Archive for the ‘Education’ Category
January 11, 2016
Who Is Responsible For The OPEB Debacle?
The City of Memphis, The State of Tennessee and the active and retired employees of the OLD (no longer existing) Memphis City Schools woke up recently as there was a noise rattling around in the closet. When they opened the closet door out jumped the ghost of over $1 billion dollars of unfunded OPEB (other post employment benefits). (OPEB is the promise of furnishing retirees health care and life insurance at a highly subsidized rate without putting the money aside to pay for it).
Now everyone is saying the ghost doesn’t belong to me. Well here is the story which I have been pointing out for years.
Every politician has been ignoring the OPEB ghost for years. However some have been more responsible than others.
The most responsible people again have been Shelby County people, the old Shelby County School Board and the Shelby County Government. They recognized the problem after the 2007 GASB-45 (Government Accounting Standards Board) regulation. See the attached page showing the 2010 actions of the Board in reducing the unfunded OPEB liability from $548 million in 2007 to $242 million in 2009. They reduced the retiree benefit rules.
Now look at the old Memphis Board of Education report from 2010. They did nothing and the unfunded OPEB liability was $1.5 billion dollars. This is 6.3 times higher than the county but the active payroll of the city schools was only 2.5 times higher than the county school payroll.
Clearly the irresponsible parties are the Old Memphis City School Board, the Old Memphis School Administration and any politicians (City and County) who ignored the growing OPEB problem.
Now, how do we solve the unfunded promise? Unfortunately we have to do to the school system retirees what we had to do to the City of Memphis retirees and to a much lesser extent what the Old County School system had to do to their retirees in 2010. We have to cut their retiree health care benefits. Promises were made by elected people who should have known better or made regardless of knowing better and the chickens are coming home to roost.
October 29, 2015
Big Time Bet By The Shelby County School Board
As you have read, the SCS System has filed a massive lawsuit to take the funding out of the hand of the taxpaying public and their elected representatives and put it in the hands of the various school boards across the state of Tennessee. They want to determine how much is required to do the education job and then the taxpayers must come up with the money. The proposition is “MORE MONEY EQUALS BETTER EDUCATION” and they know best how to do it. They just need the resources.
I filed an open records request with the SCS System and asked what the estimated total future cost of the lawsuit would be and asked how much had been billed to date. They responded promptly and said that there was no estimate of total future cost but that they had been billed for $106,775.35 in four monthly billings. This is just the beginning.
Next year there will be an election at the national level for President, for the House of Representatives and for 1/3 of the Senate. If some fiscally responsible people are elected in a majority I hope they will consider the elimination over time of the Department of Education at the Federal level. This department was created by President Jimmy Carter in 1979 and has grown like most of the Washington establishment. Look at what President Obama has requested for this failure.
In his budget proposal, the president has requested $69.8 billion in discretionary spending for the Department of Education, a $1.7 billion increase over last year’s funding level. This is in addition to $13.3 billion in additional mandatory spending for Pell Grants, bringing the total budget request to $83 billion—a 40 percent increase from Fiscal Year 2008.
No one can claim any success from this monumental failure in educational spending. Let us not repeat this kind of failure at the local level.
September 29, 2015
Shelby County School Job Positions and Salaries
Nothing is more important than education. We hear all the talk about programs to combat poverty, workforce development, skill training, etc. etc.
The real solution starts with a caring family that is determined to see that their children get the basics, love, discipline, encouragement and the ability to read. The parents must take an active role in these basics.
The next step is education and this is where the debate rages. Do we need more money as most public school boards claim or do we need a 21st century model.
A recent article in the Wall Street Journal states, in part, the following.
Whatever your measure—the reading and math proficiency of high-school graduates, the skills gap in the nation’s labor market, or the real value of college—there can be little argument that America’s schools, as a whole, are failing to prepare students for the 21st century.
There are countless explanations why, but here’s a significant contributing factor: Until recently, we simply didn’t know how to use technology to make teachers and students happier, better engaged and more successful.
Think about it: In every field of human endeavor, from manufacturing to knowledge work, we’re figuring out how to use technology to make humans more successful—to raise the quality of their work, if not their measured productivity.
