9486 in the collection
In St. Louis, Management Team Is a Leader in Wasting Funds
Ohanian Comment: Life and expense accounts in the consulting zone--team hired to run St. Louis schools gets hefty fee--plus "expenses."
He was the first to call me when I arrived at work. He wanted to gloat.
"Ha, ha. How do you feel after reading the story on the front page of your paper? What about Salad Bowlgate? I betcha' feel pretty silly attacking the management team now?" the reader asked.
The firm hired to run the city's public schools, Alvarez & Marsal, discovered that previous school administrators spent nearly $450,000 with one local restaurant, the Salad Bowl.
Sajan George, acting chief financial officer of the firm, told this paper about catered school-related meetings at the Salad Bowl. He complained about packaged lunches delivered to various schools. The firm immediately canceled the relationship with the restaurant and changed the procedure for ordering food.
"This is an example of the nonessential expenditures that do not impact the quality of education," George told reporter Jake Wagman.
Many organizations patronize the Salad Bowl because they provide a good meal at a reasonable price. They also offer meeting rooms for free when meals are purchased.
George doesn't see the benefits. The firm instituted a strict budget for the district and school administrators.
"If you have an hour-and-a-half meeting, you don't have to schedule it over lunch. You can bring your own," George told the Post-Dispatch.
Maybe he's right. Perhaps $485 spent on 23 people for a 5-hour "systemic reform" meeting is too much. The principal of Sherman Elementary was probably way over the line serving 45 people at $6 a piece. The district is cash-strapped, for goodness' sake. Why not serve educators bologna sandwiches? It's good enough for the homeless.
The School Board hired the management firm to make tough fiscal decisions. So let's quit griping and follow their lead. But shouldn't they lead by example?
Apparently not. Wagman wrote a story about the firm's salaries last month. I also reviewed some of the early invoices the firm submitted to the School Board. Perhaps some weren't reimbursed. But it appears that Alvarez & Marsal were working with something more than a bare bones budget at the time.
The firm and a subcontractor are being paid more than $5 million to run the district until next year. They get an additional $250 a week for food and another stipend for travel. The school district also picks up lodging costs. For their first 15 days of work, the firm billed the district $171,060. An additional $26,000 was added for out-of-pocket expenses.
If the $445,000 Salad Bowl money was given to all 6,250 public school employees (the number before recent layoffs brought the total to 4,787) they'd each receive less than $6 per month. George and his firm share a multimillion-dollar paycheck. Beyond that, they get $50 per day for meals.
The head of the management firm, William V. Roberti, George and other members of the team have stayed at the Chase Park Plaza at $137 each per night and at the Missouri Athletic Club for $96 per night. By all indications, the education reformers are enjoying a comfortable stay. Hotel receipts turned in show honor bar use, laundry service, valet parking and room service fees.
The school district has now set a daily hotel allowance of $125, and perhaps by now, the officials have negotiated even better rates. If not, as a public service, I called around to check extended stay rates. The Mansion House Center on Broadway - closer to the district headquartes - offers impressive arrangements. I asked Christy Sabo, director of sales and marketing, if they could beat the $125 rate.
"Oh my God, yes," she answered.
For a daily rate of $57, a guest would receive a one-bedroom apartment with separate kitchen (pots and pans included) dining, dressing, living rooms and full bath. Sabo said the price includes parking, cable and phone use. If guests stay more than 30 days, they pay no taxes.
But Mayor Francis Slay, with his proven clout, could probably get even better rates from local hotels.
Better yet, imagine all the money the district could save if the gang from Alvarez & Marsal all stayed at his house.
— Sylvester Brown Jr.
Management team is a leader in wasting funds
St. Louis Post-Dispatch
2003-09-07
http://www.stltoday.com/stltoday/news/Columnists.nsf/Sylvester+Brown+Jr./912516CDBA1B061B86256D99001F6E55?OpenDocument&Headline=Management+team+is+a+l
INDEX OF OUTRAGES
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