Because the cash was "no longer necessary". (See page Circle 5 of Council packet at link.)
Remember June 8, 2010 when the Montgomery County Board of Education voted to approve a surprise contract with Pearson Education, Inc. for the sale of MCPS curriculum? That contract specified that Pearson would be paying $4.5 million in upfront curriculum development costs. Remember how immediately after the Board voted to approve the Pearson contract they hired a whole team of high priced administrators to write the curriculum for Pearson Education, Inc.?
In May of 2011, this blog reported that it appeared that the terms of the Pearson deal had changed. We now have the documentation to show that the $4.5 million in development funds that were part of the June 8, 2010 contract were reduced to $1.25 million by Superintendent Jerry Weast on November 4, 2010.
Below is the document that Superintendent Weast signed without a public Board of Education vote, that purports to "amend" the June 8, 2010 contract and reduce Pearson's development fund payment from $4.5 million to $1.25 million.
Can a Superintendent simply "amend" a contract that has been approved by the Board of Education? Where is the MCPS Press Release announcing this "exciting" change to the original contract?
Didn't Superintendent Weast say that we needed the Pearson contract because "we are broke?"
Here is the section of the Pearson-Montgomery County Board of Education contract that has been changed:
A. Contribution Toward Development Costs
Subject to the Program Development Plan, Publisher shall contribute to the development costs by paying to MCPS the sum ofBelow is the letter from Superintendent Jerry Weast to the President of Pearson, Inc. purporting to reduce the Pearson payment to MCPS from $4.5 million to $1.25 million.
$4,500,000[$1,250,000]United States Dollars in the aggregate ("Development Funds"), and shall pay to MCPS, as the first installment of the Development Funds, the sum of $625,000 United States Dollars within thirty (30) days of the date hereof. The schedule of the payment of the remainder of the Development Funds shall be detailed in the Program Development Plan, and shall be payable in installments on a quarterly basis based on completion of specified milestones . As further detailed in the Program Development Plan, one-half of the aggregate Development Funds payable to MCPS shall be considered an advance on royalties (the "Advance") and recoupable by Publisher as set forth in Section 8E below.
Amended Pearson Contract