The 91制片厂视频 Leaders Council, which has sought to position itself as a prominent national advocate for school choice and accountability, has been dealt a major blow by the resignation of several members of its board of directors amid claims of mismanagement leveled at its Washington headquarters.
Four board members鈥攁ll well-known figures in education鈥攓uit on March 29, citing concerns raised over the past year about the group鈥檚 use of federal money and about the salaries and employment terms of its executives.
In a joint letter to Florida Commissioner of 91制片厂视频 Jim Horne, who chairs the ELC board, they accused others still on the panel of failing to adequately address their concerns.
鈥淲e cannot continue to be associated with an entity that has lost its moorings and whose credibility has been seriously damaged by issues that could have been solved had action been taken in a timely and responsible manner,鈥� they wrote.
The four members who resigned this week are former U.S. Rep. Bill Goodling, R- Pa., the retired chairman of the House of Representatives鈥� education committee; Colorado Commissioner of 91制片厂视频 William J. Moloney; Minnesota Commissioner of 91制片厂视频 Cheri Pierson Yecke; and Abigail Thernstrom, an author and a member of the Massachusetts state board of education.
Their departures follow those of at least four other ELC board members who resigned over the past six months as the board of directors became increasingly divided over how to respond to questions about the organization鈥檚 operations. (鈥淟eaders Group Faces Shortcomings,鈥� Jan. 21, 2004.) The board now has just eight members.
Those remaining on the board, including ELC Chief Executive Officer Lisa Graham Keegan, disputed the notion that the group had sought to sweep any problems under the rug.
In February, the board agreed to hire an external auditor to carry out a 鈥渇orensic鈥� review of its operations. Ms. Keegan characterized as 鈥渄ishonest鈥� the claims made by the four board members who resigned this week.
鈥淭hese individuals didn鈥檛 want to solve the problems; they wanted to proclaim that there is a problem and that nothing has been done,鈥� Ms. Keegan said in an interview. 鈥淭hat is blatantly untrue.鈥�
Strife among the members of the ELC board had been mounting since last May, when an audit of the organization raised what some board members saw as a number of red flags. The report said, for instance, that the group hadn鈥檛 been adequately reporting time spent by ELC staff members on its biggest project, an initiative called Following the Leaders, which is underwritten by $23.5 million in federal money.
Since then, board members have sparred over numerous other management issues, particularly related to Ms. Keegan鈥檚 leadership of the organization. With a salary of $235,000, she is officially an independent consultant and lives in Arizona, where she formerly served as the state鈥檚 schools chief.
While criticizing Ms. Keegan鈥檚 management, many of those who have recently left the organization鈥檚 board argue that the ELC has become too dependent on federal money. When she became the CEO in 2001, Ms. Keegan laid out ambitious plans to raise private funds, but in 2003 federal grants paid for more than half of all salaries paid to the ELC鈥檚 14 staff members.
Most of the federal funding is for Following the Leaders, which gives technical support to schools to help them in meeting the student-performance requirements under the federal No Child Left Behind Act. Seeded with $3.5 million from the U.S. Department of 91制片厂视频 in 2002, the project has since been awarded two $10 million allocations. Much of the money has been used to hire subcontractors to carry out the initiative.
鈥淭he focus of the organization has moved away from its original mission of advocacy for reform, and been transformed essentially into a manager of a federal program,鈥� Mr. Moloney said in an interview last week. 鈥淭hat program, Following the Leaders, has become the main financial prop of ELC. It pays the rent, it pays the salaries.鈥�
Mr. Horne, the board chairman, agreed that the ELC needs to shift more of its energies back to advocacy, and he said he hopes to spin off Following the Leaders as an independent project in the near future.
But he maintains that the group is getting its house in order. It is in negotiations with an accounting firm to carry out the forensic review of the ELC鈥檚 finances and operations. The group also recently hired a new chief financial officer. Mr. Horne said he has 鈥渦nwavering confidence鈥� in Ms. Keegan鈥檚 leadership.
鈥淚 think ELC will come through whatever this little fog is stronger, and better, and more powerful than ever before,鈥� he said.
