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* From the Wednesday Journal…
Tony Smith, 48, a RiverForest resident and executive director of the Oak Park-based W. Clement and Jessie V. Stone Foundation, has been appointed as the state’s new state school superintendent.
Smith replaces outgoing superintendent Christopher Koch, who served in the position for eight years. With more than two million students, Illinois’s K-12 school system is among the largest in the nation.
The Illinois Board of Education voted unanimously to approve Smith’s contract, which will take effect on May 1. He will be paid a starting salary of $225,000, according to a Chicago Tribune report. Smith has ties with Republican Gov. Bruce Rauner. Last year, he was appointed to Rauner’s transition committee for education policy. […]
But the unanimous vote and laudatory statements from [State Board of Education Chairman James Meeks] doesn’t necessarily translate into the state board’s complete equanimity with the decision. Board member Steven Gilford told the Tribune that he was “very disappointed that Dr. Koch is going to leave the agency” and that “I don’t think it’s really the right decision for this agency.”
* Gilford wasn’t the only unhappy board member…
A key member of the Illinois State Board of Education has formally resigned over concerns about the way new state Superintendent Tony Smith was hired.
The Chicago Tribune reported that resigning board member James Baumann said there was no national search and only one candidate for the state’s top schools position.
Smith was appointed by the board of education last week and takes over May 1. He is the former head of Oakland, California, schools and has ties to Gov. Bruce Rauner.
He also was Rauner’s recommendation to the board. The Republican governor recently appointed five new board members to the nine-person board.
* Meanwhile…
A law aimed at curbing late-career pay raises for educators continues to sting some suburban school districts with six-figure costs.
And now a new proposal from Gov. Bruce Rauner raises the prospect of more penalty costs to school districts if pay for teachers or administrators nearing retirement rises above the rate of inflation.
Under a law approved last decade, school districts have to pay the additional pension costs that result from giving teachers or administrators end-of-career pay raises of more than 6 percent a year. The law is aimed at preventing big pay bumps that drive up pension costs for the state. Pension benefits are based in part on employees’ salaries in the final years of their careers. […]
Rauner, a Winnetka Republican, proposes abandoning the 6 percent threshold. Instead, the governor wants school districts to pay for pension costs generated by teacher pay raises that are higher than the Consumer Price Index, a measure of inflation.
For 2014, the index was at about 1.5 percent, and it’s hovered around there in recent years, peaking at 3.2 percent in 2011, according to the federal Bureau of Labor Statistics.
* Related…
* ADDED: IFT Press Release: Governor Rauner to give keynote on “economics of education” after slashing crucial programs, threatening 32% cut to higher education
* ADDED: WGN news coverage of IFT press release
* Hopes dim for school funding formula overhaul’s passage: Despite a revamp to ease partisan and regional opposition, Illinois lawmakers now see little chance of passing legislation this session that would overhaul the state’s outdated school funding formula for the first time in two decades.
* Rauner’s dangerous talk of Chicago schools bankruptcy: Does he understand that scaring unions to the table may be good and effective theater, but actually pushing CPS or other governmental units into bankruptcy might blow up with lots of collateral damage? No one seems to know. One source familiar with Rauner’s ways likens him to the “Animal House” character who has a devil perched on one shoulder and an angel on the other, each urging him to take different steps. Rauner’s dislike of unions is so deep he may have lost objectivity.
posted by Rich Miller
Monday, Apr 20, 15 @ 10:53 am
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“…has ties to Gov. Bruce Rauner.” Drip, drip, drip goes the irony.
Comment by Skeptic Monday, Apr 20, 15 @ 11:01 am
At least 2 members of the ISBA Board should have voted to keep Koch and voted NO on the new appointment. Even if in the minority, being spineless makes one irrelevant.
They should not now be complaining when they did not show leadership before.
Comment by Anonymous Monday, Apr 20, 15 @ 11:05 am
I’m disappointed that Steve Gilford, a good and thoughtful man, didn’t vote against this nominee and the sham appointment process.
