Thankfully some Colorado democrats on Monday took proposed Senate Bill 91 and tossed it in the bin. Hopefully the House will take HB 1036 and do the same. I wouldn’t want to see some soccer mom wrecking her Sienna in rage over school spending on the wrestling team or pizzas.
Colorado lawmakers had considered legislation in 2009 (that was defeated) that would have greatly increased the reporting requirements for school districts. Similar measures have been on the agenda for 2010. While their proponents promote the demand for transparency, I believe these proposals go way, way above the threshold representing quality communication in the spirit of solid corporate governance.
The most touted proposals would effectively require the school district to make their general ledger available online allowing any concerned citizen to “drill down” into the details including to see how much Ms. Jones, the 2nd grade teacher, is making. Really? So what sort of sound judgment is Joe Public going to gain from this level of detail? Probably none. It is unlikely he will spend the amount of time necessary to understand the overall workings on the educational funding and spending system let alone how Ms. Jones fits into the overall picture.
A limited number of school districts in Colorado have already gone down the path of detail disclosure. Jefferson County R-1, Colorado’s largest school district, has implemented a website that presumably offers (I’m not so curious to look myself) significant details of spending. Amazing what you can do when you get 10% of the State’s share of school district funding.
For decades the private sector has explored the boundaries of transparency and quality reporting. Over those years, accounting principles have been continuously revised to respond to changes (or perceived changes) in public demand for information, accountability and transparency. With these changes (and I believe most for the good), I haven’t seen one legitimate proposal that would suggest that GMAC, AIG, Freddie or Fannie should put their general ledgers out on the web in order for investors, regulators and taxpayers to see every detail. In fact, the principles of financial reporting demand that information is presented in a summarized format that is useful. It is understood that most interested parties are not accountants and need management and the directors to exercise judgment within professional standards to ensure the information is understandable.
In Colorado this responsibility rests with the school district’s board, superintendent and staff having financial accounting responsibilities. In most, if not all cases, this information is then subjected to an annual audit. I would suspect that public availability of this report, board minutes, and open access to board meetings satisfies the vast majority of any legitimate interest in the activities and oversight of the school district’s activities.
Because something “can” be done, doesn’t suggest it “should” be done. Nor is this a matter of monetary cost. Those engaged to govern school operations have enough issues to deal without being subjected to scrutiny over frivolous claims of spending abuse.
As for this taxpayer, I don’t need an app for my iPhone. Open communication and accountability for financial and academic results are enough.
BA
