Flashback from five years ago: Teacher pension losses don't stop spending -- Educators and officials question big bonuses for fund employees

From John Curry, June 1, 2008

The Plain Dealer - Cleveland, Ohio
June 8, 2003

Columbus - The State Teachers Retirement System lost 21 percent of its investment assets in the past three years, a total of $12.3 billion

by Stephen Ohlemacher
[Click on photos to enlarge]

Despite the losses, employees of the public pension fund got a total of $14 million in bonuses during the decline.

In 2001, STRS handed out a total of $6.1 million in bonuses to 345 employees, according to STRS documents. One employee's base salary of $164,000 was bumped to $342,880.

It was the same year the fund lost 5.66 percent of its assets, more than any of the four other public employee pension funds in Ohio, according to the Ohio Retirement Study Council, which oversees the funds.

A lot of pension funds lost big money while the stock market plummeted.

But STRS spending practices - and the fallout from lost investments - have sparked outrage among some of the 424,171 teachers and retirees in the system.

The fund now stands at $46.5 billion, after peaking at $58.8 billion in August 2000.

"They are spending in a manner that is completely foreign to their members, and the employers that send them dollars," said Dennis Leone, superintendent of Chillicothe schools in southern Ohio.

Leone has documented many of the STRS board's spending practices and shared them with teachers, retirees and public officials across the state.

The revelations came as retirees learned their health insurance premiums will soon double, and their benefits will be cut.

The spending includes a $94.2 million office building adorned with $869,000 in artwork, generous fringe benefits for STRS employees, and frequent out-of-state travel for pension board members.

The art of renovation

The State Teachers Retirement System spent a total of $869,000 on eight pieces of artwork by Ohio artists for its renovated downtown Columbus office building. The pieces include metal sculptures and wood bas-reliefs.

STRS also is getting criticism from unlikely sources: two public officials who sit on the nine-member board that controls the pension fund.

Ohio Attorney General Jim Petro and Susan Tave Zelman, state superintendent of public instruction, said STRS spending has been excessive.

Both have been on the board for years. Both promised to be more diligent in monitoring the fund in the future.

"At a time when there are shrinking resources, you don't give bonuses," said Zelman, a board member since 1999.

"When times are good people tend not to look at these things," she said. "You can rest assured, now I'm going to be more aggressive in looking for ways to have a more efficient system."

Petro said he is a big supporter of performance bonuses. But, he said, the STRS bonuses appear to be out of line, considering the fund was losing billions of dollars a year.

"If school districts, especially in financially tough times, would have been as extravagant as STRS has been, we'd have spanked them even harder," said Petro, who often criticized the spending policies of school districts when he was state auditor.

"I think there have been occasions when we've been brilliant in our advocacy for accountability, and there's been other occasions where we've probably not been as aggressive as we should be," said Petro, an eight-year member of the STRS board.

A third board member, state Auditor Betty Montgomery, defended STRS spending policies, though she said they should be reviewed.

"If you kept them on public employee salaries alone, you would not be able to attract or keep the quality investment managers that keep our fund growing," said Montgomery, also an eight-year member of the board.

STRS Executive Director Herb Dyer said the pension board is simply trying to recruit and keep good investment staff in a competitive profession that pays well and offers good benefits.

"I appreciate that people who don't do that kind of work for a living might not understand it, but that's the reality of the professionalism involved," Dyer said.

Teachers take a hit

The investment losses, combined with increasing health-care costs, are proving expensive for teachers and retirees. In July, teachers will have to start contributing a larger percentage of their pay to the retirement system, an increase from 9.3 percent to 10 percent. In January, health insurance premiums for retirees are scheduled to double. Insurance co-pays will increase, and benefits will be cut.

Teachers contributed $827 million to the retirement system last year. Their employers - mostly school districts spending taxpayer money - contribute 14 percent of teacher payroll, a total of $1.2 billion last year.

Some teachers complained that STRS spending hasn't reflected the financial problems of the pension fund.

The STRS board completed a $94.2 million expansion of its office building in downtown Columbus in 1999. The seven-story building is decorated with eight pieces of artwork, all by Ohio artists, Dyer said.

The $869,000 art budget follows guidelines for state buildings, but some of the price tags have angered school officials, nonetheless.

