Friday, January 13, 2006

Daniels issues executive order on cooperative purchasing

PRESS RELEASE

In a stunningly bold move, Governor Mitch Daniels has proved that he can not only save daylight time in Indiana but he can even change time itself.

According to a spokesperson close to the governor, Daniels and his advisors were recently shocked to find out that Indiana school districts have banded together since 1981 under Indiana statute SC-1 to save money through cooperative purchasing agreements made through Regional Service Centers. This realization unfortunately came soon after they had publicly announced a major initiative encouraging schools to band together to do cooperative purchasing.

The Super's Blog has learned through its top secret mole in the state house, that The Governor will soon issue Executive Order 06-01 which encourages schools to purchase commodities, natural gas and other supplies through cooperatives and hereby declares all such cooperative purchases to be made retroactive to 1981 when Indiana's Regional Service Centers were first created.

The mole said, "Don't tell anyone, but he just wants a little credit for it. It's not good for his conservative base to know that public schools have done this for years."

A spokesperson close to the Governor said, "This Governor doesn't need daylight savings time, he can change time itself."

3 Comments:

At Friday, January 13, 2006, Anonymous Anonymous said...

I find it interesting, after your mocking preview of the govenor's State of the State, that you now have nothing to say about the REAL speech. Many of your colleagues have praised the governor for his commitment and ACTION to end the delayed payments begun under the previous administration. Do you just find it impossible to say anything nice about this governor? You are making it pretty clear that you are either a hard-core partisan or an entrenched bureaucrat or both!

 
At Friday, January 13, 2006, Anonymous Anonymous said...

I think it would be wise to see if the governor actually ends the delayed payments before giving him credit for doing so.

For schools who borrow for cash flow purposes, the current move and the move to ultimately end the delay of payments does not help schools by providing any additional money. It does reduce the amount they may need to borrow to make up for the delay. Thus it is a move that will help property taxpayers. In the long term, ending the delay of payments will be welcomed by schools not because they receive any additional funds but rather because it signals a strengthening economy in the state.

 
At Friday, January 13, 2006, Blogger Indiana Public School Superintendent said...

I don't hate the governor, I just wish he'd speak straight instead of speaking tough. I actually voted for him whether you believe that or not. But over and over he tends to put ideas out quickly before understanding things real well and tries to paint it as talking straight when it mostly is talking tough.

I will post pone my glee over the decision to end the delayed payments until I see whether it becomes a permanent thing. As far the other issue of restoring the back pay owed the schools, I will wait to see if the payments are made part of the base or whether they in effect end up being one time cash infusions that do nothing to help the long term revenue stream issues my particular district faces.

One superintendent once pointed out that most legislators, as well as the labor representatives we bargain with, often confuse cash balance and revenue.

Cash balance is like a bowl of water, revenue is like the faucet. To fund ongoing instructional programs for children requires a revenue stream - a steady flow. Large or small is a social decision - but nonetheless it needs to be steady. Whether economies are strong or weak - children are still here and still need help. This is why schools by and large support property taxes as a base because they tend to be more stable even though they are unpopular by and large.

A little extra cash will help cash flow temporarily. But it does not give one the ability to maintain programs and services that require continuity.

I am glad the governor says he wants to replace the funding. I am also hoping they end the delay of payments. However, my years of experience have told me that it could be subracted in some other form or another - and only those in the trenches will know it. The politicos take credit - then tweak the formula. They all do it, just like when Evan Bayh moved various budget lines under the General Fund part of the formula so that it would appear to look like favorable increases to the GF. He also as I recall, practiced the art of taking schools January payments and witholding them till Dec 30 so the state gets the interest. Schools then go pay interest on tax anticipation warrants to maintain cash flow and meet their payroll.

So - virtually all experienced superintendents have learned to withhold their glee until they see the details.

Friday, January 13, 2006

 

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