Dennis Leone responds to the rhetoric

From Dennis Leone, May 4, 2009
Subject: Thank You

Jerry – Thank you for writing what you did to Meuser. I am sick-to-death of the Meuser/Myers/Ramser/Cervantes/Chapman/Nehf/Mitchell rhetoric of the bonuses being justified because the investment staff is providing “value added” (which means that our returns for the first 9 months of FY 2009 were -32.1% in comparison to Wall Street average market loss of -32.2%).

The union block on the STRS Board simply do not want to hear that base salaries averaging $156,000 for the investment staff (and spectacular fringe benefits) certainly pays for the so-called “value added.” No, they say it justifies giant bonuses on top of that.

I am also tired of hearing the age-old argument that the bonuses also are justified because we’d be spending more money using external money managers instead of our own internal money managers. Everyone could make an argument that it would cost him/her more money if they did things in a different way.

I guess I should have told my school board that I deserved a bonus check because I never recommended that my district hire a 2nd assistant supt, and therefore I was “saving” my district money by never recommending such. Maybe my wife and I are “saving” money by not buying a Florida condo that we can’t afford anyway.

Dennis Leone

OEA and a half-truth

From John Curry, April 30, 2009

Below is a March 20, 2009 memo from OEA President Patricia Frost-Brooks to OEA District Leaders and OEA Presidents stating (see the yellow highlighted area) Ms. Frost-Brook's apparent disagreement "with bonus payments to investment officers in years when STRS loses money."

Now, please read the two attachments taken from the "approved" STRS Board meeting minutes of March 20, 2009. These two pertinent pages are attached and labeled "XIV" and "XV" and show how three of the OEA's active teacher Board members actually voted on the first round in the voting to accept the "Staff Benefits Committee's recommendation dated March 20, 2009" to temporarily suspend the bonuses. You will notice that the OEA-endorsed active teacher Board members Tim Myers, Mark Meuser and Conni Ramser all voted "no!" The only OEA-endorsed active teacher Board member who cast a "yes" vote to temporarily quash the investment bonuses was Columbus Education Association's Tai Hayden. She is to be congratulated for her courage and insight.

After another vote (see the attachments) and the statement from STRS's Executive Director Nehf that the State Teachers Retirement System staff could live with the suspension of the bonuses did two of the OEA naysayers (Myers and Meuser) finally come around to vote to temporarily freeze the bonuses. Still, on that final vote, OEA's Conni Ramser cast an "abstain" vote. Ms. Frost-Brooks didn't mention, in her letter above, the whole story, did she? What she related was a half truth. Of course, most active educators will not know that, will they? I'm also sure the OEA won't go out of their way to present this documentation to their membership.

John Curry

P.S. Concerning Ms. Frost-Brooks reference to Dr. Dennis Leone as a "dissident board member"....he is "fearful about the financial future of STRS." Well, so is STRS Board candidate Jim Stoll and so should every reader of this email be "fearful about the financial future of STRS." Dr. Leone has curbed more entitlements at STRS during the past four years as a board member than I have fingers and toes. Ms. Frost-Brooks didn't go into specifics on that one either, did she?

From Michael Mahoney, March 20, 2009
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
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
Click images to enlarge.

.................................................................................

And OEA insists they legally do not and cannot tell STRS Board members what to do and how to vote: yet we know they do from STRS Board members -- though fearful of even saying it publicly.

~ Molly Janczyk

Dr. Leone challenges the OEA to a debate! "OEA can pick the date, the time, and location. I will be there."

From Molly Janczyk, April 20, 2009
OEA hides behind closed doors when asked for open debate.

They have never even responded to requests.

Not their style which is to hurl accusations hoping something sticks with their loyalists regardless of truth-even when facts are proven correct by their opponents.

Silence is their modus operandi coupled with repeated attacks of any who may disagree with them. They haven't the nerve to debate. Bill L. literally shakes when directly aproached with facts, hangs his head and cannot come up with on the spot reasons for his behind the scenes letters. His way is to write letters without any resistance and put out inuendo.

HOW DO I KNOW? I have directly approached him, confronted him, met with him when he was in the room with those who politely do not support him. I and others have noticed his obvious discomfort in a 'live' venue. Easy to sit behind a desk and issue statements, tell others he will help them write letters and speak to supporters or to STRS behind a podium with no one able to question him.

He hasn't the courage for a real debate in a live setting.

My opinion based on years of communication with him.

-----
Dennis Leone: A bold challenge to Pat Frost-Brooks, Bill Leibensperger and Tim Myers

Think they're up to it?

From Dennis Leone, April 20, 2009

I remember several things very, very clearly about the statewide communication by OEA President Gary Allen in the summer of 2003. (It advised OEA members to contact Bill Leibensperger if they had further questions.) Allen described my 2003 findings of STRS board/staff wasteful spending (and this is verbatim) as “misrepresentations,” as “destructive” and “written with unclear motive.” These things I will never forget. He also wrote in this statewide email of how OEA supported Herb Dyer and the big spender STRS board members of that time period (six of whom – Jack Chapman, Hazel Sidaway, Eugene Norris, Debra Scott, Michael Billirakis, and Joe Endry – all were later convicted in court of ethics violations, along with Herb Dyer himself). Allen wrote this during the summer of 2003, after my 13-page report came out in May of that year. In the recent 2009 statewide email, OEA is now calling me a “dissident board member.” While I was the only board member who originally pushed for the suspension of bonus checks – which OEA now says it supports – OEA-backed board members Ramser, Meuser, and Myers did NOT vote in support of the bonus suspension. OEA writes that it is proud of these three STRS board members – but strangely did not say it is proud of STRS board member Tai Hayden, who also is an OEA member. Was this because she voted in favor of what I proposed, which was the bonus suspension? OEA has sunk to a new low, and apparently is not even aware that its own board members at STRS (except Tai Hayden) are voting against what OEA says it supports.

I would love to have the opportunity to debate the current STRS issues in a public forum with Patricia Frost-Brooks and Bill Leibensperger sitting across the table. Is there anyone out there who could arrange such a thing? OEA can pick the date, the time, and location. I will be there. Board member Tim Myers says the teachers he has spoken to in his district – Elida Local Schools – are NOT opposed to the current bonus checks. I’d love to have the opportunity to address them as well. Betcha Myers isn’t willing to set it up. I recall once asking for an audience with the Dublin City School District teachers after the Dublin teacher union president Dawn Leibensperger (does that name sound familiar?) gave her opinion of my 2003 report to the teachers there. My “equal time” request, of course, was denied by Mrs. Leibensperger. In fact, she expressed her distaste that I even asked for it.

There are emails, letters, and tapes that verify everything I have said above.

Dennis Leone

Dennis Leone: A bold challenge to Pat Frost-Brooks, Bill Leibensperger and Tim Myers

Think they're up to it?

From Dennis Leone, April 20, 2009

I remember several things very, very clearly about the statewide communication by OEA President Gary Allen in the summer of 2003. (It advised OEA members to contact Bill Leibensperger if they had further questions.) Allen described my 2003 findings of STRS board/staff wasteful spending (and this is verbatim) as “misrepresentations,” as “destructive” and “written with unclear motive.” These things I will never forget. He also wrote in this statewide email of how OEA supported Herb Dyer and the big spender STRS board members of that time period (six of whom – Jack Chapman, Hazel Sidaway, Eugene Norris, Debra Scott, Michael Billirakis, and Joe Endry – all were later convicted in court of ethics violations, along with Herb Dyer himself). Allen wrote this during the summer of 2003, after my 13-page report came out in May of that year. In the recent 2009 statewide email, OEA is now calling me a “dissident board member.” While I was the only board member who originally pushed for the suspension of bonus checks – which OEA now says it supports – OEA-backed board members Ramser, Meuser, and Myers did NOT vote in support of the bonus suspension. OEA writes that it is proud of these three STRS board members – but strangely did not say it is proud of STRS board member Tai Hayden, who also is an OEA member. Was this because she voted in favor of what I proposed, which was the bonus suspension? OEA has sunk to a new low, and apparently is not even aware that its own board members at STRS (except Tai Hayden) are voting against what OEA says it supports.