Comment by Anonymous Monday, Apr 20, 15 @ 11:05 am
I get pension spiking is disasterous for a pension fund, but capping pay increases at inflation? There’s one way to reward quality work. Awful anti-capitalist for a capitalist….
Comment by Shemp Monday, Apr 20, 15 @ 11:12 am
Good column by Hinz.
Comment by Juvenal Monday, Apr 20, 15 @ 11:15 am
The Illinois Education Association honored Superintendent Koch at its Representative Assembly over the weekend.
He was popular and it sounded as if he would have preferred to remain in his position.
Comment by Upon Further Review Monday, Apr 20, 15 @ 11:15 am
Just a reminder, that “Animal House” character is trying to decide whether or not to rape a “poor sweet, helpless” 13-year-old girl who is drunkenly passed out.
– MrJM
Comment by MrJM Monday, Apr 20, 15 @ 11:19 am
=One source familiar with Rauner’s ways likens him to the “Animal House” character who has a devil perched on one shoulder and an angel on the other, each urging him to take different steps.=
I think of him more like Bluto rallying the troops with his cry of “Was it over when the German’s bombed Pearl Harbor?”
Comment by Carhartt Representative Monday, Apr 20, 15 @ 11:25 am
this will not be the last person jumping ship.
Comment by I wish to remain anonymous Monday, Apr 20, 15 @ 11:30 am
Another case of the search committee “finding” one of themselves to recommend. Very common in business, among strategic consultants.
Comment by walker Monday, Apr 20, 15 @ 11:31 am
Fasten your seatbelts. When Tony Smith was school superintendent in Oakland, Calif., he talked a good game but he closed neighborhood schools, jerked teachers around with temporary assignments and dropped the ball on qualifying for state Quality Education Improvement Act grants.
http://classroomstruggle.org/2013/04/08/tony-smith-leaves-oakland-in-shambles/
Comment by olddog Monday, Apr 20, 15 @ 11:37 am
“He also was Rauner’s recommendation to the board. The Republican governor recently appointed five new board members to the nine-person board.”
Remember, it’s only corruption and conflict of interest when unions, the general assembly, and judges do it.
Comment by State employee Monday, Apr 20, 15 @ 11:42 am
Remember the flap over the superintendent who was appointed before Blagojevich took office. I recall opinions at that time seemed to have favored that the new governor should have made his own appointment. I had always thought new governors get pro forms resignations from chairs of boards and commissions, paid or unpaid.
Comment by Anonymous Monday, Apr 20, 15 @ 11:46 am
===the governor wants school districts to pay for pension costs generated by teacher pay raises that are higher than the Consumer Price Index===
I am in multiple private sector pension plans. None of these pension plans have any provision to increase benefits once my employment with a given company terminates. I wish they did. A pension benefit tied to the CPI looks very good to someone like me.
Comment by Hit or Miss Monday, Apr 20, 15 @ 11:48 am
The failure of the passage of the school formula bill should have been no surprise. Prior over haul attempts have been stopped by the fact that each district has losers and winners in any new formula. The districts have to protect any losers in their district.
Comment by Parnell Monday, Apr 20, 15 @ 11:49 am
Olddog, that Tony Smith article is horrifying! Another great tool in the Rauner toolbox.
This is going to be an ugly year.
Comment by Mongo Monday, Apr 20, 15 @ 11:49 am
Since one of Rauner’s most important issues is school reform, it should come as no surprise that he would want to hand-pick the state superintendent. I had heard a while back that Koch wanted to stay, but that was completely naive on his part.
Comment by anonymous plus one Monday, Apr 20, 15 @ 11:49 am
A person who has never taught now leads one of the nation’s largest school systems.
Comment by Anonymous Monday, Apr 20, 15 @ 11:49 am
I’m all for school districts paying more for pay increases in the final years of service. For far too long, TRS and SURS employers exploited the ability to pension spike. Many employers leveraged the vulnerablity to the extreme. The 6% rule was very weak and with the “exceptions provisions”, wasn’t providing a true deterrent. I think this is a reasonable proposal assuming the “normal cost shift” proposal continues to remains unlikely.
