FLASHBACK - 3 YEARS AGO TODAY - a trip to the Bistro, the heat's on Herbie, & 'it's not uncommon for executives to have use of a vehicle'
More questionable spending
Teacher pension board's actions concern lawmakers, teachers
By JIM SIEGEL
Gazette Columbus Bureau
7-28-2003
COLUMBUS -- New questions about spending by the state teachers' pension board continue to pop up as state officials prepare to audit the books.
Dennis Leone, superintendent of Chillicothe Schools, continues to dig into the spending habits of the State Teacher Retirement System.
Among his latest concerns: the board spending $88,000 a year on an in-building cafeteria; STRS ownership of 16 vehicles -- 60 percent more than the number owned by PERS, the state's largest retirement system; and lavish spending on a board dinner and recent staff party.
"I don't understand why this is happening," Leone said. "They just shouldn't be spending money like that."
Two months ago, Leone exposed that STRS officials handed out $14 million in bonuses, spent $869,000 on office artwork, and hundreds of thousands on travel and child care for staff, all while the pension system lost $12 billion in investments over the last three years.
Those findings, which he e-mailed to every school district leader in the state, eventually made it into the media and touched off a firestorm of criticism from lawmakers and teachers.
More than 100 lawmakers have since called for the resignation of STRS Director Herb Dyer, who tossed gas on the fire in June when he said STRS money belongs to the board, not the teachers.
The Ohio Retirement Study Council has said it will conduct an audit later this year of STRS spending. The teacher retirement system serves over 424,000 active and retired teachers in Ohio, with assets exceeding $45 billion.
Since his initial findings became public, Leone said he has been getting tips from inside STRS on potential excessive spending.
One such tip led him to a March 13, 2002, dinner at Lindey's American Bistro in Columbus, where Dyer treated himself and 14 board members and staffers.
The total bill: $1,037.
Leone also is concerned that STRS officials threw a $4,100 retirement party for long-time board member
Hazel Sidaway of Canton on June 19. Less than 12 hours later, the board met and Chairwoman Deborah Scott of Cincinnati publicly reprimanded Dyer for excessive spending.
"It's hypocritical for board members to be reprimanding their executive director, telling him to tow the line, when 12 hours earlier they were part of the spending themselves," Leone said.
Laura Ecklar, STRS spokeswoman, said they don't have the ability to cook dinner inside the building, so food was brought in for the party.
"I think it was felt appropriate to have the people there, including her family members, to honor a particularly long amount of service for a board member," she said. "Now in the future, there may be changes to some of these policies."
Leone also sees other problems, including the number of vehicles owned by STRS. The 16, consisting mainly of vans and Dodge Durangos, had purchase prices ranging from $23,000 to $34,500.
Eight of those vehicles are assigned to directors and deputy directors, per STRS policy. By comparison, the Public Employee Retirement System owns 10 vehicles, and two are assigned for personal use.
"I think there's logic for STRS to own vehicles," Leone said. "I question why all of the executive directors' assistants need to have their own cars paid for by the membership and why they should be able to use them for personal business. That makes no sense whatsoever."
Ecklar said the fleet cars are used for traveling across the state, often to educate members and ensure they are on the right track with their pensions.
Vehicles assigned to STRS officials are part of their compensation package, she said.
"It's not uncommon, I don't think, for executives to have use of a vehicle," Ecklar said.
Sen. Kirk Schuring, R-Canton, a member of the Ohio Retirement Study Council, has pushed hard for Dyer's resignation and said the latest findings "tells me there's a culture there that needs to be eradicated."
"I hoped that would have stopped given the revelations in the news media," he said. "If (Dyer resigns), that would be a step in a positive direction."
Rep. John Boccieri, D-New Middletown, a fellow council member, said the upcoming STRS audit is a good step, but the oversight board also must demand change.
"There needs to be a total overhaul of the system. I continue to be dismayed and irritated at the reports coming out of Columbus.
The board has attempted some recent damage control, with a June 20 letter to all members explaining its side of the situation.
"We will continue to strive to reduce costs to the system without reducing the high level of service that our members need and deserve," said the letter, signed by board chair and vice-chair Deborah Scott and Eugene Norris.
Ecklar said the letter was important.
"They just felt they wanted to let the membership know they are listening, reviewing some of their practices and policies, and kind of let them know they weren't oblivious to what was going on," Ecklar said.
Preparing and mailing 325,650 letters cost STRS about $130,000.