I would love to have the opportunity to debate the current STRS issues in a public forum with Patricia Frost-Brooks and Bill Leibensperger sitting across the table. Is there anyone out there who could arrange such a thing? OEA can pick the date, the time, and location. I will be there. Board member Tim Myers says the teachers he has spoken to in his district – Elida Local Schools – are NOT opposed to the current bonus checks. I’d love to have the opportunity to address them as well. Betcha Myers isn’t willing to set it up. I recall once asking for an audience with the Dublin City School District teachers after the Dublin teacher union president Dawn Leibensperger (does that name sound familiar?) gave her opinion of my 2003 report to the teachers there. My “equal time” request, of course, was denied by Mrs. Leibensperger. In fact, she expressed her distaste that I even asked for it.

There are emails, letters, and tapes that verify everything I have said above.

Dennis Leone
STRS Retiree Board Member
April 20, 2009

A word of truth

Dennis Leone to Ryan Holderman and John Curry, May 11, 2008
Subject: RE: A word of truth

What CORE did (shame on CORE) was that Lloyd Knudson gave 2 blockbuster speeches refuting the back-to-back rhetoric of Bill Liebensperger and Patricia Frost-Brooks – when both suggested that the STRS Board should reject all 5 of the governance motions (3 passed) that I recommended. Tim Myers fits this picture perfectly. What actually was worse than Myers’ “crackpot” statement was his assertion (in writing) that my recommendations and calls for reform in 2003 were already under way at STRS. (Yeah, right!) It’s so typical OEA. Gary Allen called me “destructive” and a person with “unclear motives,” Conni Ramser called me “childish,” Jim McGreevy called me a “spoiled brat” and Myers called me a “crackpot.” So OEA.

Dennis Leone

From Ryan Holderman, May 11, 2008
Subject: Fw: A word of truth

Dear One & All:

I did find a single word of truth in the talking points put out by Whitehall Education Association:

"CORE’s attacks on OEA are viscous, unfounded and irrational."

What Dennis Leone and CORE had to say about OEA sponsored former STRS Board members' complicity in the mismanagement at STRS did stick all the way to court!

Later,
Ryan

-----

Note from John...here's the link to what Ryan was referring to:

http://whitehallea.com/files/Talking_Points_on_STRS_Campaign.pdf

-----
Gee -- it's interesting that he labels our "attacks" as "viscous." At least he didn't say they were "vicious." KBB

Proposed change in STRS election procedures and......a little more sunshine!

From John Curry, April 30, 2008
Subject: Fw: Proposed change in STRS election procedures and......a little more sunshine!!!!!!!!!!!!!!!

Ryan and others....do you suppose that this proposed change just might have something to do with Dr. Leone's questioning of the old STRS "way of doing business" and CORE's Kathie Bracy's letter to the Ohio Attorney General which led to the AG issuing an opinion that secret balloting at an open STRS board meeting was not acceptable? Below is Kathie's 2007 letter to Marc Dann. Isn't it humorous that an organization that is undergoing reform, thanks to Dr. Leone and John Lazares, is finally getting around to finally changing their wording to what should have been the proper practice in the first place? Oh well, better late than never!

John

P.S. I wonder why ORTA and the OEA didn't push for this reform....they had the opportunity, didn't they?

Kathie Bracy to Marc Dann, April 6, 2007
Subject: STRS and the Sunshine Law

Dear Mr. Dann,

Thank you very much for going after offenders in the PUCO with regard to the Sunshine Law. I would like to know if the Sunshine Law also applies to Board meetings at the State Teachers Retirement System.

Secret ballot votes were taken to appoint Conni Ramser to replace Jack Chapman (who was forced out because of his conviction on ethics charges) and Tai Hayden to replace Michael Billirakis (same reason). The names are not particularly relevant here; the real issue is the process used: a secret vote.

When Board member Dennis Leone asked why they weren't voting publicly, the response he received (I can't recall offhand who said it) was "Because we don't have to."

Something's not right about this picture; I would now like to know if the STRS Board is also subject to the Sunshine Law. For that matter, is STRS Ohio itself subject to that law?

Many thanks.

Kathie Bracy
http://kathiebracy.blogspot.com

From Ryan Holderman, April 30, 2008
Subject: Proposed change in STRS election procedures.
Dear One & All:

There's an interesting change to the STRS election process being proposed at a hearing scheduled on June 3, 2008. It would change the way voting by the Board is done when a vacancy occurs on the state teachers retirement board. Rather than a secret ballot, the vote would be a public vote.

The exact wording is available on the last page of the PDF document linked below.

Later, Ryan

Public Hearing Notice for June 3, 2008

The State Teachers Retirement System of Ohio will hold a Public Hearing on Tuesday, June 3, 2008, at 4 p.m. at 275 E. Broad Street, Columbus, Ohio 43215, to consider:

Adoption of proposed new rule:

3307-2-02 Election of successor member when vacancy occurs on the state teachers retirement board.

The proposed rule sets forth the procedure for filling a vacancy in the term of a member of the board of the State Teachers Retirement System of Ohio. The rule is proposed in accordance with Section 3307.075 of the Ohio Revised Code as enacted by Sub. S.B. 133 of the 127th General Assembly.

All interested parties will be given an opportunity to be heard. Any interested party unable to attend the public hearing may submit written comments to the undersigned prior to the public hearing.

Click here to view a PDF of the full and complete text of the proposed rule. It is also on file in the office of the Secretary of State, the Legislative Service Commission and the office of the Joint Commission on Agency Rule Review.

Editorial comment

Some questions following yesterday's STRS Board meeting
Kathie Bracy, March 28, 2008

If you were not present at the March 27 STRS Board meeting, you should have been, if only to hear the heated and lengthy exchange that occurred over Dennis Leone's efforts to remove language from the Board Policy Manual that essentially GAVE THE EXECUTIVE DIRECTOR THE POWER TO ESTABLISH BOARD POLICY.

The most vocal objections to the language change (see Dennis Leone's comments in the post just above this one, "STRS Policy Amendment Passed -- at last!") came from OEA-affiliated Board members Conni Ramser and Mark Meuser (why am I not surprised?) with executive director Damon Asbury seemingly attempting to "justify" the language as it stood, and seemingly attempting to convince everyone within earshot that the executive director would never attempt to actually establish policy (Oh no? Shades of Herb Dyer and the "Old Board" -- many of whom ended up in court with convictions on ethics violations), as it would violate the spirit of Board policy.

Look closely here. Remember back when Damon was quietly slipping credit cards to Board members behind the backs of Board members Dennis Leone and John Lazares (of course they weren't being offered credit cards!) and Dr. Leone found out about it and made those Board members turn them in? Hey, they thought it was just fine for them to have those credit cards -- ethics be hanged! Seems to me one credit card may even have been a leftover from the "Old Board" days! Sleazy stuff going on behind our backs then. Who's to say it hasn't been going on all along and may STILL be going on? Now why would an executive director be surreptitiously trying to do little favors for some Board members and not others? I sure would like to know.

I personally would like to know exactly WHY two Board members -- Conni Ramser and Mark Meuser -- were so vehemently opposed to changing the language in the Board policy previously (and clearly) stating that the executive director is "authorized to establish all further policies, make all decisions, take all actions, and develop all activities as long as they are consistent with a reasonable interpretation of the Board's policies." Since WHEN does the executive director establish ANY kind of policy? That's not his job -- that's the Board's job!! How else could those words be interpreted? Ms. Ramser and Mr. Meuser -- what were you thinking?!! And why were you thinking it?!?

I would also like to know WHY this Board has repeatedly attempted to sweep under the rug Dr. Leone's motion (basically to clean up irregularities in Board policy), which he originally introduced on October 19, 2007. WHY did this Board repeatedly insist on tabling his motion? Doesn't it say something that it was also listed LAST on a very lengthy agenda for yesterday's Board meeting and not even listed as a separate business item, but conveniently and deeply buried under the very last agenda item, "Old Business"? (Not to mention those responsible for placing it there probably figured most, if not all, CORE members would be leaving before the end of the long meeting and wouldn't be around to witness the fireworks.) What could possibly be going on here that they may not want us to notice?

