what an opposing lawyer called "a shell game" designed to avoid payment.

Vance Sr. finally settled that case last spring, a few months after his troubled 38-year-old
son--under the influence of cocaine, alcohol, and marijuana--drove his car into oncoming traffic
on Marsh Lane and was killed.

As far back as 1989, when Cullen/Frost Bank of Dallas was trying to collect $763,922 from Miller
on one of his defaulted notes, the bank claimed in court papers: "Vance Miller, while claiming
insolvency, nevertheless maintains a high lifestyle far greater than would be expected from
someone who is truly insolvent."

Sure enough, Vance's leisure activities made the daily paper several times that year. That winter,
he was out at the exclusive PGA West Course in La Quinta, California, teeing it up with the pros.
He and his wife turned up again at the Brook Hollow
Golf Club, at the debutante party for the granddaughter of one of the founders of Frito-Lay.

When it comes to world-class debtors, says Gary Pridavka, a Dallas attorney who went to court
and got a settlement out of him, "Vance Miller is very much the exception to the rule. It takes a lot
of planning and a great deal of lawyers' time to do what he's done, to live a wealthy lifestyle and
be poor on paper."

If there ever was a man equipped for that task, it's Miller, a number of business associates say.
Arrogant, elitist, brassy, belittling, he is known for his hard-nosed business tactics. "He's no
pantywaist," says one real estate executive and former broker in the Miller firm.

Says another, again insisting on anonymity because of the business he's done with Miller
companies, "He's a unique guy. He's unpredictable. He walks around with this grin on his face,
and people just don't know what's going on inside. He talks, and you wonder what he said."

In contrast to his adopted father, Henry Jr., who was known for his sense of fairness and gentle
demeanor, Vance Miller is "not exactly held in very high esteem," according to one recent
business partner.

No one would dare say that of any of the family patriarchs who preceded Vance Miller.

Aaron Miller came to Dallas in the decade after the Civil War, choosing to flee Poland rather than
get conscripted by the Russian army. A Talmudic scholar, he conducted the first Jewish services
in Dallas, years before there was an organized synagogue.

His son Sam inherited the family grocery store in South Dallas, became the president of the first
Jewish congregation, and had six children, including Henry S. Miller Sr.

Henry had a mind for business and little interest in peddling vegetables. So in 1914, the year
Henry Jr. was born, he entered into the real estate business. His success, old-timers say, came
in pressing flesh and making friends.

"Henry would go to Republic Bank nearly every day, stand around the tellers' counter, and
convince customers to invest in his deals," recalls Horace Vale, a salesman who worked for
Henry Sr. A charitable man, Henry Sr. became known as "Mr. Realtor," offering his expertise free
of charge to nonprofit institutions around the city.

Henry Jr., a soft-spoken, studious man, joined his dad's firm in the 1940s and developed a
reputation as the consummate mediator between buyer and seller.

His mild manners, however, belied his no-nonsense approach to business. Developer
Trammell Crow became Henry's best client. He brokered deals for nearly every national
company that purchased land in Dallas though its big growth spurts in the '50s, '60s and '70s.
He helped cover the landscape with Kentucky Fried Chicken stands, Jack-in-the-Box,
Baskin-Robbins, and Dunkin Donuts. By the early 1970s, the company had expanded to
Houston, San Antonio, and Austin.

Beyond the brokerage business, Henry Jr. developed Preston Royal Village shopping center in
1958 and bought the now-tony Highland Park Village in 1975 for only $5 million. The center,
which is now held by a Miller family trust, has the highest rents of any retail space in Dallas-Fort
Worth.

The company grew to 13 divisions by 1983, including an international division with offices in
Belgium and West Germany, and a residential division with 700 brokers. After that record-setting
year, it ranked as the largest privately held real estate brokerage firm in the nation.

In 1984, at the top of the market, Henry Jr. sold the company's commercial and residential
divisions to San Francisco-based Grubb & Ellis, a publicly held company, for $47 million. Henry
Jr. retired to spend a portion of the year in his Paris apartment, but continued to raise money for
Dallas' opera, symphony, and other cultural institutions.

When quizzed in the business press about mentors, former Miller underlings such as Roger
Staubach and Herb Weitzman, who now own their own real estate firms, are apt to remember
Henry Jr. as a role model and true civic leader.

