How Would Charity Navigator Rate MCPS Spending on Hotels, Conferences, Food, Travel, "Team Building" and Perks?

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http://www.cbsnews.com/videos/former-wounded-warrior-employees-accuse-charity-of-wasting-millions

MD "Education" Dollars Pay for Vacation and Laptop Bags @mabe

In Maryland, "education" tax dollars include an annual vacation for Board of Education members to Ocean City, Maryland.  The vacation is organized by the private club that is funded by taxpayers, MABE (Maryland Association of Boards of Education.)  The Montgomery County Board of Education pays over $70,000 a year into the MABE treasury.

It looks like this year taxpayers also paid for laptop bags for the vacation attendees! See the vacation video below for a glimpse of some of the attendees and the conference swag. 

At this vacation, Board of Education members meet outside of the Maryland Open Meetings Act, and meet with select no bid vendors.  

Public school budgets in Maryland are not just about Maintenance of Effort!

WPost Prints BOE Letter as Article

Five members of Montgomery County’s school board issued a statement blasting a county report that examines how Maryland’s largest school system spends state aid that is based on its enrollment of students from low-income families.
The report said the high-performing school system used $47 million of its $128.6 million in such state aid for broader operating-budget functions last school year, not specifically targeting programs aimed at the needs of students living at or near the poverty level.
The school system was not required to target those programs but the analysis — by the Office of Legislative Oversight, the research arm of the Montgomery County Council — said it could have provided more resources to high-poverty schools, especially middle and high schools...

[Then the Post "article" reprints the BOE letter and links to the BOE letter and two other letters repeating the BOE message.  No response or investigation into this issue is provided by the Post reporter.]

https://www.washingtonpost.com/local/education/montgomery-school-board-members-blast-county-report-on-state-aid/2015/10/05/639adcbc-6913-11e5-8325-a42b5a459b1e_story.html

Breaking: State BOE Rules County Does Not Have to Pay MCPS $1.4 Million

The Maryland State Board of Education has just released their decision in the appeal of the MSDE determination that Montgomery County had underfunded MCPS for this fiscal year.

Floreen on MCPS Report: "That leaves $47 million in funds designed to close the gap unaccounted for. "

Councilmember Nancy Floreen writes:

...Each year, the Board of Education asks the County Council for additional funding over Maintenance of Effort to meet the needs of its increasingly diverse and low-income student enrollment. According to the OLO report, though, MCPS only allocated two-thirds of the $151 million it received in additional federal and state aid for low-income students to compensatory education programs designed to meet their learning needs. That leaves $47 million in funds designed to close the gap unaccounted for. Why should the County Council ask taxpayers to chip in more resources for closing the achievement gap when MCPS hasn’t used all the money it already has precisely for that purpose?...

 http://nancyfloreen.blogspot.com/2015/09/report-resources-and-staffing-among.html

Council Releases Resources and Staffing among MCPS Schools Investigation

   OLOReport2015-15ResourcesAndStaffingAmongMCPSSchools by Parents' Coalition of Montgomery County, Maryland

Breaking: County Appeals MSDE Determination that County Owes MCPS $1.4 Million

On September 2, 2015, the Parents' Coalition broke the story of a dispute between Montgomery County and the Maryland State Department of Education (MSDE) regarding the County's funding of the Fiscal Year 2016 MCPS Operating Budget.  At issue is $1.4 million that MSDE says the County owes MCPS. 

On August 12, 2015, Montgomery County appealed the MSDE decision.  The Maryland State Board of Education asked MCPS to respond on this matter, and on September 9, 2015, Larry Bowers wrote a letter to the Maryland State Board of Education discussing the MCPS budget formulation process.  Those letters are shown below in the just released County Council packet.  In brief, MCPS blames MSDE for the error.

The Montgomery County Council's Education Committee will take up this matter on Tuesday, September 15, 2015, in a special session of this committee that will convene before the regularly scheduled full Council meeting that day.

Will MCPS get the additional $1.4 million for the FY 2016 Operating Budget? Stay tuned.

   2015 Sept 11 Montgomery County Council by Parents' Coalition of Montgomery County, Maryland

Development boom leads to loss in school aid

Baltimore's development boom leads to loss in school aid

...One of those important facts: Some of Baltimore's most valuable buildings pay little or no property taxes to help close the gap.

Arguing that economic development needs the boost of public assistance, city officials have approved a wide range of tax breaks for projects built on vacant or under-utilized land. But the resulting cuts to Baltimore schools in next year's budget has renewed debate over whether city subsidies have been too generous — and whether the same practices should continue for future deals.
 
Some examples:
•Valued at $155 million, Harbor East's Baltimore Marriott Waterfront hotel cost city schools an estimated $3.6 million in state aid for next year through the funding formula. Meanwhile, under a deal the city inked in 2000, the hotel pays just $1 a year in lieu of property taxes for 25 years.

•Assessed at $58 million, downtown's Lockwood Place — home of the Capital Grille restaurant — is costing city schools an estimated $1.3 million in state aid. It gets a tax break of up to $1.5 million a year from Baltimore until 2024.

