Thursday, September 30, 2010

Greed is not good

In Partisan Hearing, Democrats Attack Proprietary Colleges for Profiting While Students Fail (Chronicle of Higher Education)

More than half of students attending the nation's largest for-profit colleges withdraw within two years, a new report by Senate Democrats reveals. ¶ The report, which is based on data collected from 16 for-profit companies, is the latest bad news for a sector that is under intense federal scrutiny and has spent millions of dollars fighting a rule that could put many of its programs out of business. It shows that proprietary colleges are reaping record profits even though a majority of their students are leaving their institutions without a certificate or a degree….

LFC, Fuentes, and Williams: oh my!

     Just the other day (More of John Williams' fascinating campaign documents), we noted the curious fact that Tom Fuentes’ (former?) employer, LFC, shows up on Williams’ campaign funding disclosure documents.
     Today, another Williams/LFC connection emerges. This is from today’s Voice of OC:

Focus on Contract Between Auction House and Public Administrator

     As county officials begin their probe into the estate dealings of Public Administrator/Public Guardian John Williams, attention is beginning to focus on LFC, a Newport Beach auction house with ties to the highest levels of Orange County's Republican Party.
     The company, whose headquarters are about a half-mile from a popular Republican watering hole called Gulfstream, recently won a sole source contract to liquidate a $1.25 million property controlled by Williams' agency.
     The public administrator/public guardian has been in the limelight since last month when District Attorney Tony Rackauckas fired the prosecutor's heir apparent, former Assemblyman and county Supervisor Todd Spitzer, because Spitzer looked into an estate case Williams was administering….
. . .
     Since then, county officials announced they are conducting an audit.
     County officials are now beginning to ask questions about why the property auction contract with LFC was never brought to the supervisors, as with most large contracts.
     A testimonial from Williams on the LFC.com website details the sale.
     Back in the 1990s, when the County of Orange filed for bankruptcy, they contracted LFC to sell their diverse portfolio of properties worth over $250 million through conventional sealed bid and outcry auction methods.
     Recently, the County used LFC's Internet-based auction program to sell a nondescript land parcel that had been on the market for more than three years. We established a release price of $1 million for the property. The marketing campaign produced over 2,800 visitors to the website, 32 registered prospects and 7 active bidders. After numerous rounds of bidding, the property sold for $1.25 million. We couldn't believe it.
     Legendary former Orange County Republican Party Chairman Tom Fuentes at one point had an office at the firm, and sources close to the transaction said he made the introduction between the company's owner and Williams.
     Fuentes said he couldn't remember making the introductions but admits it "may well have been the case."
     "I've known the owner of LFC for 30 years. I was there for a couple of years, and I know John Williams," Fuentes said.
     But, Fuentes said, "there's no business relationship" with the firm currently, which is why his state statement of economic interests (Form 700) filed with the South Orange County Community College District doesn't indicate any income from the company.
     Fuentes said he had his offices at LFC several years ago when he became a senior fellow with Claremont Institute because the firm donated office space to the program. He still regularly communicates with an email address with an lfc.com tag.
     Yet Fuentes said he had no knowledge of the LFC land transaction for Williams' office. However, he has always been a strong supporter of Williams, and sources say he has lobbied county supervisors on Williams' behalf.
     Fuentes' introduction of Williams to LFC was around the time that Williams convinced county supervisors to combine the appointed job of Public Administrator (with an annual salary of $20,000) and the elected job of Public Guardian (which pays $138,000) and hand both offices to him.
     Fuentes said he didn't recall lobbying for Williams in recent years but said he is a strong supporter and wouldn't discount the fact that he's let people at the county know his opinions in the past. Fuentes said he's also a big proponent of offices like Williams' being elected offices, arguing that it goes with conservative values of heightened accountability.
     Williams is a "dedicated public servant," said Fuentes, who also serves on the South Orange County Community College District with Williams. "He's a very committed and hard-working public official, a man of integrity and of great quality."
     Williams recently came under fire because of accusations that he was traveling on behalf of the college district while getting paid by the county. A county internal audit cleared Williams of any wrongdoing.
     Fuentes said many of Williams' problems in recent years are because "he has [to] bite the bullet and [has] made hard decisions that have gained him enemies or opponents."
     Williams has seen his share of controversy over the past year.
     A grand jury in 2009 issued scathing reports against Williams that prompted county supervisors to vote on transforming his office back into an appointed position in December. Williams barely survived the 3-2 vote.
     As back in 2009, Williams has now hired political attorney Phil Greer to represent him. Earlier this week, Greer confirmed that the county audit is beginning to probe Williams' operations.
     While Greer declined to comment on the LFC contract or Fuentes' connections to it, he said Williams is confident that the county audit will clear his agency of any wrongdoing.

For an exploration of Tom Fuentes’ connection with LFC, go to Trustee Fuentes' boss, Buffalo Bill Lange

Melissa Fox: “Donald Wagner approved each of these taxpayer-funded junkets”

     You’ll definitely want to read Melissa Fox’s compelling complaint about Don Wagner that appeared in today’s Orange Juice Blog:

My opponent Don Wagner wastes Tens of Thousands of Taxpayer Dollars on John Williams’ Junkets

The Reg "voter guide": SOCCCD trustee races

   Have you seen the OC Register “voter guide” for the Fall 2010 election?
   Naturally, I looked in particular for any guidance offered in our three SOCCCD trustee races. The Area 2 and Area 5 candidates provided answers to the Reg’s questions. The Area 4 candidates (Nancy Padberg, Jack Frost) did not.

