There aren’t enough FBI agents to clean up corruption in education

Go this link, and look at the kind of shenanigans the FBI will look into under corruption in education. Read their laundry list. Stuff like that is probably going on in most Illinois school districts.

Public education in Illinois is a legalized money laundering scheme.

It’s nice to know the FBI cares. Remember to do all you can to rat out your local board member or oily superintendent, because all their obscene spending is ratting out your kids.

Stop the Legislature from Rubber-stamping School District Greed

Some folks out there don’t like it when I call Public Education in Illinois a “Legalized Money-Laundering Scheme.” Sadly, it is a 100% accurate description of the legalized reaming of the Illinois taxpayer, all for the bloated payroll, perks, pensions and pork lathered on this fundamentally corrupt and powerful network of greedy unions, administrators, and the private interests that they have co-opted.

As more proof of the concept, I submit an article from today’s Tribune.

Schools districts may get state OK to issue bonds for buildings without voter approval
Appellate Court has barred practice, though many districts waltz around the ban anyway

Strapped for cash and taking their lumps on tax-increase measures, school districts in Chicagoland are increasingly skirting requirements for voter approval of building projects by issuing bonds that don’t require a referendum and then shifting that money from fund to fund.

Even after a state Appellate Court ruled last year that such maneuvers were improper, the Hinsdale Township High School District 86 board reached into a rainy-day fund for $4 million to install artificial turf at its two high school football fields.

Because the court held that another district inappropriately used working cash bonds on a building project, the Hinsdale board didn’t transfer the money directly. Instead it parked the cash in the district’s main education fund before moving it to building funds.

“Money-laundering,” one outraged school board member called it.

According to court filings, 95 school districts in Cook, DuPage and Will counties sold nearly $800 million in working cash bonds between 2000 and 2008 for building projects through these “back-door” means of avoiding referendums. Nearly 75 percent have been in Cook County.

State legislators are now considering a bill that would permit school districts to transfer working cash bond money to any school fund, allowing the controversial practice to become the norm. The legislation, which would be retroactive, was crafted by firms that specialize in school law and a nationally recognized bond counsel, Chapman and Cutler, which has advised schools on the practice.

State Rep. Paul Froehlich, D-Schaumburg, who served on a school board in Schaumburg District 54 from 1989 to 1993, voted against the bill, which was approved by the House and could come to a final Senate vote as early as Tuesday.

“I see it as an amnesty bill,” he said. “It’s giving amnesty to those school districts that didn’t follow the law.”

Critics of the legislation say a fund created to help districts pay bills when the state is late on its payments — as it is now — could be gutted by school districts with a proclivity to overspend. State Board of Education officials estimate 44 percent of districts will spend more than they take in this school year. As for taxpayers, the legislation would take away their right to vote down building projects through a referendum.

John Izzo, an attorney with Sraga Hauser, which represents about 100 of the state’s 869 school districts, helped draft the legislation and testified in favor of it in Springfield. He says the Appellate Court decision simply interpreted “an ambiguous provision” of the school code differently from how Chapman and Cutler and school attorneys had done in the past.

School districts could potentially be ordered to pay hundreds of thousands of dollars, if not millions, in tax refunds if the law is not changed.

School district attorneys say if the legislation doesn’t pass, schools will continue the financing method whether it be as a two-step process, three steps or even four steps.

“If (the bill) doesn’t get passed, in the future, school districts will just do it a different way,” Izzo said. “It won’t change how they do it.”

That last line should tell you just how vile, greedy, and corrupt these districts, law firms, and bond churning scum truly are. They care nothing for the law, the taxpayer, or the economy that funds their money-laundering scheme.

They only care about funding their greed and gluttony. They day is coming when they will be defeated. Pigs get fat, Hogs get slaughtered, and it is time to slaughter this hog.

100% “Legalized” Union Corruption

Kyle Olson, head of the Michigan based Education Action Group, has been waging war against the corrupt and powerful MEA (Michigan Education Association).

