$2 Million of Education Deficit Said to be Rooted in Salaries
WED says that former employees are largely to blame for errors, overspending.
Members of the City Council and School Committee sat down with Business Manager Stacey Busby, Finance Director Thomas Bruce, Mayor Leo Fontaine and Principal Robert Civetti from the accounting firm Braver PC Thursday night for a meeting to address an estimated $2.1-$2.7 million in overspending for education during the fiscal year that ended this June.
The culprits Busby named behind the sudden and previously unexplained shortfall during the three and a half hour meeting included former employees, an understatement in the line item for healthcare, confusion as to which accounts were to be included in the total, and salaries for recently hired employees.
According to a draft statement prepared by Civetti, the department overspent by $2,045,580 for education salaries alone, creating a deficit which is likely to result in a lowered bond rating for Woonsocket and the surrender of at least some of the city's fiscal controls. The findings were nearly identical to predictions made by auditors last May, but Civetti adjusted the report after Busby disputed the deficit, and claimed a surplus for 2011's education spending.
Busby told officials that she did not spot the defiicit until she rolled in all of the appropriate accounts and examined the line item for healthcare, noticing the understatement, actions which, after questioning from Fontaine, she said had not been completed until this past Wednesday night.
"I guess that we are in agreement with all of the numbers now, and we're confident that the number will be between $2.1 and $2.7" million, Fontaine said. "There was $1 million quoted in one of the papers that you felt the deficit was down to and then last night, it was indicated to me that it was down to $745,000. I'm just wondering where those numbers came from if now we all agree that it is up over $2 million."
Busby replied that certain accounts that traditionally were kept in a separate budget from the department's operating numbers were not calculated into her total. "Historically, Woonsocket never added the vocational or enterprise fund," she explained.
"We only found that out last night?" Fontaine asked.
"I was going back and forth with Bob [Civetti] as to whether or not we were going to roll it in," answered Busby. "It was always separate, but they decided to roll it all in together."
Busby also cited the extensive process of correcting errors made by a former employee as an one explanation for delayed reporting to auditors. City administrators had been told for months that the department had completed the year with a surplus before receiving Civetti's findings on Monday.
"There were some personnel issues. I identified them and took corrective action," Busby said. The only other accountant employed by WED, Kristen Howe, was let go in September.
That employee, and former Superintendent Robert Gerardi were largely blamed for WED's current shortfall throughout the three and a half hour meeting, in which Busby, Superintendent Giovanna Donoyon and Civetti presented a united front against questions fired from Fontaine and others seeking an explanation for the debt and the department's slow recognition of the problem.
The overspending on salaries, Busby explained, was the result of several new hires recommended by Gerardi and approved by the School Committee before the former superintendent's departure last June.
"I can advise, but I do not have oversight," she said. "Part of the problem for fiscal year 2011 is adding positions when it's not budgeted. Since Dr. Donoyon has come in, she has heard my voice when I say there's no money."
Although the department cut 51 positions this year, at least 10 new salaries were added to the department's expenses, including several for instructional leaders, highly trained special education teachers that Gerardi pushed through before his departure.
Busby said that she felt she would be overstepping her role if she brought the overspending to the attention of members of the School Committee, who ultimately approved the hires.
"They approve positions on the information and recommendation of the superintendent." said Busby. "It's not my place, because I have a boss too, to say 'hey wait a minute, there's no money'. I don't believe professionally that it would have been right to overstep the boundaries. I am not the academia person, I am the financial person."
Visit Woonsocket Patch this weekend for more on this discussion and outcome of this important meeting, including information on the city's credit rating, reports on the status of the current year's budget, potential solutions for the department's reporting problems, and the more on the dilemma faced by administrators struggling to stay within budget while trying to meet the state's Basic Education Program. This complex issue will require numerous follow-ups.
Chris12
5:47 pm on Friday, December 9, 2011
My favorite line of b/s is "in order to attract the best and the brightest we have to be competitive with salaries." Are you kidding??? These so called "six figure salary best and brightest" have pushed our city to the brink of receivership.
Mr Bruce help us out. Could you please keep these expensive bright finance people on a very short leash?
