| H o w w e t a k e b a c k o u r c h i l d r e n ' s e d u c a t i o n -- o n e p e r s o n , o n e q u e s t i o n , o n e s c h o o l a t a t i m e . |
| Cy-Fair's David Anthony (C) at resort with bar cart girl (L), AIG vendor Ken Coffey (R) at 2:30 pm on Friday, Apr. 20 of TAKS testing week |
| P E Y T O N W O L C O T T |
How we take back our children's education: one person, one question, one school at a time. |
| FAIR USE NOTICE: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of education issues vital to a republic. We believe this constitutes a "fair use" of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C., Chapter 1, Section 107 which states: the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching, scholarship, or research, is not an infringement of copyright," the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond "fair use" you must obtain permission from the copyright owner. |
| ATTENTION EDUCATORS AND ADMINISTRATORS: Every attempt possible has been made to verify all sources and information. In the event you feel an error has been made, please contact us immediately. Thank you. |
| Copyright 1999-2007 Peyton Wolcott |
| C o n s e r v a t i v e C o m m e n t a r y - Sandy Kress/Akin Gump Lobbying |
| "Superintendents and school boards would have to be willing to be perceived as being anti-open government and anti-transparency to turn down requests that they post their check registers online." |
| SEEING IS BELIEVING Although Katy ISD supe Leonard Merrell has just retired, his self- named "Leonard E. Merrell Center" (above) at Katy ISD still bears his name not once but twice, and remains the only such edifice in the U.S. which a working supe named for himself. (Updated July 4, 2007) |
| UNBELIEVABLE BUT TRUE |
| Former Bremond ISD supe |
| THE BIG PICTURE |
| Public Records |
| Sentencing |
| Bremond ISD |
| Practical steps: How to Organize 95 Questions How to ask for public records |
| Another day in paradise: Texas' hardworking supes golfing with vendors during TAKS testing week By Peyton Wolcott Tue., Apr. 24, 2007/1:04 am |
_______________
| Remember Dallas ISD's tech guy Ruben Bohuchot's use of vendor Micro System's"Sir Veza"? The yacht's been-- forgive us -- "Rehabbed." |
| You're Gov. Perry for a day: Your pick for Texas' next edu- missioner is ____? By Peyton Wolcott Monday, June 25/1:08 am You've got one basic decision; on it everything else hinges: |
| Are you really ready to do something about the mess our current vendor-driven public school system has become, or are you going to appoint someone from the same old tarnished Education, Inc. gene pool we've been culling from for the past dozen years? As guv-for-a-day, the person you hire will either continue to plunge Texas public education deeper into the subjective touchy-feely fuzzy math whole-language abyss in which it's become mired -- the one which has already produced a generation of young adults who can't tell you what six times nine is without a calculator and who don't know where Alsace-Lorraine is and why knowing that's important to the future of our Southern border with Mexico -- or you'll find a way to appease business interests and still put someone in charge who is smart and savvy enough to make the changes that are necessary. The nominees The names most frequently presented this past week: Robert Scott, Sandy Kress, Bill Hammond, Ric Williamson, Kent Grusendorf, Talmadge Heflin, John Folks, David Anthony, Leonard Merrell and Mike Hinojosa. |
| what's wrong with our public schools today for many diverse reasons--including being a paid education lobbyist--one of the biggest practical if not political strikes against Kress is the fact that his son does not attend Austin ISD public schools but instead attends a private preparatory school in Austin. Somehow it doesn't seem quite cricket that a fellow who's made a fortune from public education would be sending his child to a private school--especially if he really believes, as again and again he says does. Is Kress tied to growing New Orleans PS scandal? Former NOPS board president Ellenese Brooks-Simms pleaded guilty to bribery charges earlier this week and "has agreed to cooperate fully with the FBI and the U.S. Attorney's office.... The plea by Brooks-Simms marks the zenith thus far of a five-year federal probe into Orleans Parish schools that has netted 28 additional indictments of employees and contractors on various bribery, fraud and theft charges....Records show the company has paid lucrative fees to lobbying juggernauts including...Akin Gump." (SOURCE--New Orleans Times-Picayune) Sandy Kress is a partner in Akin Gump. For those of you just back from ten years Zimbabwe, Kress is also a former Dallas ISD school board trustee and was the education advisor to President Bush credited as being the primary architect of No Child Left Behind. Among the groups with which he's been associated: Texas Business & Education Coalition on whose board he serves with the likes of Mike Moses, Bracewell partner David Thompson and TASA's Kay Waggoner. According to Texas Ethics Commission records, for just one activity--as paid lobbyist for Texans for Excellence in the Classroom-- Kress expects his annual compensation to be in the neighborhood of $100,000 to $149,999.99. |
| Sandy Kress (2nd from left) |
| Education, Inc. candidates Business sector Although Sandy Kress epitomizes for many parents and taxpayers |
| The blogospher on Kress I still consider it one of life's great mysteries as to how anyone who listens to Kress for as long as it takes to spell c-o-r-r-u-p-t-i-o-n could be impressed by anything he has to say about any legitimate conception of education. (SOURCE--School Matters) Kress has used his knowledge and connections to earn millions as a high-powered lobbyist for test publishers...He’s made about $4 million in lobbying contracts, in large part from companies that profit from provisions of the law he helped to design. (SOURCE--Emily Pyle/Texas Observer) [Regarding NCLB/Reading First] Surely from the beginning, from the crafty engineering and writing of the law to its implementation, cronyism and conflicts of intereset have abounded. Who has benefited from this regressive and oppressive law? The financial benefit to Sandy Kress alone is probably staggering. (SOURCE--Educator Roundtable) Thanks to Sandy Kress, several brand-new spigots had begun to pump billions in federal dollars out of public schools and into the private sector, where corporate interests had only to hold out their buckets and fill ‘em up. (SOURCE--Daily Kos) |