To refresh your memory, here is the motion, as posted November 16, 2007:

Friday, November 16, 2007

Summary of Dennis Leone's motion tabled by STRS Board 10/19/07; to be reconsidered 11/15/07

Motion by STRS Board Member Dennis Leone that was tabled by the STRS Board on October 19 – to be reconsidered on November 15

1. In the event that retirees are employed at STRS, the executive director will ensure that said new employees begin their employment at STRS with zero days of sick leave.

2. Payment by STRS of private/personal legal fees of STRS employees will not occur.

3. The awarding of severance checks, severance payments, or severance benefits to current or former STRS employees will not occur absent a formal approval by the STRS Board, by majority vote, in public session.

4. Remove, from existing Board policy, the language authorizing the executive director “to act for the Board in all matters related to employment and compensation of personnel,” and substitute language stipulating that the executive director is authorized to act for the board “provided that such actions are consistent with Board-adopted policies.”

5. Remove, from existing Board policy – language stipulating that the executive director is “authorized to established all further policies, make all decisions, take all actions, and develop all activities as long as they are consistent with a reasonable interpretation of the Board’s policies,” and substitute language stating that the executive director “is authorized to implement decisions that are consistent with Board policies.” (This change also is needed because other existing Board policy clearly states that the executive director “may not establish compensation or benefits that are not within Board-approved salary schedules or benefit provisions.” A policy containing the words “all further policies” cannot be allowed to supersede this policy.)

'Block 4' exposed: They WANT the executive director to have the power to pay those legal fees!!

Dennis Leone to Molly Janczyk, January 17, 2008
Subject: Questions Posed at STRS Board Meeting

Molly – at today’s STRS Board meeting, I posed three questions publicly to Asst. State Attorney General John Patterson. Here are they, plus Patterson’s answers, which are on the tape of the meeting:

1. If an STRS employee in member benefits feels she was threatened by an angry retiree, and if this employee goes outside and decides to hire a law firm to give her advice, then if this employee turns in a legal bill to Damon Asbury after the fact, isn’t it true that Damon has the power to have STRS pay the bill without board involvement or board action?

Patterson answer: Yes, current board policy gives him this power.

2. Does the board have the power to decide that such a bill will not be paid?

Patterson answer: Yes.

3. If you (John Patterson) happened to recommend to the board that STRS pay the legal fees of a staff member in a situation like this, doesn’t the board have the power to tell you no, we’re not going to do that?

Patterson answer: Yes.

So much for Mark Meuser’s belief that the State Attorney General will always decide whether the board will or will not provide outside legal counsel advice to an employee, of whether a bill must be paid. The bottom line is that it’s the board power to decide what to do. It is plainly nuts that this board permits the executive director to make these kinds of crazy expenditures, when simple policies would prevent it. Meuser, Cervantes, Chapman and Ramser just need to tell the truth – which is that they WANT the executive director to have the power to pay these things.

Dennis Leone

Dennis Leone: STRS Report, March 2007

Ohio Retired Teachers Association (ORTA)

QUARTERLY REPORT*

By Dennis Leone, STRS Retiree Board Member

March, 2007

After my last column was published in October of 2006, the Board agreed to re-visit a motion I made months earlier to prohibit Board action on vendor contracts unless the Board first had an opportunity to review a summary of the proposed contracts. My original motion, as you may recall, was defeated 8-2, with only John Lazares joining me in support. Many retirees, in the months following, expressed their consternation over the 8-2 vote.

I am pleased to report that on October 20, 2006, the Board voted 7-2 to approve a motion I made (seconded by Lazares) that will require the STRS staff to provide a summary of all proposed contracts for services provided directly to the Board, and for any proposed contract in excess of $100,000. Former Board member Geoffrey Meyers and current Board member Mark Meuser voted against this initiative.

I am also pleased to report that 13 changes I desired in the Board’s travel and expenditure policies were adopted 9-0 on February 15, 2007. The changes were long overdue. Here are some highlights:

1. There will be no reimbursements for meals in the future unless itemized receipts are provided. This is the only way to make sure that pension money is not being used to purchase alcohol.
   

2. Airplane tickets must be purchased 30 days in advance, and Board members who choose not to do this will pay the difference in cost between the two tickets. Also, Board members – not STRS – will personally pay for any additional fees charged by the airline if ticket reservations are changed for personal reasons.
   

3. The previously adopted $6,000 maximum for individual Board members to spend on out-of-state trips per year did not include the conference fee for registration or tuition. Now it does. Board member Conni Ramser last year spent well over $6,000 on out-of-state trips, but this was not in violation of Board policy because her conference registration fees weren’t part of the calculation. They will be now.
   

4. Meal reimbursements are now limited to $10 for breakfast, $15 for lunch, and $25 for dinner. Previously, Board members could spend up to $60 per day, which meant that if Board members passed on breakfast and received a free lunch, they could – and did – spend $40 or $50 on a single dinner. My original proposal called for spending limitations of $5, $10, and $20, but the majority disagreed.
   

5. No overnight lodging will be provided by STRS on the day that Board meetings end or the day after conferences conclude. I will never understand why the previous policy permitted this. It was so wrong.
   

6. Board members will not be reimbursed for expenses while attending in-state meetings unless they are a formally invited speaker or an official participant at the meeting, or unless the Board votes to approve attendance in advance. There were examples in the past when some Board members would decide on their own to attend an association meeting and expect to receive a travel reimbursement.
   

7. STRS funds will not be used ever again to purchase credit cards, fax machines, fax lines, or lap top computers for Board members. Also, Board members cannot expect STRS to pay for their personal long distance phone calls when they are attending meetings. It was an embarrassment that Board policies permitted these things, and that – up until a few months ago – several Board members still were contending that such expenditures and reimbursements were reasonable.
   

Two points of irony regarding the above changes:

No. #1: Three weeks to the day after the Board adopted the revisions, Gov. Strickland ordered a meal reimbursement freeze for certain state agencies like the Ohio Board of Regents – a group that used taxpayer money for a $1,000 dinner. (Sound familiar?)

No #2: My push for the travel policy changes was triggered after Gary Hollow, from OEA-R and NEOEA-R, made a public records request for the travel expenditure report of one Board member – me. He did not express any interest in seeing what the other Board members were spending. He wanted to see what only Dennis Leone was doing. Damon Asbury then produced a travel expenditure report for all board members. What did it show? Credit cards had been purchased for Board members Conni Ramser, Michael Billirakis, Jeff Chapman, Mary Ann Cervantes, and Steve Puckett. A fax line, with a monthly fee, had been purchased for the home of Michael Billirakis. STRS paid for the long distance phone calls Steve Puckett made when he attended a conference in Orlando. Single meals costing in excess of $40 existed for several board members. I wonder how Mr. Hollow and OEA would have reacted if the travel reports for only Dennis Leone or John Lazares had shown these types of expenditures? I think I know.

I wish to explain why John Lazares and I were the only board members who voted no on November 16, 2006, when the board set the reimbursement rates for Medicate Part B retirees, and therefore increased the out-of-pocket costs for said retirees. We both felt: (A) The Board needed to first consider other options for change, like the $1.4 million dollar premium fee STRS pays yearly to provide a small $1,000 life insurance plan for all retirees; and (B) We couldn’t support such an increase for Medicare retirees when STRS money still was being used for things like Board member credit cards, fax lines, lap tops, and phone bills. ORTA, in my opinion, should have supported Lazares and me on this issue.

Finally, I have an obligation to share with retirees why I disagree with published projections by STRS that our current 47-year unfunded liability is projected to hit the desired 30 years by 2009. Note the four charts below:

(Click image to enlarge.)


....................................................................................................