Oliver Ra
10:50 am on Saturday, December 10, 2011
Isn't Mr. Bruce one of "these expensive bright finance people"?
Rob
7:10 pm on Friday, December 9, 2011
it's true there are some teachers who don't deserve a job in this department,and these so called six figured salaries plus poor budget management on the city part caused this
Imzadi
7:16 pm on Friday, December 9, 2011
I like the line that says, "Since Dr. Donoyon has come in, she has heard my voice when I say there's no money." Isn't she the one who recently wanted to give hefty raises to administrators??
Rob
9:50 pm on Friday, December 9, 2011
what's your definition of a HEFTY RAISE? imzadi
Oliver Ra
10:52 am on Saturday, December 10, 2011
So Ms Busby is using her voice4 to the new superintendent, but she didn't think it was her job to use it to Girardi???" What am I missing here??"?
Fina
8:01 pm on Friday, December 9, 2011
Busby claims that she's able to advise and also that she thought she "would be overstepping her role if she brought the overspending to the attention of members of the School Committee." Maybe I'm misunderstanding the concept of advising as it applies in this case but that's exactly what I would expect an advisor to do. If you are the financial authority, I (as a member of the public or the School Committee or the Administration) would rely on the their financial advice in order to make informed decisions. (I realize the hierarchy may not actually work that way however.)
la_mouffette
1:46 am on Sunday, December 11, 2011
this!
the bureaucratic hierarchy may not work that way,
but shouldn't it? You'd think so...
The Chorus
8:57 pm on Friday, December 9, 2011
As business manager she has a fiduciary responsibility that she completely ignored. She should be reprimanded if not fired.
Rob
9:49 pm on Friday, December 9, 2011
what did she do she made a mistake what you don't make mistakes your perfect go put your head in the sand
The Chorus
9:01 pm on Friday, December 9, 2011
Robert...you have a very interesting perspective. Can you explain how this is the city's fault that the WED overspent and didn't know (actually the business mgr has admitted that she did)? The city has their own issues but this is a WED caused problem.
Rob
9:47 pm on Friday, December 9, 2011
well chorus according to some new info i found outside of this website mayor fontaine new all along about this deficit and he put the so called skeleton in the closet,and you people are so quick to jump all over her SHE'S HUMAN JUST LIKE U, IF U CAN DO BETTER BY ALL MEANS GO AHEAD but don't bash someone who didn't make the mistake blame city government for not monitoring what was going on ,ask marc dubois what happend when those ten teachers got there jobs back and where was thomas bruce when this happened THE SO CALLED FIANACE DIRECTOR OF THIS WONDERFUL CITY why did they allow it ms busby would have been told your out of line
Sandy Phaneuf
5:15 pm on Saturday, December 10, 2011
RBeau- That is not accurate. A lot of things were said during the three hour meeting but at no point did she say that she covered up the deficit - in fact she denied knowledge of it. And she said that she didn't inform the school committee more because she didn't believe it was he place NOT because she feared for her job.
The Chorus
1:35 pm on Sunday, December 11, 2011
Sandy - Since I wasn't at the meeting can you clarify something for me? You say, "in fact she denied knowledge of it. And she said that she didn't inform the school committee more because she didn't believe it was he place NOT because she feared for her job."
Can you put this in context? There would be nothing to inform if she had no knowledge. I think I'm missing part of the context so any help would be appreciated. Thank you.
Sandy Phaneuf
2:13 pm on Sunday, December 11, 2011
Sure Chorus, I'll try. Busby's story was that while, yes, she knew that positions were being filled that were not in the budget, she believed other line items would make up the difference. She said she not realize the extent of the situation until Wednesday night. So what she ideally would have told them was that the positions COULD put the department into deficit spending. At no point did she give any indication that it was a "cover-up" as reported in the Breeze.
The Chorus
2:38 pm on Sunday, December 11, 2011
Thank you, Sandy. I appreciate you taking the time to explain.
The Chorus
10:11 pm on Friday, December 9, 2011
Interesting response. Thanks. It's a little incoherant but none the less...People do make mistakes and they should be held responsible. Dost protest too much. Makes me think you may have a personal bias.