| Bill Hammond is another business lobbyist--he's president of the Texas Association of Business-- and someone else many parents and taxpayers |
| Bill Hammond |
| To make this easier for you, guv-for-a-day, assuming you're short on time, here's the short-form EZ graphics version; the longer form with factual supporting data follows: |
| Sandy Kress, Bill Hammond, Ric Williamson and Kent "Pushing Laptops Is My Middle Name" Grusendorf are profiled at right. Austin insiders say Cy-Fair's David Anthony has never really been in the running and that his and San Antonio's John Folk's and Dallas' Hinojosa candidacies may be more a function of contract negotiations with their boards; you see the idea. Does Texas really need an education commissioner who would leave his teachers and students behind back in his hometown to play golf at a resort on Friday of TAKS testing week with an insurance vendor (below)? Or a paid lobbyist with deep and rich connections to education vendors? That's what we'd get with David Anthony or Sandy Kress. |
| Sandy Kress, Bill Hammond, Ric Williamson, John Folks, David Anthony, Leonard Merrell and Mike Hinojosa. |
xxx
| The blogosphere on Hammond BRIEF: The head of one of Texas' largest business lobbies was taken into custody Monday after refusing to turn over documents concerning the organization's secretly-funded advertising campaign during the 2002 legislative races. Texas Association of Business President Bill Hammond also decided not to pay his $500 fine for contempt and was ordered held in the Austin jury room until 5 p.m. when the Texas Court of Criminal Appeals set bail at $1,500 and he was released. (SOURCE--KPFT) Leave it to Shirley Neeley and her ventriloquists in the governor's office to appoint a "task force" of political insiders to investigate cheating on the TAKS test. All five of the appointees are connected to the Texas Public Education Establishment....The five are Dr. Carole Francois, education consultant; Bill Hammond, chief of the Texas Association of Business; Sylvia Hatton, former executive director of the TEA's regional education service center in Edinburg; George McShan, former president of the state and national associations of school boards; and A.J. Rodriguez, head of the San Antonio Chamber of Commerce. Some might remember Dr. Francois from days when she was former Dallas ISD Supt. Mike Moses' chief of staff. She also worked for Moses at TEA. (SOURCE--Scott Parks/Dallas Morning News Blog) |
| Kent Grusendorf The former House Public Education chair was defeated for a variety of reasons last year including his relentless pushing of taxpayer- funded laptops for all students. Putting someone so out of touch with the populace, including teachers, in charge of TEA seems not wise. Further, he was unseated by Diane Patrick, a former teacher and considered a friend of public schools. |
| Texas Senate Education chair Florence Shapiro on Sandy Kress: "When it comes to public schools and the betterment of children, I don't know of anyone who cares more about that than Sandy Kress. Ms. Shapiro said she sees Mr. Kress as a friend, not one of the estimated 300 Austin lawyer- lobbyists who represent clients interested in public education law. ' I have no idea who his clients are,' she said." Comment: Apparently Mr. Kress' interest in public schools and the betterment of children does not extend to his own son, given that his son attends a private prep school. |
| Developing . . . . |
| Texas supes golfing on Friday, April 20, 2007 during TAKS testing week at TAS/MUS "Boerne Tourney" |
| Education lobbyist and lawyer Sandy Kress discussing NCLB on PBS |
| 2007 Akin Gump Strauss Hauer & Feld LLP Austin, TX Less Than $10,000.00 D.H. Texas Development L.P. c/o Darryl Hammond Port Lavaca, TX Less Than $10,000.00 Early Care and Education Consortium Washington, DC 20005 $10,000 - $24,999.99 |
| would like to see kept as far away from public education as legally possible. |
| KRESS: HIS CLIENTS AND HIS ACTIVITIES Saturday, March 5, 2005 By SCOTT PARKS The Dallas Morning News Education adviser to President George W. Bush in the 2000 and 2004 campaigns. Played key role in helping Mr. Bush push the No Child Left Behind law through Congress. Consultant to Council of Chief State School Officers, an association of state education commissioners. Mr. Kress advises them on how to implement No Child Left Behind's requirement that all states set up accountability systems based on high-stakes test scores. Consultant to the Business Roundtable, a Washington D.C.-based consortium of chief executives of major American companies. The organization has been active in education issues for many years. Co-founder of the Texas Education Reform Caucus. TERC was created as an advisory committee for state Rep. Kent Grusendorf, R-Arlington, chairman of the Public Education Committee in the Texas House of Representatives. Adviser, consultant and lobbyist for Pearson Education, a worldwide company that publishes textbooks and runs high-stakes test programs in Texas and other states. Lobbyist for Kaplan, a division of The Washington Post Co. Kaplan provides a wide range of educational products and services. It first made its mark in the test-preparation industry. Lobbyist for The Teaching Commission, a New York-based think tank started by Louis V. Gerstner Jr., chairman of The Carlyle Group, a private global investment firm. The Teaching Commission advocates more rigorous teacher-training programs and paying them based on |
| Remember the golfing supes on TAKS testing day? Sandy Kress' client Pearson was a sponsor. Curious who rode in the cart with the Pearson rep? |
| SANDY KRESS (AKIN GUMP) - TEXAS ETHICS COMMISSION LOBBY LISTS 1998-2007 |