But the same can hardly be said of teaching. In education, the overwhelming majority of students are still learning as they always have, in classrooms dominated by a one-to-many lecturing model in which teachers inevitably leave some students behind while boring others. That model has barely changed in a century.
Parents, educators and especially taxpayers need to get involved and have an open discussion about how our education taxes are being spent. As a result of my recent open records request, I have attached a complete list of Shelby County School System employee names, job titles and annual salaries. If you do not have Microsoft Excel You can click here for a PDF copy of the salary list. I have decided to list the names only for those making $70,000 per year or more. The total annual salary for the listed year is $581 million for 16,664 employees. Add to this another 20% for benefits. This is around 75% or more in the budget for salaries and benefits.
I think we need to have a public discussion of the Shelby County Education model and ask the question of whether the School Board should be suing for more tax money or should we update the education model to the 21st century.
September 8, 2015
Massive Lawsuit By The Shelby County Board of Education
In case you have not noticed, the Shelby County Board of Education just filed a lawsuit to compel the taxpayers of the State of Tennessee to fund whatever the state school boards feel is necessary to educate all children to what they feel is adequate education. It does not matter if the taxpayers can afford their idea of what constitutes an adequate education.
I must say on the front end that I want all children to get a good education. However I am a proponent of parental choice, good charter schools and parental vouchers. Let the money follow the child. They say that lack of money is the problem. I say that there is no proof that more money solves the problem. I say that the basic problem is the dissolution of the family structure and that this family structure problem started in the 1960s war on poverty and has gone downhill since then. This is a debate that I welcome.
However I just want to alert you to what is going on and I have several questions that I feel should be answered by the Shelby County School Board and I intend to ask for this information in an open records request. I encourage you also to ask for this data.
- What is the projected future cost of this lawsuit?
- What has been spent so far?
- Will all future legal bills be promptly put on line for the public to see?
- Will all payments in connection with this lawsuit be promptly put on line?
- Will all the cost of SCS legal and administrative work in connection with this lawsuit be recorded and put on line?
What they are asking is a blank check for education with the school boards able to write in the amount.
DO YOU AGREE? LET ME HEAR YOUR OPINION AND LET THEM KNOW YOU OPINION.
Here is the lawsuit and I have listed some of the highlights below.
July 20, 2015
FEW (family/education/work) IS THE SOLUTION
There have been lots of articles last week, both locally and nationally, about income inequality, middle class wages, poverty percentages and solutions. It must be the upcoming elections, locally this year and nationally next year, that has politicians spouting out their solutions.
One local article cited a study that pegged Memphis as a national leader in both income gap and economic distress. The four local leading candidates for mayor were asked the question “How do we fix that?”
Here is a recap of what the four said.
Collins, a City Council member, said the city needs better-paying jobs before it can reverse poverty trends and close the income gap, and took incumbent A C Wharton to task for not doing more to get those jobs. Collins said he also plans to “force” the Greater Memphis Chamber to recruit businesses in technology, engineering, finance and other industries with higher average salaries. For instance, he said, the city should be targeting companies fleeing California because of the drought there.
Strickland, also a council member, said wage gap and poverty issues “run hand-in-hand” with population loss. Keeping people and jobs in Memphis is the best way, he said, and the city needs a mayor who “has the strength to fix things.”
Getting into the specifics of his plan, Strickland said he would focus on the “basics of government,” which he said are “not being done.” That includes “drastically” reducing crime and cleaning up the city, he said. “We must have a city government that is run effectively to create a safe and clean community where businesses and people want to be,” he said.
A C WHARTON
Wharton, the incumbent, said his administration has worked on reducing unemployment and income inequality in a number of ways as part of his Blueprint for Prosperity plan and with the recently announced Jobs Plus grant.
“If we are successful in getting Choice Neighborhood Implementation grants, this will provide significant support for my strategic priority of prosperity and economic opportunity for all citizens,” he said.
Wharton said the city already has some of the best workforce-readiness programs in the country at the Workforce Investment Network and through the Greater Memphis Alliance for a Competitive Workforce, which equip people with the skills needed for current and future jobs so they can “become more marketable and command higher salaries as businesses compete for top talent.”