The increase of about 3,500 retirees per year is what we expect. However, the average decrease of 1,626 active teachers per year over the past three years was not expected. Another decline not expected has been the payroll growth in the past three years. STRS budgets for an anticipated payroll growth of 4.50% per year – not the 2.71% average we’ve received over the past three years. The staff projects only a 2.50% increase for fiscal year 2007. What’s keeping our heads above water? The fantastic investment returns we’ve received – averaging a whopping 14.45% over the past three years. Through eight months in fiscal year 2007, we’re receiving another 12.50%. (STRS budgets for returns totaling 8.0%.) My point is simply this: Absent a continuation of the great investment returns, we will not offset the realities (if they continue) of the other three areas shown above. I am hopeful my fellow board members will be agreeable to approving a contingency plan to minimize the negative impact of a significant stock market downturn. More on this, and my recommendations for such a plan, later………

*Note: While this article was submitted to ORTA in a timely fashion, they refused to publish it or give an intelligible reason why.

Original posting date: March 11, 2007; redated to assure appearance on blog

Cathy Burner's e-mails, July 14 - 23, 2006

From Sondra Stratton
Sent: Friday, July 14, 2006 3:36 PM
Subject: Fwd: The resignation

Ms. Ramser, Ms. Fisher, and Governor Taft,

I highly concur with Mrs. Cuthburt! As one who has been involved since the beginning of learning of the STRS abuses, I find the continued arrogance and incompetence appalling!! Governor Taft, you listened to those in your party who had also done wrong by the retired teachers in OH by line item vetoing the investigation of STRS by the Inspector General. Ms. Montgomery and Mr. Petro had much to loose by said investigation. MS. Ramser, you are OEA and still do not understand what has happened at STRS and I seriously doubt you really care. You ( and Dr. Brown)
have been underhanded at the things you have tried to pull to keep discussions from occurring. You should be the next to step down!

Ms. Ramser, I believe if Ms. FIsher wanted the reasons, etc. know about her resignation, it should have come from her mouth. I believe you have really hurt yourself and if I were on the board, you and I would have serious trouble from here on out! I doubt that will be the case with Dr. Leone as he is there to see that STRS gets fixed, not to be petty with other board members. Perhaps, it is you who needs to be an "adult" for your behavior has not been very adult-like. Ms. Fisher's resignation further shows that she was NOT aware of all the problems at STRS and the resolve of retirees to get them solved!!!!!!!! It would seem the same is true with you, Ms. Ramser.

Thank goodness Ms Fisher has given up and resigned! She has not been a credit to STRS in the first place and I sincerely hope that you, Gov. Taft, will choose someone who has the fortitude to follow the law and represent retirees ( and actives) in the manner in which they wish to be represented!

Please consider Tom Hall for this position. We will never get this system back on track without people who understand where we retirees are and how we live must live. We MUST have some who is compassionate and seriously concerned about the welfare of STRS and retirees present and future!!!

Retirees are going nowhere and will stick this out until every board member who is there for other reasons than following 3307.15 are gone and this system is fixed. If we have to SHOUT to make those who pretend to be deaf, hear,
then so be it!

Sondra Stratton
CORE member and organizer
past Pres. of Brown County Retired Teachers Association

**********************************************************
From: Evelyn Cuthbert Subject: The resignationDate: Fri, 14 Jul 2006 12:03:36 -0400Dear Ms Ramser, Ms Fisher and Governor TaftI am the wife of a retiree and have been involved in educating myself for the past several years in the operations at STRS since the loss of our 13th check, the outrageous cost of our healthcare, and after reading Dennis Leone's list of facts and outrageous expenditures at STRS.I was appalled at the reason, Ms Fisher, you gave for your resignation. I have only known Dr. Leone for the past several years but I have found him to act only in a professional manor and in many types of circumstances. He is not the type to display actions that would jeopardize his credibility. He has done so much good and is well known. It's only because of Dennis and John Lazares that changes were made at all at STRS. I will, however, say he is probably passionate about doing things the right way to prevent any other catastrophies from inept decisions. He is looking to the future with 20-20 hind-sight.I find that some women in positions of power don't often embrace someone who has such passionate feelings toward their responsibilities and in this case fiduciary responsiblities especially women who have never been in a position of power before. An example may be cautioning the approval of contracts without having the contract in hand or reviewing the contract and taking at face value the Director's mere explanation of it's contents-yet approving the contract. This to me defies logic and common sense. Some women look at such passion and expertise with cool reserve and do the opposite of what is necessary since those suggestons may not have been initiated by the women themselves or they may feel that a man is telling them what to do and they don't appreciate the expertise.In my opinion if you felt "driven to resign", you must not have possessed the confidence in yourself necessary for the round table and your ability to debate the issues. This makes you sound unable to cope. There is alot of pressure there and there should be--tens of thousands of people and billions of dollars depend on your decisions and many of us who know about the outrageous expenditures do not trust most of you--you have not proven yourselves to us. It's not all baseball games, broadway shows and trips to Alaska anymore. What you do may cause even more lawsuits from those who are hired to serve us and not vise versa.I guess it also depends on what frame of reference you serve as a board member. From what I have seen and heard, Dennis' main goal is to prevent further injury to the system and prevent any further inept decisions that will cost us more in millions like the handling of the lawsuit from the STRS employees.When it comes to respect, in my opinion that there are 2 kinds. The respect one has for human life and people in general and the respect for a colleague and their professional expertise. Respect in the latter is something that is earned through actions.
***************************************
Paul Boyer Writes Re: CORE meeting July 20 at STRS:
To all who may be concerned about adopting a constitution and by-laws to make CORE a more formal organization, please remember that what Ryan will be handing out at the meeting is only a suggestion. It is up to the membership to make the constitution what you want it to be by amendments, changes that can be done right in the meeting by a vote of those present.

I urge ALL who can to attend this meeting. I will do all that I can to be there even though I should not take the time from getting ready to move. IT IS IMPORTANT. When you come, do not be bashful; speak out your concerns.

I would love to see such a crowd at the meeting that we would have to move into the main Sublett Room. Molly, I am glad that you are going to be there. Tom, we will miss you and your wisdom; I guess your computer is back on line now.

Hopefully,

Paul

*****************************************
Retirement plan is in need of a tweak
Saturday, July 15, 2006

Dispatch Public Affairs Reporter James Nash’s recent article on Ohio’s public pension systems left out some important facts about the state of educator retiree health care and the proposal to stabilize its funding for the future. Currently the State Teachers Retirement System of Ohio projects funding to continue the healthcare program through 2021. Even so, the trust fund that funds this benefit will begin depletion in 2009, signaling a virtual end to health care for STRS retirees.
So the proposal to put in place a dedicated revenue stream to fund educator retiree health care for the long term represents a responsible approach to this complex issue. STRS Ohio provides health care to over 111,000 retired teachers, university professors and their spouses and dependents. Some 6,500 disabled educators receive their health care from STRS Ohio. Without STRS Ohio health care, many of these retirees and future retirees would become a new class of uninsured Ohioans.
Since 2004, the Health Care Advocates Coalition has worked closely with STRS on a member education and engagement campaign designed to inform members about the costs of health care in retirement and to encourage them to save for these costs. The coalition includes membership from Ohio’s public higher-education institutions, school administrators, retired teachers, higher-education faculty and Ohio’s largest teachers unions. Beginning in 2005, the coalition and STRS mailed brochures to 190,000 active educators, conducted more than 20 regional meetings and communicated with more than 10,000 members. In these conversations, we learned that active educators are supportive of the proposal to increase member and employer payroll contributions by 0.5 percent each year for five years to be dedicated to health care. In recent months, we have reached out to Ohio’s school districts. We want to make sure that they understand the full range of costs associated with the health-care program and the impact if it is ended.
Working with members of our coalition, we have learned that Ohio’s public higher-education institutions are concerned about the STRS Ohio health-care program. This important service is a valuable tool for recruiting and retaining higher-education faculty. Research conducted collaboratively by Ohio State University and the Ohio Education Association concluded that concerns about health care in retirement are a primary factor in the decision to delay retirement by Ohio’s active teachers. Without health care in retirement, it is likely that all educators will teach much longer, driving up wage and health-care costs for all of Ohio’s public-education institutions. This proposal is the most costeffective way to continue a healthcare benefit for retirees who have dedicated their working lives to the well-being of the children in Ohio’s communities.
BILL LEIBENSPERGER
Co-chairman Health Care Advocates Coalition for STRS Columbus
_______
Date: Sun, 16 Jul 2006
Dave Parshall said the same thing; no need to get formal; just contacts for organizations to know how and who to reach; I think we must be mindful of however most feelFrom: Al Rhonemus>Subject: RE: Date: Sun, 16 Jul 2006 18:45:33 -0400>>I respect both Paul and Ryan; however, I feel that we are just about to do>something that we have advocated against. It may go into another ORTA>controlled few, or an OEA with controlled few. Therefore, I do not think>that this is the time to organize so to speak. This is Al's personal>thinking. I am unable to be at the meeting because of local obligations.>God Bless and I will abide by whatever decision is made. Pray that the>Governor will listen to us and appoint Tom Hall.

