About two weeks ago, Dallas ISD has terminated more than 160 employees from the central office level. Last week, more than 300 campus level support employees were terminated. This week, more than 450 additional campus level employees will be terminated, including teachers, 10 counselors, and 40 assistant principals. It’s possible that even more employees will be terminated.
All of the terminations are the result of Dallas ISD hiring too many additional employees over the past two years, causing an estimated $64 million over budget expenditures for the 2007-08 school year. The expenditures for this school year is estimated to be more than $84 million over budget. Hence the need to reduce the costs, including the number of employees we have. How could this happen in the second largest school district in Texas?
What are your thoughts? What ideas do you have for the Board of Trustees to consider as we move forward with improving the district? Speak up and speak out. I want to hear from you.
Dr. Blackburn:
The responsibility for the budget overrun lies at the feet of the former CFO, David Rastellini, the lead officer for budget, John McGee, the head of HR, Kim Olson, the lead officer for accounting in 2007, (her name escapes me at the moment), the lead officer for payroll, Carolyn Gardner, and the COO, Eric Anderson. Each of these individuals had knowledge of procedures being circumvented and should be liable for the damages.
Some of these individuals had CPA and other professional licenses, and their action or inaction should be reported to their respective boards, and should be subject to legal action.
Mr. Rastellini did not hire excess positions; Kim Olson did.
Mr. McGee did not abandon the personnel position authorization process; Arnold Viramontes did. (In effect, Viramontes lost track of positions and their required funding sources.)
Ms. Gardner simply oversees that employees are paid based on department heads’ and principals’ monthly reports; department heads and principals submit monthly reports for persons who have been assigned to their organizations.
Mr. Rastellini and Mr. McGee did not exceed board-approved contractual expenses; Hinojosa and his executive team members did.
WHO IS RESPONSIBLE FOR TAKING BOARD-APPROVED AMMENDMENTS, PERIODIC BILLS AND CLAIMS REPORTS, AND OTHER FISCAL MANAGEMENT ITEMS INCLUDING COST OVERRUNS to the Board of Trustees as needs dictate? Hinojosa and his executive team.
The majority of the deficit is attributable to unfunded excess positions and excessive contract/consultant services.
WHO HIRES EXCESS POSITIONS? Kim Olson’s HD office does; department heads and principals simply recommend.
WHO IS RESPONSIBLE FOR MAINTAINING THE NECESSARY CONTROLS FOR AVOIDING OR MINIMIZING EXCESS POSITIONS? The person responsible for hiring personnel: Kim Olson.
WHO WAS AND IS RESPONSIBLE FOR THE DISTRICT’S TRANSFORMATION PROCESS THAT REQUIRED DELAYERING? The person who headed the tranformation process over the past year and a half: Arnold Viramontes.
WHO IS ULTIMATELY RESPONSIBLE FOR THE OVERSIGHT OF CONTRACT/CONSULTANT SERVICE EXPENDITURES AND ENCUMBRANCES? Hinojosa and his executive team. If not, what are they attesting to when they review and sign contracts, budget transfers, etc.?
For years, the district was in the black with Mr. Rastellini and Mr. McGee at the helm of the finance and budget operations, respectively. Hinojosa and his executive team have simply gone on a spending spree during their tenure.
Hinojosa and his executive teadm are either poorly trained in PPBES, irresponsible, or both.
BET: When Hinojosa and his executive team read this reply, they will look up PPBES.
But who was responsible for determining fund balance, and reconciling this with the actual bank records? Was this Ms. Perry’s area?
Someone had to be responsible for that, at least from a layman’s point of view, didn’t they?
Maybe not.
It looks like many of the persons you listed have left the district. The question remains, will we have enough knowledge left in the finance office to get the job done, or will we need to hire many others. Any thoughts?
You appear to be quite insightful. These are good questions, with interesting answers. It sounds like you know a few things.
Wildcat, I hear your group is very interested in seeing Dallas ISD improve. Stay with us on this challenging journey.