“The Choice Neighborhood grant funds would help us leverage and maximize all of these efforts to address poverty, unemployment, income inequality and depressed neighborhoods,” he said.
Williams, the president of the Memphis Police Association, said the key was to invest in quality of life and public services instead of giving property-tax breaks to businesses.
“The profits are not being shared,” he said. “That’s why you have the (Greater Memphis Chamber) raping the city coffers. And that has to stop. Until it stops, we’re going to continue to generate poverty in this city.”
Drawing a distinction between himself and Wharton, Williams said he is opposed to “putting a clamp on excessive spending” — which, under Wharton, has translated into health care and pension changes that resulted in city retirees protesting at City Hall.
Instead, Williams said, the government should increase spending on services to make Memphis more attractive to both employers and employees.
So here is what I get out of these answers.
Collins-Get high tech companies from California but we do not have a skilled high tech workforce.
Strickland- Reduce crime, clean the city and reduce taxes.
Wharton– Get federal grant money for short term training programs and neighborhood programs.
Williams– Stop Pilots, stop cutting expenses and employee benefits which translates into higher taxes and more people leaving Memphis.
The truth is that there is no immediate solution to the problems in Memphis. The only answer is FEW, (FAMILY, EDUCATION, WORK) and it is a long term solution. Since the end of the Second World War we have been digging this hole (family breakdown, poor education and welfare dependency). Look at Detroit, Baltimore and unfortunately Memphis. Raising the minimum wage, income redistribution, unsustainable pensions and health care benefits will not solve the problem. Politicians will tell you otherwise but there is no one year or even four year solution. Restore your family, educate your children and take any job to start up the hard economic ladder. Any other solution is a lie. What is your opinion of the candidates and their solutions?
July 6, 2015
The Dog Ate My Emails and My Lunch
Open records and access is a national problem that started in Washington DC and is continuing throughout the nation. Now the dog is not only eating my emails but wants my lunch and for me to pay for it as shown on the attached youtube. http://www.youtube.com/embed/ub1Dc3NHZ3s?autoplay=1&cc_load_policy=1
I recently received an email from Deborah Fisher. She is the Executive Director of TCOG, Tennessee Coalition for Open Government
Check out my open government blog at www.tcog.info
Or follow us on Facebook
Or twitter @TNOpenGovt
I emailed her about our open records room at the Shelby County School System and here is her reply.
I read through what you sent me, and had seen the article earlier in the Commercial Appeal. I applaud you on working so persistently with the school board to create a process that would make it easier for citizens to view public records!
Clearly, obstacles do remain. How can I help you in your goals? And I would love to pull you more into the fold of what TCOG is doing.
The Tennessee School Boards Association (of which Shelby County school is a member) had as one of their top legislative priorities this year to pass a bill that would allow EVERY GOVERNMENT ACROSS TENNESSEE to charge new fees on citizens who want to inspect records. Right now, the law says no charges can be filed to inspect records – charges can only be assessed when someone wants copies of records. Not everyone charges for copies, but many do. We are seeing all sorts of labor charges when someone requests copies (upwards of $1,000), and are concerned that if the free inspection language is removed from the law, things will get much worse and more local governments will feel at liberty to charge per-hour labor fees to compile documents.
I do a lot of training, but one of my duties is tracking such legislative action. The fees bill was pulled off notice by its sponsors, after the Office of Open Records Counsel said it wanted to study the issue and hold hearings across the state.
I believe the West Tennessee hearing will be in September in Jackson. (One of the bill’s sponsors is state Rep. Steve McDaniel from Parkers Crossroads near Jackson.)
The Open Records Counsel has called a meeting of the Advisory Committee on Open Government at 10:30 a.m. Monday in Nashville at Legislative Plaza that will be live-streamed on the web. If you have time to watch it, it may help you understand better what is happening. ACOG is a group of representatives from government associations (like the School Board Association) and citizen and media groups. TCOG has a seat on ACOG. Here’s a link: http://www.comptroller.tn.gov/openrecords/acog.asp
At this meeting the Open Records Counsel will discuss her plans for a survey/questionnaire, and what she thinks should be the topic of public hearings. At this point, we are very concerned about the direction she is taking the public hearings and survey. I’ll attach for you the draft topics for the hearing, and perhaps you can see what I mean.