| MGT of America is a management consulting firm that provides consulting services primarily to state and local government organi- zations, including K-12 and higher education.(SO URCE--MGT of America) |
| AKIN GUMP WASHINGTO N, DC LOBBY LISTS Total Lobbying $127,789,000 (1998-2004)_ Pearson PLC Lobbying 1998-2004: $940,000 Lobbying 2004: $220,000 |
| WHEN AKIN GUMP CALLS, WASHING- TON, D.C. LISTENS ? In addition to representing Pearson, half of whose earnings appear to come from taxpayers' property and other taxes, Akin Gump also represents online gambling, a South Korean steel maker, a bank in Japan, waste management and the de-colonizati on of Puerto Rico. |
| American Express $500,000 (1998-2004) American Family Enterprises is a direct-mail subscription agent with sweepstakes -- and financial problems, "response rates down and lawsuit settlements costing millions," and "a flurry of lawsuits and lower response rates" .(SOURCE--The Magazine for Magazine Management) $420,000 (1998-2004) Business Roundtable "is an association of chief executive officers of leading US companies with $4.5 trillion in annual revenues and more than 10 million employees. Member companies comprise nearly a third of the total value of the U.S. stock markets and represent over 40% of all corporate income taxes paid." (SOURCE--Busi ness Roundtable) $60,000 (2006) Cassava Enterprises (Gibraltar) Ltd. operates several high-profile gambling websites. $1,040,000 (all firms) (1998-2004) Citizens' Educational Foundation is a non- profit organization dedicated to the decolon- ization of Puerto Rico. $4 million paid to all lobbyists. (1998-2004) Commerce Clause Coalition, a waste management company. $940,000 to all lobbyists (1998-2004) eBay $220,000 (1998-2004) Foundation Executives Group; "in a sign of growing concern among foundations about a controversial legislative proposal that could force them to increase their annual contributions to charity, a group of 18 large funds has hired an influential former member of the House of Representativ es to lobby against the measure in Congress. The Foundation Executives Group... represents such organizations as the Carnegie Corporation and the Ford Foundation." (SOURCE--The Chronicle of Philanthropy) $480,000 (1998-2004) Granite Broadcasting ; reorganized after bankruptcy. $680,000 (1998-2004) Hosts Learning is "a leading provider of classroom and mentoring & interven- tion solutions that support the teaching process." (SOURCE--Host s Learning) $560,000 (1998-2004) Hyjek & Fix, lobbyists, spent $1.5 mil lobbying in 2006. $280,000 (1998-2004) Indoor Tanning Ass'n $760,000 (1998-2004) Inter-Americ an University (Puerto Rico) is the largest private institution on the island and in all of the Caribbean. $360,000 (2006) Linebarger, Goggan is Texas' largest property-tax collection law firm. $600,000 (1998-2004) Nehemiah Foundation "You'll be amazed at the number of great ministries that the Nehemiah Foundation supports. And 100% of donations goes directly to these ministries!" (SOURCE--Neh emiah Foundation) $420,000 (1998-2004) Pohang Iron & Steel Co. (South Korea) "From its beginnings in 1968 as a small, government-o wned steel company, Pohang Iron & Steel Co. (POSCO) has grown into one of the world's leading steel producers. " (SOURCE--Orac le) $820,000 (1998-2004) Samsung Heavy Industries is "a broad range of ser- vices in the shipbuild- ing industry. SHI consists of three complementa ry sectors--Ship building & Offshore Division, Digital Control Sys- tem and Construc- tion Division," Korea. $610,000 (1998-2004) Shinsei Bank, Japan. $880,000 (1998-2004) asf |
| Akin Gump Strauss Hauer & Feld LLP Austin, TX Less Than $10,000.00 D.H. Texas Development L.P. c/o Darryl Hammond Port Lavaca, TX Less Than $10,000.00 Early Care and Education Consortium Washington, DC Less Than $10,000.00 Governor's Business Council Austin, TX $10,000 - $24,999.99 Kaplan Inc. New York, NY Less Than $10,000.00 |
| Akin Gump Strauss Hauer & Feld LLP Austin, TX Less Than $10,000.00 Kaplan Inc. New York, NY Less Than $10,000.00 Linebarger Goggan Blair & Sampson Austin, TX Less Than $10,000.00 Pearson Education Upper Saddle River, NJ $10,000 - $24,999.99 Texas Businesses for Educational Excellence Houston, TX $50,000 - $99,999.99 The Teaching Commissio n New York, NY Less Than $10,000.00 |
| 2004 Affiliated Computer Services, Inc. (ACS) Washington, DC Less Than $10,000.00 Akin Gump Strauss Hauer & Feld LLP Austin, TX Less Than $10,000.00 |
| 2003 Akin, Gump, Strauss, Hauer & Feld, LLP Austin, TX Less Than $10,000.00 K12 Inc. Mc Lean, VA $10,000 - $24,999.99 Kaplan, Inc. New York, NY Less Than $10,000.00 Linebarger Goggan Blair & Sampson, LLPA Austin, TX Less Than $10,000.00 PRIMEDIA Inc. New York, NY Less Than $10,000.00 |
| Charter Schools USA, Inc. Fort Lauderdale, FL Less Than $10,000.00 Horace Mann Insurance Company Springfield, IL Less Than $10,000.00 K12 Mc Lean, VA Less Than $10,000.00 Kaplan, Inc. New York, NY Less Than $10,000.00 |
| 2001 No clients listed for 2001. |
| Community Education Partners Nashville, TN $ 0.01 - 9,999.99 ForeLogic LLC Richardson, TX $ 0.01 - 9,999.99 FreeMarkets, Inc. Pittsburg, PA $ 0.01 - 9,999.99 |
| 1998 AT & T (American Telephone & Telegraph) Austin, TX $ 0.01 - 9,999.99 Community Education Partners Nashville, TN $ 0.01 - 9,999.99 Millers Mutual Fire Insurance Co. Fort Worth, TX $ 0.01 - 9,999.99 PG & E Corp. San Francisco, CA $ 0.01 - 9,999.99 Texans For Education Austin, TX $ 0.01 - 9,999.99 Texas Instrument s, Inc. Dallas, TX $ 0.01 - 9,999.99 Texas Surplus Lines Assn., Inc. Austin, TX $ 0.01 - 9,999.99 |
| 1999 AT&T Austin, TX $ 50,000.00 - 99,999.99 Cinemark USA, Inc. Plano, TX $ 0.01 - 9,999.99 Community Education Partners Nashville, TN $ 25,000.00 - 49,999.99 ForeLogic LLC Richardson, TX $ 10,000.00 - 24,999.99 McGraw-Hi ll School Division New York, NY $ 10,000.00 - 24,999.99 PG&E Corp. San Francisco, CA $ 0.01 - 9,999.99 Texans For Education Austin, TX $ 25,000.00 - 49,999.99 Texas Instrument s, Inc. Dallas, TX $ 10,000.00 - 24,999.99 Texas Surplus Lines Assn., Inc. Austin, TX $ 0.01 - 9,999.99 |
| Mobile Satellite Ventures L.P. Reston, VA Less Than $10,000.00 Pearson Education Upper Saddle River, NJ Less Than $10,000.00 |
