Jim N. Reed’s speech to STRS Board, April 19, 2007

Cynicism: Enron on the Scioto

Good afternoon, ladies and gentlemen. My name is Jim N. Reed and I am a 42 year teacher in the Liberty Union-Thurston Schools in Baltimore in Fairfield County. I appear before you today to express some concerns and ask you to continue the current momentum toward a more transparent boardroom.

It is quite obvious that more and more Ohioans today are tuned in to and approving of the notion that organizations, agencies, corporations and indeed all public entities need to be cognizant of and respondent to their constituents’ rights to know how business is conducted. It is imperative to understand that “business as usual” is no longer acceptable. Transparency, accountability and oversight are here to stay. The charge of “micromanagement” will no longer serve as a hiding place for negligence and ineptitude. There is less and less tolerance for public officials whose arrogance produces actions and words that are more condescending than compassionate; more patronizing than dutiful; more self-serving than serving.

More specifically, it will never be as simple for organizations purporting to represent educators to be given carte blanche authority to make life-altering decisions for their constituency. Attempts at restoration of the outlived, unquestioned faith and trust will be closely scrutinized by a membership less likely to be duped. The erosion of that confidence cannot be reconstructed overnight.

Retirees need to see good faith behavior from their fiduciary caretakers. This includes acknowledging the history of the serious mismanagement of beneficiary funds by their predecessors and admission that all semblance of the entitlement philosophy is unacceptable and must be eliminated by current and future board members and administrators.

Until ORC 3307.15 becomes the only benchmark for board decision making, cynicism will continue to be the prevailing attitude among many retirees. Expectations of unethical behavior will be the norm.

Recently I had a conversation with a retired administrator regarding the disappointing and disgusting ethics violations by as many as seven indicted board members and administrators at STRS since 2003. His reasoning for their unethical and illegal behavior is indicative of society’s current expectation of corporate greed, indifference and corruption. He claimed he could hardly find fault with the lack of ethical conduct at STRS, since that had become the trademark of Enron, WorldCom and others.

It made me angry to hear an educator so easily lump his profession’s retirement system in with the likes of the most blatantly corrupt in corporate America.

How did a once proud, respected and honored STRS become mired in that kind of company? It is shameful and a professional embarrassment.

I would suggest that this attitude of “acceptance of the worst” among your constituency is too prevalent for the health of our retirement system. I would hope that this Board and administration would be offended by this comparative analysis and not want it to be a part of their legacy.

Lastly, I would caution the Board and administration to not take too seriously the satisfaction rates suggested by the STRS-sponsored surveys conducted among retired Ohio educators. These could be deceiving and lead to a false perception of what is really going on in the lives of far too many retirees. There should be no doubt that retirement has become a dilemma for many.

As a Concerned Ohio Retired Educator, I implore you to continue to closely examine the policies and procedures of STRS and have the courage to identify those that are in need of alteration or abandonment for the betterment of the lives for whom the system exists.

Thank you.