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This Isn't Your Father's Jerry Berger


Thursday, July 03, 2003  

American Editorial


The sharpest editorial yet on the SLPS Financial crisis is available from the American.

The contentious debate about the appropriateness of hiring a private business restructuring firm to address the challenges of a dysfunctional bureaucracy and lagging scholastic achievement in the St. Louis public schools has been sobered by the announcement that the district is insolvent.
It is reality time. Interim Superintendent William V. Roberti says that without money from restricted settlement funds from a federal desegregation lawsuit, there will be no available dollars to cover general operating costs of the city's public schools including salaries and summer school that are due immediately.

The school board agreed on Tuesday to a brokered deal between Roberti and Missouri Attorney General Jay Nixon that would inject up to $30 million or more of these restricted federal funds. This agreement is highly unusual and may not withstand a legal challenge. The district's federal crisis (mandated reserves for the district have been depleted) should temper some of the criticisms as the board desperately seeks to avoid a complete financial meltdown. Although final details are still not available, a variety of factors have contributed to the current financial crisis that is far worse than anyone anticipated. But this is no time for trying to establish blame.

The previous administration warned that there would be a budget deficit of more than $50 million. We are now told that that figure is likely to be up to $90 million. If that estimate is correct, the budget shortfall is 25 percent of the operating budget of approximately $360 million (the remaining revenues are restricted).

There is an obvious need for a broader public discussion about an ongoing strategy to improve operations and classroom instructional quality of the city's public schools. But, there is a need for reasonableness and forbearance to fashion the optimum response to the ominous threat to the educational futures of tens of thousands of our children. There are many stakeholders in the future of the public schools, but the threat is most serious for the students.

Any discussion will be largely moot if the district is unable to forestall bankruptcy, so the community must understand and accept the urgency of the current situation. The anxiety of parents and employees of the district is understandable, but the real difficulties, including the impending financial crash, that face public schools are deep and there will be no solutions without radical change.

posted by archpundit | 7/03/2003 - [Link] - Comments ()


 

Please, No Whining About How Poorly the City is Run


After ruining a good police officer's career because that police officer did his job, Arnold is thinking of rehiring the disgraced chief.

posted by archpundit | 7/03/2003 - [Link] - Comments ()


 

SLPS Lawsuit Filed


To be specific given the large number of lawsuits surrounding the SLPS, plaintiff's lawyers from the Desegregation case have filed to stop the SLPS from using Desegregation Capital Funds to temporarily cover the insolvency problem.

Are the deseg lawyers crazy? No. They are right and sound like they are willing to make a deal if Roberti and the Board make the right commitments. Bill Taylor and Bill Douthit are both concerned about this and have every right to be. The settlement was very specific in the use of these monies. Roberti and the Board should have immediately contacted them to make a reasonable deal and worked with them instead of ignoring them. Neither Douthit nor Taylor are Lizz Browns--they are serious men who understand the vast complexities of the SLPS. It is now up to Roberti to reach out and work with them.

This money is essential to keeping the district solvent and it would be essentially interest free in contrast to a bank loan-- a loan that would be very expensive given the current situation and concern over the district's bookkeeping. This is a significant mistake by Roberti, though not unsurprising given the speed and the gravity of the situation.

posted by archpundit | 7/03/2003 - [Link] - Comments ()


 

The Air and the Irony is Thick Enough to Cut With a Knife


The public relations fight is on with a tour of the text book warehouse for the SLPS providing all sorts of fodder for District critics. For all too long books haven't shown up in classrooms on time. In fact, recently retired Operations Director Chester Edmunds was once quoted as saying that you just can't hand books over to teachers, I mean what would happen then. Chester will be missed for the humor if nothing else.

The article gives hysterical details of how unprofessional the system is with these quotes,

A bumper sticker on an office door reads "A bad day at the lake is better than a good day at work." Inside that office, which was empty late Wednesday morning, are about 30 pictures of women in bikinis and other revealing garb, circa 1985. Above the photos, a magazine cutout reads "Black Starlets."

A floor below, where thousands of textbooks are stored, someone has scrawled "Book Worm Department." Over the bathroom, another sign: "Jimmy's Office."

The ancient freight elevator - which rumbles like a giant clearing his throat - has its own prose. "Clean me sometime?" one scribble suggests. On a faded sign describing workers' compensation rules, one word - "JOKE."


Describing the 'inventory system' is even better,


The problem though, Lanier said, is that it is not organized. Most warehouses, he said, assign inventory numbers which are arranged in sequential order. But at the warehouse, Lanier said, stack "4981" is next to "5175" which is next to "5269."


Shocking alternatives are shocking only in that they haven't been implemented,



"Just in time" delivery, where supplies arrive just before they are needed rather than being stored.

Contracting with a distribution company.

Setting up a computer-based system that sends supplies right to the schools.


