Another take on the OEA's comparison of Boards A and B...with a healthy dose of reality mixed in!

From John Curry, April 13, 2008
Subject: Curry to OEA re. April 2008 "Protecting our priorities" article in the Ohio Schools magazine in reference to the current STRS Board election?

Response to "Protecting our priorities," April 2008 issue of Ohio Schools (OEA monthly publication)
[John's responses are indicated in blue type.]

Which board would you prefer to work with, Board A or B?

Board A

• Obsessed with trivial concerns (If you mean the $5,000 Board-approved child adoption bonus paid for by teachers STRS contributions and given to STRS associates and then called to the Board's attention by Dr. Leone then...give me Board A any day.)

• Short-term focus (This is a perfect example of the focus exhibited by a board formerly staffed by OEA people such as Billirakis, Sidaway, Norris, Chapman, and Scott.... the short term focus you ask...how about the lack of planning for future healthcare funding for STRS retirees?)

• Reactive stance (One can't be proactive if one doesn't know how poorly the formerly OEA-controlled STRS Board was managing their business -- they weren't! Dr. Leone exposed this, and then reactions came from not only STRS stakeholders, but from members of the Ohio House of Representatives (the majority of whom signed a petition to oust former STRS Exec. Director Herb Dyer); and Senate Bill 133 (Retirement System Reform Act) was passed into law because of this lack of a proactive stance by former STRS Board members…many of whom were OEA members.)

• Reviews, rehashes staff work (If you mean Dr. Leone's motion requesting a summary of contracts to be presented to all Board members before acting, then....give me plan A any day.)

• Driven by single agendas (This one, I'll have to give you credit [almost]. Yes, Dr. Leone and John Lazares are guided by a single agenda...it is called Ohio Revised Code, Section 3307.15...they both have repeatedly stated that! Funny that I haven't heard that section of the ORC being mentioned as a guiding principle by the OEA contingency on the Board!

• Consistent split vote (If you mean no more "rubber stamp" boards and the administration is always right, then...give me Board A any day: I thought the OEA was against "rubber stamp" boards when they were at the local schools level. Do I see some hypocrisy here?)

• Grandstanding (If you mean Dr. Leone's publicly stating that secret balloting at an "open" board meeting was contrary to the Ohio Sunshine law and subsequently being proven correct by an Attorney General's Opinion then give me Board A any day!)

• Plays to the audience (If you mean publicly exposing mismanagement to the Board and stakeholders concerning their illegal acceptance of expensive tickets to attend the Broadway musical "Hairspray" and mentioning that STRS business was conducted [as former OEA officer and STRS Board member Hazel Sidaway unsuccessfully did -- in court -- at her ethics trial] then you may be on the money with this one!)

• Violates confidence (The former STRS Board members who were also OEA members violated the confidence of tens of thousands of STRS retirees almost every time they took a seat at an STRS Board meeting…..Dr. Leone exposed that, and the current OEA STRS Board members are constantly continuing to snipe at Dr. Leone for many reform-minded motions that he initiates….go to a Board meeting or listen to the STRS Board CD’s…you'll then understand.)

• Individual directives (No one person on the Board can issue an individual directive without the majority of the Board voting on it in the form of a motion.)

• No chain of command (There always has been a “chain of command” for Board members…it is stated in section 33 the Ohio Revised Code under the duties of STRS Board members. The STRS Board also has and will continue to observe rules of order at each and every Board meeting.)

• "Fix it" mentality (You don't think that the STRS wasn’t ethically broken? That was the main reason for the passage of SB 133, the Retirement System Reform Act -- which now is Ohio Revised Code -- and affects all Ohio pension systems, as well it should. In it, many former OEA officers who were also STRS Board members would today not be allowed to run because of the previous excessive monies they used in air fares and travel expenses to “globetrot” on the teachers’ dime.)

• Focused on day-to-day operations (Dr. Leone and John Lazares -- highly experienced administrators and leaders; independent thinkers [and non-OEA-directed Board members] -- are, always have been and always will be focused on ALL operations….be they day-to-day, month-to-month, or year-to-year operations.)

Board B

• Governs lawfully (If you mean governing lawfully with OEA Board members who were convicted of criminal violations of the Ohio ethics laws, such as the former OEA office holders Sidaway, Billirakis, Norris, Scott and Chapman, then....give me Board A any day!)

• Primary emphasis on results for members (I’d say Dr. Leone’s exposing hundreds of thousands of dollars of frivolous spending by former STRS Board members [who were also former OEA officers] and unmerited bonuses for non-investment STRS employees translated into a “primary emphasis for members," wouldn’t you?)

• Encourages full exploration of diverse viewpoints (By the very nature of this concept there will be differences of opinions and subsequent disagreements, won't there? This directly relates to your "Consistent split vote" mentioned in Board A.)

• Focus on strategic governance matters rather than operational issues (What’s wrong with an STRS Board member or members keeping an eye on both? After all, they are legally responsible for ALL operations of the STRS and can be held to civil liability if they are derelict in this responsibility!)

