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September 6, 2005

1)  CTA Nearly Outspends Arnold in a Single Day. California Gov. Arnold Schwarzenegger has faced numerous union protests as he travels the state raising funds for his three ballot initiatives: on redistricting, the budget and teacher tenure. The Los Angeles Times reports that the governor managed to raise $24 million in eight months of constant fundraising.

Last week, as the Times put it, the California Teachers Association poured $21 million into the opposition's campaign war chests "in a single afternoon of money transfers." The money is believed to be the largest single-day campaign contribution in state history. The contributions raised CTA's campaign-related expenditures to $45 million this year.

"You're looking at $60 per member, as opposed to the governor, who is reaching out to one or two corporations that can give him hundreds of thousands of dollars," said CTA President Barbara Kerr.

Of course, Arnold can't merely garnish paychecks for his money.

The latest Field Poll suggests that the governor's three initiatives are already on life support, which will likely force both sides into a Manichaean struggle over a fourth initiative, one which the governor has yet to endorse.

The Field Poll shows Proposition 75, the paycheck protection initiative, holding steady with a 55 percent to 32 percent lead. With his own measures apparently doomed, the governor may endorse Prop 75 in an effort to salvage something. CTA and the other public employee unions will doubtless throw more and more resources into the Prop 75 campaign as the election approaches.

It's somehow proper that this election will end up being a battle royal over union political clout. The campaign thus far has clearly not been about the issues raised in the initiatives, but about which side will be able to impose its will on the other. I expect Californians to turn off their TVs and radios in droves over the next two months.

2)  Organizing? Politics? How About PR Instead? One of the inevitable consequences of Labor Day is the bevy of self-pitying stories and political grandstanding from union officers (see today's Intercepts for the worst of it). In Pennsylvania and Michigan, efforts are underway to make every day Labor Day.

The Pennsylvania State Education Association (PSEA) affiliate in Centre County sponsored a joint workshop with the Centre Daily Times, with more than a dozen teachers attending. The newspaper's executive and city editors and education reporter trained the PSEA members in how to write a column (in only 4 hours!) for which they all received continuing education credit. The paper will publish the columns on a weekly basis.

PSEA is also one of the unions backing a new radio show in Cumberland County called "United for Progress." The hosts say their show "will be a home for pro-labor, pro-middle class, progressive-oriented discussion." They have the time slot you might expect for such a show: 4-6 pm on Sundays during football season. The hosts say they have a 12-week agreement with the unions for funding with "verbal commitments for longer." Let's see if PSEA takes its own advice and keeps sinking cash into a failed enterprise until it gets better.

Meanwhile over in Michigan, the Detroit News is adding a Friday feature column called Labor Voices, which state union officers, including Michigan Education Association President Lu Battaglieri, will write on a rotating basis.

In the spirit of current public policy, EIA believes all newspapers should be required to carry the column, or pay for it, whether they want to or not. Those who don't want to read the column could get a portion of their newspaper subscription returned to them, provided they applied in writing between September 15 and November 15, and attended an arbitration hearing to be held on a weekday morning in Lansing in January.

3)  Missing Union Funds a Maine Trend? The Maine Education Association (MEA) has fewer than 21,000 active members, but it appears to have more than its share of a problem best associated with larger unions: missing funds.

The Bangor Daily News reported on Saturday that a teacher was under investigation for embezzling funds from the SAD 34 Education Association, an MEA local in Belfast. Details were sketchy, but the local police chief said "a significant amount of money" was involved and the theft may have begun six years ago.

Travel back to the 2003-04 school year, when MEA reported on its LM-2 form for the U.S. Department of Labor, "An employee admitted to writing 145 checks to herself, each in the amount of $250 or less, totaling $35,608.82. Full recovery has been received from the insurance company."

Go back a little further to April 2002, when MEA suspended former South Portland Teachers Association President Rosemarie De Angelis amid accusations that "large figures" from the local union were unaccounted for. The incident reached comedic proportions when De Angelis and the wife of the state attorney general were arrested for refusing to leave the MEA board hearing on her suspension. The county DA dismissed the charges, calling it all "a ridiculous drama." The resulting PR fiasco resulted in a national NEA intervention.

4)  Hidden Costs Missed in Per-Pupil Spending. What is popularly known as per-pupil spending does not take into account all funds spent on K-12 public education. Left out of that calculation are monies expended on school construction and debt service.

The reason for this is straightforward enough. Per-pupil spending consists of current expenditures. The money used for employee salaries and benefits, administration, supplies, textbooks, maintenance, and the assorted and sundry costs of operating the public school system is spent in the single year after it is appropriated. Construction and debt service are spread out over many years, and may consist of appropriation decisions made long ago, for needs far off into the future.

Nevertheless, they are real and substantial costs. In California, where below-the-national-average per-pupil spending is the constant refrain of the public education establishment, this spending can add as much as 20 percent to the total bill.

Two stories from opposite ends of the state indicate that much more attention needs to be paid to these costs. In the Los Angeles Times, California Trust for Public Schools Executive Director Marc Litchman wonders why the LA Unified School District spends twice as much as similar urban districts to build a school. In Sacramento, the school board voted 5-1 to overturn its practice of hiring the lowest responsible bidder for construction contracts of $1 million or more. Now the contracts will go only to unionized firms, or non-union firms that agree to pay union-scale wages and benefits.

"It's wrong to waste money, but it is far worse to throw scarce money away and have it 'coincidentally' go to your campaign contributors," said Michael Day, a member of the committee charged with oversight of construction bond money.

5)  Taking Stock of Wal-Mart Campaign. Another interesting tidbit from the most recent U.S. Department of Labor LM-2 report of the Maine Education Association is the list of its investment holdings and sales during the 2003-04 school year. MEA evidently sold off the full $25,000 worth of Wal-Mart stock it had (though it held onto $24,422 worth of Target shares). MEA purchased the shares during the 1999-2000 school year.

And before you ask, MEA is the only union required to file an LM-2 that listed its holdings in such detail. There is no easy way to tell how many other unions hold, or have held, Wal-Mart stock.

6)  New Book Takes On Big City Education Politics. New York Daily News reporter (and good friend) Joe Williams has penned what the Washington Post is already calling a "blistering analysis of public school politics." In a book titled Cheating Our Kids: How Politics and Greed Ruin Education, Williams draws on not only his experience monitoring the byzantine New York City public school system, but on his time as the chief education reporter for the Milwaukee Journal Sentinel, where he witnessed the growth of the nation's first school choice program.

And though school board trustees, administrators and local politicians all get their hidden agendas exposed, Williams pays particular attention to "the elephant in the room" – the teachers' unions. He is an engaging writer and I highly recommend his book.

7) Quote of the Week #1. "One of the problems with unions is that they don't know how to represent satisfied workers. They sort of fan the flames of discontent." – Hoyt Wheeler, business professor at the University of South Carolina. (September 4 Augusta Chronicle)

Quote of the Week #2. "We told the union that we'll give the list when we have one, and that will be based on when we need it, not when GRESPA wants it. We are not intentionally not asking for it. These are not our employees, and we have no interest in whether or not they become GRESPA members." – Grand Rapids, Michigan, school district official Fredericka Williams, commenting on a request by the Grand Rapids Educational Support Personnel Association (GRESPA) for the names of bus drivers hired by Dean Transportation, a private service contracted by the district. About half of the drivers are former GRESPA members, now represented by an independent union. (September 5 Grand Rapids Press)

 

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