Many teachers, assistant principals and counselors got their notice today. I wish them well as they seek employment. The current economic conditions are not good for job seekers. I’m sorry that you are going through this as a result of our lack of financial oversight. God Bless You.
ROTC,
You are correct someone should have the responsibility for overseeing fund balance and someonone should have the responsibility for reconciling available funds with actual expenditures and encumbrances.
However, having the responsibility to address a given work assignment or task is not enough. One must also have the necessary INPUT to address the task and work assignment.
Let’s take Ms. Perry for example. Assume for the moment that Ms. Perry has the responsibility for reconciling available revenue with actual expenditures and encumbrances.
Ask yourself what she must have to execute her job? First and foremost, she must have accurate input information regarding existing revenue, expenditures, and encumbrances. Without this input information, she CANNOT EXECUTE her tasks regardless of whether she possesses the four necessary attributes to address her assignment–i.e., decision-making authority, final responsibility, knowledge/skills, and capacity to do the work.
If others are creating excess positions (i.e., positions without funding sources) without her knowledge, she CANNOT ACCURATELY perform her reconciliation work. WHY? Because, she does not realize that others are creating positions, filling positions, and thus creating additional expenditures without her knowledge. (She is working or should be working from the board-approved budget and amendments that identify positions, supplies and materials, contract/consultant services, etc.) Now, suppose that the board was forced to adopt a poorly constructed line-item budget in 2007-2008 which in fact they did. This budget did not accurately reflect projected expendures and revenue. Furthermore, couple this problem, with Hinojosa and his executive team creating and filling excess positions without her knowlege. Also, add the problem of Hinojosa and his executive team exceeding contracted/consultant services, overspending in other areas, etc.
CAN HER RECONCILATION BE ACCURATE IF SHE IS UNAWARE OF ALL EXPENSES AND ENCUMBRANCES AND IF SHE DOES NOT HAVE A GOOD ESTIMATE OF REVENUE? No. No. No.
Through either arrogance, ignorance, incompetence, or any combination thereof, first- and second-level administrators–i.e, Hinojosa and his executive team, respectively–set up many third-level administrators and lower-level administrators for failure. Information sources and controls were compromised. Information was either invalid, not available, or not readiliy accessible, or both. Controls for minimizing excess positions were compromised when Viramontes abandoned the PPA process and Olson filled excess positions.
Now, Viramontes will probably deny that he abandoned the PPA process. His denial, however, could easily be countered with depositions of two or more key members of the delayering office or retired personnel. Olson may also deny that her function filled the positions. However, if she does, her denial can also be easily countered. Ask excess personnel who offered them their positions–Human Development or another function? Furthermore, who informed them of their salaries? Who took them through their employment orientations, etc.?
ROTC,
I’ve worked directly with Mr. Rastellini, Mr. McGee, Ms. Perry, Ms. Gardner, and other fine individuals in the finance division. In past administrations, they always executed their jobs well, and thus kept the district in the black.
One must ask oneself? What changed? How could these individuals have performed so well in past administrations and performed so “poorly” in this administration? In my thirty years of experience in the DISD, I have found that third-level and lower-level administrators/worker bees have always been fairly consistent. In effect, if they performed well for you in the past, other things being equal, you could expect them to perform well for you in the future.
BUT, MR. ROTC, OTHER THINGS ARE NOT EQUAL IN HINOJOSA’S ADMINISTRATION OR LACK OF ADMINISTRATION.
Spending is out of control. Controls have been compromised or done away with either intentionally or unintentionally. PLANNING has been compromised. PROGRAMMING requirements have been compromised. BUDGETING requirements have been compromised. EXECUTION requirements have been compromised. In effect, PPBES(ystem) has been compromised.
Mr. ROTC,
The more important issue here is what can DISD do to resolve its problems?
The answers lie in adequately addressing PPBES requirements without exception. Unfortunately, Hinojosa and his executive team do not have the wherewithall to address PPBES requirements. Can people from the private sector address these requirements. Some of them; unfortunately, however, they do not have the contextual knowledge to address all the requirements.
In absence of this knowledge, I’ve submitted over the past few weeks over 50 specific recommendations for addressing the deficit and implementing necessary controls under a different pen name.