Comment by Dirt Diver Monday, Apr 20, 15 @ 11:51 am
@hit or Miss: “A pension benefit tied to the CPI”
That’s not what that proposal is.
The pension is tied to the highest 4 salaries in the last 10. The proposal does not change that *at all*, but requires the District to pay for any additional pension due as a result of increases to the salary used for caclulation that exceed CPI.
If your private pension were tied to your final 4 years salary, would you like your raises to be *limited to* CPI? Because that is sort of what this is doing.
Comment by Chris Monday, Apr 20, 15 @ 11:57 am
Anonymous@ 11:49
Not to mention making the jump from overseeing 36k students to 2 million. Those additional degrees in Language, Literacy and Culture should help.
Comment by Jocko Monday, Apr 20, 15 @ 12:00 pm
“I get pension spiking is disasterous for a pension fund”
The pension “spiking” accounts for about 4% (per Eric Madair’s comprehensive research) of the pension debt (problem). Much of that is from the days when educators etc. were given 20% bumps in their last two or three years. 20% was criminal in my opinion and many districts, like ours, did away with the 6% bumps as well. By the legislation educators that stay on the salary schedule would not be able to get a normal (regular contractual) increase if it was above CPI. Right or wrong, that is also a consequence of that legislation.
“The 6% rule was very weak and with the “exceptions provisions”, wasn’t providing a true deterrent. I think this is a reasonable proposal assuming the “normal cost shift” proposal continues to remains unlikely.”
You know not of what you are speaking, clearly. Cost shift is VERY much on the table right now as well.
Interesting that our Governor criticized his [predecessors for hiring friends and cronies and turns around and does the same exact thing. But, it isn’t hypocrisy when you are hiring superstars.
Of course none of his two “superstars” and “and transformational” education leaders can a) obtain a teaching position in Illinois for lack of license b)Obtain a building administrative position in Illinois for lack of license b) be a superintendent in Illinois for lack of license, or degree that would allow license.
Rauner attacked Quinn for the hiring of unqualified candidates at IDOT and other agencies. What does he do? Hires unqualified people. What do they call that? Oh yeah, hypocrisy.
Rauner is definitely shaking up Springfield.
All snark intended.
Comment by JS Mill Monday, Apr 20, 15 @ 12:06 pm
We now have a secretary of education for $250000 and a superintendent of education for $225000. But state workers earn too much unless a Rauner pal
Comment by South of 64 Monday, Apr 20, 15 @ 12:10 pm
walk, there was no search, or search committee. That’s kinda the point.
Also remember friends that the State Super is the statutory Chair of the Board of the TRS.
Katherine, commence securing the portal.
Comment by Arthur Andersen Monday, Apr 20, 15 @ 12:11 pm
So CPS taxes at 1/2 the rate as most other large school districts and it gets a flat grant from the State and bankrupcy protection? How about taxing like everyone else. It sounds like Chicago is getting the suburban money. I wonder if CPS taxed like Elgin and Aurora and others how much money could go to fixing some of the other issues in the state?
Haven’t seen those numbers yet.
Comment by frustrated GOP Monday, Apr 20, 15 @ 12:15 pm
Fasten your seatbelts is right. School boards struggle when you mention 1 contentious issue. If union busting, vouchers, consolidation, charter schools, pension cost shift, etc. all start flying at once…look out.
Also, local school board members rarely have any teaching qualifications.
Comment by Bobby Hill Monday, Apr 20, 15 @ 12:16 pm
Another person “with close ties” to Rauner is hired with a huge raise! Last guy made $215,000 last year. Rauner’s guy-$250,000! Image that!!!
Comment by Anonymous Monday, Apr 20, 15 @ 12:20 pm
Bobby Hill - Yes, school board members rarely do have teaching credentials, but the district superintendents those Boards hire always do.
Comment by Anonymous Monday, Apr 20, 15 @ 12:21 pm
JSM, excellent post but I would question one of your points.
You write “educators that stay on the contractual salary schedule would not be able to get a normal increase if it was above CPI.”
Isn’t it correct that the educators could get the increase, but the increment above CPI is at the District’s expense?