One piece, called "A Whole Morning World," is a series of painted metal tubes shaped like birds hanging from the seventh-floor atrium. The cost: $378,500.

Another sculpture, called "Integrity," cost $100,000.

The building also has a child-care center that cost $818,000 and a $426,000 fitness center, according to STRS documents. In 2002, the pension board paid $487,748 to subsidize the child-care center so employees could get discounted rates for their children. Workers with family incomes of up to $66,000 are eligible for subsidies.

"I'm all for working mothers, and I certainly support day care," Zelman said. "But I don't think that STRS finances should be subsidizing STRS child care."

The number of people working at STRS has increased nearly 42 percent since 1998, from 499 to 707. The pension board added 137 new positions in fiscal 2001, including 69 administrators, according to STRS documents.

The lost investments haven't slowed the travel of board members, who have flown to conferences in Hawaii and Alaska, among other places. The STRS board spent an average of nearly $174,000 a year the past three years on travel, according to STRS documents. The biggest spender was board member Hazel Sidaway, a teacher from Canton who spent a total of $61,400 for travel the past three years. Board member Jack Chapman, a teacher from Reynoldsburg, came in second at $52,600.

"When your assets are declining, you don't spend money like that," said Marianna Lijoi, a teacher in Eastlake. "That is not their money to spend frivolously. That money is for teachers' retirement."

Susan Jacoby, a retired teacher from Canton, said, "They have spent our money like it belongs to them."

The STRS board is made up of six members (five teachers and a retiree) elected by the active and retired teachers, and the three state officials who serve as part of their jobs.

The elected members are paid expenses, but not a salary. The public officials designate members of their staffs to attend board meetings.

The board approves STRS policies and votes on an annual budget. The executive director is responsible for the day-to-day operations.

Bonuses defended

The STRS board pays its investment staff and administrators performance-based bonuses each year for meeting certain goals, such as outperforming a stock index. In a down market, the goal for some investors is to not lose as much as a certain index, Dyer said.

The investment staff also is eligible for additional discretionary bonuses distributed from a pool of money generated from investment profits. Dyer said the pool will run out of money after bonuses are paid next month, unless the investment portfolio is profitable this year.

"We did lose some money, obviously, in market value," Dyer said. "But in general, if the staff is able to save you money in a declining period, that's good staff work."

A financial consultant's study of STRS bonuses found that the bonus system is similar to those at other companies. But the 2002 study warned that the system could result in "inappropriate risks" because "there is no downside for under-performing the market."

The study, by Buck Consultants of New York, recommended tying bonuses to the overall performance of the pension fund, rather than investors' individual goals. Dyer said the STRS board plans to adopt some of the consultant's recommendations.

Ohio's four other public employee pension funds offer bonuses to employees, but none are nearly as large as the ones paid by STRS. For example, the Ohio Public Employees Retirement System spent $765,252 on employee bonuses last year, compared with $5.7 million at STRS, according to figures provided by both funds.

The public employees pension fund has more members (797,234), and more assets ($51 billion), than STRS. But it has 168 fewer workers because it contracts with outside managers for more of its investment work. The operating budget for the public employees pension fund was $74.8 million last year, compared with $87.3 million at STRS.

The STRS staff grew in recent years because the pension fund expanded some of its services after it moved into the renovated headquarters, Dyer said. There has been a hiring freeze, except for essential personnel, for 18 months, he said.

Dyer said the building expansion cost more than expected in part because labor and material costs were high in the late 1990s, when the economy was still booming. The building sits on top of a parking garage, which added to the cost, he said.

The Ohio Arts Council has a program called Per Cent for Art, in which the state sets aside 1 percent of the construction budgets of major state projects for artwork. The STRS building did not participate in the program because it was built with money generated by the fund. But the STRS art budget was within the guidelines, Dyer said.

Petro said he had no problem with the art.

"What would ancient Rome have been like without public investment in the arts?" Petro asked.

Scrutiny promised

Deborah Scott, chairwoman of the STRS board, said the board plans to re-examine policies on employee bonuses, but she defended the practice. She also defended board members traveling to out-of-state conferences, noting that all the elected members are either active teachers or retirees who don't have much formal training in investments. Scott spent a total of $40,500 on travel expenses the past three years, according to STRS documents.