Al Rhonemus>
**********************************
Molly Writes:

I do agree with Nancy's analysis with rotating schedules for supporting and monitoring STRS.VERY IMPORTANT! I feel the officers are name only and meant as Dave P. said, a clear contact for CORE as some have not known where or with whom to speak. Beyond that, I fear giving control or power or anything close to anyone other than majority membership.

*********************************
John Curry Writes:

Due to my work schedule, I will also be unable to make the meeting. I do have an opinion - for what it's worth: I would like to wait for a vote for reorganization until the summer is over. We have a difficult time getting a large group together during the summer (and also during the bad weather in winter). Fall seems (to me) to be the best time for a large gathering on a vote concerning an important decision. I don't wish to be counter productive and do understand that the "show must go on."
**********************************
From: Shirley Zerkel
Sent: Monday, July 17, 2006 6:27 AM
Subject: Opinion concerning re-organization

I will be unable to attend the CORE meeting on the 20th due to family commitments. This is my opinion. Summer is a busy time for families and vacations and winter weather prevents travel. Since so many essential CORE people will be unable to attend the July 20th meeting, would it be possible to postpone the vote on such an important topic as re-organization till August or September. September has always been a time for new beginnings for teachers.
Maybe that time of year will bring forth the best ideas on what direction CORE should take.
Shirlee
************************************
School consulting deal skirts state rules on pensionBy RYAN BAGWELL, Staff Writer
July, 2006
http://www.hometownannapolis.com/cgi-bin/read/2006/07_16-76/TOP
The county Board of Education is considering a contract with a Crofton firm that would allow school officials to skirt state pension rules and give lucrative paychecks to retired administrators.
The two-year, $1.4 million deal would allow Nancy M. Mann and two other former administrators to start consulting jobs through a little-known human resources outsourcing company that has handled school employees for years.Those familiar with the arrangement with Human Resources Inc. said it is a tool to hire retired administrators and give them big pay while they continue to draw full state pensions."I don't like it," said school board member Konrad M. Wayson. "If I can't do it for a teacher, I shouldn't be able to do it for an administrator."Superintendent Kevin M. Maxwell, who started two weeks ago and just learned of the contract, still wanted the deal approved. The system's previous five-year agreement with HR Inc. ended June 30.But on Wednesday, school board members extended the current deal for a month and froze hiring on the contract while they review the proposal.Along with Mrs. Mann, Dr. Maxwell said he planned to hire Kenneth Nichols, the school system's former acting deputy superintendent, and Leslie Mobray, the district's former acting director of student safety and discipline, through the HR Inc. contract. Both retired after years with Anne Arundel schools. Now that plan has been put on hold while the school board looks into the deal, Dr. Maxwell said.Specific pay for the three consultants wasn't discussed, but Dr. Maxwell said it would be comparable to what they earned when they were paid directly through the school district.Mrs. Mann made about $700 each day she worked as interim superintendent. She stepped down on June 30.The state's Retirement and Pension System limits the amount a retired school employee can make with the district they retired from. Generally, retirees can make up to the difference of their yearly pension and their final salary.But if they are hired through a subcontractor like HR Inc., retired employees can make unlimited amounts, according to Anne Budowski, a spokesman for the state's retirement system.That doesn't seem right to the Maryland Public Research Interest Group, a state government watchdog group."If they are double dipping, I think that warrants concern and should definitely be looked at," said Johanna Neumann, a MaryPIRG policy advocate.Tim Schaffer, HR Inc.'s president, could not be reached for comment.Ms. Budowski did not know if other Maryland school districts use subcontractors to get around state pension regulations."This is the first we're hearing about it," she said. "We would have to do an investigation and make inquiries."The school district's relationship with Human Resources Inc. started more than 10 years ago. They've often used the contract to hire employees in demand, like speech therapists and construction project managers when funding windfalls have come from the county, said Deborah S. Groat, the school system's director of purchasing.Only six employees are presently employed through the contract, the school system said. They make between $20,000 and $80,000 a year. Ms. Budowski said four of the six are drawing a state pension.It was unclear what their jobs are. Florie Bozzella, director of human resources for Anne Arundel schools, did not return calls for comment on Friday.In the last school year, Human Resources Inc. made $65,000 on the deal to handle six employees.Under the proposed contract, HR Inc. will charge 26.5 percent of the employee's salary for jobs like clerical and administrative positions. For skilled labor, they'll charge 30.5 percent.It's more than what was proposed by Metropolitan Technology Solutions, a Virigina-based firm that also bid on the contract. They offered 10 percent fees for administrative positions, and 20 percent fees for skilled employees.But its proposal was rejected early on because it was "technically incomplete.""If it was not technically complete, then they wouldn't have asked us in for an interview," said Russell Henderson, of Metropolitan Technology Solutions.Ms. Groat said the committee that reviewed the proposals scored Metropolitan low because they weren't local, and new employees probably would have had to travel to Virginia to fill out paperwork.HR Inc. also had more experience than Metropolitan, she said.
_______
July 17, 2006
John Curry Wrote:

Please click on the link below and then click on July 17, 2006 for the Wastebusters feature concerning STRS. I tried the email feature and discovered that it isn't available (yet). I will call the station tomorrow - meanwhile, you still can still view the presentation.

P.S. A special "thank you" goes out to CORE member Sondra Stratton who filed the "official" complaint with the Ohio Ethics Commission which started this criminal ball rolling!

John - today, an especially PROUD CORE member
The message is ready to be sent with the following file or link attachments:Shortcut to: http://www.whiotv.com/news/9225017/detail.html
_______
Sent: Thursday, July 13, 2006 5:11 PM
Subject: Drawing fire!

Dear One & All:

I've been sitting here in front of my computer screen dumbfounded by the comments attributed to STRS Board President Constance Ramser and member Judith Fisher! They've stooped to the now all-to-familiar tactic of attacking the messenger when they cannot refute the message. It reminds me of those who attack the patriotism of anyone who dares raise their voice in opposition to our present national leadership or questions the motives of anyone who questions the actions of those in leadership positions.

The STRS board is not a social organization. Board members were not elected so that they could attend ball games, enjoy a few rounds of golf, take in the latest theater production and bond over a lovely meal! Board meetings are supposed to be the forum where the oversight of our pension fund is discussed, ideas are exchanged, and decisions in keeping with the charge of ORC 3307.15 are voted upon and executed. Invoking "civility" as an reason for stifling frank discussion is a pathetic attempt to intimidate and demean anyone with the valiancy to speak against the majority!

The open discussions that have taken place since John Lazares and Dennis Leone were elected to the STRS Board have increased the transparency of the Board's actions, stimulated careful examination of the way business is conducted, and guaranteed that the rubber stamping of items brought before the Board will be met with resistance by those who have pledged to protect our retirement funds.

The vitriol hurled at Dr. Leone is hurled at all who dare challenge those who are entrenched in a business-as-usual mindset. Anyone who advocates reform is targeted as a "malcontent" or "trouble-maker". Changes in the rules for participating in the public speaking sessions at the STRS Board meetings, attempts to quash responses by Board members to those who address the board and attempts to limit the discussion of motions before the Board have all failed to silence those who engage in discussion, dissent, and criticism.

Ohio's teachers, both active and retired, will be heard. We will continue to elect representatives to the STRS Board who will speak loudly, insistently, and forcefully in their effort to move forward and bring reform to our retirement system. Dennis Leone and John Lazares have dared to do just that. I challenge other board members to step forward and support their efforts and defend their right to speak their mind.

For too many years STRS was governed by individuals with an imperial attitude and ingrained sense of entitlement.

