P  E  Y  T  O  N     W  O  L  C  O  T  T
                 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 1999-2008 Peyton Wolcott
Commentary - Education, Inc. and the Big Pot o'Money
Education, Inc. is the name I give to the messy
intersection of education and business,
the place where
noble values collide with greed and ambition--and the easy
grab at life's comforts.

There are vendors.  Administrators' associations.  School boards'
associations.  Second-grade teachers' associations.  There are the
businesses that sell their goods and services to public
schools:   Computer technology and software,
curriculums, sporting goods, school buses, textbooks,
food service, on and on and on.
tion who just happen to be peddling goods and services have rented hotel
and restaurant rooms for "receptions" where there are tables piled high
Administrators conferring in the Four Seasons lobby in Austin, Texas
during TASA Midwinter Conference, Jan. 2006
There are consultants, and lots of them.  There are
law firms and accounting firms and other professions.

There are motivational speakers and trainers.
There are the conferences educators attend at
taxpayers' expense where they attend seminars and
workshops, many of which are glorified pitches for
still more edu-goods and services.  

Education, Inc. is also the companies that sell their
education programs to school districts.  I personally
believe Dante reserved a special place in hell for
these folks.   

For a look at how all the components work together
to weave a wicked spell, here's one hypothetical at
right.
Administrators from across the U.S., including
Carlos Garcia--then Clark County public schools
supe (Las Vegas, Nevada) at far right, who left
shortly thereafter to join vendor McGraw-Hill, now
San Francisco USD superintendent--on an
educational tour of the San Antonio river on party
boats such as this during the Feb. 2005 American
Ass'n of School Administrators convention
And this is how Education, Inc. has come to be the
place where education and children become the
means and the currency, not the end.  So much so
that students are referred to as "units."  And if they
have special problems, so much the better for the
administrators in charge because the "units" become
"weighted units" and worth as much as three times
as much money per head.  

If all of this is starting to sound eerily like the Nazi's
weighing their victims' hair and teeth, you're not
alone.

For the administrators and everybody else caught up
in Education, Inc., it's about the money, not about
the kids.  Ample evidence abounds on these pages.  
Don't take my word for it.  See for yourself.
GETTING TO KNOW YOU:  THE EDU-LAYERS IN YOUR STATE
Do you know how many layers of public education you're really paying for?

State education bureaucracies (see Texas Education Agency's Austin office building
above) go by different names from state to state:  It's the "Department of Education" in
California, Pennsylvania, Indiana, Massachusetts and South Carolina, whose DOE was
profiled on John Stossel's "Stupid in America."  Elsewhere it's the "Department of
Instruction" (Idaho) or "Department of Public Instruction" (Wisconsin) and so on.  Whatever
you call it, the state DOE is one very big and dark black hole.   However, there's another
layer of which fewer people are aware, and it's like a big expensive shadow government.   
Here in Texas it's called the "Regional Education Service Centers" (ESC's); elsewhere they
go by different names.  
Because they don't really have a purpose, this layer speaks in terms of "missions" and
they have more visions than a fortune teller.  Here's ESC Region 16's (Texas Panhandle)
vision:  "The Education Service Center will be an indispensable part of the educational
community."  Ah-ha.   And Region 3's (Victoria) is to be "committed to providing world-
class services and products that ensure students excel individually in a global economy,
as they become contributing members in an ever-changing society."  World class.  Excel.  
Not just members but contributing members.   Which society might that be in need of
social engineering, LBJ's "Great Society"?
Although the Region 20 Education Service Center in San Antonio, Texas is
an enormous compound occupying several city blocks, it's seldom if ever
seen by most taxpayers.  Note the barbed wire- topped security fences
around the entire perimeter.
In most states, this layer's mission is to "help" school districts, whatever that may mean.  
But because the ESC's are not really responsible for anything, their primary role appears to
be to absorb tax dollars then figure out how to spend them, including hosting receptions
featuring alcohol and deluxe food at swank hotels during edu-conferences.

San Antonio's ESC 20 (above) actually got its start in 1966 as an exhibit during HemisFair
for a "School of Tomorrow" called the Inter-American Educational Center (IAEC) and was
funded by Title III of the Elementary and Secondary Education Act.   "Changes in direction
and thinking in the late 1960s brought about the
establishment of twenty regional service centers
throughout Texas.  As many of the educational and
cultural objectives on which education service centers
were to focus were similar to those of the existing
organization, IAEC became the regional service center for
the south central region of the state.  Basic to the center
concept was its working in the development and
implementation of comprehensive, exemplary products
for education which would address themselves to the
needs of the public schools and would provide the best
possible education for all school children in the
region....Under girding
[sic] the provision of services and
guiding staff in delivery are certain principles of public
service: trustworthiness, responsibility, respect, caring,
citizenship, fairness, and service orientation."
 
(SOURCE--Region 20 ESC)

Like I said, this intermediate level receives our tax dollars
then figures out how to help us with them.   Here's more
along these lines from ESC 13 in Austin which began as
a regional media center with three employees and now
employs 170:
ESC 20 in San Antonio--so large it needs
directional signs to "Media Center" and "Data
Processing" and the receiving department.
Michigan's equivalent of the ESC is its
Intermediate School Districts, not to
be confused with local school districts
in many states with the same ISD
acronym.  

The Intermediate SD's in Michigan
have been under the microscope for
the past few years following former
supe James Redmond's felony
charges (for embezzlement and
misconduct in office).   As with local
school boards, Michigan's intermedi-
ate shadow level also suffers from the
same lack of accountability including
lax board and other oversight as with
the ESC's in Texas.