Anyone who has worked in any sort of business with significant distribution needs is currently cleaning their sodas off of their screens. Computer tracking of these sorts of operations has been standard in business and government for 20 years. For over 10 years such items would be tracked by bar codes at a minimum--and the technology isn't that expensive.

Of course, going back to Financial Genius yesterday, part of the problem is the District didn't pay for books until the beginning of the fiscal year ever year. A sensible business would slowly start to shift such funds to the year before so that books showed up in time, but the SLPS couldn't or wouldn't figure that out and every year the books would be ordered like it was the 1950s, the books would show up late and then have to be lost in the warehouse for weeks or months.

I don't know which option is most cost-effective, but I'm betting contracting out the function might be or just in time delivery with some runners between schools when student imbalance exists. There is nothing in the process that is unique to education and as such there is no reason why the job must be done by the SLPS. Even if the SLPS chooses to maintain it as an internal process, it should be done with modern technology. All of these options would be cheaper than the current one and all should result in texts being on time.

The irony?

Armstead knows he is likely to lose his job if the management team shuts down the warehouse, perhaps as early as next week. Armstead doesn't hold that against the team members, though. They have a job, too, he says.

"But if your job affects other people," he said, "maybe you should get another job."


I have a strange notion that the warehouse does affect other people--name SLPS students and teachers.



posted by archpundit | 7/03/2003 - [Link] - Comments ()


 

Lizz Brown's Cozy Relationship with the Old SLPS Board


Lizz Brown draws enough attention to get the Pulitzer slap on the wrist for a conflict of interest.

Brown had a $5,000 promotional fee from the SLPS,
The contract to promote the city district through on-air plugs and interviews ran from last fall to Jan. 31.


Uh-huh. It is true that $5,000 isn't much in terms of the SLPS budget, but why the hell are they paying for interviews? Their ad campaigns should be public service announcements with the possible exception of back to school pushes to get students in the classroom on time--and this contract didn't even really cover that period.

On other notes, the initial appointments look pretty strong.

posted by archpundit | 7/03/2003 - [Link] - Comments ()


Wednesday, July 02, 2003  

Financial Genius


An interesting bit from Peter Downs e-mail on the School Board Meetings yesterday (emphasis mine),
The $91 million figure bandied about in other press reports is the estimated
operating deficit in December, before property tax receipts roll in in
January and February. An estimated payment of $22 million is due to the
pension fund in December. George said the board cannot pay December's bills with money it does not get until January, but according to pension fund trustees, board has done just that in the past: it would take out a short term bank loan in December and pay it back in February.


So instead of working over a couple years to get expenditures in line with current revenues, they just borrowed money in the short term.

posted by archpundit | 7/02/2003 - [Link] - Comments ()


 

Errr Bill Roberti forgets about the Settlement Agreement


The Saint Louis Public School Board has negotiated a deal with the Missouri Attorney General to borrow $30 million from the desegregation settlement capital fund. On one hand this makes sense, but on the other it isn't a whole lot different from what the state is trying to do in reducing the amount of money underneath the agreement. Roberti has the right instincts, but didn't clear the deal with the plaintiff's attorney, Bill Taylor. Taylor was present at last nights meeting looking very dour and the reason is he sent the Board notice of the agreement being breached which is necessary before legal action is taken.

This might be the only choice for the district, but why did Roberti not include Taylor in the negotiations?

A bigger question is that even if we know how incompetent the previous administration was, was going broke really an accident? Calling Chester...

posted by archpundit | 7/02/2003 - [Link] - Comments ()


 

Do NOT CALL ME!


For those who want to whine about the do not call registry--blow me. I couldn't be happier with the Missouri registry to the point that I actually give Jeremiah Jay some credit for it. We get almost no calls except the phone company and I've put a stop to those.

This is as it should be--my phone, my choice. Atrios points out how this is actually a market based solution that steps back and defines property rights for phone use. As he also points out, one can then sell their rights to a bidder who wants to call them. I won't be and I can't imagine being bothered, but hey that is me.

We have gotten calls for some ne'er do well who passed off some bad checks though. It seems Telecheck hides itself under the name TRS Recovery Services and violates the law by harrassing us to find him despite us having no idea who he is. They threatened the wife with action while she was home alone and then threatened me with degrading my credit history if I didn't cooperate. Telecheck reps refused to identify themselves to me until I did a little checking with the Missouri Secretary of State and found out who they were. Calls to the Missouri Attorney General, the FTC, Telecheck's Legal Department and the Better Business Bureau have put a stop to those scumbags though.

Oh, and when you work for a company like Telecheck and I say you--I'm using you as a plural pronoun. Don't whine that 'you' didn't do anything.

posted by archpundit | 7/02/2003 - [Link] - Comments ()


Tuesday, July 01, 2003  

99 Salmonella Cases at Children's


Completely absent from the Post-Dispatch is this report that 99 cases of salmonella were reported at Children's Hospital possibly starting back in May.

posted by archpundit | 7/01/2003 - [Link] - Comments ()


 

Speaking of the CCC


The Council of Conservative Citizens had a rally at the Galleria for concealed carry.