Never, never, never again!

Sincerely,
Ryan Holderman

******************************

Dennis Writes Molly G.
From: Dennis Leone>To: Molly G>Sent: Thursday, July 13, 2006 1:57 PM>Subject: Re: Fisher & Ramser>>>Thank you Molly, for your words of encouragement. John L says it best when >he says that we are not on this board to develop buddy friendships with the >other board members. In fact -- if the truth be known -- John and I don't >even socialize together. We are just 2 people with similar concerns.>>Thank you again for your kind comments.>>Dennis Leone> ----- Original Message -----> From: Molly G> To: Dennis Leone> Cc: John Lazares> Sent: Thursday, July 13, 2006 11:11 AM> Subject: Fisher & Ramser>>> Gentlemen:>>> I just read that insulting rhetoric spewed by Connie Ramser and Judy >Fisher ... esp Ramser. Please do not surrender to their mean-spirited >tactics. The work you are doing is historical in nature and must continue. >This has to be discouraging, but you're made of stronger stuff and you have >so many teachers backing you. Hang in there guys.>>> Sincerely yours,>>> Molly Ganz**********************************************************

Molly Writes Jim Wagner Re: CORE

I understand Jim. I also feel some of the strength has been in being able> to remind us all that no one is the leader and that membership majority is> the voice.> I worry that it can evolve into a 'board and officers' doing what other> boards and officers of other organizations do: say well this is what we > are> elected to do-decide the course.>> Dave Parshall understands that is not the purpose and that it is a> figurehead position to be the contact and spokesperson for majority> decisions.> I fear becoming what we have stood against.> THAT is WHY it is necessary to attend and be part of the decisions.> It is very important to have safeguards against the above dangers.>> It will be very divisive if such a situation develops-not attractive to> gaining membership as that is what we have fought against.>> Dave Parshall didn't really see the need for formalizing it but some do > and> there are pts for that.> I just think we must be very cautious and very able to change items if> misuse arises.>> We have to think longterm for future persons serving as our goals and> thoughts may erode with egos and personalities.>> Sticky I think. This has absolutely nothing to do with Paul 's and Ryan's> stellar efforts and they are honorable and ethical and doing what has> arisen. They are to be commended and perhaps I am being way to overly> cautious being so burnt by the other organizations and what their> interpretations of duties became over time. Paul and Ryan are doing > nothing> that would contribute to this happening. Titles are just tricky things> giving far more imagined power than meant. Careful selection of who fills> that role is essential but some where down the line, I know, someone will> someday get carried away with it. There is no doubt for me.> Human nature.>>>>From: Jim Wagner>>To: "Mollly Janczyk" >>Subject: formalizing core>>Date: Sat, 15 Jul 2006 20:32:40 -0400>>>>Ask your retired teachers - beginning with your e-mail list.>>>>Personally, I think it would be disasterous to CORE.>>>>When you have a problem you want to get rid of you put a label on it.>>>>And coping requires labels - so what are you going to do.>>>>I think the power of CORE has been the disorganization since it cannot be>>penetrated and controlled.>>>>>>Jim Wagner>>*************************************
Duane Tron Writes:
Subject: STRS Date: Sat, 15 Jul 2006 15:12:20 -0400>>Molly,>>Watch the news Monday! FYI>Nothing else I can say now!>>My best advice?! We don't need people on OUR retirement board who are >impressed with themselves, and using a board seat as a stepping stone, to >enhance their Vitae, or stroke their egos.>>We need people who are going to represent ALL of us. We need people who >are going to do what is right and in the best interest of retirees.>>I'm tired of the so-called experts, the high roller politicians, the people >with impressive credentials, and on and on.>>I want someone to represent us who has OUR best interests, and welfare at >heart, and I want someone who is honest and will do the right thing for >retirees, and for the right reasons.>>Judith Fisher had fancy credentials, connections, lots of schooling, and on >and on and she's a total bust! We need someone from among us who knows >what's going on and what has taken place at STRS.>>I'm sorry but over the years I have come to NOT trust people from academia >and some sectors of Corporate America. Why? They don't live and operate >in the "real" world.>>The news Monday will be tied to the word, "scandal." As I have pointed out >to you many times I have been quite busy working behind the scenes. I am >very sorry that I can't perform miracles and it angers me that the system >works so slowly! On the other hand the system still does work.>>We have been battling with people I describe as "bad" people. They have >done a lot of bad things and they will be removed and dislodged from >positions of power and prestige over time. Note, I said over time?>>The good news is the honesty, character and tenacity that people like >yourself have brought to this battle. The positive news is that in the >long run "good" will triumph as a result of people like you and many others >who have fought and cared so passionately about this issue!>>DuaneTron>*********************************************
Mary - I have a hunch that it will be "Wastebusters" by Jim Otte. He is doing a series re STRS. For all who read this - Mary is talking about Channel 7 (WHIO-TV) Dayton, OH. Those watching on cable will have to cross reference their cable channels to see if they do receive this Dayton channel as if it is "Wastebusters," it is ONLY broadcast on Channel 7 Dayton and no other (CBS) affiliated stations - it is a LOCAL show only.
----- Original Message -----
From: Mary Jordan
Sent: Saturday, July 15, 2006 5:30 PM
Subject: re: The News

Hi John,
On Friday's Channel 7 news from Dayton at 5:00 they said to watch Monday's 5:00 news for news about STRS. I am anxious to hear have they have ato say.
Mary Jordan

****************************************
From: Jim Kimmel
Sent: Saturday, July 15, 2006 4:05 PM
Subject: Re: VSP ALERT

Sondra:
When I first retired Judy and I opted out of dental and vision insurance. The vision did not look like it was giving you much for the price. I can go to Sears and get a pair for $99.00 as they have sales a couple of times a year- even lineless bifocals. As far as the dental is concerned I asked my dentist just before I retired what he thought of the plan and showed him the brochure. He said it was the worst one he had ever seen ! Old Doc Rosenthal is now no longer with us but I always have trusted his judgment.

Jim Kimmel
************************************************
From: Mary Ellen Angeletti >>Date: June 27, 2006 9:53:31 PM EDT>>To: susan.zelman@ODE.state.oh.us>>Subject: Steve Puckett's vote>>>>Dr. Zelman, I was dismayed at the STRS Board meeting on June 15th to >>witness Steve Puckett's vote against restraining the STRS Executive >>Director's spending of retiree funds without the okay of the STRS Board. >>The Board must be KNOWLEDGEABLE about the money the Executive Director >>spends and also the contracts he makes and must VOTE on the spending and >>the contracts. This is the fiduciary responsibility of each and every >>Board member. Puckett's vote against is irresponsible and I am furious >>that he represents the Ohio Department of Education. I would appreciate an >>explanation.

Mary Ellen Angeletti, STRS retiree

*****************************************

Bob Speers Writes:

We recently visited Europe, and were able to compare their plight with the opulent living of some people in the USA. The old top-down and lack of free speech and right to assembly governance system of Russia led to grief for many. Democracy and freedom of speech are the cornerstones of our great society.

Keep up the good work that you and the rest of CORE folks are doing. Free spending without immediate oversight is bad for STRS.