It appears that some of these recommendations are being addressed now; however, I would like the board to receive a project overview with a corresponding detailed implementation plan for each recommendation ASAP. Third-level and lower-level administrators should provide at least bi-monthly status reports on these projects without fear of retaliation or censure from the first- and second-level administrators. They should identify their successes and failures. They should also identify their implementation problems and challenges and recommendations for overcoming them.
WHY SHOULD THIRD-LEVEL OR LOWER-LEVEL ADMINISTRATORS PROVIDE THE STATUS REPORTS? BECAUSE BOARD MEMBERS ALSO CANNOT ADEQUATELY FULFILL THEIR RESPONSIBILITIES IF THEY DO NOT RECEIVE ACCURATE INPUT INFORMATION!
Dr. Blackburn knows this very well. Haven’t you noticed how Hinojosa and his executive team have denied him necessary input information over the past few weeks–in point of fact, over the past three years?
Why do you think it has not been made available or readily accessible to Dr. Blackburn?
Mr. ROTC, pardon me, I do not mean to be disrespectful. I know you know the answer to my rhetorical question.
Thank you all for your comments. While you may continue to comment on the blog to this and any future posts, should you wish to contact Lew directly, you can do so using the Contact page. This site is privately owned so, unless you explicitly request that your name be linked to any information you send, privacy will be assumed.
Finance Employee,
I am impressed with your knowledge. You mentioned that you have submitted about 50 specific recommendations for addressing the deficit and implementing necessary controls. I would appreciate you listing them in one document response. I think I may be able to get more information about the $64 million question. Send the list through the contact page.
What do you know about a “forensic audit”? Would this help us to get additional information? What are your thoughts?
Anonymous, please stop this nonsense and act like an adult.
First of all, based on budget information that has been made available to the public via the Dallas Morning News, the budget shortfall did NOT have to do with the district hiring too many teachers, but had to do with underestimating computer expenses, energy costs, auditing fees AND teachers. Teachers are just the scapegoat for this fiasco.
Secondly, I don’t understand why the Board has not called for a thorough investigation into the firing of Dr. Hinojosa. This school year, and all of our students, have gone down the tubes as teachers have been stretched and stressed about this for nearly the whole school year. It’s a shame, and its not the teacher’s fault, its ths direct result of mismanagement of money on Ross Avenue. Students are being punished. Teachers are being punished, the City of Dallas and the taxpayers are being punished.
Dr. Blackburn,
1. The district is too large. It is nearly impossible for one person and one board to effectively be in charge of so many schools. The idea of learning communities was valid, I feel. But now it’s clear that the people at the top haven’t been doing their jobs.
2. DISD wastes money on its contracts. If my husband, (a DISD teacher) needs to order paper for his classroom through the office manager, he has to use a certain vendor. The school has to pay a DISD price that is lower than normal, but higher than the sale price the vendor is charging regular consumers. Why can’t DISD get better deals considering how much business they are giving?
3. There are too many advisors, facilitators, specialists, coordinators in the district. There are people who get paid a lot of money to be in an office with no oversight on their productivity. Instead of looking to slash the people who actually work everyday, we should get rid of people who are making a profit without profiting us.
4. Contracts: It was fairly obvious in the meetings, that the school board doesn’t know where all the money on these contracts is going. Because the administration hasn’t been forthright on keeping control, it’s time for the board to step in and clean it up.
5. Teacher confidence. Even the teachers that get to keep their jobs after this round, will be looking for other jobs in the spring. Most teachers are scared to death that another RIF round will occur later on this year. Can you tell them that will not happen? I’m not sure what you can do to show them that the district cares and is willing to take care of them. It might be a good idea to hold some meetings with teacher input. They are on the front lines. They know where the waste is. They know what the needs are.
6. Dr. Hinojosa can’t be allowed to stay. This controversy has tarnished his leadership. For confidence to return to DISD by the community, he’ll have to be let go, and house will need to be cleaned.
