DPS Bobb Replies to the news article.....

DPS story an inaccurate portrayal of turnaroundPosted: Oct. 17, 2009

The Oct. 10 story regarding Detroit Public Schools' use of consultants [["Pricey
consultants raise questions on DPS budget") is filled with inaccuracies and
disingenuously portrays our turnaround team's efforts.

http://freep.com/article/20091017/OPINION04/910170319/1322/DPS-story-an-inaccura\
te-portrayal-of-turnaround&template=fullarticle

It is simply untrue that $40 million has been "set aside ... to pay for
consulting fees ... for a turnaround team" I have assembled to radically correct
the dangerous course on which this city's school system had been heading.

Contracts reviewed again this week by the Office of the Auditor General -- and
made available to the Free Press -- total $4.9 million, not the $40 million
alleged in the article.

The work of the teams brought in to transform DPS systems has saved tens of
millions of dollars, funds that can be used to reduce our long-term deficit and
place more resources in the classroom, and that exceed many times over the cost for the turnaround team.

On health care alone, by removing 3,903 illegal dependents from our health care rolls we are saving $13.3 million, and through restructuring we will save an additional $16.1 million. On Medicaid billings, we anticipate receiving $13
million or more, in comparison with $5 million collected annually in previous
years. Reductions in taxicab services and reorganizing yellow bus routes will
save us $7.6 million. Functional reviews of special education services have
saved $15 million. Haircuts taken by vendors seeking past due payments have
saved $6.9 million. We discovered $3.4 million in overbillings and miscalculated fees from Blue Cross Blue Shield of Michigan. We are proud of our work to rein in spending, establish controls, create audits and uncover cases of waste, fraud, abuse and illegal activity.

It is true that, outside of the emergency financial manager's immediate
turnaround team, there is indeed a line item in the district's budget that sets
aside funds for contracted services. The work of the turnaround team and normal contracted services should not be confused. We are, in fact, pursuing
opportunities for managed competition, as has been done in the past. In areas
such as student transportation and facility operation and maintenance, if it can
be proven that our employees can perform this work better and at lower costs,
then employees will do the work. If it is shown to be better to bring in private
firms, we will do so.

The reference to Kevin Clinton, a DPS employee who fills a position that had
previously existed, fails to note his achievements to make $16 million in
unspent Title I funds available for summer school programs and his efforts to
help DPS avoid returning an additional $89 million in federal aid. The article
fails to note that Angela Joyner, the DPS budget director, fills roles
previously held by two full-time administrators. The article also fails to
mention that 40% of one consultant contract has been covered by the prestigious

Broad Foundation.

In the 227 days that we have been on the ground, we continue to root out waste,
fraud and abuse, save tens of millions of dollars and transform this district
into one filled with centers of excellence at every school in every
neighborhood. Inaccurate reporting, while it does not slow our efforts one
minute, does a disservice to your readers who deserve to know the whole story.

Robert C. Bobb

Emergency Financial Manager

Detroit Public Schools

EDITOR'S NOTE: The Free Press stands by its story.