Editorial from the Tribune Chronicle: STRS scam shows need for reform

"The STRS scams are similar to the Ohio Bureau of Worker’s Compensation scandals. Both organizations contain a layer of bureaucracy outside elected officials’ purview. The legislature should place oversight under somebody holding elected office, perhaps the state treasurer who is already responsible for most of the state’s investments."

From the Tribune Chronicle, Warren, OH (Trumbull County)
May 4, 2006

http://www.tribune-chronicle.com/editorials/articles.asp?articleID=3388

Every teacher in Trumbull County probably harbors anger for Hazel Sidaway. Actually, everybody in Trumbull County, and in the entire state, whether a teacher or not, should feel the indignation.

It is unlikely, though, that many non-educators have ever heard her name before.

Sidaway faces a $1,000 fine and six months in jail after jurors convicted her of ethics violations for not disclosing gifts received from companies doing business with the State Teachers Retirement System while she served on the STRS Board. The former Canton City Schools teacher accepted four tickets, valued at $120, to a Cleveland Indians game and two tickets, valued at $550, to the Broadway show ‘‘Hairspray.’’

She said she attended the events to discuss pension business. The only people attending the Indians game with her were her family members. She and her husband attended the play with other STRS board members and their families. She said STRS board members held appropriate meetings before and after the play and during intermission.

Prosecutor Lara N. Baker said Sidaway accepted so many free trips that traveling became a full-time job. Her attorney, H. Ritchey Hollenbaugh, said she still believes she did nothing wrong.

Former STRS executive director Herb Dyer pleaded guilty to a similar charge last year. STRS executive assistant Eileen Boles also faces charges. The Ohio Ethics Commission and prosecutors are investigating more board members and employees, past and present, including Jack H. Chapman, Mike N. Billirakis, Eugene E. Norris, Deborah Scott, Joseph I. Endry, Stephen Mitchell and more.

In their ‘‘culture of entitlement,’’ expensive travel, board meetings at lavish restaurants, resort golf, and other entertainment and recreation became the norm. During Sidaway’s trial it became clear that their abuses were so extravagant they would only attend jazz and blues clubs, at somebody else’s expense, if certain performers were on stage.

Several state teacher organizations recognize the need for change. The Ohio Conference of the American Association of Universities, Concerned Ohio Retired Educators and the Ohio Federation of Teachers endorse two candidates who pledge to reform STRS.

Taxpayers need more extensive reform. Rather than new board members, taxpayers need a system overhaul. It is not just educators who contribute to STRS. Since state universities, boards of education and educational service centers match a percentage of employee contributions, Ohio taxpayers also contribute to STRS.

Yet, only educators vote on board members. That is why people outside the teaching industry are unfamiliar with Sidaway. There is nobody for taxpayers to hold accountable.

The STRS scams are similar to the Ohio Bureau of Worker’s Compensation scandals. Both organizations contain a layer of bureaucracy outside elected officials’ purview. The legislature should place oversight under somebody holding elected office, perhaps the state treasurer who is already responsible for most of the state’s investments.