The Wisconsin Policy Research Institute

A Very Sad Scandal

By George Lightbourn

Since 1984 I have been following issues in and around Milwaukee Public Schools. That means that, since 1984 I have been searching for who is responsible for the pitiful state of education in Milwaukee. At long last I found the culprit; it is the Milwaukee School Board. That board has proven itself to be self-serving, insular and overtly political.

Their high crime is that this body, entrusted to care for Milwaukee’s children, has been caught stealing money that should have been put into the classrooms of schools throughout the city.

Like the scandals that brought down huge corporations, from Enron to Fannie Mae, the evidence of the crime was assembled by accountants. Last week the WPRI released a report, authored by Christian Schneider, showing that the MPS board has racked up $2.2 billion of unfunded liabilities to pay the health care cost of retired employees. That means that the board committed to pay $2.2 billion it does not have. That also means that for years, while begging for more money to address the all-to-real challenges of urban education, the MPS board had already decided that their top priority was to pay for retiree health care costs.

Please do not point the finger at the Milwaukee teachers union or any other union. They have simply done what they are expected to do; to get the best possible deal for their members. No, 100% of the blame rests with the School Board. They are the ones that committed to a benefit package they could not afford. They are the ones who decided that taking care of retired employees was more important than taking care of Milwaukee’s children.

Now the board has the temerity to lay blame with state government. When the board’s fiscal malfeasance came to light, they instinctively blamed the inanimate state funding formula. MPS board member Terry Falk declared, “I’m saying flat out that unless we change the (state) funding formula, we will be broke in about three years.”

Well Mr. Falk, it is not the formula that is broken. It is the action of your board and the boards before you that is out of order. The numbers don’t lie. MPS boards have opted to sweeten benefits for retired employees rather than put more and better teachers into the classrooms.

Now you want more money? Suppose you were given more money. The accountants would insist that the first $130 million every year should be used to pay down this unfunded obligation to retired employees’ health care. I’m sorry but the answer to your plea for more money simply has to be no. You simply cannot be trusted.

-October 3, 2008

A Very Sad Scandal

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