(Reporter Leo Shane III contributed to this story.)
Teacher pension board's actions concern lawmakers, teachers
By JIM SIEGEL
Gazette Columbus Bureau
7-28-2003
COLUMBUS -- New questions about spending by the state teachers' pension board continue to pop up as state officials prepare to audit the books.
Dennis Leone, superintendent of Chillicothe Schools, continues to dig into the spending habits of the State Teacher Retirement System.
Among his latest concerns: the board spending $88,000 a year on an in-building cafeteria; STRS ownership of 16 vehicles -- 60 percent more than the number owned by PERS, the state's largest retirement system; and lavish spending on a board dinner and recent staff party.
"I don't understand why this is happening," Leone said. "They just shouldn't be spending money like that."
Two months ago, Leone exposed that STRS officials handed out $14 million in bonuses, spent $869,000 on office artwork, and hundreds of thousands on travel and child care for staff, all while the pension system lost $12 billion in investments over the last three years.
Those findings, which he e-mailed to every school district leader in the state, eventually made it into the media and touched off a firestorm of criticism from lawmakers and teachers.
More than 100 lawmakers have since called for the resignation of STRS Director Herb Dyer, who tossed gas on the fire in June when he said STRS money belongs to the board, not the teachers.
The Ohio Retirement Study Council has said it will conduct an audit later this year of STRS spending. The teacher retirement system serves over 424,000 active and retired teachers in Ohio, with assets exceeding $45 billion.
Since his initial findings became public, Leone said he has been getting tips from inside STRS on potential excessive spending.
One such tip led him to a March 13, 2002, dinner at Lindey's American Bistro in Columbus, where Dyer treated himself and 14 board members and staffers.
The total bill: $1,037.
Leone also is concerned that STRS officials threw a $4,100 retirement party for long-time board member
Hazel Sidaway of Canton on June 19. Less than 12 hours later, the board met and Chairwoman Deborah Scott of Cincinnati publicly reprimanded Dyer for excessive spending.
"It's hypocritical for board members to be reprimanding their executive director, telling him to tow the line, when 12 hours earlier they were part of the spending themselves," Leone said.
Laura Ecklar, STRS spokeswoman, said they don't have the ability to cook dinner inside the building, so food was brought in for the party.
"I think it was felt appropriate to have the people there, including her family members, to honor a particularly long amount of service for a board member," she said. "Now in the future, there may be changes to some of these policies."
Leone also sees other problems, including the number of vehicles owned by STRS. The 16, consisting mainly of vans and Dodge Durangos, had purchase prices ranging from $23,000 to $34,500.
Eight of those vehicles are assigned to directors and deputy directors, per STRS policy. By comparison, the Public Employee Retirement System owns 10 vehicles, and two are assigned for personal use.
"I think there's logic for STRS to own vehicles," Leone said. "I question why all of the executive directors' assistants need to have their own cars paid for by the membership and why they should be able to use them for personal business. That makes no sense whatsoever."
Ecklar said the fleet cars are used for traveling across the state, often to educate members and ensure they are on the right track with their pensions.
Vehicles assigned to STRS officials are part of their compensation package, she said.
"It's not uncommon, I don't think, for executives to have use of a vehicle," Ecklar said.
Sen. Kirk Schuring, R-Canton, a member of the Ohio Retirement Study Council, has pushed hard for Dyer's resignation and said the latest findings "tells me there's a culture there that needs to be eradicated."
"I hoped that would have stopped given the revelations in the news media," he said. "If (Dyer resigns), that would be a step in a positive direction."
Rep. John Boccieri, D-New Middletown, a fellow council member, said the upcoming STRS audit is a good step, but the oversight board also must demand change.
"There needs to be a total overhaul of the system. I continue to be dismayed and irritated at the reports coming out of Columbus.
The board has attempted some recent damage control, with a June 20 letter to all members explaining its side of the situation.
"We will continue to strive to reduce costs to the system without reducing the high level of service that our members need and deserve," said the letter, signed by board chair and vice-chair Deborah Scott and Eugene Norris.
Ecklar said the letter was important.
"They just felt they wanted to let the membership know they are listening, reviewing some of their practices and policies, and kind of let them know they weren't oblivious to what was going on," Ecklar said.
Preparing and mailing 325,650 letters cost STRS about $130,000.
(Reporter Leo Shane III contributed to this story.)
posted by Kathie Bracy at 12:41 PM
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