I am on the same page with you on most of your points. The board has discussed many of these cost saving measures. We will review the revised budget in November. Then, we’ll look for other cost reductions to make sure we do not get further into our fund balance (savings).
You may want to look into letting the head of secondary choral activities go. In an open records request, I found that she, Mackie Spradley, spent more time on Interacial dating.com and eharmony.com than she did in ordering supplies. I didn’t have a piano or anything musical for almost the entire first semester last year. I was non-renewed but she and the incredibly incompetent principal, Susie Stauss, kept their jobs. My greivances have yet to be heard and they were filed in March of 2008. Due to this, I have been unable to secure a position with another district. Am I eligible to come to the job fair next week as the program that I was hired for no longer exists due to, in my opinion, lack of planning and preparation on the part of both administrators listed above.
i guess i dont understand why Hinojosa is not gone. If the legal department found a way to get around all the contracts of the people who are being let go, why cant they find a way to get him out of here? I also want to suggest that they stop the PLC. every secondary teacher has 2 planning periods. If one was taken away then we would add an extra class to each teacher and that would solve the problem of classrooms being overcrowded. i just see it as a scheduling nightmare to loose teachers this late in the game. this hurts the kids more… where should the counselors put them?
Dr. Blackburn,
Listed below are some of the major reasons why the district has an 84M deficit.
1. Arnold Viramontes refused to use personnel position authorization forms during the delayering process although he was warned repeatedly by seasoned personnel that he would lose track of positions and their funding sources. REASONS: Either arrogance, incompetence, or both.
2. Kim Olson’s Human Development Office hired excess positions–positions without funding sources. Kim Olson’s repeated representations in board meetings that principals hired excess positions is misleading. Why? Because principals recommend, and Human Development hires. In several meetings, Kim Olson has always maintained and communicated this position to principals and learning community executive directors. Unfortunately, Ms. Olson has NOT communicated or has incorrectly represented this administrative process to the Board of Trustees during board meetings. REASONS: Either loss of memory, self-serving interests, or both.
3. Eric Anderson’s Finance Division allowed expenditures without board approved/required amendments to the general operating budget. REASONS: Either intentional/unintentional management behaviors, or both.
4. Contracted expenses (code 6200) have grown and exceeded their board-approved amounts. REASONS: Either unforeseen needs for additional outside help or to maintain the consultants’ and contractors’ standards of living.
5. Excess positions were allocated to meet the needs of poorly planned and executed C&I and finance projects. REASONS: Either poor project management/planning/implementation skills, incompetence, or both.
6. General operating monies were used to augment local efforts when Title 1 monies could have been used. REASONS: Either poor project management/planning/implementation skill, incompetence, or both.
7. Salaries for many directors and above including procurement card violators have increased significantly. REASONS: Either structures of privilege, lack of responsibility, or both.
8. The district failed to approve a LINE ITEM BUDGET for 2008-2009 school year. This was a clear departure from what the district had done for over four decades. Without the line item budget, many departments spent beyond their budgets. In point of fact, some departments spent other departments’ monies. REASONS: Either lack of fiscal responsibility, incompetence, or both.
9. Under Hinojosa’s leadership or lack thereof, the district’s student attendance rates have steadily decreased over the past three years. Lower student rates translate into less state revenue. REASONS for falling student attendance rates: Failure to promote/implement/maintain projects/efforts to enhance student attendance, incompetence, or both.
10. Personnel have been promoted without adequate credentials, experience, knowledge, and skill sets, and some seasoned, knowledgeable, skilled, and highly qualified individuals have been overlooked or demoted or forced out of the district. REASONS: Unprecedented structures of privilege created under the current superintendent surpassing all other superintendencies over the past forty years, incompetence/vendettas, or both.
District crisis not new.
This district has been tragically flawed for a long time.
There is a total lack of the clear information that is needed to answer most of the questions being posed.
It has been suggested by many blue ribbon committees over the years that the district needs to be disbanded and absorbed by the suburban districts or be subdivided into several smaller districts.
This crisis provides the opportunity to root out the waste, corruption and cronyism that most district employees have felt forced to go along with over the years.