The Tennessee School Boards Association representative on ACOG is Don Long, and he has been very active in pushing the fees legislation. He is someone who has gotten crosswise with some citizens in Sumner County who have been seeking more information about their school district, mostly on spending matters.
While the Tennessee School Boards Association is the lead in pushing this legislation, I’m not certain that all of the elected officials who serve on school boards across the state agree with what their association is trying to do. I’m not sure Shelby County school board members support this, for example.
If a new bill is introduced in January, we need help from citizens who are willing to talk with their state lawmakers. I’m not quite sure of where members of the Memphis area delegation stand on this, or if you guys have worked in that area.
Would love to talk with you more, especially about what’s happening in Shelby County.
This is clearly the time to let our school board members know that we are for open records and that we appreciate the initial steps that Superintendent Hopson and board member Chris Caldwell have made. Our group of citizens is determined to help in building a model open records policy that hopefully can be a template statewide and to resist any efforts by the Tennessee School Boards Association to restrict access to records with new policies and restrictive fees. We, the taxpayers, pay for all of this, and we should have access to all legal information with minimal or no cost.
June 22, 2015
Why OPEN RECORDS Is SO Important
You may have read a front page article last Saturday in the Commercial Appeal by education reporter Jane Roberts. The article announced the creation of an open records reading room (Room 121) in the SCS Coe building at 160 S. Hollywood St. here in Memphis.
I have been working to open local public records since 2004 and have been greatly aided by many local citizens, particularly John Malmo, Eddie and Eve Settles (backinrivercity.com) and Ken Welch. I want to thank these people and many others who have contributed to this effort.
As Ken Welch has said many times, all public records are technically open to the public unless specifically named and restricted by state law. Then why can’t we get all this information easily? The answer is that public bodies and the leaders (Presidents, appointees, Governors, Mayors, Superintendents, etc) can make life difficult and expensive if they want to. The Tennessee open records law clearly states the following. However the particular public organization can drag their feet, threaten big charges paid in advance, refuse you entrances to offices without an appointment and then refuse to make an appointment. What has happened at the SCS system offices is different and significant.
Therefore this is why our agreement with Supt. Hopson and Chris Caldwell is so important. They have shown that they are open to making all legally open records actually open to the public. After all, we (the taxpayers) paid for all this bureaucracy and we are the employers. We recognize that we need good education, good fire and police services, good roads, efficient water, gas and electric services and many other public facilities. However we paid for them and we expect answers to all our reasonable and legally available questions.
Open Records is so important because without transparency there is often corruption, favoritism, waste and inefficiency. The sunshine of OPEN RECORDS and vigilant citizen can prevent this. There are many details to work out and our open records group is willing to work with the Shelby County System to make access easy and convenient. If we can make this work efficiently, we would look forward to using this as a template for other public bodies. Any suggestions from the you, the public, would be welcomed. We need to join together for full open records access.
May 26, 2015
The Great OPEB Dump
OPEB (other post employment benefits), basically retirement health care benefits, are much in the news. Retirees are acting like it is a great surprise that their health care plans are being cut and possibly it is a surprise. They made the mistake of believing political promises.
But look at the facts. Funding for the school systems (the old Memphis City Schools and the old Shelby County Schools) was always the responsibility of the Shelby County Government. The City of Memphis kicked in some money over the years and then when things got tight at the City, they cut that funding and the Courts said NO, they had to continue the funding on the basis of the principle of MAINTENANCE OF EFFORT.
For years the old City of Memphis Board of Education had a free hand and they loaded up the budget and the teachers and other unions participated in the loading. In particular look at the OPEB provisions of the old City School Board versus the old Shelby County School Board.
Here is a statement from the 2010 Shelby County audited financial document. Their unfunded OPEB liability went from $787 million in 2008 to $242 million in 2009. Look at the reason.