Bob
************************************
Posted on Wed, Mar. 29, 2006

Blackwell aide close to charter
By Dennis J. Willard and Doug Oplinger
Beacon Journal staff writers
COLUMBUS - Secretary of State J. Kenneth Blackwell's chief of staff has had an ongoing relationship with the state's largest charter school, receiving income and gifts from the Electronic Classroom of Tomorrow while the school at times overcharged the state millions of dollars.
Sherri Dembinski is third in charge in Blackwell's office, which oversees the chartering of nonprofit organizations. ECOT is a nonprofit organization.
Blackwell also oversees reporting of campaign contributions. Managers of ECOT -- including Dembinski -- collectively have contributed about $330,000 to Ohio Republicans since the founding of the school.
ECOT has been embroiled in controversy since the fall of 2000 as it attempted to start a publicly funded online school that would educate children in their homes on computers.
In 2002, the school was found by Department of Education auditors to have overcharged the state as much as$7 million for children it could not verify as on the rolls.
And three times, state auditors have questioned expenses by the school and its close relationship with the for-profit management company that oversees ECOT -- both of which were founded by Columbus businessman William Lager.
= [100.0]Lager and Dembinski's husband have been friends since high school.
Dembinski was on ECOT's board from its inception until March 2004, when she resigned and moved into a new role as vice president of a foundation related to ECOT -- a foundation whose beneficiaries include students and organizations affiliated with ECOT.
Dembinski said Tuesday that she checked to make sure there was no conflict of interest to serve on the board.
``I actually had the conversation with general counsel at the time I got on the board to make sure there was no conflict of interest,'' she said.
Dembinski said she resigned from the board because the school hired her son, Christopher.
``I felt that was a conflict of interest,'' she said.
Ethics question
A review of ethics disclosure records by the Akron Beacon Journal shows that she does have a problem.
She reported her relationship with ECOT to the Ohio Ethics Commission for 2000-2003, but failed to do so for 2004. A review of ECOT records shows that in that year, she received $3,000 as board president and $2,000 as a parting gift to buy a computer.
She also did not report in previous years that the school provided her with the use of a personal computer.
``It was definitely an oversight, and I will be filing a report with the Ethics Commission trying to explain that to them,'' Dembinski said of the 2004 omission.
She said the filing occurred while she was off work taking care of her husband, who had been diagnosed with cancer. An aide filled out the disclosure statement, ``brought it out to me and I signed it.''
She also said she didn't view the computers as gifts. Initially, all board members received computers so they could e-mail each other about school business, she said.
The second computer, she said, was a bonus.
Ohio Ethics Commission Executive Director David Freel said he could not comment specifically about Dembinski, but said that a person in her position is required to report sources of income, gifts, creditors, debtors and real estate.
If the commission were to investigate, it would ask whether this was an oversight or an effort to conceal her relationship, he said.
He also said that the investigation would have to determine whether the computers should be considered gifts.
Brian Hicks case
In July 2005, Brian Hicks, Gov. Bob Taft's former chief of staff, came under investigation for not reporting gifts that he received from Toledo coin dealer and Republican fundraiser Thomas Noe.
Hicks agreed with prosecutors to plead no contest to charges that he knowingly filed a false financial disclosure statement with the Ethics Commission.
In 2001 and 2002, Hicks did not report that he stayed at Noe's Florida vacation home. Hicks was fined the maximum $1,000. He avoided a maximum six-month jail sentence and was not placed on probation.
In all, Dembinski received $30,000 in board pay, $2,000 to buy a computer and the use of a computer of unknown value for her tenure with ECOT, according to records.
When she resigned from the ECOT board, she was making $92,000 in the Secretary of State's Office.
This year, ECOT enrolls about 6,500 students who study at home via computer, for which the school will receive about $39 million transferred from school districts that the students would otherwise attend.
Dembinski said that there was no conflict for her regarding the secretary of state's role in granting nonprofit status to ECOT.
Nonprofit status
Groups wanting to create a nonprofit organization submit their applications to Blackwell's office. The secretary of state has no legal obligation to test the legitimacy of an application, said spokesman James Lee. The office merely handles paperwork, and it's up to other agencies to enforce laws regarding nonprofits, he said.
ECOT has twice received nonprofit status from Blackwell's office. Nonprofits can use that status to be exempt from Ohio taxes.
However, the Ohio Department of Education encourages charter schools to also qualify for federal tax exemption under tougher Internal Revenue Service regulations. The IRS prohibits for-profit management companies from having influence over charter school boards and prohibits tax-exempt charter schools from political activity and lobbying.
Of the more than 250 publicly funded charter schools in Ohio, ECOT was one of a dozen last year that did not receive the federal tax-exempt status.
In three state audits, auditors raised questions about ECOT's relationship with the for-profit management company, Altair Learning Management, run by ECOT founder William Lager. And an e-mail between two state auditors quotes a former board member as saying it's understood that payments to Altair include political contributions and lobbying expense.
``I have no idea about that. My affiliation was with ECOT. The big expenditures for ECOT were the (computer) servers, PCs, delivery (of computers), teachers and software,'' Dembinski said. ``My focus was on the ECOT side. That sounds like a very incorrect statement to me.''
Records show that Dembinski attended meetings and communicated with ECOT's lawyer when they discussed the school's ability to meet the tougher federal requirements. She also was on the board committee that negotiated Altair's management contract.
As for political contributions, Dembinski said there was no concerted effort by her and three other ECOT-related individuals to donate in the same week to state Rep. Jon Husted, the legislature's strongest advocate for charter schools.
According to records kept by the secretary of state, Dembinski's $250 donation occurred within days of three other contributions totaling $4,000. She said she made the donation after talking to a friend.
On Husted's campaign report, she is identified as a ``self-employed consultant.''
_______
Making school change from the top>> Charters not following the law?>> By selliott Friday, May 19, 2006, 10:29 AM>> A coalition of charter school critics, led by the Ohio Federation of >Teachers, has released a new study of Ohio charter schools and how they >comply with state laws. Here's their summary. Let me know what you think::>> Although charter schools are defined by Ohio law as public schools, >those operated by educational management companies claim their teachers are >not public employees. Charter schools are required to have independent, >non-profit boards, yet boards assembled by management companies exercise >little independent oversight.>> A new study of the four largest charter school chains provides new >evidence that many Ohio charter schools do not operate as public schools, >contrary to state law. The research, conducted by the Braddock >Organization, reveals that charter schools are tightly controlled by their >management companies, which prefer secrecy over public accountability.>> The research refutes assertions by a charter school attorney in oral >arguments before the Ohio Supreme Court. On Nov. 29, 2005, Chad Readler of >the Jones, Day law firm, told the Court that charter schools ".carry every >indicia of a public entity." (*Transcript of Nov. 29, 2005, Ohio Supreme >Court hearing on Case 2004-1688, Ohio Congress of Parents and Teachers v. >State of Ohio Board of Education et al.)>> But, charter schools operated by National Heritage Academies, the Leona >Group, Summit Academy Management and White Hat Management (the largest >operators of charter schools in Ohio) refused to provide public information >when requested by Braddock. All but 2 responses to 71 public information >requests came from management company officials or attorneys, not the >charter schools themselves. All consistently declined to provide contracts >of teachers employed at the schools. Each said the teachers are employees >of the private management company and not public employees of the schools >themselves. Therefore, they responded, information about the teachers' >contracts is private.>> One board member also noted in his response that contracts of teachers >employed at the school are unavailable even to its board members.>> Yet, the schools make contributions to the State Teachers Retirement >System (STRS), a pension fund for public school teachers, in apparent >contradiction to these claims.>> The Ohio Supreme Court recently ruled on a similar public records issue. >On April 6, the Court ruled that the records of private or nonprofit >entities are public when the services they provide are the traditional >province of government and financed with public money. The ruling was made >in a case that dealt with the public records of Oriana House, which >operates private corrections facilities funded by public tax dollars.>> Private management companies will receive a majority of the nearly half >billion tax dollars the state pays to charter schools this year.>> In an effort to determine whether charter school boards exercise >meaningful oversight of the schools, Braddock researchers requested minutes >for charter school board meetings held in 2005. The documents provided >reveal a pattern of boards assembled and controlled by management companies >rather than by independent boards.