AREA 5:

Marcia Milchiker

What do you think of the district’s spending priorities? What, if anything, should change?
   Through outstanding conservative fiscal management, we are debt free and have no unfunded public employee pension liabilities. We maintain a 7.5 percent reserve at the district level and each individual college (Saddleback College and Irvine Valley College) maintains a similar reserve percentage. We are at the top of fiscally sound community college districts in the nation.
   We spend taxpayers’ funds where it counts, in the classroom.
   I pledge to maintain this conservative fiscal management.

How would you prioritize spending in your budget to minimize the impact of revenue lost to the recession or state budget crisis?
   Our top priority is to spend precious taxpayers’ dollars wisely and where it counts, in the classroom.
We have maintained a substantial reserve and paid off all of our debts.
   Our board of trustees has approved a 2010-2011 balanced budget that doesn’t cut any classes and ensures superlative student education.
   If I have the privilege of your vote I know we will continue in this fiscally prudent manner despite the projected state budget difficulties.

What two promises are you willing to make? On what are you unwilling to compromise? Be specific and concrete.
   I pledge to continue my total dedication to maintaining our colleges as among the top in the nation.
   I pledge to maintain our fiscally conservative management of taxpayers’ dollars. We provide the best value in post-secondary education anywhere.
   I have experience as a professor and as a student. I have never missed a graduation ceremony or professor in-service.
   I will never compromise providing the best programs and the finest dedicated professors for our incredible students.



Jill E. Case

What do you think of the district’s spending priorities? What, if anything, should change?
   I noticed fewer classes being offered even though they’re listed in the catalog. I also noted from reviewing board discussions that administrative support functions are based on other districts, rather than this district's unique needs. While I will not make judgments until I have all information, I would review this district’s needs, especially in administrative support, and budget the most dollars to meet the district’s mission: bringing educational opportunities to the most students possible.

How would you prioritize spending in your budget to minimize the impact of revenue lost to the recession or state budget crisis?
   As a student at IVC, I experienced first hand the impact of reduced revenue with reduction in classes offered. Priority must be granted to students and classes and educational opportunities. In the recent past, the board did not properly oversee that priority and follow California law. If elected, I will be well versed on the laws and bring the maximum dollar to the classroom.

What two promises are you willing to make? On what are you unwilling to compromise? Be specific and concrete.
   I decided to run because my opponent was running unopposed, has served in the position for over 20 years and I believe in the Democratic process. I am providing a choice for the voters. I also believe in term limits. I will not serve more than two terms if elected. I will also use my expertise to protect taxpayer money as if it was my own and bring the maximum dollar amounts into the classrooms.


AREA 2:

Thomas "T.J." Prendergast, III

What do you think of the district’s spending priorities? What, if anything, should change?
   The SOCCCD has a reputation of being a fiscally responsible and high quality education system. As a new member of the board I would want to work with the existing trustees to continue this reputation. I would not necessarily change anything, but I would look into making sure decisions are being made for the benefit of the students and the education they deserve.

How would you prioritize spending in your budget to minimize the impact of revenue lost to the recession or state budget crisis?
   As a fiscal conservative, a parent, and concerned taxpayer, I want to make sure we are getting value for our investment. I would prioritize spending on education programs that meet the demand of students looking for; transferring into a four-year university, vocational education, life-long learning, re-entering to gain skills to compete in a changing economy.

What two promises are you willing to make? On what are you unwilling to compromise? Be specific and concrete.
   1. Make sure the taxpayer is getting the value they expect
   2. Continue to provide and protect quality education. I am not willing to compromise on either of these.



Kevin Muldoon

What do you think of the district’s spending priorities? What, if anything, should change?
   The South Orange County Community College District has a $400 million annual budget. I believe the district should be focused on maintaining a balanced budget without issuing bond debt. Due to the current economic hardships, community college enrollment is steadily increasing. The district will have to cut wasteful spending to meet the demands of the growing student population without acquiring debt.

How would you prioritize spending in your budget to minimize the impact of revenue lost to the recession or state budget crisis?
   The district’s budget is funded by local property taxes and has diminished along with declining real estate values. I would work hard to ensure the colleges operate within their budgets and adequate reserves are set aside in anticipation of a prolonged recession. Classroom needs and facilities maintenance must be the district’s top spending priorities.

What two promises are you willing to make? On what are you unwilling to compromise? Be specific and concrete.
   I promise to support fiscally conservative principles and vote against the issuing of bond debt. Too many government institutions spend beyond their means. In this economy, we cannot afford to have a district governed by candidates who are beholden to the special interest groups.

AREA 4:

Jack Frost
Nancy Padberg
No answers provided

Story of my life. I always get the fuzzy end of the lollipop. --RG

Roy's obituary in LA Times and Register: "we were lucky to have you while we did"

  This ran in the Sunday December 24, 2023 edition of the Los Angeles Times and the Orange County Register : July 14, 1955 - November 20, 2...