•Worth $40 million, the Zenith luxury apartments on West Pratt Street cost the city an estimated $920,000 in state school aid. It pays what amounts to just 15 percent of its property taxes under a deal that phases out after 15 years.

...

 "Yes, we have the greatest wealth growth. But because we've given away so much money, we're not actually collecting the taxes," Stokes says...

Montgomery County Fiscal Plan Update

From today's (12/9/14) Montgomery County Council meeting:

http://montgomerycountymd.granicus.com/MetaViewer.php?view_id=6&event_id=1700&meta_id=74654

Sentinel: School board members spend thousands on meals and local hotel stay

UPPER MARLBORO – Prince George’s County Board of Education members used their county-issued credit cards on hundreds of meals and a local hotel stay, according to receipts and expense reports obtained by The Sentinel. Some parents in the community say they think board members should be more frugal, and one board member said expenses should be reviewed by the Ethics Board. However, some board members defended their spending habits.

According to receipts and expense reports obtained by The Sentinel through a Maryland Public Information Act request, board members used their cards for meals both locally and outside of the state. According to the school system’s internal audit department, 10 of the 14 board members have credit cards. Board members Edward Burroughs, Peggy Higgins, Segun Eubanks and Sonya Williams chose not to have cards.
Locally, some board members frequently eat at locations around the county such as Ruby Tuesday, Jerry’s Seafood and the Olde Towne Inn...

 http://thesentinel.com/pgs/index.php?option=com_k2&view=item&id=848:school-board-members-spend-thousands-on-meals-and-local-hotel-stay&Itemid=766

MCPS FY 2014 end-of-year fund balance is $39.34 million

MEMORANDUM
To: Members of the Board of Education
From: Joshua P. Starr, Superintendent of Schools

Click this link to read Memorandum - Subject: Fiscal Year 2014 Operating Budget End-of-Year Categorical Transfer 

BOE Releases List of Social Events Paid for from MCPS Operating Budget #maintenanceofeffort

Census of Event Invitations through Board Office – June 2012-June 2014

Ticketed Events Attended by at least 1 Board Member
 Community Services for Autistic Adults & Children’s Honors Gala
 Montgomery County Chamber of Commerce Public Safety Awards Luncheon
 Committee For Montgomery Legislative Breakfast
 Asian American Education Association Lunar New Year Banquet
 Hispanic Alliance for Education Dinner/Fundraiser
 Identity Annual Celebration
 MCCPTA's President's and Principal's Dinner
 Minority Legislative Breakfast
 MLK, Jr. Memorial Breakfast
 Montgomery County Executive’s Ball Benefiting the Arts and Humanities
 NAACP Freedom Fund Dinner
 Companies Caring Breakfast
 Montgomery Women 10th Annual Reception and Power Tea
 Family Justice Center Annual Benefit
 Leadership Montgomery Graduation Celebration
 Linkages to Learning 20th Anniversary Celebration
 Women's Legislative Briefing
 2013 Lavinia Engle Awards
 African Immigrant & Refugee Found. Youth Leadership Conference
 Annual Latin Dance Competition
 Celebrate Giving with The Community Foundation for Montgomery County
 Franklin Bourne Bar Assoc., Inc. Scholarship Awards Banquet
 Organization of Chinese Americans-DC Chapter Annual Awards Gala
 Crittenton Services of Greater Washington Ann. Celebration
 Denim and Diamonds Gala
 Hispanic Hero Award Gala
 MCAAP Leadership Symposium
 National Center for Children and Families Art and Soul Charity Auction

Red Flag: Council Did Increase MCPS Funding by $27.2 Million

About now you are probably reading happy press releases and e-mails from County Councilmembers about the fabulous deal they have cooked up to fund the MCPS FY 2015 Operating Budget.  Councilmembers (all up for re-election) are congratulating themselves on giving MCPS more money than was required by Maryland law without actually increasing the baseline amount they must legally fund MCPS under the Maintenance of Effort (MOE) law.

You might want to hold your applause for just a moment.  

While it is true that the Council has not raised the MOE baseline for the MCPS FY 2015 Operating Budget it appears that they are raising the MOE baseline for FY 2017 and beyond.

The "deal" cooked up behind closed doors by the Council includes that the Council will pay back the MCPS trust funds in FY 2016.

"Board of Education President Philip Kauffman said in a statement Monday that the council has assured the board that the money taken from the trust funds will be replaced in the fiscal 2016 budget."  Gazette 5/12/14

...and from the Council packet on the "deal" we learn that the $27.2 million is a permanent increase in the MCPS budget...

The FY15-20 Fiscal Plan will reflect the continuation of County funding on MCPS' behalf for retiree health benefits by including an additional $27.2 million in MCPS OPEB funding for FY16 and beyond.

Yes, MCPS just got a $27.2 million raise, but Councilmembers are hopeful that no one will talk about this until after the election.  For now, read the happy press releases and e-mails. 

The County Council - MCPS Deal for FY 2015 Operating Budget

Here's the "deal" that was unveiled by the Montgomery County Council's Education committee today.  Today's Council Education committee was simply a press conference to reveal the "deal".