Nobody seems to volunteer the same opinion of Vance.

Born in Oklahoma in the middle of the Great Depression, he was actually Charles Calvin Vance
for the first 12 years of his life. His mother, Juanita, from Kiowa, Oklahoma, the daughter of a
Methodist preacher, was a widow when she met Henry Jr. in Hot Springs, Arkansas, during
World War II.

When they married in 1945, Henry Jr. adopted Juanita's two children, Charles and his sister,
Patsy. He was renamed Vance Charles Miller.

In the following years, the socially ambitious Juanita steered the family away from Henry Jr.'s
Jewish roots--which weren't exactly welcomed at the Dallas Country Club. Growing up in South
Dallas and later in Greenway Park, Vance got teased for being Jewish--even though he was not,
one acquaintance recalls him saying.

Henry Jr. related in an interview that he and Juanita studied Christian Science before their
marriage and that, three years later, they both converted to the faith, although they never fully
embraced its aversion to medical science.

As Henry Jr.'s fortunes increased, Juanita's status quest did as well. "She was in the women's
choir at the Rotary Club, and I knew her. We would talk," recalls one longtime Dallas
acquaintance. "After her husband became wealthier, her nose went up, and...she didn't know any
of us after that."

Nobody would deny Henry Jr. and his wife's importance in bringing the Dallas Opera into
existence and sustaining the Dallas Symphony. Henry Jr. later conceded in an interview in 1987
that his civic work--including all the society parties and charity balls--had a business purpose as
well. It helped increase his company's exposure in "important places," he explained.

In contrast to Henry's tenderness, Juanita possessed a certain boot-toughness. "Everyone at
Miller was scared to death of her," says one former employee. "She would show up
unannounced and do a sort of white-glove inspection, get really angry if your desk was messy."

It's that brass that Vance seems to have inherited.  Like his adopted father, Vance went to SMU.
He graduated in 1955 and served in the Air Force as a fighter pilot before going to work in the
family business. He was shortish (5 feet 6 inches on his driver's license), with a full head of hair
and features more classical than his father's.

He married his college sweetheart, Geraldine "Tincy" Erwin, who did her best to follow in her
mother-in-law's footsteps. "It was very difficult marrying into this family with the power that Juanita
had," she told a reporter in 1994. "She is very intimidating."

By the late 1960s, when Vance moved to his current home on Beverly Drive, it was clear that he,
rather than his half-brother, Henry S. Miller III, would be the one to assume the mantle as head of
the family business.

Under Henry Jr.'s expansionist hand, the company had grown large but remained a family affair.
In 1971, he named Vance president, but during the mid-1970s real estate slump, he was
replaced.

Vance kept somewhat involved in his father's company as vice-chairman on the Miller executive
committee, but he turned most of his attention toward his own development company, Vance C.
Miller Interests.

In 1976, he bought Prestonwood Country Club and the unspoiled acreage adjoining it, picking it
up for cheap from the estate of the deceased owner. "He came with a whole lot of expertise
whose name was 'daddy,'" says one real estate executive who has worked with the Miller
companies. "He loves to make the deal, but he ain't Henry, and he ain't Trammell Crow."

By 1984, Vance was independently worth $81 million--or so he claimed on financial statements
he gave to secure his loans. He moved up from a board seat to co-chair BancTexas, a regional
bank groaning under the weight of troubled oil-business loans.

In a profile that appeared in the Downtown News in 1983, Miller was pictured as a man sitting
back in his office on the 30th floor of Bryan Tower. "Friday, I bought another 350 acres in west
Plano," he said while sucking on a big La Corona cigar. He was bullish on what he described as
the North City--his projects near Prestonwood Country Club: "It's probably the best place to be in
the U.S., or in the world."

At the same time that Miller was pointing out of his window and telling the impressionable writer
about all the land he planned on developing, he and his wife were emerging as powers in the
Dallas GOP. In 1984, Tincy Miller was appointed to the state board of education, a Dallas and
Collin county seat that she has retained in the last three elections. Meanwhile, President Ronald
Reagan rewarded Vance for his support by naming him to a one-year term on the board of the
Federal National Mortgage Association, which buys mortgages from lenders and issues
securities.