| From Kaplan ad: "You have high expectations of a premium LSAT or MCAT preparation program.You should —a successful performance on your standardized exams will open many doors for you." "Kaplan Test Prep and Admissions-- The World Leader in Test Preparation" |
| 2006 |
| Mobile Satellite Ventures L.P. Reston, VA Less Than $10,000.00 Pearson Education Upper Saddle River, NJ Less Than $10,000.00 Texans for Excellence in the Classroom Austin, TX $100,000 - $149,999.9 9 |
| NOTE: Early Care has no standing with the Texas Comptroller |
| Edvance Research Inc. San Antonio, TX Less Than $10,000.00 Governor's Business Council Austin, TX Less Than $10,000.00 MGT of America Inc. Tallahassee, FL Less Than $10,000.00 |
Full view of Texas Ethics Commission Lobby Lists here: http://www.ethics.state.tx.us /dfs/loblists.htm |
| SEC Filing (8-K) 03-22-07: "Affiliated Computer Services, Inc. today announced that on March 22, 2007, one of its subsidiaries, ACS State Healthcare, (continued below) |
| Affiliated Computer Services, Inc. (cont'd) ("ACS State Healthcare"), and the North Carolina Department of Health and Human Services ("DHHS"), have settled the pending litigation related to the North Carolina Medicaid Management Information System ("NCMMIS") contract between them. |
| 2005 |
| Affiliated Computer Services Inc. (ACS) Washington, DC Less Than $10,000.00 |
| PRIMEDIA Education includes Films Media Group, a leading source of educational video, and PRIMEDIA Healthcare, a continuing medical education business. Films Media Group is a leading source of videos, DVDs, and CD-ROMs to schools, colleges, and libraries in North America, with approximately 2,900 owned and 10,100 licensed educational videos, DVDs, CD ROMs and related products. PRIMEDIA Healthcare (PHC) is the unrivaled leader in Continuing Medical Education (CME) programming. Since 1992, PHC has built a solid reputation for award-winning programs that combine authoritative, compelling content delivered with immediacy and convenience. |
| R.W. Durham & Co. Association Endorseme nts (cont'd) From "Durham Marketplace" site: Association endorsements have proven to be of tremendous value to us in serving this marketplace. The 95,000 member Texas State Teachers Association, the 45,000 member Minnesota Education Association and many local associations in other states have endorsed R.W. Durham & Company for having the highest quality products available to their members. Each year R.W. Durham & Company and the insurance companies we represent are subject to scrutiny through each of the association's due diligence processes. In addition to educational institutions, many hospitals and other 501(c)(3) organizations have chosen R.W. Durham & Company to provide tax sheltered annuities to their employees. ___________ R.W. Durham is TSA Focused For a quarter century, R. W. Durham & Company has focused its entire operation on the TSA marketplace. Our vast distribution network consists of independent agents who are TSA specialists. We have selected insurance companies based upon their financial strength, their dedication to the TSA marketplace (both financially and philosophically) and their ability to react to an ever changing market environment. Our relationship with these companies positions us to respond to the needs of our clients. Because the valuable service personnel at R.W. Durham & Company are focused on the TSA industry, you can be assured to receive the right answers to all of your questions as well as up to date information regarding TSA tax laws and revisions. We also understand the need for user friendly procedures and company forms. Our ongoing communication with the insurance companies enables us to provide these services for you. Modern computer technology, including on-line linkage with our insurance companies, provides our clients with immediate access to account information. Important financial decisions can be made quickly and easily by calling our toll-free telephone number. |
| 2002 |
| RW Durham & Co. (see below) |
| R.W. Durham & Company Torrance, CA Less Than $10,000.00 (continued below) Security Benefit Life Insurance Company Topeka, KS Less Than $10,000.00 Texans for Education Austin, TX Less Than $10,000.00 Texas Ass'n for the Gifted and Talented Austin, TX Less Than $10,000.00 VeriTrust Financial, LLC Austin, TX Less Than $10,000.00 |
| K12 Inc. Mc Lean, VA Less Than $10,000.00 (continued below) Kaplan, Inc. New York, NY Less Than $10,000.00 Linebarger Goggan Blair & Sampson, LLP Austin, TX Less Than $10,000.00 Pearson Education Upper Saddle River, NJ $25,000 - $49.999.99 The Teaching Commission New York, NY Less Than $10,000.00 |
| K12 Inc. (In Business Week) When Lowell Milken and Ron Packard, executives at education invest- ment company Knowledge Uni- verse, approached Bennett in Novem- ber, 1999, about heading up K12, Bennett insisted that he would chair the company only if Yale computer- science professor |
| Bill Bennett Then at K12, Inc. |
| Lowell Milken (L), Eli Broad (More about Broad below) |
| expressed interest in becoming a trustee. "Eli is a tenacious, impatient, extraordinary person — I love him dearly," he added. "But I would never expect that I was going to look up around my board table and see Eli." But Getty expense records show that Munitz has a business relationship with Broad that involves the Getty. In August 1998, after a tour of Greece on Broad's yacht that included visits to Getty- sponsored projects, Munitz was reimbursed by the trust for a $3,200 check he wrote to Broad to cover "gratuities and the use of the phone" on Broad's boat. A cover letter to Broad from Munitz said the check was "only a very small token of adequate participation, and stands only to reflect our gratitude for your support and for your elegant energy." The Getty paid for Munitz and his wife to dine at Valentino in Santa Monica with Broad and his wife, Edythe, Getty trustee Louise Bryson and her husband, John Bryson, chairman of Edison International, and another couple. The "working dinner" included conversations about the Getty, education and public television, expense