“The Board began recognition of OPEB on July 1, 2007. Limited trend information may be discerned from the three valuations made to date. The change in AAL for OPEB from the June 30, 2008 to the June 30, 2009 valuation date was due to actuarial assumption changes related to reduction in claim costs for post-65 retirees. Effective January 1, 2011, post-65 retirees formerly covered under the self-insured plan will be covered under an insured Medicare Supplement plan which is estimated to reduce claim cost by 63% to 72% depending on age. Additional reductions are anticipated due to census changes, changes in retiree contributions, and any retirements or terminations that did not occur as expected in the prior valuation.”
Then look at the old City of Memphis School Board OPEB condition and lack of action from their 2010 CAFR (Comprehensive Annual Financial Report).
AS OF JUNE 30, 2010, THE ACTUARIAL ACCURED LIABILITY FOR BENEFITS WAS $1,534,912,045 (that is $1.5 billion), ALL OF WHICH WAS UNFUNDED.
They failed to take the actions that the old Shelby County School Board took. They eventually dumped this unfunded liability on the new Shelby County School Board and the County and City taxpayers.
Again this is the result of failure of the old City School Board to recognize the huge unfunded promise and like the City of Memphis they will be forced to make the retirees pay for their past poor decisions.
June 5, 2014
More Talk, Delays And No Answers
The clock is ticking and all we get is more delays and can kicking down the road from the city Council. Positions seem to have hardened. Janice Fullilove and Joe Brown are in the “over my dead body” camp. Bill Boyd has ruled out any retiree OPEB reductions for health care. Jim Strickland and Shea Flinn want to pay up in 2 years instead of 5 but don’t come up with where the money is coming from.
The most clear eyed vision seems to come from the PFM January 2014 City of Memphis Fiscal and Management Plan. For instance on page 46 while employees were supposed to pay 30% of the cost of health insurance, the City only collected 24.2%, leaving the taxpayers to pick up nearly $4 million in cost left on the table. This under billing has been going on for a number of years. Then on page 43, we see that we pay employees (Fire and Police Services) college incentive pay amounting to $6 million per year.
NEWS FLASH FROM THE BAT CAVE. IT IS REPORTED IN THE MORNING PAPER THAT THE CITY HAS A NEW POT HOLE BAT TRUCK REPORTED TO FILL HOLES FASTER AND CHEAPER. THE MAYOR ASKS ALL CITIZENS TO REPORT ALL HOLES DEEPER THAN KNEE HIGH.
Then on page 130 we see that one of the biggest problems we have in Memphis (potholes) is reported. According to the Division, the number of lane miles pavedl has dropped from 236 in 2007 to 105 in 2011, a decline of 56%. “WATCH OUT, HOLY POT HOLE BATMAN”.
As to the proposed health care cost reductions, this is where the real money is. According to the Affordable Care Act, costs will be reduced by $2500 dollars per family, you can keep your doctor and you can keep your plan. PERIOD. Let us take them up on this promise.
May 22, 2014
A Heartbreaking Story About Education And Opportunity!
I have known a lot of great teachers. They are very important in improving the education of our children. However politicians and heads of teacher unions do not always act like their slogan, “Put The Children First”.
Take a few minutes to watch this video. It is heartbreaking.
It tells the true story of an actual ongoing event in New York City. Here you have the new mayor of New York, Bill de Blazio, acting to close down three charter schools in Jamaica, Lower Manhatten and Harlem. It is tragic. Watch this true story about a mother of a young girl who won the lottery for Success Academy. http://www.glennbeck.com/2014/05/08/will-cain-exposes-nyc-mayor-bill-de-blasios-war-on-charter-schools-in-new-docuseries/
These parents pray for a miracle (a lucky draw from a parent lottery for limited positions in these prized schools). Watch her tell her story about winning and then her reaction to the Mayor and his plan to block three of these charter schools.
Mayor de Blazio, who is Mayor due to the full support of the NY City teachers union, is closing 3 of these great schools. Look at the contrast. The math proficiency of the school that her daughter would have to go to, if the charter school she won is closed, is 3%. Her selected charter school has a math proficiency is 82%. 105 NY City schools have a math proficiency of less than 5%. It makes me mad to see such actions. Why do they do this? They cannot stand the competition and the exposure of their education failure.
What do you think?