Many people do not realize that their
property taxes support two school
districts – the one that neighborhood
kids attend, plus one of 57
Intermediate School Districts (ISDs) in
Michigan.

As the name suggests, ISDs are an
intermediate level of bureaucracy between
regular school districts and the state
Department of Education. They are run by
boards selected by the elected school
boards of regular school districts within the
ISD area, or in a few cases by direct election
by voters. Prior to the passage of Proposal A
in 1994, ISDs were heavily engaged in
overseeing the wide variety of "categorical
grant" programs. As a result of Proposal A
these "categoricals" were mostly eliminated
and replaced by basic per-student foundation
grants to regular school districts. Since then,
the ISDs have specialized in special
education and vocational education
programs
.

Most taxpayers also do not realize that Propo-
sal A’s prohibition on new school operating
fund millages contains a big loophole: ISDs.
Unlike regular school districts, which can
only request new millages for buildings and
other capital improvement projects, ISDs can
go to the voters for more taxes to pay for day-
to-day operations — the very practice that led
to the taxpayer revolt which brought about
Proposal A . . . .
 (continued below photo)
MISSION:  Initiate collaboration with our clients in the
development of a quality educational environment..  
Provide client-focused quality products and services in a
timely and efficient manner which promote improved
performance in schools.   Initiate collaboration with our
clients to close the gap between current and desired
student performance.

The regional education service center is a public
institution created and authorized by the Texas
Legislature.  
 [PW comment:  Thanks, guys.]   In 1965,
the Legislature authorized the State Board of Education to
establish regional media centers by 1967. That same
year, the U. S. Congress passed the Elementary and
Secondary Education Act of 1965 to provide funds for
supplementary educational centers....Region XIII
Education Service Center (RESC XIII) was established in
August 1967. RESC XIII opened with a staff of
three....
Region XIII is a service organization, not a
regulatory agency.
The center strives to provide excellent
services and products to the 59 school districts in the 16
county area RESC XIII serves.
Participation by schools
is voluntary.
The goal of RESC XIII is to achieve a high
standard of excellence through leadership,
responsiveness to client needs, and quality products that
improve student performance....RESC XIII has a staff of
more than
170 people and continues to grow to
accommodate challenges and needs in the education
field.  
[emphasis added]
And then there's ERDI, in a class by itself.   

As far as I'm concerned, Scott Parks' article should have gotten the Pulitzer Prize for
investigative journalism and at the very least should be required reading for every
taxpayer and school board member in every school district in our great nation.   Even
though ERDI's structure has changed dramatically since founder Mike Kneale sold ERDI
in February 2006, there are lessons to be learned here.  Heads up, America.
NOTE:  I have contacted ERDI founder Mike Kneale on numerous
occasions, via telephone, fax and email, in order to obtain more
information, including an attempted in-person interview Feb. 20, 2005
at the ERDI conference at the Hyatt Hill Country Resort in San Antonio.
E R D I
Superintendents get $2,000
consulting fees to hobnob
with vendors
11:52 PM CDT on Saturday, July 17, 2004
By SCOTT PARKS / The Dallas Morning News
One in an occasional series
ERDI - 2004
winter and
summer
participants

Education Research &
Development Institute
documents obtained by The
Dallas Morning News list the
following school leaders as
participants in its 2004 winter
and summer programs. Texas
school leaders are bolded:

Arlene Ackerman, San
Francisco Unified School
District
Anthony Amato, New
Orleans Public Schools
Brian Benzel, Spokane
(Wash.) Public Schools
Ken Bird Westside (Neb.)
Community Schools
Ed Brand, Sweetwater Union
(Calif.) High School District
Ken Burnley, Detroit Public
Schools
Billy Cannaday Jr.,
Chesterfield County (Va.)
Public Schools
Rudy Castruita, San Diego
Office of Education
Gerald Dawkins, Saginaw
(Mich.) City Schools
Ken Dragseth, Edina (Minn.)
Public Schools
Debra Duvall, Mesa (Ariz.)
School District
Jim Easton, Lafayette Parish
(La.) Public Schools
Mark Edwards, Henrico
County (Va.) Public Schools
Barbara Erwin, Scottsdale
(Ariz.) Unified
Greg Firn, Milford (Conn.)
Public Schools
Steve Farrar, Lincoln Unified
(Stockton, Calif.)
Mike Flanagan, executive
director, Michigan Association
of School Administrators
Karen Forys, Northshore
(Wash.) School District
Alton Frailey, Cincinnati
Public Schools
John Fryer, Duval County
(Fla.) Public Schools
George Garcia, Boulder
Valley (Colo.) Public School
District
Carlos Garcia, Clark County
(Nev.) School District
David Gordon, Elk Grove
(Calif.) Unified School District
Peter Gorman, Tustin (Calif.)
Unified School District
Carmen Granto, Niagara
Falls (N.Y.) City School District
Terry Grier, Guilford County
(N.C.) Schools
Annette Griffin, Carrollton-
Farmers Branch ISD
Barb Grohe, Kent (Wash.)
Public Schools
Bill Habermehl, Orange
County (Calif.) Department of
Education
Jim Hager, Washoe County
(Nev.) School District
Joe Hairston, Baltimore
County (Md.) Schools
Beverly Hall, Atlanta Public
Schools
Bill Harrison, Cumberland (N.
C.) County Schools
Patricia Harvey, St. Paul
(Minn.) Public Schools
Howard Hinesley, Pinellas
County (Fla.) School District
Peter Horoschak, South
Orange-Maplewood (N.J.)
School District
Sandy Husk, Clarksville-
Montgomery Schools
Carol Johnson, Memphis
Public Schools
John Kriekard, Paradise
Valley (Ariz.) School District
Nadine Kujawa, Aldine ISD
Michael Lannon, St. Lucie
(Fla.) County Public Schools
Pam Lannon, Lake County
(Fla.) Schools
Mary Leiker, Kentwood
(Mich.) Public Schools
Earl Lennard, Hillsborough
County (Fla.) School District
Dave Long, Riverside County
(Calif.) Office of Education
Ben Marlin, Collier County
(Fla.) District School Board
Elfreda Massie, District of
Columbia Public Schools
(former interim)
Larry Maw, San Marcos
(Calif.) Unified School District
Max McGee, Wilmette (Ill.)
School District
Bill McKinney, Region IV
Education Service Center
(Houston)
Frank McKinzie, Elmwood
Park (Ill.) School District
Gail McKinzie, Indian Prairie
(Ill.) School District
Ray McMullen, Department
of Defense Education Activity
Maggie Mejia, Sacramento
(Calif.) City Unified School
District
Leonard Merrell, Katy ISD
Hector Montenegro, Ysleta
ISD
Mike Moses, Dallas ISD
Monte Moses, Cherry Creek
(Colo.) School District
Jim Murphy, executive
director, New Jersey
Association of School
Administrators
Connie Neale, School District
U-46 (Ill.)
Ruben Olivarez, San Antonio
ISD
Doug Otto, Plano ISD
Stan Paz, Tucson (Ariz.)
Unified School District
Dennis Peterson,
Minnetonka (Minn.) School
District
Lane Plugge, Iowa City
Community School District
Gerrita Postlewait, Horry
County (S.C.) Schools
Jim Rickabaugh, Whitefish
Bay (Wis.) School District
Stewart Roberson, Hanover
County (Va.) Public Schools
Stan Scheer, Littleton (Colo.)
Public Schools
Rick Schneider, Pasadena
ISD
Darlene Schottle, School
District Five (Mont.)
Althea Serrant, U.S.
Department of Education,
Region 2
John Simpson, Norfolk (Va.)
Public Schools
Kevin Singer, Grapevine-
Colleyville ISD (recently left to
lead Manheim Township (Pa.)
School District)
Dennis Smith, Placentia
Yorba-Linda (Calif.) Unified
Keith Sockwell, Northwest
ISD
Tony Stansberry, Lee’s
Summit (Mo.) School District
Jim Surratt, Klein ISD
John Thompson, Pittsburgh
(Pa.) Public Schools
Frank Till, Broward County
(Fla.) Public Schools
Doris Walker, Clover Park
(Wash.) School District
Gene White, Washington
Township (Ind.) Metropolitan
School District
Robert G. Witten, Central
Susquehanna Intermediate
Unit 16 (Pa.)
Alvin Wilbanks, Gwinnett
County (Ga.) School District
Clayton Wilcox, East Baton
Rouge Parish (La.) Public
Schools
Joseph Wise, Christina (Del.)
School District
SOURCE: ERDI documents
In addition to paying all expenses
for superintendents to attend the
conference, ERDI pays up to $400
to defray the expenses for a
spouse, Mr. Kneale said. Each
superintendent gets a flat $2,000
fee to attend. A "full participant" who
attends both summer and winter
meetings earns $4,000 a year in
fees, he said.

The corporate panels that form the
backbone of ERDI operations ran
Monday, Tuesday and Wednesday.

They worked this way: Company
representatives spent three hours
in a hotel meeting room with five
superintendents. Information
revealed can be sensitive. The
companies sometimes roll out new
ideas for products. What is said in
the room is supposed to stay in the
room.

The companies set the agenda.
They can request the
superintendents they want on their
panel based on district size,
geography or desire to gain more
business in a certain district.

Karen Mortensen, executive
education consultant with
Sagebrush Corp.
, said
membership in ERDI is well worth
the fee. She said
Sagebrush,
which sells software and school
library products, pays $22,000 a
year to attend two conferences.

"What we get is dedicated time with
key school leaders from across the
country," she said. "And we get to
mingle with them and other reps in
social settings. It would not be
acceptable to be pushing product
while I'm at ERDI. I would be
building relationships."

Ms. Massie, the Harcourt Achieve
executive, was interim
superintendent of public schools
in Washington, D.C., until April.
She said, "We use the
superintendents like a focus group.
It's a piece of our research-based
approach to business."

The agenda for Ms. Massie's
session included "What's Keeping
You Up At Night," "Federal
Legislation Update 2004" and
"Partnering With Your District."

Carol Wolf, another Harcourt
Achieve vice president,
initiated a
conversation with the
superintendents on an issue not on
the agenda. How, she asked, does
a sales rep determine whom to
contact first in a district? All
bureaucracies are different, and
superintendents in large districts
are notorious for not taking most
vendor phone calls.

"How do you figure out who are the
decision-makers?" Ms. Wolf asked.

"In my job, I never purchase
anything," said
Carlos Garcia,
superintendent of the 8,000-
square-mile Clark County School
District in Las Vegas.
"But when
you're a superintendent in a small
district, you do it all."

'No play at all'

Superintendents might participate
in four or five corporate panels
during the three-day conference,
which would mean 12 to 15 hours
of work.

"There is no play at all," Mr. Kneale
said.