To the present day, Vance Miller is considered a key GOP benefactor. "I like Vance," says Tom
Pauken, former state Republican chairman and a candidate for Texas Attorney General. "It's a
big party, and there are a number of key supporters; Vance is definitely one of them."

In advance of this year's primaries, for instance, Dallas County District Attorney candidate Bill
Hill--the presumed next DA--listed Miller among his big-name backers. In March 1994, the
Millers used their Beverly Drive home to host a fundraiser for Carole Keeton Rylander, a
Republican on the railroad commission. And during the 1996 national campaign, Miller hosted a
$10,000-a-plate fundraiser with House Speaker Newt Gingrich at Prestonwood Country Club.

But all the time he was pressing political flesh, he owed the feds his whopping eight-figure debt.

Although Vance Miller is credited with a certain amount of real estate savvy, he had his neck out
as far as the next guy, if not further, when 1986 in Dallas turned into 1929. He lost his hotels, his
business parks, his apartment houses. His bank closed, and his creditors came knocking.

By 1987, after obtaining a court judgment to collect a defaulted loan, Cullen/Frost Bank cleaned
out his personal bank accounts--garnishing a total of $41,000--and began looking for more.
When they sought to sit him down for a deposition, to make him expose his assets under oath,
he produced a doctor's note saying his health wouldn't permit it. By 1990, Jerome Ferguson, the bank's lawyer, had concluded
that Miller's father had established a trust for his son, who also served as his
own trustee. The arrangement would have let Miller put assets out of easy reach.

"It's called litigation," says Miller attorney Pronske, defending some of the tactics he and his client have used over the past
eight years to cushion the downside of Miller's romp in the free market. "You put the creditor to his proof, you litigate, and you
settle. That's the way the thing is done."

Pronske, reached over the holidays at his vacation home in Santa Fe, New Mexico, pointed out that Miller eventually settled the
Cullen/Frost case, the Mesquite I-30 Venture loan, and a substantial debt with NCNB--all for negotiated and undisclosed
amounts.

Just last year he settled with another debtor, golf pro Alan Neiderlitz and his wife, Peggy, says Pronske.

That tale, which unfolded between 1992 and 1997, provides some insight into what style of litigation Pronske and Miller
employ.

The unpleasant story begins in Naples, Florida, where Vance's eldest son, Vance Miller Jr., then 36, was passed out drunk
on the floor of the Neiderlitz home.

Cocky and filled with a sense of entitlement, Vance Jr. was more than a garden-variety problem rich kid. By his 30s, he had
accumulated 15 arrests and nine convictions, including four for driving while intoxicated and three for drug possession. In
late 1991, a woman accused Vance Jr. of beating her with a baseball bat. She dropped the charges, she said, after she
agreed to go away for an $80,000 cash settlement.

Just after that, Vance Jr. left for Florida.
The son, who had been given a $60,000-a-year job and a company car for doing little more than attending Prestonwood
directors' meetings, was accomplished at one thing in life: golf. At Prestonwood, he had befriended club pro Alan Neiderlitz,
who by 1992 had moved to Florida. Vance Jr. took up an invitation to visit his old teacher and quickly became the
houseguest from hell. In a drunken rage, he assaulted Neiderlitz's wife, Peggy, who pressed charges against him, which
later led to his criminal conviction for battery.

The following year, Peggy Neiderlitz filed a civil suit in Dallas, seeking damages from Vance Jr. for the assault. A jury
eventually awarded her $24,750.

That case begat yet another lawsuit, this one in federal court. The Neiderlitzes had discovered that Vance Jr., in his capacity
as a director for Prestonwood, had illegally obtained their credit report, presumably to use against them in the state court
fight.

In November 1995, a jury found Prestonwood Country Club liable for violating the Fair Credit Reporting Act and awarded the
couple $168,702.

Almost immediately, rather than pay that sum, Vance Sr., who was the club's chairman and president, and Pronske got
busy.

In February 1996, they incorporated an entity called Providence Texas Capital Corp., with Vance as the only director and
Pronske as the registered agent. According to court documents, Miller, acting as the president of Henry S. Miller Co., then
transferred nearly a million dollars worth of Prestonwood Country Club debt to the newly formed Providence, which
suddenly became the club's creditor.