records show. In 2001, expense records show, Munitz was reimbursed $5,000 by the Getty for "yacht expenses" after another trip to Greece, this time with the Broads, Riordans and Burkles, as well as AIG SunAmerica Chief Executive Jay S. Wintrob and his wife. During Munitz's tenure, more than half the seats on the Getty's board of trustees have opened up. Some of those who traveled with Munitz and Broad have filled those spots. Today, at least six of the 13 trustees have links to Broad. Burkle and former Univision President Luis Nogales sit with Munitz on the board of KB Home. Wintrob, added to the Getty board earlier this year, is chief executive of AIG SunAmerica, where Broad is chairman. In addition, Ramon C. Cortines, former interim superintendent of the Los Angeles Unified School District, who was on the Getty board when Munitz arrived, and USC President Steven Sample, who joined the board this year, are advisors to Broad on education initiatives. -------------------------------------------------------------------------------- In the late 1990s, the Getty did what officials say was a routine review of the trust's property holdings and decided to sell the land across the street from Broad's front gate. The trust had acquired the land years earlier. Today, Munitz downplays the value of the lot. "At an 89-degree angle to the earth, this is not an attractive lot to build on," he said. But an independent appraisal obtained by the Getty in 1992, which only considered about 60% of the land included in the 2002 property sale, painted a different picture. The land is located in "the most prestigious neighborhood in West Los Angeles and the standard by which all others are measured," it said, estimating its value at $1.55 million. Despite the "moderately steep terrain" on its eastern side, the property's "highest and best use … is as a site for a single-family residence." In 2000, a second appraisal done for the Getty put the value of the full lot at $2.7 million. The initial plan was to list the property publicly, soliciting competitive bids, Getty documents show. The asking price was $2.295 million. Real estate broker Joan McGoohan said the Getty asked her to approach Oakmont Drive residents first to assess their interest. Specifically, she was asked to approach Broad. "He basically said, 'Not interested, too expensive,' " McGoohan said. At the same time, Broad's representatives say he made it clear that he did not want the Getty property developed. A former Getty employee said Broad's attorneys raised a gamut of potential building and fire code issues that could stall construction indefinitely. Broad's interest in blocking development on the land would be obvious to anyone who has visited his home, designed by renowned architect Frank Gehry. A large new home there could have crowded the dramatic entrance to Broad's estate and detracted from the sense of space surrounding it. Broad would not agree to an interview. Through a spokeswoman, he said he counteroffered $1 million for the land. At that point, the Getty reversed its plan to list the property publicly, McGoohan said, instead opting to negotiate directly with Broad. "They didn't want to offend Mr. Broad," she said. "They didn't want to upset him." Officials at large nonprofits say there are ways to protect a foundation's interests when dealing with potential conflicts of interest and property of debated value. "I would advise that it be marketed publicly," said Janne Gallagher, vice president and general counsel for the Council on Foundations. "We would certainly have it appraised and sell it through an established broker or independent source," said Nancy Feller, associate general counsel of the Ford Foundation. "We would not do it ourselves." In fact, Ford Foundation policy prohibits the sale of foundation property to employees, their friends or relatives, even at fair market value, she said. In the case of the Getty property, Munitz stepped into the process. In a document obtained by The Times, he instructed two senior deputies on options for dealing with Broad and directed them to send a formal memorandum back to him that included those options. Munitz's draft ordered his staff to delay listing the property and proposed several alternatives to a direct sale to Broad. One option he suggested was for the Getty to promise not to develop the property in exchange for a tax- deductible donation from Broad. Another was for Broad to donate "an appropriate residence, named for the donor" to the Getty in exchange for a commitment not to develop the land. The only negotiating partner mentioned in the outline was Broad. Yet, aware of his ties to Broad, Munitz also instructed his deputies to include a sentence saying, "It is essential to emphasize that our attorneys and advisors feel very strongly about certain alternatives that would not be beneficial to either party, and there [sic] concern that you [Munitz] must maintain some reasonable distance from this decision given your close relationship with Eli." Munitz sent his draft to Stephen Rountree, the Getty's chief operating officer, and Russell Gould, the senior vice president for finance and investments. They responded on Jan. 12, 2000, with a final memo addressed to Munitz. "At your request, we have now delayed the listing of the Oakmont properties with Joan McGoohan in order to allow you a chance to discuss the property with Eli Broad next week," it began. The Gould-Rountree version dropped Munitz's idea of a swap or donation from Broad, but otherwise closely followed his draft. It added that the Getty had set the asking price on the land at $2.295 million, factoring in the obstacles to its development. It said the trust already had interest from multiple potential buyers, including from an employee of the Getty Center's own architect, Richard Meier. "We have received many requests to purchase the property, so our expectation was that the property would sell fairly easily for the construction of one great house or as additional personal property for one of the neighbors," Rountree and Gould wrote. Stressing the property's sharply increasing value, Rountree and Gould