Dr. Otto of Plano and Dr. Griffin of
Carrollton-Farmers Branch both
said they took vacation time for the
Rancho Mirage conference, which
opened last Sunday with a
"superintendents only" meeting,
followed by an evening reception
with live orchestra music.

The fact that ERDI pays the
superintendents' expenses and
consulting fees – and that the
money doesn't come directly from
school district vendors – is an
important distinction, said Drs. Otto
and Griffin.

"ERDI assigns us to the corporate
panels, and we have no say in what
company we are meeting with," Dr.
Otto said.

But the distinction is lost on some
business ethicists.

"The superintendents must be
careful that ERDI is not just acting
as a shield for companies that want
access to them," said
Dr. W.
Michael Hoffman
, executive director
of the Center for Business Ethics at
Bentley College in Waltham, Mass.
"Ultimately, they are serving the
companies that are paying the guy
to put on the conferences."

Oversight

Business ethicists say school
board oversight is critical to
keeping school superintendents
within safe boundaries.

No one knows how much
superintendents tell their trustees
about their after-hours consulting
activities or how many questions
trustees ask about them.

Dr. James Campbell Quick, of the
University of Texas at Arlington,
likens superintendents to tennis
players and school board
members to umpires.

"Everyone needs someone to make
their line calls," he said.
"Aggressive, healthy players will get
close to the line and need help
remembering where the
boundaries are. The board's
responsibility is to ask enough
questions to determine what game
the superintendent is playing."

The News interviewed Mr. Tepper,
the Carrollton-Farmers Branch
school board president, and Mary
Beth King, president of the board
in Plano,
about their
superintendents' participation in
ERDI.

Ms. King and Mr. Tepper said they
do not know how much ERDI pays
their superintendents or how the
fees are calculated.

"Quite frankly,
we don't ask," Mr.
Tepper said.

Both school board presidents said
they feel well briefed about ERDI
and understand its program. They
expressed confidence in their
superintendents and said they had
no reason to believe personal
relationships with ERDI companies
influence decision-making on
contract awards.

"I know my superintendent [Dr. Otto]
and I know his ethics,"
Ms. King
said. "I do not perceive this as a
problem."

Mr. Tepper agreed. "I don't think
there is a conflict of interest or the
appearance of one and that is
because she [Dr. Griffin] has been
very forthright with us about the
ERDI situation," he said.

"I don't think Dr. Griffin can be
bought for what they [ERDI] are
paying."

E-mail sparks@dallasnews.com
RANCHO MIRAGE, Calif. – The
Resort, perched on a sandy
hillside and surrounded by purple-
hued mountains, sat baking under
the desert sun last week.

Inside the luxury hotel on Frank
Sinatra Drive, school
superintendents from across the
United States – including the
Dallas-Fort Worth area – spent
three days talking business with
companies that want to sell their
wares to school districts.

Textbook publishers, food-service
vendors, computer manufacturers
and many other companies all
want to increase their share of the
lucrative educational market. The
school superintendents came to
California's desert to help them.

In return,
the superintendents got
an all-expenses-paid trip and a
$2,000 consulting fee.

Business ethicists say the
conference creates the
appearance that companies and
superintendents have formed an
exclusive club with the potential to
affect the contracts awarded by
districts.

"I find it troubling that money from
the private sector is finding its way
into superintendents' pockets,"
said
Diane Swanson, a business
professor and founding chair of the
Ethics Initiative at Kansas State
University. "There is something
wrong with blurring that boundary
with a cozy group of people who
may not be operating at arm's
length."

The superintendents, dressed in
colorful casual attire, arrived here
from small districts (Whitefish Bay,
Wis., with 3,000 students) and
large (Clark County Schools in Las
Vegas with about 280,000
students). They characterize
themselves as tough-minded
professionals who feel no
obligation to buy from the
companies that paid to bring them
to this Palm-studded oasis.

"If a company comes here to sell,
it's here for the wrong reasons,"
said
Doug Otto, superintendent of
the
Plano Independent School
District.
"If it's a good product, it
stands on its own."

Annette Griffin, superintendent of
Carrollton-Farmers Branch ISD
,
said interacting with company
executives gives her a chance to
stay on the cutting edge of product
developments that help students
learn. She said she donates some
of the money she earns to a
scholarship fund.

"I'm looking for the magic bullet,"
Dr. Griffin said during a brief
interview in a meeting-room lobby
overlooking the hotel pool.

"This is the only organization I've
found where companies come to
us with new ideas and we have the
opportunity to say how they can be
structured to better serve children.
We are not here to make the
vendors feel good. We are brutally
honest with them."

Dallas ISD Superintendent Mike
Moses
didn't travel to Rancho
Mirage, but he was listed among
the participants in last winter's
conference in Oakland, Calif. So
was his brother,
Monte Moses,
superintendent of Colorado's
Cherry Creek School District.

Dr. Moses, who resigned his job
with the Dallas school district last
week, was unavailable for
comment on his consulting work.

In some states, the law requires
superintendents to disclose their
sources of income on publicly
available questionnaires. Texas
does not require financial
disclosure for superintendents.

The Dallas Morning News has
examined employment contracts
for superintendents in 26 of the
largest school districts in Texas.
Twenty of them, including the
contracts of Drs. Otto and Moses,
contain language that allows
outside employment. Dr. Griffin's
contract also allows her to take
outside employment, said
John
Tepper, president of the
Carrollton-Farmers Branch
school board.

Some contracts require
superintendents to get school
board approval before accepting
consultancies. Others say the
outside work cannot interfere with
the superintendent's official duties.