Rob
11:08 am on Saturday, December 10, 2011
maybe i do at least she corrected the problem and from what i read on mywoonsocket.com the city plans to file litigation against former superintendent Dr.Gerardi who ordered these hirings and that ms.busby feared if she said something that she would face repercussions from gerardi and some of the hires were not mandated by the state this statement has all facts from an article on mywoonsocket.com don't believe me check it out yourself
Sandy Phaneuf
5:50 pm on Saturday, December 10, 2011
Robert,
The article you are refering to was written by the Valley Breeze and I do not think it portrays the situation correctly at all. For one thing, I did not hear Busby say at any time that she feared anything or that she was involved in any kind of cover-up. Anyone else who attended the meeting and heard something like this, please feel free to correct me. Busby's argument was that professionally, her job is to inform her boss, the superintendent, whoever that may be, not to go over the person's head to stop hires. School Committee members felt that they were not given enough information by Gerardi- but I don't believe ANYONE said he was hiding facts intentionally. It was also said that Dr. Gerardi was much more of an educator than an accountant- his focus was always on improving things for the students and complying with RIDE. This entire issue goes to the heart of Woonsocket's problem and the lawsuit that the School Committee has against the city. The question is: if the department is not given enough money to meet state education requirements, than who's responsible? If they overspend, they are breaking the law. If they don't meet the requirements, they are breaking the law, not to mention losing the state and federal funding that they do get. It's a lose/lose situation.
Sandy Phaneuf
6:44 pm on Saturday, December 10, 2011
more accurate phrasing for my comment above.... the SC doesn't have a lawsuit against the city they're just appealing a judgement.
The Chorus
10:12 pm on Friday, December 9, 2011
My comment is In response to Robert. Not Rbeau.
Eugene LaFrance
7:29 am on Saturday, December 10, 2011
"I am not the academia person, I am the financial person." Quoted per Stacey Busby!
My response to that is very simple! "If you're getting paid big bucks to be a financial advisor than act like one! In my opinion, let the culprits responsible for this mess be accountable and pay the deficit. As a tax payer... I'm fed up with getting whacked with higher taxes because of mistakes made by high paid irresponsible people.By the way that includes Mr.Geradi who left at a very convenient time.
DLB
8:40 am on Saturday, December 10, 2011
What I don't get is how these people (some, ..and not all) sat in front of two hundred plus parents, students, and teachers to cut essential programs, postions, and opportunities, to satisfy their own agenda. I'm sorry, I can not call or respect them as educators. Once again, our kids will pay the price.
Oliver Ra
10:56 am on Saturday, December 10, 2011
I wish I could afford to make a $3 million "mistake"!!!
Oliver Ra
10:57 am on Saturday, December 10, 2011
Kids aren't the only ones paying the price!! Who else do you think will be paying??? HELLO!!!
DLB
11:34 am on Saturday, December 10, 2011
PS...The price the kids pay, .. may NOT be counted in just a dollar value,
........SORRY, Oliver !
Jerry
8:54 am on Saturday, December 10, 2011
Stacy Busby knew all along, so isn't she an assessory to a crime along with Mr. G Q Gerardi? As far as Dr. Donoyon, she would just love to give away the store, raises, and everything else, she has no clue what's going on. They always pass the blame for mistakes..With all their degrees, there should be one for "common sense" in the real budgetary world. Eight-five percent of all the state aid Woonsocket used to receive went to salaries, so what does that tell you? Stacy is blaming a former employee, but
Stacy was her boss, she should of known better, she needs to be fired, especially knowing all along what was going on. Dr. Donoyon came in at a bad time, but her head is in education, and not in MATH.
bob b.
10:53 am on Saturday, December 10, 2011
What piggy bank is cashing these checks,it seems to me very simple ,once you go over budget checks should start bouncing immediately. The bus company,the lunch program,where is the cash coming from to pay the bills if they have no money.Two million plus,that is a lot of checks.
English first
7:13 pm on Sunday, December 11, 2011
What a great question. How does that happen? If there is no money in an account how do they write checks that get cashed? Answers anyone?