On April 2, at 11 p.m., federal marshals put the country club up for sale on the courthouse steps, which the Neiderlitz couple
then ostensibly bought to satisfy their judgment.

Two hours earlier, however, Providence foreclosed on Prestonwood's debt because the club had supposedly defaulted on
its indebtedness to Providence. In essence, Miller foreclosed on himself. Pronske claimed at the time that the corporate
entity that was Prestonwood--which the Neiderlitzes bought at auction--became an empty shell, and worth nothing.

The Neiderlitzes responded by suing Vance Sr. and Pronske for fraud.
In a legal brief filed later, a Miller creditor claimed, "Miller plays a shell game with his assets, moving them around in hidden
transfers as creditors approach."

Last spring, a full year after the courthouse auction, the Neiderlitzes settled for an undisclosed sum and sealed the record
with a confidentiality agreement.

"They can't go on like this forever," Peggy Neiderlitz says now, her voice choking with emotion when the Miller name is
mentioned. "They can't keep treating people like this. Someday, someday I wish...I wish them no harm, truly."

As the daily paper made clear, 1995 was a big year for Vance Miller Sr. and his wife on the Dallas social circuit. She was
snapped rubbing elbows with designer Oscar de la Renta at a charity fashion show. He turned up at a preview party for the
chic Oak Lawn restaurant, Joey's, where the well-off guests played at making handprints in wet concrete. As a society
columnist put it: "Mega-developer Vance Miller strolled through the mess unruffled in a pin-stripe suit. 'This is what I
construct things in,' he said.'"

He had a less fabulous time at the Dallas federal courthouse, where lifetime judges--unlike their state counterparts--are
above the business of raising campaign money from the same well-connected families that occasionally end up in their
courtrooms.

By late 1995, federal government lawyers had spent $64,000 to take Vance to court to collect on his personal guarantee of
tens of millions of dollars in commercial loans left in the portfolios of three failed S&Ls. These were the notes he had taken
out in the 1980s to expand Prestonwood and to buy a 103-acre piece of property in Austin.

Of course, a Miller-controlled company continued to own Prestonwood, which by this time had about 1,200 members. Why it
took the government so long to sue Miller to enforce his guarantees is a question for a story on the government's vigor, or
lack of it, in handling the S&L mess.

Once the case got to trial in Dallas, however, the matter before U.S. District Judge Joe Fish came down to a question of
Miller's responsibility for the Prestonwood debt following the club's corporate bankruptcy in 1992. Pronske--who keeps
pretty busy with this one client--argued that the bankruptcy got Vance off the hook personally, too. Fish ruled against Miller,
and the U.S. Fifth Circuit Court of Appeals in New Orleans upheld the bulk of his ruling the following year. Last year, Pronske
kicked the fight up one more level, to the U.S. Supreme Court, which let the lower court ruling stand.

All that was left was for Miller to step forward and pay the $23 million, plus the interest that had begun gathering at several
thousands of dollars a day.

"There isn't much sympathy out there for rich people who don't pay their bills," says Brenda Collier, the lawyer who has been
trying to get Miller to pay his tab.

And by all outward appearances, Vance C. Miller's present fortunes are as rich and shiny as the Christmas display he put
out last month in front of his Beverly Drive mansion--tens of thousands of little white bulbs strung, just so, through the big
trees.

Out of the ashes of the 1980s, with Texas again in a boom, the Miller real estate empire is flourishing once more, with
Vance at the helm.

In August 1991, the family repurchased its residential real estate business from Grubb & Ellis for $4 million. The company
moved immediately back into commercial real estate and, after four or five exceptional years, is again Dallas' biggest
commercial brokerage, with 81 agents, according to the Dallas Business Journal. It is also the city's third-largest residential
broker, with $1.4 billion in commissions in 1996.

With the help of publicist Terry Van Willson, the Millers now practically live in the social columns, where Vance Sr. is often
referred to as a "magnate" or "mogul." Not content to let others do all the gushing, Willson also does some of his own
writing about his client family, saying of them in a cover story in Philanthropy in Texas, "Ask charity organizations in the city
what the Miller name stands for, and the answer will be charity itself."

When his creditors come calling, though, Vance Miller sounds more like a man who requires charity rather than someone
who gives to it.

