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Detroit Teachers Not Receiving Paychecks

Privatization of Payroll Service Could Fix Problem, Say Observers

Thu., February 10, 2000

Aaron Carr wants what he is owed and he wants it now. Or at least at some point during his lifetime.

Carr, a technician at King High School, is just one of 20,000 employees of the Detroit school district who is having difficulties receiving his paycheck.

Carr works overtime to prepare the school football field for games. He told The Detroit News, however, that the district still owes him $5,000 in overtime pay and that he will not work overtime until he receives his check.

Many Detroit teachers and other staff have received their paychecks late, have been underpaid, or have failed to receive a check at all. In response, the Detroit Federation of Teachers has sued the district, demanding any pay raises and back pay that teachers have yet to receive.

The payroll problem has persisted for nearly six years but has created additional tension in the wake of the recent teachers' strike. But such problems are not unique to Detroit. They have become almost commonplace in other large school districts including Philadelphia and Washington, D.C.

The recurring troubles in Detroit have revived calls for the privatization of the district's payroll service, a move that interim Chief Executive Officer David Adamany has considered.

"This persistent problem should embolden . . . Adamany to carry out his proposal to outsource or contract out the payroll function," The Detroit News editorialized. "Given the continued inability of the payroll department to do the job, outsourcing the work, or at least a part of it, has become an imperative, even if it means job losses."

Outsourcing could actually be a win-win situation for teachers and taxpayers, says Michael LaFaive, managing editor of Michigan Privatization Report. "Turning payroll over to a private company with an incentive to do the job right will ensure that teachers get paid, and most likely will lead to savings for the district.

"Most importantly, more resources-in terms of dollars and teachers' time-could then be directed to the classroom," he adds.

Already, Adamany has implemented a new payroll computer program and established a Payroll Service Center to address problems.

For at least two years, observers have blamed the district's human resources department for the recurring problems. Audits have shown that the department lacks the necessary training and skills, and its largely manual system disrupts communication and often leads to inaccuracies.

The payroll problems have forced many teachers to wait in line at the Schools Center Building for as long as two hours simply to receive pay that they already should have received.

Apart from the obvious inconvenience to the teachers, the time that it has taken to remedy this situation has had an indirect effect on the district's 180,000 students. Instead of educating students, teachers have had to spend time dealing with bureaucracy.

"What a waste of time," Kettering High School teacher Granville Caldwell told the News. "I could have spent the time preparing lessons for my students."

Despite the persistence of the problem, Adamany cites improvements that have been made this fall. Errors fell from the first pay cycle to the second by about a third to less than 200, but many more teachers may have received their checks late or not at all.

Michigan Education Daily
"Hillsdale Community Schools is offering severance packages to teachers and support personnel who retire now as a way to save money in the long run." >>
"The University of Michigan believes that a plan to create a single health insurance pool for all public employees is unconstitutional, firefighters believe it's unwise, but the president of Lansing Community College sees it as the right moral choice." >>
"Jackson Public Schools is investigating switching insurance carriers, self-funding or asking all employee groups to agree to higher deductibles and co-pays as ways to spend less on health insurance." >>
"Not yet certain whether they will face a $127 per-pupil cut in December, school administrators are reviewing their choices for dealing with it." >>
"More than one-third of the students who live within Detroit Public Schools boundaries attended a public charter school in 2008-2009." >>
"More than one-third of the students who live within Detroit Public Schools boundaries attended a public charter school in 2008-2009." >>
"State school Superintendent Michael Flanagan asked lawmakers and teachers unions Thursday to settle their differences and clear the way for Michigan to apply for up to $400 million in federal funding for public schools." >>
User Comments
I am a teacher in the same county who is presently trying to quit the union. Like Caldwell, I strongly disagree with the MEA.

This article was timely.

Rob Olson
Pittsford Area Schools

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I agree this is a change worth making. I describe some of the uneven effects of the idea on my blog at http://rickolson.blogspot.com/2009/08/statewide-health-insurance-plan-for.html which you may also wish to read.

The devil will be in the details, so this is one we will need to monitor closely.

Rick Olson from Saline, former school Business Manager >>

Nowadays, saving money is very crucial and properly investing the money can keep you and your family away from the effect of the financial crisis. The sad news is that a lot of the options for short term funding have been drying up. Short term funding is a necessary thing to have around, and going through traditional channels such as banks isn't an option for a lot of people anymore – basically it's only open to Ken Lewis. Installment loans are an option, but some people, including senior citizens, have been thinking about raiding their retirement fund. Getting into your pension retirement plan or 401(k) funds is the last thing you want to do if you don't qualify for any withdrawals yet. The penalties are substantial, and you'll end up needing installments loans to pay them if you use retirement funds for <a rev="vote for" title="Installment Loans Reliable Option As 401(k)s are Dwindling" href="http://personalmoneystore.com/moneyblog/2009/05/17/installment-loans-reliable-option-401ks-dwindling/">short term funding</a>.


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I AGREE >>
Godfrey-Lee on the west side of the state has been running all-day, every-day kindergarten for several years. >>
We have a problem in Detroit Public School, their system had cash flow problem for years now. And honestly it getting worst in terms in progression with more children leaving to charter their schools almost every year. The state decided to give the Detroit school districts cash advance of $70 million so they would meet the schools expenses, as well as payment for teachers. Robert Bobb, the newly appointed emergency financial manager, requested the funds early in order for him to get the house in order before he had to start panicking. President Obama has been giving out large sums of money for troubled school districts, perhaps that’s where a generous portion of the aid came from. Getting Detroit Public Schools in working order is a worthy cause.

LINK TO READ FOR MORE INFO:
http://personalmoneystore.com/moneyblog/2009/03/10/state-advance-detroit-public-schools-70m/


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I am all for school choice and think its great that charters are finally moving forward. However, I'm wondering if the research accounts for a playing field that is not level. I can't take my school buildings and move them anywhere I want, nor can I simply slap up a pole building and make it a school. If anything, public schools need less state regulation and oversight so we can play by the same minimal rules charters do. If you want public schools to compete to improve, remove the barriers to doing so. I will gladly except less funding per pupil if the playing field is level.
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The purpose is to encourage non excercising children to excercise but my daughter's highschool gave her an improper body fat percentage and made my healthy daughter who trains 20 hours a week in tap jazz and ballet believe she was overweaghit instead of a person with muscles.
I believe the public schools do not have the right to make the diagnoses with these kids because they are using one measurement and recording it from their arms that they have a certain percetnage of body fat with one arm caliper test.
Does any one have feed back?
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Specifically, 81 percent of students in religiously affiliated schools and 82 percent of students in other private schools have parents who report being "very satisfied" with their schools, compared to 55 percent of students in assigned public schools and 63 percent of students in chosen public schools.

High levels of satisfaction among private school parents also extend to opinions about their children's teachers, academic standards of the school, order and discipline at the school, the amount of homework assigned, and interactions with school personnel.

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