"First of all, you learn what's going on at other systems, you learn what type of issues they're dealing with," said Scott, a first- grade teacher in Finneytown local schools near Cincinnati. "We're schoolteachers. We don't have degrees from business schools."

Dyer defended Sidaway's travel expenses, noting that she had served as chairwoman and vice chairwoman of the STRS board in the past three years, and was expected to attend many events.

Nearly 40 percent of her $61,400 in expenses were for travel and lodging for board meetings in Columbus, he said.

Steven Puckett, who is Zelman's designee on the board, said board members need training, but more of it should be done in Ohio.

State Sen. Lynn Wachtmann, chairman of the Ohio Retirement Study Council, said he plans to question STRS officials about their spending practices at an upcoming meeting of the council.

"Maybe they should run things a little leaner and meaner over there and be a little more reflective of their membership," said Wachtmann, a northwest Ohio Republican.

"I'm not saying that what they are doing is wrong, but I'm going to raise the question," he said. "I think we can put political pressure on them if we feel that's appropriate."

PHOTOGRAPHS BY WILL SHILLING SPECIAL TO THE PLAIN DEALER [Since the original photos accompanying the article are no longer available, I'm using some I took in May, 2008. KBB] $94 million: The pension fund completed the expansion of the seven- story office building in 1999. Photo $100,000: "Integrity," a metal sculpture by Stephen Canneto, adorns the area outside the sixth- floor board room. Photo $378,500: "A Whole Morning World" [should be "A Whole World Mourning" KBB] by Larry Kirkland, a series of colorful painted aluminum tubes shaped like birds, hangs from the seventh-floor atrium. [When a breeze comes through the atrium, sometimes some of the pipes strike each other and sound like wind chimes. KBB]

Famous Quotes: A Trip Down Memory Lane

Remember these?

Watch this column, as quotes are added from time to time.

"I will consider responding to your records request when and if I have time, and that's not likely to be soon" (Former STRS executive director Herb Dyer, [convicted on ethics charges] responding to Dennis Leone's letter in Dec., 2002)

"The Board decides what's fair and it's the Board members' money to spend as they see fit." (Herb Dyer, letter to retiree Joe Gebhardt)

"It's a drop in the bucket." (Former Board member Jack Chapman [convicted on ethics charges] re: the total cost of his meeting expenses, in comparison to the total STRS assets)

"We don't get paid as Board members, so we deserve these things." (Jack Chapman)

"This is unfair because they don't get paid as board members" (Former Board member Hazel Sidaway's lawyer, H. Ritchie Hollenbaugh, on her day of conviction on ethics charges)

"I think it is clearly overkill.....the system is unfair to people that make an innocent mistake." ~ Attorney H. Ritchey Hollenbaugh, who represented several ex-STRS Board members convicted of ethics charges

"His (Leone's) report is destructive........it contains misrepresentations" (Gary Allen, President of OEA, June 2003)

"_________________________" (ORTA, after Dennis Leone's investigative report came out in May, 2003) (You're right -- they had nothing to say.)

"We could have discovered what Dennis Leone found, but we've been busy doing other things for retirees." (ORTA Executive Director Dave Travis)

"The initials S.T.R.S. are not supposed to stand for Spending, Travel, Retreats and Sculptures." (Dennis Leone, addressing the STRS Board in August of 2003)

"They're like kids in a candy store" (State Representative Michelle Schneider, regarding the spending habits of former STRS Board members and staff members).

"Beware of malcontent retirees." (Former ORTA president and former STRS Board chair, Joe Endry [convicted on ethics charges], departing words in ORTA Quarterly)

"I was doing board business when I attended that Broadway show" (Hazel Sidaway/Joe Endry)

"What would Rome look like today if they hadn't supported the arts?" (Former STRS Board member [forced out by SB 133] Jim Petro, regarding the $869,000 spent on sculptures at STRS)

"I am not against bonus checks at all." (Former Board member [forced out by SB 133] Betty Montgomery, upon learning that some 500 STRS employees received annual bonus checks)

"I really should have been more vigilant." (Montgomery, at Senate hearings)

"Shut up!" (Former Board member & Chair Bob Brown, directed at Leone in public Board meeting, 2005)

"It is questionable whether Leone actually will be on the ballot because it is unclear whether he is working in a school district." (OEA's Gary Hollow, in NEOEA-R newsletter, after Leone filed his Board candidacy petitions in February of 2005)