Given the various protections Texas law provides individuals for their personal debts, there are plenty of opportunities for a
man as apparently wealthy as Miller to render himself poor on paper, or "judgment proof" as lawyers put it.

For starters, Texas is a relatively debtor-friendly state, says Dallas lawyer Gary Pridavka. "You can keep your house under
our homestead protections--even if it's a mansion--two cars, $60,000 worth of personal possessions, and so on."

Beyond that, he says, "It's a rich man's game, but if you hire enough lawyers, you can figure out enough schemes to hide
behind. You can hide behind this corporation or this trust. You keep enough balls in the air, and you wear them out. They file
a lawsuit against you. You sue them back."

The playbook sounds familiar.
Brenda Collier, who was hired to work at collecting the Miller debt last fall, began her efforts with some moves that seemed
to have been designed primarily to embarrass. "He doesn't embarrass easily," she says.

She obtained an order to garnish the fees Miller is paid as a director of Pilgrim's Pride Corporation. She also secured a
court order to collect property above the $60,000 limit from the Miller mansion, which sits on a lot that alone is valued on the
tax rolls at more than $500,000.

When Collier pulled up last October 15 with the moving vans and Tincy Miller obstinately locked the door, Pronske was soon
on the driveway telling the federal marshals that Collier was allowed only to videotape the contents of the Miller home.

Vance's 35-year old son Vaughn was quick to add, "We're not going to stand and fuck around. Let's get this going." Vaughn,
now an executive with the Miller commercial division, also has left a slightly tarnished record at the courthouse over the
years, which includes receiving 45 tickets for moving violations and a 1985 conviction for resisting arrest.

The Miller home turned out to be filled with unremarkable traditional furniture, some banal starving-artist-sale-type
artwork--little of obvious resale value beyond a silver service for 24 and some jewelry.

There were, in addition to all of Tincy's shoes, closet after closet of expensive-looking dresses, some of which no doubt
played a part in Tincy's being named among the best dressed society women in Dallas in both 1994 and 1996 by the
Crystal Charity Ball.

During the tour, Collier noticed "certain valuable pieces of jewelry worn by Geraldine [Tincy] Miller in recent family
photographs which were displayed in the Miller residence." But they weren't among the jewelry found in the search.

Collier's legal papers make note of the fact that Tincy left the house with two suitcases, which the marshals did not search.
"Geraldine Miller may have hidden certain property," the papers conclude.

Pronske says, "That's just not true." He claims she was on her way out of town to meet her husband in Arizona when the
Collier group arrived.

A few weeks later, she filed suit against Collier and Stonehenge for "invasion of privacy" and "civil rights violations" against a
"highly respected member of the community." In this sideshow battle, Collier denies any wrongdoing and says Tincy Miller's
claims are "barred by her own illegal acts" and "the doctrine of unclean hands."

Two weeks after the house search, Vance Miller appeared under subpoena to give Collier a deposition. He brought almost
none of the relevant financial documents such as the personal tax returns that she had requested, and seemed to let her
know right off what he thought of her efforts.

"We had the video camera and microphones and everything set up for Mr. Miller to sit at one chair. He came in and sat in
another chair and said he wasn't moving," she recalls, adding that the equipment had to be rearranged to meet Miller's
wishes.

Over the next four hours, under penalty of perjury, Miller told Collier that he makes a mere $250,000 a year in salary as CEO
of the Miller real estate conglomerate--and pays every penny to the company to satisfy a debt. Amazingly, he said he couldn't
remember what the debt was for, what it started at, or what it amounts to now.

"You don't recall what the debt was that you pay your entire paycheck to Henry S. Miller...?" Collier asks in a videotape of the
deposition.

"That's correct," replies Miller, who says more than 35 times during the session that he can't recall basic things about his
personal finances. "I guess I get a salary from Pilgrim's Pride--beef, whatever it is."

He says he spends money that "I borrow from family and friends and their companies," but he said he couldn't name
anyone beyond his father.

For a man at the head of such a large corporation, some of his answers strain credulity. For instance:

Q: How much cash do you have on you?
A: I don't know. Probably $50.
Q: Where did you get it?
A: Where did I get it? Well, I've just carried it around for some time.
Q: That was not my question, sir. Where did you get the cash?