Comment by Arthur Andersen Monday, Apr 20, 15 @ 12:22 pm
==A person who has never taught now leads one of the nation’s largest school systems.==
Another one is our Secretary of Education, and another is in charge of CPS. They’re all pretty terrible too.
Comment by Carhartt Representative Monday, Apr 20, 15 @ 12:26 pm
the CPI pension cap will hurt a lot of small districts as top execs move up and out to a new job that pays more. We will see a lot more movement and a lot less continuity. For big districts that might not be so much of an issue, but for small districts with smaller staffs and the supt makes most decisions that will be an issue.
think about your job and putting a new boss in from outside the organization every 2-3 years, That will happen more then it does now. I;m guessing Rauner hasn’t hired any organizational change advisors yet, only actuaries.
Comment by frustrated GOP Monday, Apr 20, 15 @ 12:32 pm
Rauner may be less then politically correct with some of his pronouncements-but none of the financial issues he is trying to confront were caused by his administration- where were all of you folks who are complaining during the last 12 years when Illinois was run by the D’s. Years of fiscal mismanagement are what is to blame not Bruce rauner
Comment by Sue Monday, Apr 20, 15 @ 12:34 pm
@AA: “Isn’t it correct that the educators could get the increase, but the increment above CPI is at the District’s expense?”
Yes, that’s totally accurate.
Comment by Chris Monday, Apr 20, 15 @ 12:36 pm
@Carhartt Rep: “A person who has never taught … is in charge of CPS”
You talking about Rahm? Or Interim Jesse?
Because BBB, with all her faults, was a classroom teacher for a deacde.
Comment by Chris Monday, Apr 20, 15 @ 12:44 pm
==Years of fiscal mismanagement are what is to blame not Bruce rauner==
He’s Governor now. It’s his ballgame to play.
Comment by Demoralized Monday, Apr 20, 15 @ 1:01 pm
==where were all of you folks who are complaining==
By the way, they were right here. Apparently you weren’t around this board that much.
Comment by Demoralized Monday, Apr 20, 15 @ 1:02 pm
Sue, I’ve read this blog for years. People here have complained about fiscal mismanagement for years.
Comment by Demise Monday, Apr 20, 15 @ 1:07 pm
“Does he understand that scaring unions to the table may be good and effective theater, but actually pushing CPS or other governmental units into bankruptcy might blow up with lots of collateral damage? No one seems to know.
——————-
A couple of pieces we do know about CPS. They are in serious financial difficulty. For example:
“Bad news on Chicago is deep and broad:
1) The Chicago Public School System has a $1.1 Billion Budget Hole in $5.9 Billion Budget
2) A $228 to $263 million derivative time bomb just triggered on the Chicago Board of Education
3) Chicago Public Schools may be out of cash in 30 days (worst case).
4) Corruption investigations plague the school board
5) Chicago booted Moody’s as a bond rater
6) Roadblocks impair pension reforms by the Illinois legislature
7) Governor Rauner issued a statement he will not bail out Chicago on the backs of Illinois taxpayers
8) Chicago teachers threaten strikes demanding more money that isn’t there
Let’s investigate those ideas starting with the bond rating cuts that triggered the derivatives time bomb.”
Link is: http://globaleconomicanalysis.blogspot.com/
———————-
Is the guy likely taking a position you don’t like? Yes. But he’s laying out a sourced path of information, and it’s not pretty.
You want to attack over ideology, fine. But you better pay attention to the numbers. Because for CPS at least, that’s the real issue.
Btw, CPS has indicated that the most they can raise from property taxes under PTELL without going for referendum is around an additional $50 mil. Not enough.
If the CPS teachers want big raises and/or benefits expansion with their 2015 negotiations, probably not going to happen. Looks like there’s no new money available.
May not even be able to fund what the currently have.
Yes, it’s ‘worst case’. But ‘worst case’ does happen. What’s the plan if it does?
Comment by Judgment Day Monday, Apr 20, 15 @ 1:20 pm
JD: “Yes, it’s ‘worst case’. But ‘worst case’ does happen. What’s the plan if it does?”