Sandy Phaneuf
7:55 pm on Sunday, December 11, 2011
English, The way Busby explained it, it's a lot more complicated than balancing a checkbook. The School Department has many different accounts, some of which are paid for long after the money is spent. And then sometimes, like last year, the expected grant money doesn't even come. Then you have situations like the deficit bond where a lump sum is expected to fix the accumulated debt.
I say this just to provide more info, not in ANY way to justify the situation.
RBeau
8:13 pm on Sunday, December 11, 2011
Hi Sandy: I appreciate your efforts to be balanced on this story and to give the other side of the issue, but there really is no defense for Ms. busby. Yes I'm sure that these finances are extremely complicated, but there are school finance directors all over this state and country that do it every day without running their cities into the ground. She may try to blame some low level book keeper, but that person reports to Busby. I dont think that PATCH would be so gracious to someone who lost them 2.7 million dollars and placed them at risk of bankruptcy. Someone has got to restore some credibility to this school department. I believe that this is the third year in a row that they go from surplus to deficit to surplus and then back to deficit again. We the people of this city deserve accountability.
Sandy Phaneuf
8:23 pm on Sunday, December 11, 2011
RBeau, This was a direct answer to English's question, not a defense of Ms. Busby. While I certainly have an opinion on the matter, if I'm doing my job, you won't see it here, and you have not. As mentioned in the article, this is a complex issue, so I'm happy to answer questions when I can in effort to provide a little more insight to the situation.
The Chorus
11:43 am on Saturday, December 10, 2011
Robert - Corrected the problem? More like she came clean at the 11th hour when it was clear the truth was coming out. Either you are so jaded that you can't admit the truth or you have no comprehension of fiduciary responsibility.
Rob
11:05 pm on Saturday, December 10, 2011
read the article and there's the proof and thank you sandy for the correction i thought i read that somwhere
greg
12:14 pm on Saturday, December 10, 2011
Professional Experience Needed.
The new school committee members have zero qualifications to even grasp the magnitude of the problem.
Central Falls took care of the problem by sending their school committee home.
The voters should demand a public hearing to ask tough questions on solving the problem ASAP
Borrowing costs will rise---make sure that is in the budget!!!
Growing more concerned by the day!
3:53 pm on Saturday, December 10, 2011
Wouldn't a good solution be to look at how you can recall some of these elected officials? Most town/City charters have provisions to recall incompetent elected officials. A recall will alow the people to reverse some mistakes they may have recently made in the previous election, put in place some more responsible leaders who will clean house of the paid career appointees who are taking advantage of the taxpayer.
greg
6:10 pm on Saturday, December 10, 2011
The Holiday Stroll
Let's ask each of the strollers to close the WED budget gap.
Let's recruit 400,000 strollers at $5.00 each-- equals $2.0 Mil -- followed by free coffee and donuts--just like the election.
Time to get creative!!!
Gene Chevrette
7:04 am on Sunday, December 11, 2011
Folks, this is why I believe the school business manager's office should be housed not in the school department but at city hall in the office next door to Mr Bruce. Their has to be oversight at all times to keep control of the school budget. This will be one way the school business manager is not under pressure from the Superintendant and the school committee to spend money that is not appropriated.
Rob
11:52 am on Sunday, December 11, 2011
Mr.Bruce is no better than the what the school department buisness manager second she corrected the problem and reported it but our city officials don't believe it so what is she supposed to do she has the superintendent the president of the auditing company behind and the mayor still isn't buying so what does that tell you about our city leadership
Gene Chevrette
7:12 am on Sunday, December 11, 2011
Further more, I am very disappointed in Mr. Dubois's performance as school committee chairman during his last two terms. He was part of this financial problem.
Remember, every time an expenditure is proposed it must be approved by the school committee.
Rob
10:12 pm on Sunday, December 11, 2011
RBEAU did you not read sandys reply that wasn't accurate so whats your point and if i'm not mistaken the city had a deficit long before the school department had one,so whats you and thechoruses problem with the school department do you both work for the city or a family member at city hall huh
Lavergne
8:30 am on Sunday, December 11, 2011
I think there should only be 3 school committee members for the weekly incidentals, and a full or part time independent auditor/CPA at the administration building daily, since the school dept can't be trusted. With all the degrees that are stipulated with the business manager's position and superintendent's position, isn't it amazing that they have no clue what's going on and CERTAINLY DON'T UNDERSTAND BASIC MATH? Maybe one of our math teachers can teach them, or perhaps they buy the book "dummies for math".
