B Payton on Oakland Schools

[Peter Farruggio <pfarr@cal.berkeley.edu>]

Oakland Tribune columnist Brenda Payton describes the game being run 
on the children of Oakland by the standardistas and crony 
capitalists.  Followed by an insightful letter to the editor.

Article Last Updated: 7/11/2006 06:34 AM
Schools better off in hands of board
Brenda Payton
Inside Bay Area
HERE's an idea. Why not end the unnecessary state takeover of the 
Oakland public schools?

http://www.insidebayarea.com/search/ci_4035949

With the news State Administrator Randolph Ward is leaving in 
mid-August to be superintendent of San Diego County schools, 
teachers, parents and politicians have started meeting to explore 
strategies to return control of the Oakland Unified School District 
to the elected school board.

While state officials are saying Ward's departure will not affect the 
state's control of Oakland schools, Oakland politicians and educators 
are hoping it might be an opening.

Next week, school board President David Kakishiba has a meeting with 
State Superintendent of Public Instruction Jack O'Connell. Among the 
issues on the table is the board's resolution to start a search in 
January for a new superintendent to be hired next July.

Some of those exploring return of local control caution the school 
board first should get a clear idea of the financial status of the 
district before taking back the reins. Because Ward did not have to 
answer to the board, they say the district's finances are not any 
more transparent than they were under theprevious administration. 
They support an independent audit of both the district's finances and 
programs.

After the announcement of Ward's departure, some newspaper articles 
have credited Ward with turning around a dysfunctional school 
district. In truth, many of those advances started under 
Superintendent Dennis Chaconas. Chaconas got into trouble not because 
schools weren't improving, but because the district miscalculated its 
ability to pay for the teachers' raises that helped improve the schools.

One of the suggestions of the group exploring the return of local 
control is for the state to postpone the proposed sale of 8.25 acres 
of prime property near Lake Merritt. The current administration 
building and several schools are located on the land.

Speaking of the proposed sale of that property, for between $55 
million and $70 million, Ward now says, "The goal of all negotiations 
regarding the district property is to secure an outcome that directly 
benefits students and the surrounding community."

Back in May of 2004, however, Ward was unequivocal about not selling 
district property.

"I am committed not to sell district buildings," he said. "It's a 
crazy, ridiculous long-term strategy to sell the administration 
building. People are investing in Oakland. There is no reason to sell."

Then, he said there were other ways to use the property to enhance 
revenue for the district. Many financial experts believe it is 
foolhardy for school districts or government entities to sell 
property to cover a deficit. Property increases in value and is an 
ongoing asset to a government agency. For example, you wouldn't sell 
your house to pay off a high credit card bill.

And what about that proposed sale of the property anyway? Three years 
ago, a lot about the state takeover didn't make sense. Primarily, why 
wasn't Oakland allowed to use $33 million in reimbursed construction 
funds to pay down the debt? If it had, a state takeover could have 
been avoided. Why would county and state officials want to force the 
school district into receivership?

A curious last-minute addition to the bailout bill authorized the 
district "to sell, sell back, lease or lease back" surplus property 
and use the proceeds against the loan. Some have always suspected the 
8.5 acres near Lake Merritt was the "surplus property." The more 
suspicious have believed the sale of that property was the goal, the 
reason the district was forced into receivership all along.

Curiously, as the plans to sell the property move forward with the 
naming of potential developers, Ward authorized the district to 
borrow the remaining $35 million available from the state's $100 
million line of credit. Ward said the money could be used in part to 
upgrade the financial computer system, renovate Carter Middle School 
to serve as the new administration headquarters and fund a reserve.

Those are nice projects but hardly essential. If you are proposing to 
sell district property to pay off the state loan, why would you 
borrow additional money for nonessentials?

It gets curiouser and curiouser. And the link between the unnecessary 
state takeover and the unwise sale of district land seems less and 
less like the paranoid delusions of conspiracy theorists.

Why is the district planning to sell one of its major financial 
assets? Why was the additional $35 million borrowed? Why are the 
schools being run by a state administrator?

Maybe residents can get some answers. The first of three public 
hearings on the proposed sale of the property is Wednesday at 6 p.m., 
in the board room of the Paul Robeson Building, 1025 Second Ave. The 
second and third hearings are scheduled for 6 p.m., Aug. 16 and Sept. 
6, also in the board room.

*******************************************************************************************************************************************************************************
Snookered by state

More and more, I look at what has happened to the Oakland school 
district, and figure that we are being looted by the state. After the 
state takeover, we are paying the same taxes and more to educate 
fewer students. Now state officials want to plunge the district 
deeper into debt and sell off assets because they have mismanaged the 
district budget to the point they cannot operate it within the amount 
of money they themselves have allotted to us. At the same time they 
have snookered us into paying more taxes to buy other assets. That 
is, we voted to pay bonds on the understanding that they were to buy 
capital assets, but at the same time, they are selling our capital 
assets to pay operating expenses.

This whole bail out is a farce. Randy Ward has only compounded the 
district's financial problems. There is no program in place to pay 
back the state loan. We pay more and more taxes, and the district 
gets deeper and deeper in debt. The state is raiding our tax money 
and school district property so it can spend on other school 
districts where it doesn't have to try to educate kids from poor 
minority families.

Bruce De Benedictis
Oakland