Wednesday, April 11, 2007

Baltimore School Budget a Software Glitch?

The Examiner.com is reporting that the Baltimore school budger fiasco may be the result of a computer glitch.
Millions of dollars in discrepancies in the Baltimore City school budget reflect limitations in financial software and a need for more transparent reporting — not shady accounting, a national union official says.

"In Detroit, they’ve had trouble this past year because they found $3 million in contracts awarded to individuals with no permanent address, or to addresses of abandoned buildings or basements. That’s fraud and that’s a story," said Jewell Gould, research director for the American Federation of Teachers, a union representing 1.3 million teachers.

"Am I pleased that the Baltimore budget doesn’t add up? No, it makes me crazy and I’m sure it’s an embarrassment for officials," Gould said. "At the end of the day, you want parents to understand that every resource possible was put next to a child."
Now, a computer software problem could be the cause of the error, but that does not excuse the error itself. I work in the software business and bugs in a program, particularly complex programs are common, but usually discovered pretty quickly.

But what troubles me most about this quote is why is the AFT being consulted and asked about this problem. Who is Jewell Gould that she has some relevant insight into this particular issue? While Detroit may have budget problems of a different sort, what has that to do with Baltimore's problem. Shoddy reporting by the Examiner indeed.

At least here is something that is relevant, that I didn't know previously.
Taxpayers have spent millions for the software installed in the wake of a $58 million deficit during the 2003-04 school year, said Michael Hamilton, president of Baltimore City Council of PTAs.

"It’s amazing we’re at this point given the fact that three years ago, we were in the middle of a budget crisis," Hamilton said.

"We want assurances that we aren’t facing a budget crunch that will affect the classroom. Parents are concerned. We need clarity. I don’t think we can stand another debacle."
What might be interesting to know is who of the current School Board was sitting on the Board in 2003-2004. My guess is that a fair percentage of the current board. So it appears as though the Board has not learned a lesson from the last screw-up.

With this information now coming to light, a state takeover of the School Board is not only looking more likely, but necessary.

A quote from the Sun's Editorials from yesterday puts a fine point on the matter:
Less than a year after the Baltimore school system retired a crippling $58 million deficit that was in part the result of faulty accounting, school officials are trying to explain why dollars and personnel don't always add up in the projected budget for the next school year. The errors seem to be caused more by lax attention to detail than dangerous or surreptitious budgeting. But they raise valid questions about how diligently the school board and staff are minding the budget.

Even if the errors turn out to be relatively insignificant, a system that's still in recovery from a fiscal meltdown needs to make sure that its budget processes and presentations are beyond reproach.

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