Detroit’s Fraud Central

Sunday, August 30, 2009
Posted in category Public Uneducation

Detroit public schools are the worst prison system in the nation, with less than 30% of its inmates receiving a high school diploma. It is also the most corrupt system, run by amateurs and thieves and liars that reside within the city’s Marxist power structure. The fraud is so lowbrow that insiders have resorted to putting ghost workers on the payroll.

Emergency Financial Manager Robert Bobb, appointed by Jennifer Granholm to oversee DPS, hinted at ghost workers back in April and earlier this month took the unusual step of forcing the district’s estimated 13,880 workers to pick up their checks in person.

…Thirty-seven paychecks and 220 direct-deposit slips totalling approximately $208,000 were not picked up, according to the Detroit Free Press.

It has also been determined that at least 500 people were illegally receiving health care benefits. Employees throughout the school system have stolen money and assets at will, and that includes low-level workers such as cafeteria workers and clerical staff. One payroll manager got away with almost a half million dollars in four years. 

Among the five charged was a clerical worker at an elementary school who wrote herself 15 checks and made 17 withdrawals from district accounts that netted her more than $25,000, Wayne County Prosecutor Kym Worthy said. Also charged were a high school teacher’s aide, a food service coordinator at an elementary school, a truck driver and a district controls office worker.

The charges come after an audit last week revealed the district has been paying $2.1 million per year for health coverage for ineligible dependents, unused cell phones and 11 motorcycles.

Adam B. Schaeffer of CATO writes:

Detroit is crumbling, with public schools leading the way toward total dissolution. After decades of mismanagement and malfeasance, after countless scandals and promised reforms, after losing about half of its student population since 2001, the end seems finally, perhaps mercifully, here. The Detroit public school system is on the edge of bankruptcy.

Millions have been found to be misappropriated. School officials were receiving inappropriate loans and shoddy bookkeeping is helping to cover up years and years of fraud. Also, $1.7 million was transferred from the tax-exempt district to the city of Detroit – but no one has yet to explain where that money went. 

Now for the final, merciless statistic: the DPS budget for 2009 calls for it to spend $13,500 for each student.

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9 Responses to Detroit’s Fraud Central

  1. Warhawk says:

    August 30th, 2009 at 11:53 am

    Many naive academics have used DPS as proof of racism in the system. Students are allocated roughly the same funds per student as the “rich, white” districts in the surrounding suburbs but their results are incredibly bad. It never occurred to any of them that it was corrupt public servants that were the problem. I’m patiently waiting for the indignant cries of “government greed” as the root of all our problems.

  2. Bob Roddis says:

    August 30th, 2009 at 12:45 pm

    The brilliant progressive Matt Yglesias says that these problems all come about because rich people aren’t forced to sent their kids to public schools: “Felix Salmon raises a long-time bugaboo of mine—the madness of giving private schools the same tax status as charities. It’s true, of course, that someplace like the schools I was sent to aren’t for-profit businesses. But they’re certainly not charities. And as best one can tell, their main impact on the common weal is negative, drawing parents with resources and social capital out of the public school system and contributing to its neglect.”*************************

  3. Tom Osborne says:

    August 30th, 2009 at 4:10 pm

    So fascinating, and sad, to see the destruction of everything “Detroit”; this was like the looting of New Orleans during the Katrina debacle. I am afraid that Detroit is actually a symbol of the entire United States.

    And Bob Roddis, your comment points out how the “progressive” solution is to accelerate and spread the destruction even further. Here is the comment I left on that “Yglesia” website:

    You really don’t understand economics at all, do you? Tax TUITION? Tuition is “sales”, not “profit” or “income”. There are expenses that must be taken out of tuition and no private school runs entirely on its tuition; they all need subsidizing from donations, or, if they are parochial, from church coffers. Private schools aren’t like government-run schools that basically have an unlimited base to steal from via taxes. Private schools could go through the whole tax-form-filling-out process, only to owe no taxes at the end because there was NO income.