suggested that the trust might simply hold on to it. The yardstick for whether the Getty had received fair market value would be the appraisals and the real estate agent's assessment, the memo said: "As you know, our auditors and the attorney general will examine any sale of the property to determine that the board acted as responsible fiduciaries." Negotiations with Broad continued for two years. Broad said he did not recall meeting with Munitz to discuss the property, and said he never negotiated with Munitz himself, only with Rountree, Broad's spokeswoman said. The Getty did not seek a new appraisal for the Oakmont land, a step the state attorney general's office recommends that all foundations take in such circumstances. "If you're exercising good business judgment, why would [you] sell it without a current appraisal?" asked Belinda Johns, senior assistant for the attorney general's charitable trust section. Although Johns would not comment on any specific case, she said in general, "You'd want to maximize your assets. In fact, you have an obligation to." In April 2002, Rountree approved the sale of Getty land to Broad. The final price: $2 million. The board did not vote on the transaction but was informed of it, Getty officials said. John Biggs, the current chairman of the board of trustees, referred questions about the land sale to the Getty spokeswoman. The Getty says the documents demonstrate that Munitz handled the sale ethically and responsibly. In a written response to The Times, Getty general counsel Peter Erichsen defended the trust's actions. "The lot was sold at arm's length for fair market value to the most practical and possible buyer," he said. "Dr. Munitz suggested to Messrs. Rountree and Gould language for them to include in a memorandum to Dr. Munitz, that he could then share with Mr. Broad, to make abundantly clear that it was essential for Mr. Broad and his representatives to work directly with Messrs. Rountree and Gould, because Dr. Munitz could not negotiate or conclude any transaction with him." Erichsen said the Getty had received a lower valuation for the land in 1999 that put its worth between $1.5 million and $2 million, depending on the usability of the lot. Further, he said, the property would have required a variance to develop, and as a neighbor Broad would have been able to protest any proposed development with the city. Broad also may have been able to prevent access to Oakmont Drive, a private road maintained by a neighborhood association, Erichsen said. Claymont Drive, which also borders the property, is a public road. By negotiating directly with Broad, the Getty saved a broker's commission, Erichsen noted. Realtors say they usually get 5% of the sale price, in this case $100,000. It also saved on other transaction costs, he added. Rountree is now president of the Los Angeles Music Center, where Broad and Getty trustees Burkle and Lloyd E. Cotsen are among 12 honorary directors. Rountree said the Getty got a fair price because the Getty's appraisals did not factor in a number of limiting conditions on how the land could be used, such as unresolved questions about access to the two roads it abuts and the lot's steep terrain. The statement from Broad's representative also said "the appraisal did not take into account that the lot could not be developed because it was in a ravine and on a private street." Real estate professionals sometimes do factor in such limiting conditions. The Getty would not provide The Times with a copy of the $2.7-million appraisal written in 2000. "We were overjoyed to sell the parcel for $2 million," Rountree said. "Mr. Broad was well aware of the negative factors affecting the lot, and I know that he felt that $2 million was a very stiff price under the circumstances." |
| David Gelernter, a fellow computer-in- the-classroom skeptic, signed on as the company's technical adviser. "I've been an anti-cheerleader of comuters in education," says Gelernter, who lost part of his right hand in 1993, when a package he received from the Unabomber exploded. "From what I've observed in schools, we'd be better off unplugging the computers and throwing them out." Bennett says that Gelernter's presence on the K12 team reassured him that the company would emphasize old- school academic achievement rather than simply training kids in the newest computer technology. (SOURCE-- Alexandra Starr/Business Week) |
| A closer look at Eli Broad's 2002 Getty land deal (Los Angeles) |
| The settlement provides that DHHS has rescinded its June 6, 2006 notice of intent to terminate the NCMMIS contract and its July 14, 2006 notice of termination and that the parties have agreed to a mutual termination of the contract. ACS State Healthcare has agreed as part of the settlement to license to DHHS certain work product it produced in connection with the NCMMIS contract and DHHS has agreed to pay ACS State Healthcare the aggregate amount of $10.5 million in four installments beginning on or before March 31, 2007 and ending on or before June 30, 2008. In addition, ACS State Healthcare will provide certain new services to DHHS under a new contract with a term of two years and will be compensated based on achieving certain levels of cost savings. |
| Getty Deal Raises Questions Conflict-of-interest specter haunts land sale to Eli Broad, a close friend of the trust's CEO. By Jason Felch, Robin Fields and Louise Roug Los Angeles Times Staff Writers December 20, 2004 The J. Paul Getty Trust sold a valuable piece of Brentwood real estate in 2002 for $700,000 less than its appraised value to billionaire philanthropist Eli Broad, a |
| Barry Munitz (PHOTO--LATimes) |
| ARTNET NEWS/FOLLOW UP More recently, editor Mark Lacter has reported in the Los Angeles Business Journal that the Getty plans a full-frontal rebuttal to the L.A. Times investigation, which supposedly "vastly overstated" Munitz' annual compensation (some of that $1.2 million is deferred, apparently). Nevertheless, referring to a $7,000 trip on a yacht chartered by supercollector Eli Broad, a $35,000 trip to Tuscany and a $72,000 Porsche SUV -- all of which went on Munitz's Getty Trust expense account -- Lacter agrees that Munitz' "spending habits and perks are more than a little out of whack. So is his judgment." Lacter ends his column with the literary equivalent of a sigh of resignation, noting that if the Getty simply ignores the controversy and says nothing, there's a pretty good chance "the questions will fade away." |