• Observes clear separation of board and CEO roles (This is exactly the reason behind Dr. Loene's pursuit of clarity in the "operations" of the Ohio STRS....it was considered "micromanaging" by the OEA contingency on the Board.)

• Makes all decisions by formal vote of the board (Correct me if I am wrong but...aren't all Board decisions required to have a formal vote?)

• Governs with long-term vision (If the formerly OEA-dominated board (5 out of 9 members) had had the initiative to seriously plan for the future of STRS healthcare [as OPERS did] then STRS retirees wouldn't be currently paying over eight times the healthcare premiums for retiree and spouse as are paid by OPERS retirees for themselves and their spouses for the same coverage.)

Dredging up the past in order to preserve our future...... (Sorry, OEA, but we need to do this once in a while)

John Curry to Paul Kostyu, March 31, 2008
Subject: Re: STRS spending abuse since 1995-Leone called it to our attention

Paul,

The first major news media coverage of the STRS debacle was posted by the Cleveland Plain Dealer's Stephen Ohlemacher on the front page of the PD on June 8, 2003 entitled, "Teacher Pension Losses Don't Stop Spending." The majority of the misspending that this PD article details are from Dennis Leone's 13 page paper presented to the Ohio STRS on May 16, 2003. I believe the first of your excellent series of STRS articles began after both of these dates.

Agreed that Dennis hadn't "discovered all the revelations" on this list but I think it is more than fair to say that the "majority" of the items listed below were discovered by Dr. Leone.

Once again, thank you for your excellent series of articles re. the Ohio STRS. May I suggest a follow-up article by you sometime this spring re. 5-years later and Dennis is still facing much of the mismanagement, misspending, and entitlement mentality by the majority of the STRS Board and its current Executive Director? If in doubt, you might want to contact Dennis about this.
John

From Paul Kostyu, March 31, 2008
Subject: RE: STRS spending abuse since 1995-Leone called it to our attention

I believe it would be a misrepresentation of the truth to say that Leone "discovered" all of the revelations on your list. It would be more accurate to say Dennis's initial investigation into STRS spending may have contributed to the other revelations. Maybe his discovered these revelations by reading news accounts -- primarily in the Cleveland Plain Dealer and Canton Repository. But everyone should know that the news media was largely responsible for first uncovering much of what is on your list. Teachers, retired or current, shouldn't be involved in revisitionist history.

Best regards,

Paul E. Kostyu
Statehouse Bureau Chief
GateHouse Media
50 W. Broad St., Suite 1325
Columbus, Ohio 43215
Phone: 614-222-8901
Fax: 614-222-0032

From Lenora Wood, March 30, 2008
Subject: FW: STRS spending abuse since 1995-Leone called it to our attention

COLLEAGUES -- AS PROMISED, AND LESS WE FORGET, HERE IS THE LIST OF ABUSES DENNIS LEONE FOUND IN 2005 AND BROUGHT TO OUR, AND THE MEDIA'S ATTENTION AND WHICH BROUGHT SWEEPING CHANGES IN OUR STRS ORGANIZATION AND SWEPT HIM INTO OFFICE ONTO THE STRS BOARD. IN DOING SO HE HAS HAD TO TAKE A LOT OF GUFF. AND IT LOOKS LIKE THINGS ARE GOING DOWN THE SAME OLD TRACK THAT OUR LAST DISGRACED LEADER WENT DOWN AND WHO FINALLY WENT OUT WITH A GOLDEN PARACHUTE THAT COST US SO MUCH OF OUR PENSION FUNDS. WE CANNOT ALLOW AGAIN THE HANDING OUT OF CREDIT CARDS AND TRAVEL TO EXOTIC LANDS (TO LOOK FOR POSSIBLE 'INVESTMENT'S) PAID FOR OUT OF OUR PENSION FUNDS. THE STRS BOARD HAS TO GET REAL AND REMEMBER THAT WE WORKED HARD FOR THE PENSION MONIES THAT THEY ARE SUPPOSED TO GUARD AND SPEND WISELY. WE HAVE ALREADY LOST SO MUCH: A POOR HEALTH CARE PLAN, NO EXTRA 13TH DECEMBER CHECK. SOME OF YOU YOUNGER RETIREES NEVER GOT THAT WELCOME CHECK. AND WITH INFLATION AND THE POOR ECONOMY, OUR PENSION CHECK: JUST WON'T COVER WHAT IT USED TO. OUR BOARD NEEDS TO GET LEAN AND CONSERVE EVERY DOLLAR WE HAVE FOR US: RETIREES AND FUTURE RETIREES. WE CANNOT HAVE ANOTHER CHIEF EXECUTIVE WHO THINKS HE ALONE CAN RUN THE SHOW. REMEMBER DYER? IT WAS HE WHO WROTE HIS OWN CONTRACT THAT ALLOWED HIM TO RETIRE IN COMFORT AND BUILD THAT HALF-MILLION DOLLAR HOUSE IN THE EAST. LET'S ALL SCREAM TO THE HIGH HEAVENS!!!!!