I'd suggest concealed carry supporters do everything they can to distance themselves from these loons..

posted by archpundit | 7/01/2003 - [Link] - Comments ()


 

Haas files an ethics complaint


One serious issue surrounding the last SLPS Board election is how the slate organized its fundraising and spending. And Bill Haas has filed a complaint with the Missouri Ethics Commission alleging coordination.

Now my understanding is the cash primarily went to a support organization that had a complete wall set up between the candidates and the money, but we'll see if the investigation goes anywhere.

I'm sure Richard Callow is at the center of this conspiracy theory as with all good conspiracy theories in St. Louis.

posted by archpundit | 7/01/2003 - [Link] - Comments ()


Monday, June 30, 2003  

SLPS Gadfly Olympics: Send Lithium


Bill Haas receives the silver (the bronze goes to Purdy--see below) medal for this missive,
Every one of Moore's actions has been precipitated by the dysfunctional, unlawful, self-righteous, sanctimonious, hypocritical and self-serving actions of the four new board Nazis, whom you have a vested interest in defending. I don't see you writing scathing, foaming-at-the-mouth hyperbolic, disingenuous editorials criticizing them or asking them to resign.


Board Nazi's? Uh-huh.

(there is irony that I had to clean up the text from proofreading errors by the P-D in the on-line edition)

But Moore takes the Gold with this,

Thank you Bill. Thank you for speaking up for me and supporting me after all the Post-Dispatch, the Danforth Foundation and Robert Koff, Mayor Francis Slay, the Hilgemanns and BJC have done to me.

As I said before, I believe in prayer, and since the Post-Dispatch and Christine Bertelson have attacked me, not only will I pray, but I call upon my colleagues and fellow believers all over this nation to pray for me.



While the whole thing is laughable, to implicate this group in some sort of conspiracy to discredit someone is bizarre to say the least. Perhaps one of the more amusing notions is Bob Koff dosing someone with cocaine. This really is right out of A Beautiful Mind, except without the genius.

posted by archpundit | 6/30/2003 - [Link] - Comments ()


 

SLPS Financial Crisis


Hammonds and former SLPS Board off by $34.7 million in the upcoming budget year.

Slay loses it after finding out about the deficit

"If all the spending had resulted in dramatic increases in student achievement, more pay and better working conditions for well-trained teachers, I would better understand. I'm not surprised or disappointed. Those words are too mild. I'm angry.

"To say that they spent money like drunken sailors is an insult to drunken sailors everywhere. At least drunken sailors spend money that they already have."


Rightfully so. However, the sheer budgetary illiteracy by Hammonds is just stunning...:
But interim Superintendent William V. Roberti said the district has gone through reserves of $51 million in three years and is now in a "liquidity crisis." The district may not even be able to meet its normal payroll, he said.


He says the management team's figure is misleading because its looks at spending month to month, rather than annually.


Connect the first bit of information to Hammond's quote and think how colossally stupid it is to say it doesn't matter because after a bunch of bills are due, we'll get some money back---if you have no reserves you are SOL. One has to assume Hammonds is clueless because no one could be that mendacious and not smile.

Bill Purdy tries to sell the problems as a matter of priorities. Sure Bill...whatever.

Current rumors suggest 20 district facilities will be closed including 10 schools and there is a meeting with the Teacher's Pension Fund to help deal with the funding crisis.

posted by archpundit | 6/30/2003 - [Link] - Comments ()


 

Ding-Dong the Ding Dong is retiring


If anyone in the SLPS embodied the cronyism and incompetence it has to be Chester Edmonds, the Director of Operations. Hammonds seldom made decisions and generally used Edmonds to enforce and keep issues from popping up. Many hoped to watch his butt get canned, but to no avail, he is retiring as Hammonds goes out the door.

His treasurer is also leaving (and see the next post for more on the financial situation).

But the best line that typifies the old regime is

Hammonds said the turnaround team is engaging in "psychological warfare," with tactics such as suspending all travel, even those trips paid for by outside sources such as federal grants.


Funny, but that is taxpayer money--why shouldn't it be properly overseen?

posted by archpundit | 6/30/2003 - [Link] - Comments ()


 

Another CCC


While we all know of the Council of Conservative Citizens, it appears a group protesting minority participation for MetroLink expansion has named itself the Concerned Citizens Coalition. Isn't that kind of close in name?

Eric Vickers isn't known for thinking through the whole deal, but this one seems especially silly. Of course, it might be helpful if they could point out specific contractors who would have qualified for the work.

posted by archpundit | 6/30/2003 - [Link] - Comments ()


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