| close friend and professional associate of Getty Chief Executive Barry Munitz, according to trust documents and officials. Munitz directed his aides to delay listing the property so that he could discuss a transaction directly with Broad, despite what Getty records call "many requests to purchase the property," which is adjacent to Broad's hilltop estate. Getty executives now say they conducted a proper sale and received full value for the wooded half acre. Broad received no discount, they said, adding that they had consulted counsel to make sure they followed the law. |
| Getty Museum/Los Angeles |
"I played no meaningful, no material, no in-any-way-relevant role in the transaction," Munitz said in an interview. "Everything I did was to try to have the lawyers and the appraisers and the third-party people be sure that there was no conflict of interest for me." But Getty documents show Munitz spelled out negotiating strategies to his deputies, even as he acknowledged that his relationship with Broad required him to stay out of the deal. He also discussed the property in person with Broad, he said. A 2000 appraisal put the property's value at $2.7 million, $700,000 more than the sale price in 2002. Median home prices |
| increased 12% in Brentwood during that time, according to a real estate information service. Getty officials say the land was worth less than the $2.7 million appraisal because a number of limiting conditions would have made it costly and difficult to develop. Penny Cobey, the Getty's acting general counsel at the time, refused to comment on her advice regarding the land sale, citing attorney-client privilege. But she said: "It should not be concluded … that I approved the proposed sale or advised that it go forward." Munitz's connection to Broad, which included working vacations abroad with their wives, gives the Getty president entry into a tight-knit group of leaders in education, philanthropy and politics. Broad's ties to Munitz and the other Getty board members gives him sway with those who run the world's richest museum. Foundation executives and tax law specialists consulted by The Times about the sale said it raises legal and ethical questions that could trigger scrutiny from the state attorney general's office or the Internal Revenue Service, which regulate tax-exempt organizations. Private foundations such as the Getty are exempt from paying taxes because their assets are dedicated to public use, not private benefit. When selling property, they are required to get fair market value. "The obligation is to always put the interests of the trust first," said Arthur Rieman, managing director of the Law Firm for Non-Profits in Los Angeles, a center that advises foundations nationwide. "If someone gets a discount because of a personal relationship, then that duty is violated." Munitz's ties to Broad created a conflict of interest that should have kept him from having any role in the transaction, Rieman and other experts said. "It could be argued that Munitz breached his duty to the organization as a trustee," Rieman said.Munitz's relationship with Broad began over a decade ago and has deepened since he came to lead the $6.8-billion Getty Trust. They met soon after Munitz arrived in California to become chancellor of the California State University system in 1991. Munitz asked his staff for a list of 10 influential people with ties to CSU, and invited them to a small dinner party at his house in Long Beach. One of them was Broad, a former CSU trustee and one of the nation's largest philanthropic donors. |
| Rooted in education, their association soon branched into other realms. In 1994, Broad recommended Munitz for a position on the board at SunAmerica Inc., his giant insurance conglomerate. In 1997, Munitz left CSU for the Getty. Two years later, after AIG acquired SunAmerica, Munitz was appointed to the board of KB Home, a position that pays $80,000 a year plus stock options. Broad was chairman of that company until 1993. Not long after Munitz took the Getty's helm, Broad invited Munitz to sail along the coast of southern France on his yacht, mixing recreation with visits to a string of small museums. " 'Don't you think it would be nice if you actually knew something about what you are about to get into?' " Munitz recalled Broad, a noted art collector, teasingly asking him. Munitz came to the Getty with no background in the art world. It was Munitz's first invitation to join Broad's "boat trip summers" and |
| (Top) AIG vendor Ken Coffey paired with Cy-Fair supe (golf cart sign below) |
| travels to such places as Croatia, Greece and Cuba with a circle of entrepreneurs and philanthropists. The group sometimes included then Los Angeles Mayor Richard J. Riordan and billionaire investor Ronald W. Burkle. |
| Tuscany, a Broad-Munitz joint-travel destination |
| Back in Los Angeles, Munitz and Broad's collaborations in the arts, education and politics continued. Munitz was among a small group of power brokers who walked down Grand Avenue with Broad on a Saturday morning in 1999, helping to inspire the billionaire's vision for downtown revitalization. Munitz said Broad's interests never extended to the Getty. The period of art that Broad collects is not featured at the Getty, Munitz said, and Broad has never |