While the best choice for the district at this time may not be to fire Dr Himojosa and others who are part of the management team who authored of this mess, there needs to be some move to hold these people financially accountable. Certainly any raises, bonuses, extensions of contracts from the past school year forward need to be revoked or at a minimum reviewed and modified.
Lew,
Please call for Hinojosa’s resignation! You and Carla seem to be the only voices of reason on the board. Please keep the pressure on! Please keep asking for data! Please make these people accountable!
Thanks for your support!
To date, we all recognize that the necessary votes to carry off a leadership change are simply not there and that we may need to explore other alternatives to improve and take over OUR district while mitigating the adverse impact of the external and internal structures of privilege, dismal and incompetent first- and second-level managers, and their unethical and immoral behaviors.
Until we take over OUR district, we may want to work together with unity of purpose in disassembling the structures of privilege, current mismanagement, and unethical behaviors through OUR PENS. Third-level and lower-level employees all have untapped knowledge and potential. We all have bits of knowledge of how processes have been compromised either intentionally or unintentionally by external and internal powers that be. If we bring this information to bear, we can effect change. Example: The overthrow of the technology czar.
Recommendation:
Let’s work together in bringing items to Dr. Blackburn’s and Ms. Ranger’s attention so that they may help us in either changing the current leadership, improving the district through viable recommendations, or both.
Let’s take for example, the RIFing process. It has obviously been compromised.
HOW DO WE KNOW OR HOW SHOULD WE KNOW? Several schools had been targeted to lose staff; however, at the eleventh hour, they did not. (LESSON 101: Take a snapshot before a process is executed, then take a second snapshot once the process is executed. Analyze the differences.)
WHY? Because their principals complained. (LESSON 102: Make certain that you always have flies on the walls of public or “private” meetings.) For example, Madison was scheduled to lose several staff members; however, how many of the initial targeted staff members did Madison lose? Find out for yourself.
WHY DO YOU THINK THAT THE NUMBERS CHANGED? A little research will show that the Madison principal and Hinojosa go way back.
WHY DID THE NUMBERS FOR SKYLINE CHANGE? Because the principal complained. Find out why administration acquiesced to the principal’s complaint.
We have better and more direct evidence that the RIFing process was compromised; however, why should we communicate this evidence in a forum that may alert first- and second-level leaders that someone knows and may be waiting for the right moment to seek justice through offices outside their control such as EEOC, OCR, and news agencies other than DMN.
SO HOW CAN WE TAKE OVER OUR DISTRICT, IMPROVE OUR DISTRICT, EXPOSE FLAWED PROCESSES, PUBLICIZE UNETHICAL AND INCOMPETENT MANAGEMENT, ETCETERA? Through OUR PENS.
We should bring “issues” to Dr. Blackburn’s and Ms. Ranger’s attention and other FEW tested, loyal supporters of our children, our staff, and our schools through different venues other than this blog or their DISD groupwise e-mail accounts. (To date, all other board members have failed my misinformation test. Other than Dr. Blackburn and Ms. Ranger, all others have leaked or shared misinformation that was communicated for their eyes only. My US Armed Forces training has been helpful.)
Dr. Blackburn and Ms. Ranger,
Consider creating free Yahoo or AOL e-mail accounts so that we may forward you information in a more secure and anonymous manner. If we send you information through your DISD groupwise account, the leadership or their watchdogs can view our e-mails. Furthermore, if we provide you with information via this blog, first- and second-level managers will be alerted.
Thank you for considering our request. If our request is reasonable, please post your Yahoo or AOL e-mails on this blog. Thank you.
CAVEAT: The disrict has the capability and uses it to monitor the contents of all groupwise e-mails sent or received behind the district’s firewall and from your homes. Furthermore, designated staff and other eavesdroppers have and use the capability of looking at your district monitors from afar any time that they choose or any time that they are directed to do so.
It seems like many of you either work for the district, or have relatives who do. I appreciate your comments. As we work on the task of rebuilding Dallas ISD, I hope you will continue to offer suggestions. I agree with many of the suggestions and comments given.
Keep it up!