"You're being intrusive." (Former appointed Board member Judith Fisher [who resigned in August, 2006], about Leone operating budget questions)

"You're micro-managing" (Fisher, about Leone vendor contract questions)

"I agree with Judith on this." (Former appointed Board member Geoffrey Meyers [who resigned 10/26/06], about Leone vendor contract questions, four months after Fisher left the board)

"He's childish, he needs parenting, and if he were a student in my class he'd be suspended from school." (Board chair Conni Ramser, about Leone, in the Canton Repository)

"We just disagree on whether he's a savior or a crackpot." (OEA's Tim Myers, regarding Leone)

"This is a waste of time." (Ex-Board member Geoff Meyers, about Leone question regarding Ferguson contract)

"Any Board involvement in vendor contracts impairs the staff's ability to negotiate" (New Board member Mark Meuser, October 2006)

"See, you don't have to go to Florida to find a good meeting; you can attend one right here in Columbus!" (ORSC President Aristotle Hutras at February, 2007 STRS Board retreat)

"I've never been to Lindey's in my life!" (STRS Board chairman Conni Ramser at a November, 2006 Board meeting, re: a dinner voucher with her name on it) [Her union friends seemed to regard it as a mild memory slip and she was sweetly forgiven; most assuredly, it would have been a different story altogether, from their viewpoint, had a certain other Board member or two made the same denial, then were later found to have received such a dinner with an STRS-purchased credit card.]

"Well, we can't put everything in the booklet!" ~ An STRS rep to a sick retiree calling about a drug that was denied, even though it was on the list of approved medication with prior authorization and listed in the 2006 STRS HC booklet as "approved."

"I have consulted our executive board and they agreed with me that there is no reason to publish an article that will be about 3 or 4 weeks old by the time it is in the hands of our members." ~ Tom Seamon, editor of the ORTA Quarterly, to Dennis Leone, after refusing to publish his March 2007 STRS Report (Keep this quote in mind each time you read your Quarterly.)

"Because we don't have to" ~ Response to Dennis Leone after he asked why the Board wasn't voting publicly, after a secret ballot was taken to appoint Conni Ramser to the STRS Board (to replace Jack Chapman) and Tai Hayden (to replace Michael Billirakis).

"We are looking at it." ~ Marc Dann (4/8/07) after being asked to examine the practice of secret balloting, with regard to its legality, during open Board meetings at Ohio STRS.

“Oh my God,” said state Rep. Michelle Schneider, R-Cincinnati, and sponsor of legislation to reform the state’s five pension systems.

“They just don’t get it. The nightmare continues.” ~ Canton Repository article (by Paul Kostyu), May 12, 2004: STRS workers to get $3.85M in bonuses

State Attorney General Marc Dann, addressing March 2007 STRS Board meeting; from the official minutes of the meeting: "Mr. Dann said he agreed [with Board member Dennis Leone] that it was a conflict of interest for the Attorney General to sit on the Board. Mr. Dann also said he will strongly exercise his independence and that he is only accountable to the people of the State of Ohio. He said he will offer his independent judgment as at first, but if necessary, he will take action against his own clients in order to make sure the law is followed. He said he understands STRS Ohio exists to serve its members, not serve itself and he will certainly be mindful of that going forward."

“You will NOT insult MY people in MY house!” ~ Patricia Frost-Brooks, when Dennis Leone was criticizing the voting practices of certain board members during an OEA-R representative meeting at OEA, where Dr. Leone was the invited speaker; December 29, 2007

".....any motions before the Board that would or could undermine trust and confidence between the Board, Executive Director and Staff, are not in the best interest of the system, and, in fact, may be unnecessary and counterproductive." ~ Patricia Frost-Brooks, December 13, 2007, in a speech before the STRS Retirement Board*

[* Note: Ms. Brooks did not articulate any specific motions to which she was referring.]

"Dennis is an attack-dog." ~ An OEA-R member, January 9, 2008

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

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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.
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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

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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
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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>
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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.

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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
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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.
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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
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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

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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

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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
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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

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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
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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.''
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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.>
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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.
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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

Tom Curtis to Damon Asbury: Nearly 2006 and still no consideration for members' ideas

From Tom Curtis
December 28, 2005

Hello Damon,

I hope you and your family had an enjoyable Christmas and look forward to 2006 in a few days.