LEN AND CHUCK WOOD

John Curry to Bill Leibensperger, October 22, 2005
Subject: STRS spending abuse since 1995 -- Leone called it to our attention

Bill, after talking to Molly, I understand you believe that some of Dr. Leone's findings might have been exaggerated. Please correct me if that's not the case. Below is a list of items Dr. Leone has given as examples misspending and mismanagement at Ohio STRS. Would you please comment on any item or items below that you feel is not completely truthful and factual and/or any other items that you think Dennis might have not portrayed properly? This would be an excellent opportunity for you and the OEA to enlighten tens of thousands of STRS retirees who are still waiting for an explanation of why your OEA President Gary Allen said that Dr. Leone's "logic is hard to follow," and that "his motives are unclear." This may help us understand for once and for all. Now would be an excellent time to clear up any disagreements your organization may have with Leone's findings before your organization and my organization sit on the same side of the table to tell Ohio voters why increased contribution rates are necessary Thank you.

John Curry, a Proud CORE member

P.S. I would have asked you this in person this past Thursday at the STRS meeting, but I had to work (after my STRS retirement). I simply can't afford what many recent OEA member speakers to the STRS board in the September meeting portrayed to the Board as a CURRENTLY "affordable" health care insurance offering to my spouse and I by STRS.

The following represent a number of spending abuses discovered by Dennis Leone that occurred at STRS since 1995.

1. $94.2 million on the new STRS headquarters.

2. $869,235 on artwork, sculptures and polished stones for the new STRS building.

3. $818,000 on a child care services center for the children of STRS employees.

4. $500,000 per year to run the child care services center.

5. $426,000 on a fitness center in the STRS building.

6. $88,397 per year to provide food services for STRS employees.

7. $428,056 on 16 cars, vans, and SUV's.

8. STRS Board policy that permitted staff members to drive STRS vehicles for personal use, and the family members of said employees to drive said vehicles.

9. 52 American Express Credit Cards and 20 BG gas cards used Board members and STRS staff members.

10. Alcohol purchases occurred by staff members and Board members attending conferences -- using STRS credit cards.

11. $18,810 on "Discovery Park" gala event, including the purchase of disposable cameras for attendees.

12. $15,100 on new STRS building dedication, including alcohol and gifts for attendees, as well as airfare and lodging for out-of-town STRS visitors.

13. $4,100 on a private retirement party for an STRS Board member.

14. $5,594 on poinsettias to decorate STRS during the holiday season in 2002.

15. $1,000 dinners for 12 board members/staff members on 2 occasions, again with alcohol.

16. $7,116 for baseball tickets, concert tickets, movie rentals, and Kings Island tickets for STRS employees in the summer of 2003 for "team building."

17. $530,284 spent by Board on trips and meetings around the country in 2000, 2001, and 2002.

18. Multiple trips taken by Board members and staff to places like Honolulu, Palm Springs, Kiawah Island, and Anchorage. A planned trip to China in 1995 was cancelled after it was suggested that it would have the appearance of junketeering.

19. Frequent occurrences of at least 6 Board members going to the same meeting, sometimes twice a year, costing STRS over $9,000 each year.

20. $36,736 spent by a Board member Jack Chapman in a single year for trips all over the country.

21. $1,017 airplane ticket for a Board member that would have cost $258 if it had been purchased 30 days in advance of the conference.

22. $1 million cash payback per year to full-time STRS employees for 18 days of unused staff vacation days and unused sick leave.

23. Total administrative expenses at STRS increased 17.4% per year between 1996 and 2002.

24. Total STRS employees increased from 414 to 725 between 1996 and 2002.

25. A total of 1,035 employee bonus checks were issued to STRS staff in 2000, 2001 and 2002.

26. $24.4 million was awarded in bonus checks to employees between 1998 and 2003.

27. $3.2 million had to be paid by STRS to PERS because of bonuses alone since 1998 to satisfy that pension system's 13.31% annual employee contribution requirement. STRS employees are members of PERS.

28. 34 STRS employees in 2002 received bonus checks in excess of $40,000 (with 18 of those getting bonuses in excess of $70,000).

29. One STRS employee received bonus checks of $110,000 and $68,800 in 2001 on top his base salary of $164,000.

30. Over 150 STRS employees had base salaries over $100,000 in 2002, with 32 of those making over $155,000 -- topping the salaries of both the governor and the chief justice of the State Supreme Court.

31. A total of $39,251 was paid to the Perry Local School District by STRS in 2002 and 2003 for sub teacher costs for Board member Michael Billirakis (when he attended STRS meetings), even though he did not have a position in the school district. NEA pays Perry Local the dollar amount associated with the salary and benefits for Billirakis, enabling him to be listed as an employee.

32. Excess STRS furniture was sold to STRS employees in 2000 and 2001 for $27,703, and instead of this amount going back into the pension fund, it was given to charities.

33. The regular work week for STRS employees is 37 1/2 hours.

34. If an STRS employee adopts a child, the STRS Board awards a $5,000 cash gift to said employee.

35. Between 1999 and 2004, the STRS Board paid out $2.1 million in educational stipends for STRS employees to take college courses. This amount was double what the other 4 public pension systems in Ohio paid out combined over the same time period. STRS pays up to $7,000 per year (per employee) for undergraduate or graduate work.