A: I don't have a recollection, I use a little cash, you know. I just don't have a recollection.

Miller also claims that contributions made in his name to politicians such as Sen. Kay Bailey Hutchison are made with
money "my wife or my dad gave...on my behalf."

Collier later asks Miller again about his contributions over the past 10 years: "In each and every instance, those
contributions were made in your name but not from your funds, correct?"

"Yes," he answers.

If that is true, those contributions would violate federal campaign-finance law. According to rules posted on the Federal
Election Commission's Web site: "Contributions made in the name of another are prohibited."

But Pronske insists that is not the case: "My interpretation is that his wife and father were the source of the funds, which
became his."

Beyond that, Miller's attempts to portray himself as all but penniless tie him to some pretty embarrassing explanations.

He claims, for instance, that he sold his membership at the exclusive Preston Trail Golf Club to his children back in 1980,
when they were teenagers. Apparently, the kiddos, one of whom is barred from belonging to the all-male club by virtue of the
fact that she is female, bought the membership with money their grandfather gave them at birth.

Of course Miller, not the kids, uses the membership. He's there nearly every day, playing cards with his buddies or hitting
the meticulously groomed links. It's difficult to imagine that the immigrant laborers who mow the well-tended grounds at
Preston Trail are worth more on paper than Miller, and get in more trouble if they fall behind on payments for their used
pickups.

Phil Hutchison, an owner of Stonehenge, the feds' collection partner, says: "Kind of reminds you of J.R...To us, it's obvious
what he's doing. He's hiding behind his family, his businesses to escape living up to obligations to us and the taxpayer.

"Most of the people we deal with spend at least some time trying to negotiate a settlement. That hasn't been the case with
him. It's been a fight from day one."

At several hearings scheduled for later this month, the dozens of legal issues that have opened up will be hashed out in the
federal courthouse: Miller's memory lapses, Collier's home tour, maybe even how that money got in Miller's wallet.

And, most likely, another year of cotillions, polo matches, and golf games will pass before much is done.

Shifting assets, losing one's memory on the witness stand, playing dumb..."It's a way of doing it," says Collier. "But you don't
usually see it from people of his standing. It's not what you expect from people who want status and respect.

Developing . . .                                             
Nazis marching in
World War II
Given the number of times I've heard and read lately references such as
the one at left to the fact that The Governor's Business Council appears to
be one of the primary promoters of their lobbyist Sandy Kress for the next
Texas education commissioner, let's take a look at current membership of
The Governor's Business Council. The grey box at right traces its origins
and purpose, with Ken Lay's and Enron's contributions below.
EDVANCE RESEARCH, INC.
THE COMMISSION
FOR A COLLEGE
READY TEXAS
Q:  How is it that
Edvance for whom
CCRT chair Sandy
From Sep. 12, 2007 "CCRT Weekly Email"
Meeting Information and Focus Group Minutes:
Last Friday, the Commission held a focus group to
receive feedback from higher education faculty and business
leaders on college readiness standards. Business and higher
education participants convened to discuss real-world
implications of college and workforce readiness issues.  If you
were unable to attend, please take a look at the attached
minutes of the meeting.  The feedback and findings from the
focus group will be shared at the Commission meeting in San
Antonio on the 14th.    During a Research and Reports Task
Force call last week, Dean Nafziger offered the
Edvance,
Inc.
website as a secure place to upload Commission
documents for review.  You may have noticed emails this week
from Gay Lamey and Patrick Guerra of Edvance.  They have
given you the website.... and your own personal username
and password.  Currently there are no documents to review,
but you will be sent an alert from “Commission for College
Ready Texas” when they are uploaded, or when someone
makes a comment.  If you would like to change your alert
setting, please email sara.weiss@tea.state.tx.us.  
Kress lobbies is involved with the CCRT?
Q:  Would these focus groups (see below)
be like the ones used by the 1997 TEKS-
writing teams?  With Delphi techniques?
THE GOVERNOR'S BUSINESS COUNCIL
Then-chair Tincy Miller at  2006
State Board of Education meeting
(PHOTO--Susan Bushart)

DUE DILIGENCE UPDATE:

Tincy Miller and Vance Miller
have been contacted
for information.  
Further, the Dallas Observer
has been contacted regarding
the 1998 piece below; I have
asked whether the Miller's have
provided the Observer with
factual information regarding
any information believed to be
incorrect or not factual.
--  P.W.
                       09.13.07
view first GBC chair Ken Lay's
financial contributions (above).  I say this
in all sympathy:   Realistically, any
politician above the local school board
level must be constantly on the prowl for
new sources of money with which to fund
the next election; as someone who likes
the idea of elections in which we get to
vote for our leaders, I do not have a
solution for this.  Look at George Soros
and McCain-Feingold.  