Because we are about to begin a New Year, l would like to review what has transpired in the past year and during your tenure. I realize this is something you and other leaders indicate as being negative, looking at the past in any way, but in a positive manner. However, I am a technologist and being such, past performance is a highly integral part of the technological process I have followed my entire life. And I might add, is followed by any legitimate and progressive company, or organization in the world. So, I hope you will not take to much offense to my questions and will kindly respond to each one.

Sadly, I find there is a plethora of unfinished business at the STRS from 2005 and before, business, which has yet to be considered, as far as any possible closures to various issues and situations. I will address some of these issues and situations throughout this correspondence. This fact is very unsettling to the membership. We are seeing little progress toward returning the faith and trust, once held by the membership in the STRS. It appears to many of the STRS membership that you are unwilling to make many changes, or you are unable to do so. Is it one, or both of these, because little has changed due to your leadership? Just what issues keep you from initiating such? You must clearly understand what our message has been and yet you do little, unless pressured continuously by the membership?

Beginning in 2003, the membership began getting involved in the business of the STRS. The reason for this was because of the poor business practices found in place at the STRS, by Dennis Leone, John Lazares and by the membership, due to the continuing reduction and elimination of benefits promised to retirees. This should have never happened, if our leadership had truly had their focus on the membership, as indicated in ORC 3307.15.

Since then, the membership through the election process has become highly involved in changing much of the board. We will continue to do such, until we find a board that will work collectively, without the detrimental influence of the OEA leadership, which sadly still exists, both on our board and at the OEA. It is difficult and tedious to get rid of the people that have both our money and power behind them, but the good news is that the membership is awakening and finding that the union they once depended on has in fact, become just the opposite. They have become a parasite to the active teacher's pay and future retirement benefits.

Personally as a retiree, I have found "NO" support from the OEA concerning any of the misspending and utter waste of our funds. Actually, I have found just the reverse, a total withholding of any representation and constant retaliation with their usual verbal rhetoric, which they are unwilling to document. After paying dues to that organization for nearly 30 years, I did not expect such. This was an earth shattering revelation for me to understand at first, but once I found out just how detrimental the 5 OEA board members had been for the past decade or more, it became totally understandable. The OEA leadership was not about to help in any form of discipline of their people.

I am told the OEA spent over $100,000 dollars attempting to re-elect Eugene Norris, the longtime incumbent and board chair that was part and parcel to this whole misspending process. Eugene was listed as an active teacher board member, when in fact; Eugene had not been in the classroom for several years. This would seem to be unethical to most, though by board rules, this was not illegal. This must be corrected! Actually, few of the 5 OEA board members were classroom teachers, as most active classroom teachers would define them. Most of them had very limited, to no classroom duties, if they were even directly affiliated with a school.

Past OEA President Mike Billirakis is still on the STRS board as an active teacher. He has not been directly involved, or in the classroom since the 1980's. He currently is listed as a social studies teacher in the Perry Local School system in southern Ohio. He has never taught in the Perry Local School district. How did this happen? The NEA currently lists his salary as $149,550. He must then be the highest paid teacher in the state of Ohio and yet does not teach school. Go figure this set-up! How is this not illegal or highly unethical at the very least? How do the taxpayers of the Perry Local community permit such? Because the board rules, probably written by OEA leaders, allow for such. When Mike Billirakis retires, he will at least qualify for 88.5% and may well qualify for 100% of his three best years. Won't that be sweet?

Just think of all those retired teachers in Ohio in there 70's and above, who probably receive less then $1000 dollars per month in pension benefits. Then, take away the amount they must spend, if in the STRS health care plan, for them and a non-teaching spouse. Just how much would be left, darn little, if anything. This seems fair, doesn't it? No, Damon, this is not fair. Please correct me if I am wrong here. Further, just what have you, your staff and the board done to make this situation more equitable for all retirees?

