OEA: Open mouth, insert foot and shoot other foot!

From Dennis Leone, March 23, 2009

Subject: OEA Responds to STRS Board candidate comments on STRS bonuses

Well, this is interesting. In 2003, OEA wrote a statewide communication describing my desire for STRS reform as “destructive misrepresentations.” An admission and/or an apology never came even when all that I wrote turned out to be true. Now, in 2009, an OEA statewide communication calls me a “dissident board member.” Shame on me for pushing for staff bonuses to be suspended (after STRS lost billions in assets), and for publicly telling the STRS Board and STRS staff to stop implying that future pensions are secure (when they are not, unless the stock market significantly improves). Further, OEA now is accusing STRS Board candidate Jim Stoll for “cynical exploitation……in an attempt to make them (Ohio educators) fearful about the financial future of STRS.” I guess OEA fails to realize that Ohio educators should be “fearful about the financial future of STRS”……….and OEA is one of the reasons Ohio educators should be fearful.

It deserves noting that STRS Board members Mark Meuser, Tim Myers and Conni Ramser--all of whom are OEA members also--did not vote in favor of the suspension of bonuses that the board approved in January 2009. How can OEA's Michael Mahoney write that OEA opposes bonuses in years that STRS loses money, and how can he praise the Board for its recent suspension vote, when Myers and Meuser opposed the decision and Ramser abstained? In fact, Myers falsely stated in public that STRS "broke a promise" by not paying the bonuses even though all STRS employees previously received a letter that said the bonuses could be eliminated at any time by the Board.

Dennis Leone
STRS Retiree Board Member

"Mahoney, Michael [OH]" <mahoneym@ohea.org>
3/20/2009 5:02 PM
To: OEA Board of Directors
OEA District Leaders
OEA Local Presidents
From: OEA Communications and Governmental Services
Re: STRS Bonuses, Investment Performance and Board Elections
[Click images to enlarge]

Relaying a message from the OEA officers:

STRS Board candidate James Stoll recently distributed an e-mail to many Ohio educators that seeks to further his election campaign by alarming members of STRS about the fund’s market losses and “outrageous” bonuses for employees. STRS lost $33 billion in market value in its most recent fiscal year. The STRS system also paid bonuses to 83 employees for outperforming the market - losing less than comparable funds.

The Ohio Education Association is deeply concerned about STRS market losses. OEA does not agree with bonuses payments to investment officers in years when STRS loses money. As a result, OEA commends the recent vote by the STRS board to suspend 2009 bonuses, as well as formation of a board committee of the whole to address investment performance. However, OEA feels strongly that Mr. Stoll’s recent e-mail was a cynical exploitation of the emotions of educators, including a quote from dissident board member Dennis Leone, in an attempt to make them fearful about the financial future of STRS and cast a vote for Stoll.

During comments to promote his candidacy during the public participation period at the STRS board meeting this week, another odd practice, Stoll boasted he has a list of 145,000 educator e-mail addresses, presumably to further his campaign. Earlier, he had sued to obtain e-mail addresses from STRS, but the Ohio Supreme Court declined to hear his case, upholding a policy to protect the privacy of member e-mail.

OEA has recommended the election Stoll’s opponent, Carol Correthers of the Lorain Education Association, to the active STRS board seat. We believe she has the temperament, qualifications and judgment to serve on the board.

Stoll never sought OEA’s recommendation and did not go to an OEA screening. Moreover his recent e-mail confirms our position. OEA must address this situation, but we apologize for any inconvenience our e-mail to you may cause. If you do not want to receive further e-mails on this subject, please click here or send your request to communic@ohea.org.

Cc: All OEA Staff

Mr. Mahoney is Director of Communications for OEA. His 2008 salary is listed at $117,098.