Pots of money

Big dollars are at stake.

Most people view school districts
as places that educate children.
But they also can be viewed as big
pots of taxpayer money with plenty
of companies trying to get their
share. The annual operating
budget for Dallas ISD is $1 billion.

The U.S. Department of Education
says the combined budgets for
public school districts exceed $500
billion a year. Wal-Mart, the world's
biggest retailer, is less than half
that size. The gross domestic
product of Argentina is less than
$500 billion.

A big chunk of a school district's
budget goes for teacher and staff
salaries. But another big chunk
also goes for a multitude of
contracts with private companies.

Elfreda Massie, vice president of
strategic relationships for Harcourt
Achieve in Austin, came to The
Resort to talk about her company's
instructional materials and
professional development
programs for teachers. During one
meeting, she told superintendents,
"We are trying to take the market for
products and services for English-
language learners."

Privately owned

Educational Resource and
Development Institute Inc., a
privately owned company in
Grand Island, Neb.,
brings
superintendents and company
executives together twice a year: a
summer conference and a winter
conference.

ERDI is the brainchild of
Mike
Kneale
, a former superintendent
and motivational speaker. He
founded the company 18 years ago
and runs it with his son, Mike Jr.

"The whole concept was to create
a forum where educators can learn
from the companies and vice
versa," Mr. Kneale said. "We want
to make products more
appropriate for the school setting."

ERDI literature lists 72 companies
and more than 80 superintendents
and other school leaders on its
participant rolls. Some of them
attended last week's conference.
Another group will attend a second
conference in Rancho Mirage this
week.

Because ERDI is not publicly
traded, little information about its
finances is available. For example,
Mr. Kneale declined to discuss
how he structures the fees he
charges his client companies.

He said he makes deals with
competing companies in a market
segment – two or three textbook
publishers, for example – to
Oakland Intermediate School District
[administrative offices above]
an example of ISD abuse
The Oakland Intermediate School District
(OISD) is an example of this, and of much
else that is wrong with ISDs.  On Sept. 25,
2001, OISD voters were asked to approve
special education and vocational education
millage increases of 1.1704 and 0.2279
respectively. The Oakland Press referred to
this vote as a "stealth" election, because
less than 8 percent of registered voters
participated. The cost to run this special
election was approximately $300,000.
Passage of the new millage meant that the
owner of a home worth $150,000 is now
paying an additional $104.87 in new taxes
each year: $87.78 for special education and
$17.09 for vocational education programs.

Within weeks of the vote, OISD announced
it was building a new $29 million
headquarters [photo above] to house its
nearly 600 administrators. Of the $29
million, $18 million came from the new
taxes imposed for special and vocational
education.
Some have referred to the new
building as a state-of-the-art "taj mahal."

This abuse of the public trust was partly
responsible for the ouster of James
Redmond, the OISD superintendent at the
time. When he was fired Redmond was
collecting $270,000 a year in salary and
"stipends."  On top of this he was
reimbursed for his Social Security taxes, and
had an unrestricted expense account, on
which he rang up $133,588 in 2002 alone.
An example of the many questionable
expenses picked up by taxpayers was
personal flying lessons for Redmond.

Redmond may be gone, but his big
compensation package is not unusual at
OISD. State Rep. Ruth Johnson, R-Holly,
represents citizens and taxpayers who live
within the area covered by the district. She
chairs a House subcommittee that has been
granted  subpoena power in its investigation
of OISD shenanigans. Among other things,
Johnson has discovered that
more than 20
OISD employees have gross annual
salaries of $100,000 or more.

The amounts include unexplained "stipends"
of up to $30,000. Johnson has uncovered
many other abuses, including boatloads of
outrageous travel and entertainment
expenses paid for by taxpayers. She reports
that the district has apparently gone to great
lengths to hide evidence of these expenses,
for example,
hiding travel records in a file
labeled with the name of a low-level
employee.  (Note: Michigan’s Freedom of
Information Act requires governments to
give citizens records upon request, but
citizens need to know which documents or
files to ask for.)

The Oakland intermediate district is
emblematic of the larger problem with
ISDs—their lack of accountability. Redmond’
s dismissal was a necessary first step for
OISD, but much more needs to be done
there. For example, the district’s board has
either been asleep at the wheel, or complicit
in the abuses. The individual members
should resign and the district should adopt a
system of direct election of board members
by the public, instead of the current one of
appointment by the boards of the regular
school districts which make up the OISD.
Next, the $29 million building constructed
with tax dollars raised under the deceptive
2001 millage vote should be sold to a private
developer, and the proceeds returned to the
taxpayers . . . .

Michigan's Intermediate
School Districts 'have
become purposeless
bureaucracies in search of
a mission'

These reforms are a start, but they do not go
far enough. ISDs have become purposeless
bureaucracies in search of a mission, with
abuses such as those at OISD the result. No
one has dug into other ISDs yet, the way
Rep. Johnson has in Oakland County, but it
would be surprising if OISD turns out to be
much different from the rest. As mentioned,
the
Genesee ISD is also wrapped up in a
current controversy, this one over some
$245,000 in travel expenses.

Intermediate school districts should be
eliminated altogether.
To the extent that
there may be opportunities for regular school
districts to realize economies of scale in the
joint provision of special education,
vocational training, or other programs,
nothing prevents them from doing so on a
case-by-case basis. They can do this and
skip the overhead expense imposed by a
permanent additional layer of bureaucracy.