| Barry Munitz, circa August 2007 Getty Trust Head Steps Down without Severance [Updated] Amid several controversies surrounting the J. Paul Getty Trust, Barry Munitz has resigned as head, repay the organization $250,000 and forego a severance without admitting any wrongdoing. Again as we have seen recently, a confidentiality clause in the severance agreement limits our knowledge of more details. Here is the Getty Trust press release, which can't be found on the Getty web site. And still here is the LA Times article from last June that first described the lavish spending, outside income (akin to double dipping), and use of museum resources by Dr. Munitz to pursue personal interests. The LA Times has reported on a number of issues relating to the Getty Trust: Marion True, a curator (now ex) on trial in Italy accused of knowingly receiving looted items, Board member Barbara Fleischman resigning last month after making personal loans to that same curator after the museum closed a $20 million deal to acquire her collection The lavish spending, travel, and pay of Dr. Munitz, some only disclosed in footnotes in tax filings A lack of transparency that prompted the Council on Foundations late last year to put the Trust on probation as part of a relatively new process for monitoring ethics and accountability Despite the Getty Museum's international reputation and reach (and nearly $10 billion in assets), many of these stories are treated as local or specialty interest. It looks like only the New York Times and the Times of London produced a byline story going beyond the LA Times & AP coverage. Yet of particular universal interest here are not only the issues of board accountability and executive compensation, but also the importance of paying attention to the severance agreement whenever leaders depart under a cloud. Barry Munitz has been controversial both in his tenure at the Getty Trust and previously as Chancellor of the California State University system. Prior to that, he was vice-chairman of Maxxam, Inc. and was involved in the administrations of both Pete Wilson and Gray Davis. February 10, 2006 in Accountability, Boards, Charitable, Charities, Charity, Foundation, Museums, NGO, NPO, Nonprofit, Nonprofits, Organizations, Philanthropy | Permalink http://www.typepad.com/t/trackback/660087/4236091 (SOURCE--Where Most Needed The Charity Industry Observer Probing the Deeper Links & Linkages) |
| But the questions did NOT fade away: |
| Barry Munitz, June 2007 BARRY MUNITZ NAMED CHAIR OF SIERRA NEVADA COLLEGE BOARD OF TRUSTEES Disgraced former CSU Chancellor Barry Munitz resurfaced last week when he was appointed Chair of Sierra Nevada College, Board of Trustees. Sierra Nevada College is a liberal arts college in ritzy Incline Village, Nevada, with an enrollment of just over 300 students. Munitz, who resigned as president of the J. Paul Getty Trust last year amid allegations of corruption, was granted a “Trustee Professorship” by CSU Chancellor Charles Reed. He is being paid more $163,000 during the first year of his professorship at CSU Los Angeles despite teaching only a single section. It remains unclear what compensation Munitz will receive for this new appointment or how he will execute his “job” at CSULA while also serving on the board at Sierra Nevada College, which is nearly 400 miles from Los Angeles. (SOURCE--California Faculty Ass'n) To find out more on Barry Munitz go to: http://www.calfac. org/munitz.html |
| THE 2005 BROAD PRIZE REVIEW BOARD Russlynn Ali, Executive Director, The Education Trust West Anne L. Bryant, Executive Director, National School Boards Association Douglas Carnine, Professor and Director, National Center to Improve the Tools of Educators Carl Cohn, Clinical Professor, Rossier School of Education, University of Southern California Christopher Cross, Senior Fellow, Center on Education Policy Charles Desmond, Executive Director, Great Cities’ Universities Coalition Frederick Hess, Resident Scholar, American Enterprise Institute Paul T. Hill, Director, Center on Reinventing Public Education, University of Washington David Hornbeck, President, Children’s Defense Fund Tom Houlihan, Executive Director, Council of Chief State School Officers Phyllis Hunter, Consultant, Texas Statewide Reading Initiative Sandy Kress, Partner, Akin, Gump, Strauss, Hauer & Feld, LLP Sara Martinez-Tucker, President and CEO, Hispanic Scholarship Fund Wendy Puriefoy, President, Public Education Network Piedad Robertson, President, Education Commission of the States John Theodore Sanders, Former President, Education Commission of the States Anthony Trujillo, Senior Associate, National Center on Education and the Economy |
| Eli Broad and Sandy Kress: One intersection |
| Miscellaneous examples of the intersection of taxpayer-funded public education and vendors |
| merit rather than seniority. Consultant to the Governor's Business Council, a group of Texas business leaders that have recommended a wide-ranging list of changes to public education law in Texas. Charles McMahen, a retired Houston banker, chairs the council. Lobbyist for Texas Businesses for Excellence in Education. The group hired Mr. Kress to help get the Governor's Business Council recommendations into Texas law. It advocates stricter sanctions for schools that are judged "low-performing" based on high-stakes test scores. Houston investor Charles Miller and San Antonio businessman H.B. Zachry Jr. are involved in this group. Former lobbyist for K12, which in 2003 unsuccessfully pushed the Texas Legislature to publicly fund so-called virtual charter schools. K12 sells curricula that home-schoolers can get over the Internet. William J. Bennett, a former U.S. secretary of education, is a director of the company. Mr. Kress says he no longer works for K12. Former lobbyist for Community Education Partners. Under contract with school districts, the company runs alternative campuses for problem students who have been kicked out of regular classrooms. Mr. Kress says he has not worked for CEP since 1999. SOURCES: Texas Ethics Commission, Sandy Kress and Dallas Morning News research. |
| 2000 AT&T Austin, TX $ 25,000.00 - 49,999.99 Cinemark USA, Inc. Plano, TX $ 0.01 - 9,999.99 |
| Community Education Partners |
| McGraw-Hi ll School Division New York, NY $ 0.01 - 9,999.99 PG&E Corporation San Francisco, CA $ 0.01 - 9,999.99 RIVER LTD. Dallas, TX $ 0.01 - 9,999.99 Texans For Education Austin, TX $ 0.01 - 9,999.99 Texas Ass'n for the Gifted and Talented Austin, TX $ 0.01 - 9,999.99 Texas Instrument s Incorporat ed Dallas, TX $ 0.01 - 9,999.99 |
| McGraw-Hill textbook |
| Munitz put $72,000 Porsche SUV on Getty Trust expense account |