If you think that the City of Philadelphia is in desperate need of ethics reform, try the School District.
Last year parents raised concerns about the most basic ethical violations, including no-bid and/or sweetheart contracts for politically established firms, a School Reform Commission (SRC) chair with a penchant for regular dining at the Four Seasons on the School District dime, an SRC budget padded with consultants who duplicated extant district services, a CEO who wrote a letters to public school parents explicitly supporting a state legislator during election season (Perzel), and a budget process that appeared secretive and back door.
Including the capital budget, the School Reform Commission is in charge of $4 billion a year, almost comparable to the City of Philadelphia. As we discuss bringing more money to the public schools, the District needs ethic guidelines to prove that it is a responsible steward of such money.
With a politically appointed commission, some of whom run their own businesses and move in highly political circles, keeping business above board is not always a given. Outgoing Chair James Nevels, for example, ran one of the nation’s largest private equity firms, but had no responsibility to divulge any conflict of interest as he signed off on billions of dollars in questionable contracts some of which didn’t even require open review. One consequence was the revelation that Edison Schools had received a contract which guaranteed enrollment and paid them for almost 20% more students that they didn't even have. Every month the SRC meets for hours in “closed session.” In June, parents pointed to the closed sessions as violations of the Sunshine Law, especially after Commissioner James Gallagher was quoted in the media as admitting to “probably” having violated the law.
So how do we create a basic ethics agenda for the School District? Post your ideas here, and expect to see us raise them with the District in the new year. Our initial suggestions:
1. Eliminate no-bid contracts;
2. Eliminate pay-to-play: if you contribute politically, you can’t bid;
3. SRC Commissioners, district leaders required to file statements of financial disclosure, including conflict of interest statements, financial interests, as well as political contributions;
4. Guidelines re: gifts, meals, credit cards, etc.;
5. Two-year lobbying restrictions on ex-employees;
6. Conduct School District business in public and avoid the appearance of secrecy and back door deals.
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