Michigan’s 554 school districts already have
enough problems reining in their own
bloated bureaucracies:  More than 10
percent of the $12.5 billion school aid budget
is spent on bureaucratic overhead, and only
58% of all school spending is directly related
to instruction. (Some of the non-instructional
spending is necessary overhead, such as
heating bills, etc.)   

Another superfluous layer of government
bureaucracy
— which each year imposes
some
$878 million in additional property
taxes statewide
— is the last thing schools
or taxpayers need.
Jack McHugh is legislative analyst for the Mackinac
Center for Public Policy, a research and educational
institute headquartered in Midland, and editor of
MichiganVotes.org.   Brennan Brown is former director of
operations and advancement for the Michigan School
Board Leaders Association and holds a Masters of
Business Administration  degree from Central Michigan
University

How we take back our children's education:
one person, one question, one school at a time.
QUOTES
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Copyright 1999-2008 Peyton Wolcott
POP QUIZ:  Does your supe
wake up each morning, look in the
mirror, and say, 'I'm so grateful for
this opportunity  to be able to
serve my students and taxpayers
this fine beautiful day'
or does your supe look in the
mirror and exclaim,
'It's
GOOD to be king!'


No Child Left Behind, while
embracing admirable goals,
constitutes a federal
intrusion into state control
of education on a scale
never seen before.

--Derek Schmidt
(R) Kansas


New opinions
are always suspected,
and usually opposed, without
any other reason but
because they are not already
common.

--John Locke


The fault is not
with the teachers,
it is not with the children, it
is not with the parents,
it is with the monopoly
character of the market for
educational
services.  

Government schools are
established by law.
Elected and appointed
public officials nominally
have authority
over them.

In practice, however, actual
authority is typically
exercised by professional
bureaucrats and the
teachers' unions.

Teachers' unions and school
administrators have become
skilled at managing the
political process by which
public officials are named,
laws that govern schools are
enacted and budgets are
established.

The result is a
government-run school
system that does not reflect
the voices of parents but of
career lobbyists and
educational bureaucrats.

--Milton Friedman
COMPARE & CONTRAST:  
Here's my personal barometer as to
how much education has changed in
the past eight decades.  Above, the
small pitcher for holding pencils and
now- rusty old bell used by my  late
mother-in-law, a rural Texas school
teacher in the 1920's; the rest of her
equipment consisted of some desks
and chairs, a chalkboard and some
books.   At right, Texas' massive
state edu-agency occupies an entire
city block in downtown Austin.

An appeaser
is one who feeds
a crocodile,
hoping it will
eat him last.

-- Winston Churchill


A good plan executed now
is better than
a perfect plan executed
next week.  

--Gen. George S. Patton


Courage is being
scared to death
and
saddling up anyway.

-- John Wayne

A wise and frugal
government, which shall
leave men free to regulate
their own pursuits of industry
and improvement, and shall
not take from the mouth of
labor and bread it has
earned--this is the sum of
good government.

--Thomas Jefferson
QUERY THE
STATE SUPE
UPDATE:  
Texas Edu-missioner
Shirley Neeley was
gone from office by
mid-summer 2007
without responding
to the following
query, although she
responded quickly
to at least one other
individual:  
TO:  SHIRLEY NEELEY
TEXAS EDUCATION
COMMISSIONER
DATE:  DEC. 28, 2005

Shirley, you stated in an April
2004 interview that
you
needed
for citizens to be
candid with you,
and that
when there is a problem, to
bring
a solution.*   
I appreciate your candor in so
stating.  I've been giving both
the issue of our great state's
public school funding and the
voucher situation some
thought, and
here's my
solution:
 
Why not use your position as
"head cheerleader" for Texas
education to propose to the
next legislature that they enact
vouchers for all students who
legally reside in Texas?
However,
a public records
search shows that
Mrs. Neeley DID
respond to someone
else on the subject
of vouchers---a newsy
response, it would
appear--to Scott
Floyd, who teaches
at White Oak ISD and
just coincidentally
is East Texas
Regional Director
for the Ass'n of
Texas Professional
Educators,
the largest U.S.
independent ass'n
for public educators.

And Mrs. Neeley's
response came
within five days to
union exec floyd.  
STATUS:
No response

Texas Education
Commissioner
Shirley Neeley's
May 5, 2004 five-day
response to ATPF exec Scott
Floyd:

Dear Mr. Floyd:
Thank you so much for your
email dated Friday, April 30,
2004 concerning school
finance.  Before I address your
concerns, please allow me to
share with you a little of my
background in education.  I
started my teaching career in
1971.  In my 33 years of
education, I have been an
elementary school teacher,
assistant principal, principal,
director or elementary
education, assistant
superintendent for pupil
services and superintendent of
schools for a district of 21,000
students, until appointed
Commissioner of Education in
January of this year.   Mr.
Floyd, I believe today, even
more strongly than I believed it
33 years ago, that we teach as
much by our behavior as by
our words.  I believe that and I
also believe that society judges
public education by the
behavior and actions of those
who represent us.  In response
to your comment, “I can’t
believe that at a crucial time of
funding public schools that you,
as the leader of public
education, would come out and
approve of the passage of
vouchers,” I would like to
share with you what I recently
shared with a reporter of the
Texas Lone Star regarding my
opinion of vouchers.  “Most
school districts with several
elementary, middle, and high
schools have been practicing
school choice for many years.  
Most school superintendents
provide choices for parents.  
We’ve been practicing school
choice for a long time.  I
certainly believe that parents
and grandparents should have
confidence in their schools.  If
the school their child attends is
low-performing or
unacceptable, I believe that
parent or grandparents should
have the choice to send that
child to a better school.  My
dream and my goal is for all
the public schools to do such a
good job and to work so
closely with parents that their
public schools will be their
school of choice.  But that is
utopia.  The realist in me tells
me that you can’t please all the
people all the time.  If for some
reason a parent is very
unhappy with their public
school, I don’t see how you
are ever going to have a win-
win solution if you force that
parent to send their child to a
particular school.  My whole
mantra is if you are doing a
good job, you have no reason
to fear school choice.  Our
mission needs to be that we do
such a good job reaching out to
parents, making them feel
welcome, making them feel
like they are our partners and
making them well aware of our
high standards, that they do
view the public schools as
their schools of choice.”  Mr.
Floyd, I appreciate you
expressing your concern.  I
want to make sure that there is
always an open door when
issues arise – because the one
thing we know is that there will
always be other issues.  
Texas will continue to prosper
because educators like you
Mr. Floyd understand the
critical importance of keeping
the main thing the main thing.  
We may disagree about the
particulars of one school
finance plan or another and
yes, we may argue from time
to time about the benefits of one
instructional method or
another.  But at the beginning of
each and every school day,
educators across this great
state will be there to greet
children when they walk
through the school doors of our
Texas public schools because
you understand what the public
expects.  
You have my word that I will
continue to keep pushing for the
best, every day, with every
child, and without excuse.  

We are not going to rest
until our good is better and
our better is best.


Diane Swanson, business
ethics professor at
Kansas State University,
interviewed re ERDI
_____

"The door is open to a
slippery slope,"
Swanson told us.

What she finds most
troubling is the
superintendents were
paid to offer advice to
companies that want to
do business with the
school districts. Those
companies sell
everything from
textbooks, to computers,
to soda pop and all are
looking for a piece of the
millions of dollars
schools spend in taxpayer
money.

"There is an open door
to cronyism towards
some people," Swanson
said. "It should be a
competitive bidding
process so the school
district gets the best
quality products
for the money."

Here's the deal:
Companies that want to
rub shoulders with
superintendents pay ERDI
to attend its conference.

ERDI hires the
superintendents and pays
their way, plus a $2,000
honorarium and even
offers $400 to pay for a
spouse.

ERDI operates out of
Grand Island, Nebraska,
but no one returned our
phone calls.

"Why open a door to
channel money from
the private sector into
school superintendents
pockets?"
asked Swanson.
"It doesn't look good."

(SOURCE--FOX 13)

$

Pots of money

Big dollars are at stake.  
Most people view school
districts as places that
educate children.

But they also can be
viewed as big pots of
taxpayer money with
plenty of companies trying
to get their share.

The annual operating
budget for Dallas ISD is
$1 billion.

The U.S. Department of
Education says
the combined budgets for
public school districts
exceed $500 billion a year.

Wal-Mart, the world's
biggest retailer, is less than
half that size.

The gross domestic product
of Argentina is less than
$500 billion.

A big chunk of a school
district's budget goes for
teacher and staff salaries.

But another big chunk also
goes for a multitude of
contracts with
private companies.

--Scott Parks
Dallas Morning News


Trustee business
ties prevalent,
nettlesome

As some push to
make deals illegal, others
say districts should decide

Houston school
district trustee
Lawrence Marshall once
earned $6,000 a month
consulting for a company
that held a
multimillion-dollar
contract in the district.
It was completely legal.

Mr. Marshall says he
resigned his consultancy
with Community Education
Partners in February.  
But he played two roles
simultaneously for five years–
elected school board
member and paid employee
of the company.

Under Texas law, all he had
to do is publicly disclose his
financial interest in the
company and abstain from
any school board vote
pertaining to the company....

"All of my work for them was
external to HISD,"
he said. "Most of the work
was in other states. And I
never discussed CEP
business with my fellow
board members."

A Dallas Morning News
examination of school
district records and a review
of more than 80 school
district audits show that Mr.
Marshall is not alone among
the 7,500 elected school
board members in Texas.

Bankers serve as trustees in
districts that deposit funds in
their banks. Architects serve
in districts that use their firms
to design schools.
Construction company
owners help govern districts
that use their companies to
build schools.

"There is clear evidence
that board members are
benefiting from these
contracts," said Texas
Comptroller Carole Keeton
Strayhorn, who started out in
politics on the Austin school
board.

"We have no way of knowing
precisely, but our best
estimate is that an average
of between one and two
members of every board
have conflicts."

If her estimate is anywhere
close, more than 1,000
trustees in 1,045 school
districts have financial ties
to companies that sell to
their districts.

Ms. Strayhorn says districts
should be prohibited from
contracting with those
companies.

"This is about educating our
children and not cashing in
on them," she said.

The Texas Association of
School Boards, which is
active in legislative affairs in
Austin, disputes Ms.
Strayhorn's assessment that
conflicts among board
members are pervasive
enough to require tightening
of ethics laws.

--Scott Parks
Dallas Morning News
Oct. 25, 2004
PW COMMENT:
NOTED,
MRS. NEELEY
child read this year!!!" variety, and reassuring, "You are so important to
the educational career of the children in your schools because without
YOU, the children back home in Snow City wouldn't be learning the
valuable and exciting and meaningful things they are learning back home
in Snow City."  Before of course half of them drop out between 9th grade
and graduation.

Oh, back home in Snow City.  Big reality check.  The supe starts feeling a
little guilty.  The conference fees and dues, airfare, hotel and meals are all
paid for by taxpayers.   Three to four thou worth.