He found the mother lode of stories when he started digging into how the MEA uses a captive insurance company (MESSA – Michigan Education Special Services Association )to launder massive amounts of funds. The story is a monument to the power and greed of the teacher’s unions.

In Case You Missed It: Teachers union resists efforts to save school dollars

Hundreds of school districts currently purchase expensive health coverage from the Michigan Education Special Services Association, an insurance carrier owned and operated by MEA. Now many of those districts, facing large budget deficits, want to dump MESSA and purchase more affordable coverage.

But the MEA, determined to maintain MESSA’s stranglehold on the school insurance market, is resisting those sensible cost-cutting efforts.

In most districts, changing health insurance coverage would provide very significant savings. According to Grand Rapids school officials, the district would save $4 million per year by dumping MESSA and choosing the lowest insurance bidder.

Smaller districts have also told us how much they could save by choosing the lowest insurance bidder. They include Cass City ($200,000), Adrian ($372,000) Charlevoix ($230,000), Leslie ($140,000) and Bridgman ($240,000).

In most cases, alternate coverage proposed by school boards provides nearly identical employee benefits, at no extra cost to them.

But dumping MESSA is difficult, because the MEA puts up a fight. It starts at the bargaining table, where the union refuses to have non-MESSA insurance written into labor contracts.

In some districts, like St. Clair Shores Lakeview, Gladstone and Wayne-Westland, the union initiates recall campaigns against school board members who question the value of MESSA. In the Wayne-Westland district last fall, teachers even went on strike over MESSA.

In some districts, like Lawton, MESSA refuses to release insurance claims data from previous years, preventing competitors from making informed bids. That would be like asking a contractor to bid on a demolition project, without disclosing the size of the building.

Why is the MEA so protective of MESSA’s client base? Because MESSA makes a lof money. According to state insurance records, MESSA has amassed more than $350 million in excess earnings. And MESSA shares several million dollars with the MEA every year.

Can any supporter of public education tell me why any of this should be legal. Anyone?! You can’t. It is 100% corrupt and 100% immoral. It is union greed, pure and simple. Only an idiot or a scumbag would argue otherwise.

Municipal Bonds are a key element of Municipal Corruption

One of the things that started me in on calling Public Education a “legalized money laundering scheme,” was my research/ reading about municipal bonds, particularly as they pertain to building schools in Illinois.

This will soon become a serious problem in Illinois, and it will rear its ugly head nationally as well.

Muni Bonds Need Better Oversight

As our nation’s leaders rush to rewrite our financial regulatory structure, they risk committing a major error if they don’t carefully consider the workings of the municipal- bond market. The opacity of this market is unrivaled and thus presents a significant threat to our economy.

Defenders of the status quo argue that the risk of large-scale municipal- bond defaults remains low, and that the market has not had an “Enron moment.” In fact, we have had a major municipal bond-related debacle at least every decade: the New York City fiscal crisis in 1975, the Washington Public Power System defaults in 1980, the Orange County California derivatives crisis in 1994, and the San Diego pension fund fraud in 2006. Just last year, New York Attorney General Andrew Cuomo imposed fines and penalties on bankers who told investors that risky securities were safe investments. Throughout every decade we have had pay-to-play scandals.

Here in River Forest, one of our recent “City Managers” angled for one of those obscene end-of-career salary bumps that are bankrupting Illinois. What did he do next after receiving his unwarranted pension and perks? He went to “consult” for Chapman and Cutler, a law firm big in the bond churning issuance business.

What happened next? Why River Forest retained Chapman to issue some bonds; that’s what. Of course, one should know that this is 100% legal in Illinois, as it is in most places, so I’m not alleging any legal wrong-doing here. I’m simply pointing out that this is real sweet deal for the insiders – Bond issuers, law firms, teacher’s unions, connected architects, builders, and Municipal officials.

School districts have raised this churning issuance scam to an art form, using bonds to suck billions from future tax payers and their future properties, all to gain “premiums” to shovel into the maw of corrupt teacher’s unions.

Wake up people. Who do you think pays for all those un-necessary Taj Mahals?