Were Investigations of QCSD Unfair? You Decide

The Free Press    August 30, 2007

"First they ignore you. Then they ridicule you. Then they fight you. Then you win." - Mahatma Gandhi.

The truce that never was is over. QCSD Superintendent Dr. Lisa Andrejko has called for a retraction of my July 26 column about the district's financial problems, claiming that it is full of factual errors. Deja vu all over again. We heard the same rhetoric from former Quakertown Police Chief Jim McFadden, former Borough Manager David Woglom, former Council President Ray Fulmer, soon-to-be-former councilman Dave Wilsey, former School Board President Phil Abramson, and former Richland Supervisor candidate Brian Kline. They all ignored revelations of their misdeeds, ridiculed the writer, and then fought the tide of public opinion. And, of course, they all became "former".

Dr. A, of course, wasn't here when the board and administration created all of the problems, but her request echoed a letter to Free Press management from director Bob Leight, and Business Manager Sylvia Lenz (who were here). So have I been fair? Has QCSD really mislead the community? You decide...

Start with district spending, which has increased by over 60 percent in five years. The board first pinned it on area development. But when statistics posted on their own web site showed otherwise, they shifted the blame to the cost of constructing schools. Then, their own budget committee revealed that the real culprit was over-hiring, and overpaying. Andrejko acknowledged the problem when she consolidated administrative positions, and saved $200,000.

QCSD's Fund Balance has millions left over, outside the approved budget, violating the spirit of state law that limits the size of that balance. The board justifies it by saying that, since their budget calls for the proper amount (even though in reality it is higher), they are technically in compliance, and they are correct. But the budget process is so bad that those millions are left over - millions that you never should have paid. That is the purpose of the law. The board's "technicality" is of little comfort to seniors, residents on fixed incomes, and everyone affected by our skyrocketing taxes.

Our leaders claim that nothing can be hidden in the budget because the entire document is available for public inspection. But most people find it impossible to understand an $80 million plan. There are literally 5000 line items. To further confuse matters, after the budget is approved, the district still transfers money among categories at the rate of three per day. Who could possibly keep track of all of this? Obviously, not even QCSD, since they have huge year-end surpluses. But many of those dollars should never have left your pockets...

When the directors replaced the Milford Middle School roof, they foolishly paid the entire $1 million up front, because, they say, financing it would have cost taxpayers "additional interest". This is the classic narrow thinking of those who spend other people's money. Instead of obtaining a low-interest loan, and rightfully spreading the tax burden over the residents who will be here five, and ten, years from now, QCSD just taxed you the entire $1 million. Dollars that should have stayed in your bank account, earning you interest.

So who is really verifying the validity of our budget? By law, the district's books are audited by a CPA firm, and the state Department of Education. But these auditors only vouch for the accuracy of the numbers given to them by QCSD. They just do the math. They offer no opinions on board spending and management policies, or whether the budget is sound, or how the entire process could be improved. A Variance Analysis, or performance audit, or budget examiner, could tell us those things, but the board adamantly refuses.

And speaking of those financial books, our directors still do not seem to understand that we can - and should - have multiple sets. Almost every company with an $80 million budget does. All are based on the same numbers, but are formatted differently to serve different purposes. It is legal, ethical, and good financial planning. There is a set for the IRS, for tax purposes. A set for industry or state guidelines. And an internal set for a management tool, like evaluating spending. As long as the books all reconcile, it is legal, proper, common - and responsible.

In addition to the district's financial troubles, there have been numerous questionable practices in the classrooms, and boardroom. Think Integrated Math. Dozens of grads, parents, and teachers complained of inadequate preparation for college. Yet QCSD still fought hard to keep it, stacking the study committee with pro-IM "experts", until they were caught and had to form a new one. The district conducted three surveys on IM, all with scathingly-bad results: grads in October, 2005; teachers in June, 2006, and grads and parents in October, 2006. But none had yet been made public when I revealed them at the end of January, 2007. Draw your own conclusions about whether surveys are "secret" when they are withheld for up to 15 months.

Then there was the November, 2005, early-bird teacher contract. At the end of the board's regular meeting, with no public announcement, and the room almost empty, the directors (including members voted out just days before) handed the teachers a four-year contract, making them among the highest paid in the state, while we have the lowest SAT scores in Upper Bucks.

There were 29 private board meetings between January, 2005, and December, 2006, where the directors ignored the Sunshine Law by failing to reveal what was discussed. They refused to investigate complaints of grade manipulation. And, despite a petition signed by 1400 residents, the board went to court to preserve an election system that makes it easiest for them to be re-elected.

Most school districts don't have any of these problems. We have all of them. But there is an easy solution: I propose that QCSD do what both Quakertown Borough, and Richland, did to settle disputes: hire an outside, independent company. Study all of the district's budgeting, spending, and financial policies. Recommend "best practices". Report to the community. Then we will know for sure what is happening, and our schools will have professional advice. A win-win for everyone.