Just then, a friendly education consultant happens over with a big smile
and a handshake and says, "Hi there, fellah, why don't you sit a spell here
and have a margarita, rest up a bit.  This is sure a big old place, ain't it."   
They start talking and what with one thing and another, pretty soon the
supe's boarding the plane back to Snow City with his wife and the golf clubs
he got to use after all--and a brand-new reading program that's got more
bells and whistles than you can shake a stick at, so many bells and whistles
that maybe the board won't notice the expense of the conference. Of
course, the program's based on faulty reasoning and unproven by any real
science.  But boy, oh, boy, them bells and whistles, they are a wonder, ain't
they.   Plus the consultant has indicated that what with the size of the Snow
City school district's student population, the supe could well be in line for
an award at the company's awards ceremony as early as next July; of
course, the supe would have to pay his own way.  But it is VAIL, after all.
and Nebraska's hot in July.  

Besides, his board never turns him down.  Didn't even question the $568
dinner tab at last year's state school boards conference.  Sweet.
_________________________________________
* Superintendents in larger areas can hire each other's wives for administrative
positions; not only is the wife freer to travel with her husband, but also her air fare can
be charged to the district.  Slick.





Here's the scenario:  Sometime during the depths of winter an otherwise
well-meaning superintendent goes to, let's say, Tampa, Florida from, let's say,
Snow City, Nebraska to attend an education conference.  
READ ALL ABOUT IT:  
'SNOW CITY SUPE HEADS FOR SUNNY TAMPA
'
HOME
Education, Inc.
By Peyton Wolcott
Updated Monday, March 3 23, 2008
year anniversary with his current district and the honeymoon's over to the
point that his trustees are starting to ask questions regarding why he
hasn't achieved the goals he mentioned when he interviewed with them.  
"World class schools for a world class city, my foot," he says to himself in
the odd moment.  "These hicks wouldn't recognize a lofty idea if it bit
them in their hay barn."

In Tampa there's even a helpful "Resume Center" next to the vendor hall.
 The seminars are stimulating, of the "We're going to help EVERY

Brrrr.  February in Nebraska is mighty
cold and snow's everywhere and
everybody knows it's going to last at
least another few months.  Timing's not
bad--the district's between semester
finals, and budget planning doesn't start
for another month or two--so he and his
wife hop a plane for sunny Florida.  She
can stay in his hotel room for free and
in some larger districts if he was able to
swing a job* for her, her air fare's
covered, too.  Might even get in a round
or two of golf so he takes his clubs, just
in case.

Tampa is one party after another.  
People with a genuine interest in educa-
with bounteous platters of crab cakes
and shrimp and fresh fruit--and
bartenders standing three-deep eager
to help.  

Our supe does a little networking,
starts putting out a few feelers for his
next  job; he's about to hit his three-
2005 - San Antonio
Below right is a great article by Jack McHugh and Brennan Brown of the Mackinac
Center for Public Policy; among their conclusions:  Michigan's Intermediate School
Districts "have become purposeless bureaucracies in search of a mission."   Worse, at
least one became a purposeless bureacracy in search of opportunities for corruption, as
in the example of former Oakland ISD supe James Redmond.
 (PHOTO--Oakland Press)
Scott Parks
blunt criticism that ERDI is working
for one company over another or
that a superintendent might be
working for one company over
another.

"No exclusive deals," Mr. Kneale
said.
Rancho Mirage golf course
MICHIGAN
Eliminate
Intermediate
School Districts
An Extra Layer of School
Bureaucracy
By Jack McHugh and Brennan
Brown - Mackinac Center for
Public Accountability
2003
Jack McHugh
UPDATE FROM MACKINAC
CRC: Eliminate intermediate school districts. A number of
changes have occurred over the past decade that have
reduced the need for intermediate school districts. Proposal
A eliminated categorical grants that were so prevalent
under the former school funding system. With this
elimination, ISDs no longer serve a role in auditing the
local school districts. The growth of the personal computer
industry has reduced the need for local school districts to
cooperate in administrative tasks such as scheduling
through the ISD. ISDs are typically associated with
special education and vocational education programs. With
more and more special education students being
Oakland ISD (Waterford, Michigan)
Executive offices housing 600 administrators
Oakland Schools Office & Conference Center
Waterford, Michigan
ARCHITECT:  French Associates, Inc.
CONTRACTOR: Barton Malow Co.
MASON CONTRACTOR: Masonry Developers, Inc.
MASONRY SUPPLIER: Grand Blanc Cement Products
______________________

2004 Award Winner for Excellence in Masonry Design
The Masonry Institute of Michigan and the AIA Michigan would like to thank all of the
architects who participated in this year’s program. Your visions serve as a source of
inspiration to those of us who occupy, utilize, and admire your finished works.
It should also be noted that, without the direction and support of building owners,
these projects could have remained in the minds of the architects and in the manufacturer’s
kilns. We, therefore, express our gratitude for their confidence in selecting and using masonry.
"mainstreamed," and with community colleges offering a wide array of vocational education
programs, ISDs are either acting as pass-through agencies or offering duplicative services.

A BIRD’S EYE VIEW OF MICHIGAN LOCAL GOVERNMENT AT THE END OF THE
TWENTIETH CENTURY
8/99

Michigan administrative expenses top $1.4 billion

Figure 1: About 48.3 Percent of Michigan’s Education Budget is Spent on Teachers

EDUCATION INTELLIGENCE AGENCY
Per Pupil Amounts for Current Spending of Public Elementary-Secondary School Systems for
2000-01