The membership helped to pass SB 133, against strong OEA objections in the legislature, up until the very last minute, before passage. SB 133 also made changes to the board, adding 3 financial appointments and removing the Auditor of State, Betty Montgomery and the State Attorney General, Jim Petro, as they were certainly not performing their duty on the board as the membership's watchdog. They permitted all of the gross misspending to take place, right under their noses, how pathetic? Then, when asked for help by the membership, we were told they had a conflict of interest and would not help us at all. Neither of them received any consequences for their failure of official state duty. Then to pour salt in our wounds, both of them were successful in lobbying the Governor to veto the budget request for an investigation into the STRS by the State Inspector General in July of 2003. This is an utter misuse of political influence and what any uneducated person could identify as white-collar crime. Today, these two unscrupulous individuals have the audacity to run for the Governor of the State of Ohio. They both should have been charged with obstruction of justice and thrown out of office for their failure to oversee the five public retirement systems in Ohio as they were charged to do by the legislature. And I will add what a sad commentary for Governor Bob Taft, for willingly signing that veto of funds for an investigation requested by numerous members of the legislature and the STRS membership.

I understand change will take time, but I still find that the old OEA control of the board remains, even though they do not hold a majority of the seats. This has to end, as the leadership of the OEA, has not and does not have the classroom teacher's best interest in focus. The OEA obviously has had little concern about the STRS providing sufficient funds for our promised health care benefit. The OEA held that carrot out in front of us throughout our careers, without making sure it was funded properly. Now the OEA reminds us this was only a promise and not a guarantee. It is apparent they consider the active teachers only to be sheep, which should be a glowing revelation to the active teacher. This is especially true for those individual teachers that pay dues to such an organization. The OEA has let us down and not stood up for what they promised us in the past. The current leadership of the OEA needs to be replaced by honest working people.

Damon, correct me if I am wrong, but on February 18th, 2006, you will have one year remaining on your contract as the Executive Director of the STRS. The prior OEA influenced board, one of which still remains, granted you this contract without completing a national search, as they assured the membership they would do. The membership was not happy about this decision, as obviously no other candidates were even considered, as no national search was done. Wasn't that just an obvious case of administrative fiat? The OEA knew what was best for us, right? Isn't that why we elected them, so they could represent us? True, we did elect them, but we did not give them Carte Blanche to do whatever they wanted, without any regard for the membership's future. This disregard for the membership was clearly expressed to the board by the membership, month after month in 2003, 2004 and to date.

It is sad to say, but as has been and still is the case, the membership of the STRS remains unheard. Those that do speak up were most recently termed a few "malcontents" by the immediate past chairman of the board, Joe Endry. This was very unsettling to retirees, as Joe was a longtime advocate for retirees, but became a huge disappointment to most retirees once he was elected to the board. Joe accomplished little for retirees, while on the STRS board and always voted "Yes", for all of the motions presented for a vote. When retirees asked him why he was unable to accomplish anything, such as a second retiree seat on the board, he indicated that the board was controlled by five OEA members and he did not stand a chance of getting a second on anything he brought to the table. His excuse for voting "Yes" on all motions during his term was simply that one "No" vote meant little, so he just went along with the rest. This was during the time we had a representative from the State Attorney General's office and the Auditor of State on the board. He had a ready source right before him to lodge a complaint concerning this issue of OEA dominance, but he would not risk that issue. At first, Joe's statements seemed impossible to believe, but the more the membership became involved, the more we found this was truly the case. The five OEA board members were controlling the STRS. That is a proven fact and is undeniable.

This was obviously not a healthy situation, but I must admit, it is a growing concern by the membership of many organizations and companies throughout the United States today. Administrative fiat has become the norm and the membership, or stakeholders of these organizations and institutions seem powerless to stop this from continuing. This is because the legal branches of our local and national governments have been unwilling to penalize white-collar criminals that have been brought before them. Until white-collar crime is dealt with properly, many individuals will continue to take advantage of the situation and I might add, why not? What happened to Herb Dyer? He received an unbelievable severance package of $550,000 dollars to leave, or should I say, retire from the STRS. When charged with ethics violations, Herb Dyer was merely given a slap on the wrist. What will happen to Hazel Sidaway and the remaining members of that board, all will supposedly be charged with ethics violations? Time will tell, but probably little punishment will be handed down, considering the climate of the legal system in this State. Those willing to permit this sort of white-collar crime to continue have no conscience and obviously no guts to stand up and go against it. This is simply another reason the legal profession has so many jokes made about it. Though, on the other hand, they are probably laughing all the way to the bank, as one cannot do much legally, without hiring a lawyer. That is sad, but an entirely different issue.