    Also, your point about how their “impact on the common weal” is negative (as if people’s money is meant to be spent on the “common weal”) because of the lost social opportunity of rich people making public schools better–do you realize how this one sentence utterly destroys your cherished concept of how the government is the solution to all ills? What you OUGHT to be saying is that private schools NEED the presence of the product of government schools in order to fix THEM, but since that would be laughable, you have proven right there how government CAN and DOES offer no solution at all. So your answer to that is to steal YET more tax money to pour down this same government rat hole.

  4. Craig says:

    August 31st, 2009 at 12:51 am

    The citizens of Detroit do not seem to care. I would say they have reached an apathetic point. Parents can not get their children to even finish high school (25% graduation rate). If I am a student, and I see how my parents do not work and get free money from the government, why would I desire to finish high school?

    Someone wrote an interesting piece on Detroit recently. One of the key points was how Detroit is lacking in elite universities. He went on to cite how Wayne State is a research university, but WSU does not equal University of Michigan or University of Chicago. His point was, why would you go to WSU, when you can go to U of M?

    In my personal life, I see that as well. My sister is going to Northwestern for law school. The city of Chicago has several elite law schools: University of Chicago, and Northwestern. Detroit has Wayne state, which is unranked, and University of Detroit-mercy (unranked). My dad happened to ask the question of, “why does Chicago seem to have many great schools, and Detroit is mostly unranked schools?

    I think it boils down to the above. People are just apathetic.

  5. clark says:

    August 31st, 2009 at 11:37 pm

    “People are just apathetic.” – Because they know they are Helots. Perhaps it is those who pursue higher education who are the ones who fail? They fail to see they are slave to a system that can take anything it wants at anytime for any reason, or no reason at all. They slave away their entire lives seeking a retirement only to die the day after. Perhaps it’s better to have nothing at all and never have it taken from you? Did you see the recent article about lifespans and race? Without true liberty and property rights we are all Helots, only some of us don’t know it and look down on those who do and opt out of the rat race that supports the continuation of the plantation.

  6. Craig says:

    September 2nd, 2009 at 3:03 pm

    In other words, you can be a slave to the welfare system, or slave to the business who knows your soul?

  7. Mark T says:

    September 2nd, 2009 at 5:23 pm

    “Millions have been found to be misappropriated. School officials were receiving inappropriate loans and shoddy bookkeeping is helping to cover up years and years of fraud. Also, $1.7 million was transferred from the tax-exempt district to the city of Detroit – but no one has yet to explain where that money went. ”

    And, of course, no one will ever be prosecuted for this theft.

    Years a go when I was working as a legal assistant I pulled up a number of GAO reports. Those reports were audits of various federal agencies. Billions couldn’t be accounted for. And NOTHING happened.

    It appears that Detroit is learning from its betters. They have a long way to go.

    With all the money from the fraud and abuse inside federal agencies in the last 20, years the government could have assembled a death star and have it orbiting on the dark side of the moon. Or, they could have abolished a number of different taxes. At the very least, they could have paid off all federal debt. Detroit now looks like a miniature reflection of the feral gubmint.

  8. Steve Bernier says:

    September 3rd, 2009 at 10:35 pm

    For $13,500, a reasonably sound education in a private school. It is a shame that Detroit is crumbling. It is not unique though. Cities all over the country face the same situation, perhaps not nearly as dire, but rapidly going bankrupt. Property taxes are going up in Charlotte NC because the city guvmint wants to “build” a mass transit train system. The first part of this mass transit train system, was $14 million dollars over budget. There was charges of corruption. Soon we will be like Detroit, shrinking tax base because people will flee the city and county. Politicians never learn. Spend, spend, spend. Tax, tax, tax.

  9. Christa Barnhizer says:

    September 6th, 2009 at 8:33 pm

    $13,500!?!?!? I spend well under $1000 per year homeschooling two children. Sooooo, I’m saving tax dollars by keeping my kids out of the gov’t indoctrination centers. And I’m spending my own money in this rotten economy, which saves jobs. Yglesias should be thanking me for my daily contribution to the common weal. Ingrate.

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