Flashback: Facts Regarding Spending Abuses at STRS Since 1995 [from Dennis Leone's investigative report on spending and management practices at STRS]

[From Dennis Leone's 2005 campaign material, when he ran for his current seat on the STRS Board]

The following represent a number of spending abuses discovered by Dennis Leone that occurred at STRS since 1995. The abuses occurred even though assets at STRS dropped $12 billion, retirees lost their 13th check, health insurance premiums for retirees significantly increased, active members of STRS saw their STRS contribution rate increased from 9.3% to 10.0%, and school districts were implementing budget reduction plans to make ends meet. STRS expenditures included:

1. $94.2 million on the new STRS headquarters.

2. $869,235 on artwork, sculptures and polished stones for the new STRS building.

3. $818,000 on a child care services center for the children of STRS employees.

4. $500,000 per year to run the child care services center.

5. $426,000 on a fitness center in the STRS building.

6. $88,397 per year to provide food services for STRS employees.

7. $428,056 on 16 cars, vans, and SUV's.

8. STRS Board policy that permitted staff members to drive STRS vehicles for personal use, and the family members of said employees to drive said vehicles.

9. 52 American Express Credit Cards and 20 BP gas cards used by Board members and STRS staff members.

10. Alcohol purchases occurred by staff members and Board members attending conferences -- using STRS credit cards.

11. $18,810 on "Discovery Park" gala event, including the purchase of disposable cameras for attendees.

12. $15,100 on new STRS building dedication, including alcohol and gifts for attendees, as well as airfare and lodging for out-of-town STRS visitors.

13. $4,100 on a private retirement party for an STRS Board member.

14. $5,594 on poinsettias to decorate STRS during the holiday season in 2002.

15. $1,000 dinners for 12 board members/staff members on 2 occasions, again with alcohol.

16. $7,116 for baseball tickets, concert tickets, movie rentals, and Kings Island tickets for STRS employees in the summer of 2003 for "team building."

17. $530,284 spent by Board on trips and meetings around the country in 2000, 2001, and 2002.

18. Multiple trips taken by Board members and staff to places like Honolulu, Palm Springs, Kiawah Island, and Anchorage. A planned trip to China in 1995 was cancelled after it was suggested that it would have the appearance of junketeering.

19. Frequent occurrences of at least 6 Board members going to the same meeting, sometimes twice a year, costing STRS over $9,000 each year.

20. $36,736 spent by a Board member Jack Chapman in a single year for trips all over the country.

21. $1,017 airplane ticket for a Board member that would have cost $258 if it had been purchased 30 days in advance of the conference.

22. $1 million cash payback per year to full-time STRS employees for 18 days of unused staff vacation days and unused sick leave.

23. Total administrative expenses at STRS increased 17.4% per year between 1996 and 2002.

24. Total STRS employees increased from 414 to 725 between 1996 and 2002.

25. A total of 1,035 employee bonus checks were issued to STRS staff in 2000, 2001 and 2002.

26. $24.4 million was awarded in bonus checks to employees between 1998 and 2003.

27. $3.2 million had to be paid by STRS to PERS because of bonuses alone since 1998 to satisfy that pension system's 13.31% annual employee contribution requirement. STRS employees are members of PERS.

28. 34 STRS employees in 2002 received bonus checks in excess of $40,000 (with 18 of those getting bonuses in excess of $70,000).

29. One STRS employee received bonus checks of $110,000 and $68,800 in 2001 on top his base salary of $164,000.

30. Over 150 STRS employees had base salaries over $100,000 in 2002, with 32 of those making over $155,000 -- topping the salaries of both the governor and the chief justice of the State Supreme Court.

31. A total of $39,251 was paid to the Perry Local School District by STRS in 2002 and 2003 for sub teacher costs for Board member Michael Billirakis (when he attended STRS meetings), even though he did not have a position in the school district. NEA pays Perry Local the dollar amount associated with the salary and benefits for Billirakis, enabling him to be listed as an employee.

32. Excess STRS furniture was sold to STRS employees in 2000 and 2001 for $27,703, and instead of this amount going back into the pension fund, it was given to charities.

33. The regular work week for STRS employees is 37 1/2 hours.

34. If an STRS employee adopts a child, the STRS Board awards a $5,000 cash gift to said employee.

35. Between 1999 and 2004, the STRS Board paid out $2.1 million in educational stipends for STRS employees to take college courses. This amount was double what the other 4 public pension systems in Ohio paid out combined over the same time period. STRS pays up to $7,000 per year (per employee) for undergraduate or graduate work.