>> The Leona Group>> The Leona Group's chain of charter schools includes 6 in Ohio that >enroll 1,027 students. Contrary to the requirement that each charter school >be run independently, one superboard controls operations for all of Leona's >charter schools in Ohio. This superboard conducted business jointly for all >of Leona's charters in one session, including the 6 currently open for >business and 3 more that are in the planning stages.>> Summit Academy Management>> Summit Academy Management's chain of charter schools includes 19 in Ohio >that enroll 2,250 students. Contrary to the requirement that each charter >school be run independently, one superboard also controlled operations for >all Ohio charters run by Summit Academy Management. Unlike Leona's joint >session for all charters, Summit's superboard appears to have convened and >adjourned each charter's business, holding several meetings in succession >on the same day.>> National Heritage Academies>> National Heritage Academies' chain of charter schools includes 9 in Ohio >that enroll 3,510 students. Contrary to the requirement that each charter >school be run independently, National Heritage charter board members >overlap, with the same group of people conducting business for multiple >National Heritage charter schools. Several board members appear to be >interchangeable, serving on multiple boards for short stints throughout the >year.>> White Hat Management>> White Hat Management's chain of charter schools includes 34 in Ohio that >enroll 16,000 students. White Hat runs one superboard and several smaller >groups of people who serve on the boards of multiple White Hat charter >schools. More than half of White Hat's charter school board members serve >on the boards of multiple schools. Three members serve on 18 different >White Hat charter school boards, one member serves on 17 different White >Hat charter school boards, one serves on 10 different boards, and three >serve on 9 different White Hat charter school boards. Eighteen members >serve on 2, 3 or 4 different White Hat charter school boards.>> "It's clear the public has no voice in these schools," said Tom Mooney, >chairman of the coalition, commenting on Braddock's findings. "No one but >the company CEO has any say.">> PTA Executive Director Barbara Sprague said, "Charter schools were >called community schools in Ohio to signify that they would establish >closer ties to the parents and community. They were to be less bureaucratic >and more autonomous than traditional public schools. But these schools are >just the opposite. Board members represent the management companies, not >the community or parents.">> "The central concern of the League of Women Voters of Ohio about >community schools continues to be accountability to the tax-paying public," >said Carol Gibson, co-president of the League of Women Voters of Ohio.>> Permalink Comments (5) Post your comment Categories: charter >schools and school choice>> Comments>> school levy spin and marketing.>> Reader Comment:>> By chartteach>> May 31, 2006 07:56 PM Link to this>> Unfortunately, most charter schools teachers don't have a contract. We >wish we could have a union as well. Most charter school board members are >there for the resume building. They are not involved, nor do they seem to >care about the school they are working with.>
***************************************
ALRIGHT! BARNET WOLF , reporter for 'The Dispatch.'> That's the kind of detailed reporting WE'RE talking about !!!!!!!!>>> FRONT PAGE: Jack Chapman likes to travel!> Bet/ 2000 and 2002, he took over 3 dozen trips costing STRS $50,000.>> The Reynoldsburg 'teacher' (when he teaches if you can call 1 remedial > math class and then sitting in other peoples' classes as an ass't all a.m. > , then a study hall and home as his lunch and planning period were only pm > periods. as i recall, when i was his sub the principal said 'well you can > go now at 12:30 to 1:30 .approx.this is how they 'don't have to count on > him being there. the kids for his remedial math class never knew when or > when not to attend the several times i was there for him).>> Anyway, back to Dispatch.>> Chapman's travels helped push STRS' travel costs to the highest of the 5 > pension plans.>> Sen. Schuring found Jack's travels outrageous and questioned the purpose > of his extensive traveling.> Jack was the most active traveler of all 5 pension plans.> THIS IS NOT NEW!>> In '95, Jack's trips were reported cost #$36,736 for '94.>> CHAPMAN REFUSED COMMENT.>> Jack missed 75 school days for the past school year and 27 more for P.B., > professional and sick leave to add up to over 1/2 of school days.>> STRS PAYS FOR HIS SUBSTITUTES FOR STRS BOARD BUSINESS (and for the other > 4 'active' board members). For JUST JACK, that totalled $6000 for past yr.>> Jack is also pres. of central Ohio chaptr of OEA (THERE'S THAT NAME AGAIN) > who paid him an additional $21,523 a year in salary and RETIREMENT > CONTRIBUTIONS (bumping up his retirement, it would seem).>> The $218,500 for STRS' travel expenses outside of Ohio for 2000-2002 > surpassed any of the other 4 pension plans.>> The largest of the 5 pension plans , PERS, paid and average of LESS THAN > $20,000 per year for travel beyond Ohio in 2001-2002.>> "OUR BOARD MEMBERS JUST DON'T TRAVEL MUCH" said Tom Sherman, gov't > relations officer for OPERS.>> Schuring IS NOT satisfied with STRS' explanation that travel was necessary > for board's responsibilities to admin. the fund.>> Schuring says that while members may need to learn latest trends, THE > INDUSTRY IS JUST NOT THAT DYNAMIC that so many need to attend so many > conferences.>> Eugene Norris made 25 trips for $42,250. He traveled to Hawaii.>> Sidaway took 24 trips for nearly $38,400. ONE TRIP TO HAWATII cost nearly > $3800. Others included Las Vegas and Matha's Vineyard and 6 trips to the > west coast.>> Gaylord who represented PETRO when auditor, spent $16,312 and when she was > PETRO's rep for OPERS claimed more than $12,000 in travel outside Ohio > attending more conferences than any other OPERS board member.>> Rick Moore who was Betty Montgomery's rep had more than $10,600 in travel > expenses outside Ohio to 'stay in the loop' (under orders ). Only trips > that all other board members took were approved for him.>> A list of Jack's travels to where and why is printed on pg. A2 of the > Dispatch.>> HOWEVER THE QUESTION IS:>> DID HE ACTUALLY ATTEND ALL THE CONFERENCES OR BLOW SOME OFF FOR GOLF?>> I hear he goes nowherre without his clubs and SOME skip conferences to > play golf in exotic locales instead!>> PARTY'S OVER, JACK.>*********************************************
Lima News
7/17/06
LETTER: Charter schools not the answerJAMES PERINE, Lima The Lima News and the Buckeye Institute claim we should fund more charger schools. The Columbus Dispatch just completed an audit of the biggest management company, White Hat; owned by Ken Blackwell’s biggest supporter. White Hat got $109 million in tax money last year to manage 34 charter schools. The state spent $460 million in total state aid last year, but the management firms don’t have to disclose their profits, even though this is our tax dollars they are using. If you are looking for the best education for your children, compare the state’s “academic emergency” list of schools. Of the 264 charter schools operating last year, 60 percent were in this category while 8 percent of public schools were on the list. If this is what the Buckeye Institute claims is a success story, they are clueless. Now the Republicans at the state capital want to open even more charter schools when over half are on the emergency list. If you have time take a day off when school starts and go to school with your children, then you will realize what teachers do every day to help them learn; it’s not easy. There are no easy answers to our school problems, despite what others say.
*********************************************
July 15, 2006
Dear Governor Taft:
With the resignation of Judith Fisher from the STRS Board you have the opportunity to appoint a replacement. Tom Hall should be your choice. He has the expertise,training,
And experience to serve the needs of STRS in this time of crisis for STRS,retirees, amd those who will someday retire. I will not here delineate his many accomplishments and awards. Others, I am sure, have provided that information to you. I should, however, emphasize one of Tom’s qualities which is perhaps the most important. That would be his commitment to operate in agreement with Ohio Revised code as it relates to STRS. Failure to take seriously the basic purpose of STRS- to be good stewards of the STRS fund- has been a serious problem in the recent past,leaving consequences which are impacting the present for retirees as well as the futures of those recently found guilty in court. He also appreciates the struggles retirees experience as they try to pay for necessary medication, pay for extremely high health insurance, and see mismanagement
Of their hard earned contributions to STRS.
Governor Taft, quite honestly you dealt a hard blow to all Ohio educators when you line item vetoed a law which would have empowered the Ohio Inspector General to investigate STRS. Many believe you did this to protect Petro and Montgomery
who were on the STRS Board during the worst of the “ethically challenged” decisions. It is my understanding that they voted for many of the decisions which were not only unethical but very harmful to the retirees. Now that Blackwell is the Republican gubernatorial candidate we would all appreciate it if you would reconsider and allow an Ohio Inspector General investigation. We worked very hard to persuade the Ohio General Assembly to place the enabeling bill before you to sign. When you vetoed it you sent a message to those with the “entitlement” attitude which will encourage them to continue their wasteful and callous ways at STRS. Please reconsider your decision in this matter.
Governor Taft, because of the veto for the Ohio Inspector General you have impeded the rehabilitation of STRS. One way to show that you do indeed have the motivation to help place STRS back onto the right track would be to appoint Tom Hall for Judith Fisher’s STRS Board seat. This time do the right thing!
Sincerely,
James O. Kimmel, STRS Retiree