‘Don’t blame us, we voted for Chuy. This is all Rahm’s fault.’
There is no plan.
Comment by Chris Monday, Apr 20, 15 @ 1:22 pm
And Sue, it would be a whole lot easier to have sympathy for that point of view if the Governor would propose 1, just 1 thing that would actually help to solve the State’s fiscal ills. Instead, he proposed a $2.2 billion partial pension holiday which makes the situation a whole lot worse.
Comment by Juice Monday, Apr 20, 15 @ 1:30 pm
@AA- I stand corrected, they could get the increase but at an additional cost to the district. The end result is that they will be tied to CPI because most districts will not want anything to do with the penalties.
I get the opposition to the 6% bump (if that is higher than what the schedule calls for. We bargained that out of our contract (no easy feat I can tell you that).
I think it is wrong to tie end of career increase to CPI. Some districts do that with their entire schedule. The outcome is, incomes never actually rise in real dollars. Keeping up with inflation is just that.
I know there are many trolls out there that think public employees should not be paid a real wage but that does have an impact on quality at some point. We are starting to see that by the way. Ed majors were 24% of the graduate just a few years ago. Now they represent 7% of college graduates (heck our secretary of ed and state supt weren’t even education majors!).
either way, your point is well taken and correct.
Comment by JS Mill Monday, Apr 20, 15 @ 1:47 pm
There have been a lot of adjustments to PTELL, I’m sure if the Mayor asks there would be an increase for CPS. BTW, this means that for 20 years the tax rate for CPS has been far below the suburbs, so for someone who doesn’t live in the city that pays a lot of property taxes for schools. I don’t think CPS should get a bailout I think Chicago should pay more for their schools like the rest of us. And yes, there seems to be an illusion of both Springfield democrats and Chicago Democrats that spending and not paying for it will work over a long period of time. and it doesn’t. So at some point the bill needs to be paid, and the people buying the bond and doing the work shouldn’t be the ones paying all the bill.
Comment by frustrated GOP Monday, Apr 20, 15 @ 2:03 pm
Don’t know the specifics of his proposal (because I guess nobody does), but the CPI-U, the usual CPI measure used, has been as follows in recent calendar years:
2005 3.4
2006 2.5
2007 4.1
2008 0.1
2009 2.7
2010 1.5
2011 3.0
2012 1.7
2013 1.5
2014 0.8
Comment by Bobbysox Monday, Apr 20, 15 @ 2:16 pm
@ JS Mill 1:24pm — I hadn’t seen your statistics before, but I’m not surprised. A recent article in Quartz, an online news outlet for business professionals, outlines some of the background for and consequences of our current round of teacher-bashing.
http://qz.com/378581/american-teachers-more-demoralized-than-ever-are-quitting-in-droves/
Comment by olddog Monday, Apr 20, 15 @ 2:20 pm
=You know not of what you are speaking, clearly. Cost shift is VERY much on the table right now as well.=
JS Mill, you clearly do not understand how to comprehend what is stated. I said normal cost shift was unlikely. I’m sure it’s on the table, but a true normal cost shift is unlikely to occur anytime soon. Just take a look at the roll call in the Senate for the last time such vote occurred (SB 1687 from the 98th) and that only included SURS employers. The odds of passage for normal cost shift only decrease when you include TRS employers.
Comment by Dirt Diver Monday, Apr 20, 15 @ 2:25 pm
@AA: Yes. That was my implied point as well, not as clearly stated as in your comment.
He was part of Rauner’s education transition team.
Comment by walker Monday, Apr 20, 15 @ 2:36 pm
@DD-
= true normal cost shift is unlikely to occur anytime soon=
Madigan wants it and has said so many times. Governor wants it. Hmmm. I regularly meet with several legislators and everyone of them believes that cost shift is likely.
My comprehension is just fine. Whether you clarify your statement by changing it to “true normal cost shift” from “normal cost shift” is irrelevant. My statement stands without equivocation.
Maybe you should apply to be on the governor’s media relations staff. I think you are ready.