At any rate, according to R.G. Ratcliffe,
Sandy Kress was GBC's lobbyist.
CHECKS WRITTEN TO
PEARSON ED.
BY TEXAS
TAXPAYERS VIA THE
TEXAS EDUCATION AGENCY
FISCAL
YEAR   
1998*                  768.97
1999                    672.44
2000      33,512,789.47
2001      22,981,694.52
2002      61,319,897.28
2003      23,324,431.43
2004    138,978,751.36
2005      14,356,657.58
2006    242,073,438.48
2007      83,860,167.62

Grand total for
Pearson Education
$ 620,408,500.18
CHECKS WRITTEN TO
NCS PEARSON BY TEXAS
TAXPAYERS VIA THE
TEXAS EDUCATION AGENCY
FISCAL
YEAR
1998*    14,992,458.00
1999      34,029,583.00
2000      37,689,794.00
2001      44,534,502.00
2002      51,295,197.00
2003      53,316,475.00
2004    102,064,361.00
2005    122,439,506.00
2006    155,622,396.00
2007    187,230,868.10

Grand total for
NCS Pearson
$ 803,215,140.10
Fair and balanced:  Friends, I'm a conservative;  here
are two liberal commentaries:   
my.BarackObama.
com/gGM7yZ and DailyKos who says, "Several large
corporations and their lobbyists have profited from Bush’s
NCLB by tapping billions of dollars in standardized testing
and in  'supplemental education services'  funds since its
passage in 2001. They’re lining up now to expand their
profit margins for the next six years as NCLB is being re-
authorized. And
the one man who stands to
personally profit the most
this year isn’t Bush
himself, but
advisor-turned-lobbyist Sandy
Kress,
the architect of Bush’s old high-stakes testing
model in Texas and the overhaul of ESEA in 2001."
*  Per TEA, due to a new accounting system in 1998, that year's data is not  complete.
How many billions have U.S. taxpayers spent on Pearson
edu-products including acccountability tests? The Texas Education
Agency paid Pearson
$1.423 billion between 1998 and 2007.
Oh, no!  'Deadbeat' Vance?
In 1994, Miller was sued for $23 million by the feds for debts incurred during the S&L crisis of the
1980s.  "While Miller had not filed for bankruptcy, in 1998 his attorney claimed that he had no
ability to pay the debt, which then amounted to approximately $26 million.  However,
Follow the money for a moment in history:   
In 2001, current Pearson lobbyist, Democrat, Sandy Kress
helped craft the "No Child Left Behind" Act; he is widely
credited as being its chief architect.  
During 2002,
Pearson Education paid Akin Gump  $360,000
to lobby for NCS Pearson.
(SOURCE--OpenSecrets.org)
More regarding Sandy's lobbying here.     
HOME
Q:  Following the money, who directly benefited financially from No Child Left Behind?
A:  Sandy Kress, called NCLB 'architect,' is also a paid lobbyist for Pearson, the British
education mega-corporation (see a few of their education entity logos at right); Pearson was
paid $1.423 billion by the Texas Education Agency during 1998-2007.
NOTE: This amount does not include direct payments to Pearson by any of Texas' 1,031 school
districts, or the other 49 states, or the United States Department of Education.
Conservative commentary:  Texans' $1.423 billion to Pearson via TEA (1998-2007)
acronyms in a sentence, as with this one above, my eyes tend
to glaze over.  It doesn't help that the edu-groups seem
virtually undiscernible from each other, apparent almalgams
of business and cheerleaders for public education.  Not only
are the groups difficult to distinguish, but also with each new
one it becomes harder and harder to tell where government
stops and business begins and vice versa;  wouldn't this be
the classic definition of socialism?