  2014 May 12 Montgomery County Education Committee by Parents' Coalition of Montgomery County, Maryland

The plan would violate one of the basic tenets of budgeting: putting “one-time” funds into ongoing expenses.

The Washington Post:  Montgomery County set to give public schools $50 million over state minimum

...This year, the school system asked for $51.7 million over MOE.
County Executive Isiah Leggett’s proposed 2015 budget gave Montgomery County Public Schools (MCPS) $26 million in county funds over the MOE threshold. He also proposed adding another $11 million from the unspent MCPS general fund balance (money that doesn’t count against the MOE limit). 

Under a plan from Council President Craig Rice (D-Upcounty), the council would shift the $26 million under Leggett’s proposal to a health-care trust account for retired MCPS employees — and add $13.3 million from a projected surplus in current health-care funds. Use of these funds would not reset next year’s MOE base...

$1,282,621 in County and Federal funds for program that refuses to serve students with learning disabilities

On April 24, 2013, the Montgomery County Council held a hearing to discuss various programs that serve County children.  One of the programs briefly discussed was the George B. Thomas Sr. Learning Academy, Inc.(GBTLA)   The hearing revealed that the GBTLA program will receive $1,096,621 in County funding between the County and MCPS in FY 2014.  

What the Council staff and MCPS did not disclose is that the FY 2014 budget also includes another $100,000 slipped in by Superintendent Joshua Starr from money taken from MCPS copier repairs and $86,000 funneled to the program from Americorps.

From the Council Packet (page 16-17)

The George B. Thomas, Sr. Learning Academy, Inc.
Provides Saturday school for mentoring and tutoring to a minimum of
3,200 Kids at 12 MCPS High Schools. $780,498
Council staff notes that the George B. Thomas Sr. Learning Academy has also been recommended for a community grant in the amount of $70,000 to support a development director. MCPS reports that it provides the following financial support for GBTLA:
16 • rental offacilities (12 sites) - $85,000;
• materials -$50,000;
• insurance - $20,000;
• transportation - $30,000;
• young scholars - $20,000; and
• 50 percent of the salary of the program coordinator.* 

*$42,529 is shown in the MCPS funding database for FY 2013.

Council packet also did not disclose the $86,000 in Americorps funds that are funneled to the GBTLA program.

Council's Staff packet did not reveal the $100,000 that will be handed over to the George B. Thomas Learning Academy in the MCPS FY 2014 budget as was revealed in our recent blog posting. 

Total County and Federal funding for this program that refuses to serve children with learning disabilities appears to be $1,282,621.

MCPS Positions Lost: "550 additional full-time employees this year — including reading teachers, paraeducators and music teachers — and another 200 next year."

...The report focuses heavily on recent funding decisions made by Montgomery’s public school system, which accounts for about half of the county’s roughly $4 billion budget. It also addresses revisions to Maryland’s “maintenance of effort” law, which requires per-pupil education funding to remain at least the same level from year to year.
With newly enacted changes, the state mandate has become more inflexible. If Montgomery schools increase per-pupil funding in a given year, that increase becomes “a new, permanently increased funding level,” potentially changing the budget picture for other agencies, the report says.
“The state has taken over a relationship between the school system and the county that worked,” said council member Hans Riemer (D-At Large). “They broke a thing that was working well.”
The report revisits the school system’s budget decisions of last spring at length, most notably the raises it approved for teachers and other employees, which came at an annual cost scheduled to be $65 million.
The analysis determined that cost was equivalent to 550 additional full-time employees this year — including reading teachers, paraeducators and music teachers — and another 200 next year.
Many positions have been cut in the past two years, and county council members say they often hear complaints.
If smaller raises had been given, some positions could have been restored or class sizes could have been reduced, the report says....

The Washington Post:  Economy, law could lead to 2013 cuts in public services in Montgomery County

Education funding threatens other Montgomery County agencies

Double raises for school system employees and a change in state law could threaten the budgets of other county agencies, according to a county Office of Legislative Oversight report released Tuesday.
Counties must provide, per-pupil, the same amount of education funding each year under Maryland’s maintenance of effort law. When enrollments rise, education funding increases.
The county would have to divert money from other agencies to pay for the increased school funding if revenue does not also increase, according to the OLO report.
Early projections show Montgomery County government facing a $71 million budget gap going into fiscal 2014, thanks to in part to slow revenue growth and $30 million required to meet MOE and pension funding regulations.
Unless state law changes, Councilman Philip M. Andrews (D-Dist. 3) of Gaithersburg said it would be fiscally irresponsible to fund the school system above the statutory minimum...article continues at link...

 Gazette:  With budget gap projected, schools might not get more than minimum

BOE to "lay low" during this year's state legislative session

Notes from the Board of Education Strategic Planning Committee meeting of October 15, 2012.  

BOE committee meetings are held in a small conference room and are not video taped.  
Thanks to parent Danuta Wilson for attending this meeting and taking notes. 

2012 October 15 BOE Strategic Planning meeting

Gazette: Staff pay raises may leave Montgomery school system with little to meet student needs

Of $30 million increase in fiscal 2014, $22.5 million will go to staff pay raises