The Chorus
1:24 pm on Sunday, December 11, 2011
Robert - so only qualified or people willing to be business manager can criticize Ms Busby? You've been very critical of Mr Bruce and Mr Fountain. What are your qualifications? Don't complain about them - you're bound to screw at least one thing up - right?. SO TRY IT YOURSELF!
Rob
10:02 pm on Sunday, December 11, 2011
Ms.Busby admitted to a mistake and the fact she did that and former superintendent gerardi did not nor did new city council member MARC DUBOIS didn't what they get out of jail free card but ms.busby does the right thing and she gets crucified for a mistake she didn't make, again i couldn't do better,but can you two is the questions, but she corrected the problem and did not cover it up like you two alledge she did so why do u keep beating a dead horse?????
RBeau
10:17 pm on Sunday, December 11, 2011
But remember, Busby only came clean after it already hit the fan. Also, I'm sure that if she had gotten that other job that she was trying to bail out to, she would not have given one hoot about what was going on. Why do you think she was trying to leave. Gerardi was quick enough, she wasnt.
joe
12:53 am on Monday, December 12, 2011
jerry & dave - I don't know if you two know each other, but your tired vitriol exposes how ignorant you are regarding educational systems, student responsibilities, and human capital. My advice to you is to shadow any administrator or teacher for one (1) day. Then complain. Then, of course, let them shadow you at your job.
The Chorus
7:24 am on Monday, December 12, 2011
Ok Roburt...I will work on my spelling when you work on constructing sentences with punctuation.
Rob
10:03 am on Monday, December 12, 2011
ok the choros, how about you get your facts straight about this story and stop beating a dead horse, read the small print under the title and tell me what it reads, then stop and let that resinate in your small brain for a couple of minutes then post a comment or insert your foot in your mouth because your clouding and twisting the facts
The Chorus
11:04 am on Monday, December 12, 2011
Ok Robert...that's quite possibly the most impressive run-on sentence you've posted yet. In answer to your question, the sub title reads that they are blaming people who are no longer here. What would you expect them to say? Look up Fidicuary and you'll understand why I'm not inclined to give Ms Busby a free pass.
The Chorus
11:19 am on Monday, December 12, 2011
Furtheremore, Robert, you are the one clouding the truth when you try to blame the Mayor and Mr Bruce for any role in this quagmire. This is a WED problem, not a city problem.
The Chorus
12:00 pm on Monday, December 12, 2011
Constrode? Guess I'm not the only one who can't spell (or perhaps, like me, you mis-typed). It is, in fact, the city's problem to solve because by law they have to cover the cost of education. However, it's 100% the WED's fault that this happened - hence WED caused the problem.
The Chorus
12:02 pm on Monday, December 12, 2011
WED is completely autonomous from the city - hence it has it's own governing body and budget. I'm sorry if autonomous is a big word but it applies.
The Chorus
6:52 pm on Monday, December 12, 2011
I do own a home and am a proud graduate of WHS. I also have family members who work for WED (one reason I chose to use an alias because I would not want them to be subject to retribution due to my views). I actually agree that the General Assembly is largely to blame for the economic situation at the state and local level. But I also feel that Ms Busby had a fiduciary responsibility. We don't have to agree. That's what's great about America. BTW...citing The Call is not at all persuasive to me...it's a rag.
RBeau
7:48 pm on Monday, December 12, 2011
How did she "FIX" the problem ?? We still have the deficit don't we ? Problem not fixed !
Jerry
1:53 pm on Tuesday, December 13, 2011
Hey Rob Lamarre, you sound like a dropout who can't spell or write. Get with the program if you are going to contribute anything that makes sense. Hopefully you are not a teacher!! Or, if you are, you need to be taught...
joe
3:35 pm on Monday, December 19, 2011
so dave, back-in-the-day (militarially, that is), I suspect you had similar complaints and unending whining about your officers, be they company level or field grade. And, of course, your pentagon brass, etc. Get a grip dave. Unless you've done what they do, your're clueless.