The citizenry of this country are increasingly being ruled by administrative fiat and less and less by what the citizen desires. Yes, the citizenry elected these people, but the citizenry also relies on the legal system to protect them against abusive, which is not happening. These unscrupulous individuals are using the stakeholders' money to buy politicians and their way out of being prosecuted. They then simply go on to wreak havoc on others. This has been a continuous topic for most newspapers throughout 2005, yet little has changed to date.

Damon, the past board members told us that you were selected to continue as the executive director, because you represented everything the membership supposedly desired. So, what have you done for us during your tenure? What major changes have you set in place that were done, due to your leadership? I am not asking about changes that Dennis Leone, or members initiated and pressed to be made. You simply were there and you and your staff took credit in STRS correspondence to the membership, for being the brainchild of those changes, when you definitely were not the initiator of such. I am asking for changes you yourself initiated and brought to fruition. Please list those accomplishments, as your stakeholders would like to know what we have paid for by having you as our executive director for the past two years? I am sure there are many, just list them please? What have we received for the large salary you command? This is crucial, as the board will soon need to begin a search for the next executive director. The board and the membership need to understand just what that person does now and what that person should be expected to do in the future.

It concerns me that since 2003, you and your staff have not seriously considered many of the numerous proposals brought to you by the membership, in hope of improving the operation of the STRS. There are many loose ends that have not been addressed, when you in fact promised you would get back to these members.

This began long ago, starting in May of 2003, when Dennis Leone made one of two important presentations, with accompanying documentation to the entire executive staff and the board. Have his concerns ever been fully considered? We both know the answer to this question. No, they have not been fully addressed to this date. Therefore, I am requesting that you and the board chairman, Bob Brown, see that Dennis Leone's two position papers are reviewed by the board and the executive staff, as soon as possible.

While I chaired some of the beginning CORE-STRS monthly committee meetings in late 2003 and early 2004, Bob Buerkle, Leon Knore and Jim Alley, among others, brought well thought out proposals and questions to you and your executive staff for consideration. You said you would get back to them and the CORE-STRS committee. You usually did not. When I asked you about any one of these proposals, you consistently told me that though they were good ideas, they just simply would not work for the STRS. If this is not an example of administrative fiat, then I guess I do not clearly understand the definition of such.

In 2005, there have been proposals brought to you by member John Bos, concerning the STRS purchase of prescription medication plans for the membership. Leon Knore, his brother and Jim Norris, all members of the STRS brought you a proposal for the equal distribution of pension benefits to all retirees. Their proposal would do away with the variety of pension plans that exist at the STRS today and that provide for an unequal distribution of funds. Their plan would equalize the funding for all present and future retirees. To my knowledge, you have not followed up on either of these proposals. You have not even asked these individuals to come back to the STRS and discuss them again. It is obvious that you, the executive staff and board members involved in these presentations have simply dismissed these as well.

Damon, how do you in your wildest dreams defend such? This is inexcusable and I assure you the malcontents will never let these abuses go unanswered. We will continue to come to the board meetings and ask these same questions time after time, until you and your staff and the board members that appear to be stone deaf to these issues acknowledge them. Just because you and others tend to ignore us and write us off as a few malcontents will not cause us to go away. I assure you this attitude in dealing with us only makes us more tenacious and determined to fight against the administrative fiat currently in place at the STRS. I am not sure if you understand this, but we will keep you reminded of such.

Your attempts to ignore those that have sincerely attempted to help; those you mock by asking why we keep coming back and asking the same questions; and those you attempt to discredit by referring to us as a few disgruntled or malcontent retirees will never go away. We will be there when you and others of this attitude are gone. If this were not the true situation at the STRS, then I would not be writing this letter to you and the many members that attend the board meeting at present would not be there. All STRS retirees would be happy and living as comfortably as they planned throughout their careers, based upon what they were told to expect throughout their careers.

As usual, I could not contain my comments in a few paragraphs, as far too many issues are still unanswered, but we will keep up the pressure, that you can count on.

Sincerely,

Tom Curtis
STRS Life Member
ORTA Life Member
Stark Co. RTA Life Member
CORE Life Member
AARP Life Member