Comment by JS Mill Monday, Apr 20, 15 @ 2:53 pm
What is amazing is that so many people who complain about the condition of public education never make the connection that the decision-makers are NOT educators but politicians. Now Illinois has a State Superintendent of Schools who is not, and has not, ever been a certified teacher or school administrator. For people who think Illinois public education has been in the toilet, well, it just got flushed.
Comment by Buzzie Monday, Apr 20, 15 @ 3:15 pm
=My comprehension is just fine.=
Another erroneous opinion just like your opinion on Normal cost shift. Your “insider” information hasn’t changed my bearish outlook for normal cost shift. Its no secret Madigan wants it, I guess I’ll take your word that Rauner wants even though he has yet to publicly support it and such proposal was absent from his pension reform proposal. I’m glad that a Rauner insider like yourself believes I am ready for his media relations team.
Comment by Dirt Diver Monday, Apr 20, 15 @ 3:26 pm
@DD- Rauner insider? LOl.
Allow me to interpret your response into the vernacular- “no, you are!” Well done. High end.
Cost shift is not part of TRS “pension reform” (theft) to begin with. It has not been included in previous legislation and, since we are talking comprehension, Rauner has not actually made a “proposal” just budgetary statements. Maybe you do not read everything here but Rich and other posters have specifically detailed how Rauner has yet to put anything on paper in “proposal”from.
Have a Great Day!
Comment by JS Mill Monday, Apr 20, 15 @ 4:01 pm
JS Mill,
Our exchange began when you used my name in debate, incorrectly I might add. Apparently correcting your misinterpretation of my statement is taking the low road. Now I remember why I stopped reading the comments section of this website.
Comment by Dirt Diver Monday, Apr 20, 15 @ 4:09 pm
==Now I remember why I stopped reading the comments section of this website.==
If you want to play the part of the victim or you get your feelings hurt that easily I suggest you go somewhere else. There’s a lot of smart people around here and if you step on the court you better be prepared to play.
Comment by Demoralized Monday, Apr 20, 15 @ 4:24 pm
DD- I used “cut and paste” to extract your precise words. Go back and read. I said the shift is on the table, you don’t think it is. That is a difference of opinion. No problem there.
Here is where the “low road” started-
“JS Mill, you clearly do not understand how to comprehend what is stated.”
I used your exact words and stated an opinion that differed without snark or disrespect. You, on the other hand, went low. I only obliged.
You want to get snarky then put your big boy pants on tough guy, otherwise be prepared with plenty of tissue.
The fact remains, cost shift is a part of the discussion on both sides of the isle. If you KNOW what they are going to do then you are way ahead of the pack these days.
Comment by JS Mill Monday, Apr 20, 15 @ 4:36 pm
JS Mill,
The low road started when you said this,
“You know not of what you are speaking, clearly. Cost shift is VERY much on the table right now as well.”
I corrected you because I never said it was off the table, just unlikely. Below is my exact remark. I don’t see how one concludes that this means cost shift is off the table. To me, this clearly states cost shift is unlikely.
“The 6% rule was very weak and with the “exceptions provisions”, wasn’t providing a true deterrent. I think this is a reasonable proposal assuming the “normal cost shift” proposal continues to remains unlikely.”
Comment by Dirt Diver Monday, Apr 20, 15 @ 4:45 pm
You are right with regard to my statement that you don’t know what you are talking about, I’ll accept that. Pretty soft but I am big enough to admit my responsibilities.
Beyond that I am not going to get into the assumptions as to intent.
My point- cost shift is a near certainty. That is clear to anyone involved with the issue as I have to be by nature of what I do for a living. Your statement misses the intent of the 6% and the exceptions, which are mainly to role changes/job/position changes. To allow for pensions calculable compensation increases for moving from the classroom to admin or for moving from building admin to superintendent is not a weakness, it is common sense. Common sense was not a part of the bill.
I disliked the 6% bumps (as an inducement to retire) so much that we
bargained them out of our contract and do not offer them to admin staff either.
Either way you need to toughen up or move along, besides, you quit reading these posts= “Now I remember why I stopped reading the comments section of this website”=
Comment by JS Mill Monday, Apr 20, 15 @ 6:58 pm