Waste, Fraud & Mismanagement:
Your Tax Dollars at Work

Los Angeles Unified Spends $175 Million on Consulting Contracts. The Los Angeles Unified School District is facing significant spending cuts, perhaps as high as $500 million. It was revealed this week that the district is spending $175 million this year for a wide variety of consulting contracts. Deputy Superintendent Ray Cortines is taking a look at the problem. "We need to minimize it, lower it," he said.

Among the contracts is a $30,000 agreement to provide "media interview and presentation training to the Superintendent and senior staff." There is a $194,030 contract with a consultant to provide intensive training in ethical practices for coaches.

Board Member Tamar Galatzan said: "The dollar amount is staggering. I have no doubt there are tens of millions of dollars for contracts for things that are less important than the classroom, our kids, and our teachers." Teachers' union president A.J. Duffy said a review of the contracts is needed.

Mr. Cortines said that in many cases, the district has not followed proper procedures for awarding contracts. The school board does not have to approve contracts for less than $250,000, but even higher cost contracts often didn't get to the board for approval until months or years after they were executed. New school board members now are insisting they see contracts before they are executed. (Source: Los Angeles Daily News, May 13.)

Cal-Taxletter May 16, 2008

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