Sunday, February 15, 2009

E-Rate - too good to be true?

Is the e-rate rebate program truly "found" money? If you think this program is too good to be true, you may be correct. Before we thank Superintendent Jerry Weast for tapping into this great resource, check out what has happened to some other school systems who have found the same pot of gold.

E-rate participants have been the focus of criminal and civil
investigations at the US Department of Justice and other federal agencies for several years.

Is this "old law" that doesn't apply to Montgomery County Public Schools? Think again.

In December, 2008, a businessman in Atlanta received a prison sentence of 5 years because he bribed an Atlanta school official in connection with the E-rate program.

Just last week, Federal agents requested records from the school boards in Atlantic City and Pleasantville as part of a bid-rigging investigation. Philadelphia and Camden schools are also under investigation.

Recently, a Illinois contractor was
fined $3.3 million for bid rigging and procurement fraud in connection with E-rate.

Its not just the feds who are looking into this practice. Earlier this year, the Arizona Attorney General found pervasive problems with the procurement process at the Tucson Unified School District.

Want more case studies? Run your own google search.

Is the great e-rate funded Promethean promise one that will likely find our own MCPS school system under investigation? Stay tuned, but remember, unlike their friends in Arizona who settled the case and put the three individuals involved in the scandal on leave - MCPS would rather litigate than admit mistakes.

But then again, MCPS may hit the jackpot a second time, since no one, including the County Council or the MCPS Ethics Panel, has yet to demonstrate any willingness to provide meaningful oversight over the MCPS budget.

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