The scope of the LAUSD payroll debacle continues to unfold. In the unpacking, a story of an incredible bureaucracy making terrible financial decisions takes shape. The District, which employs over 95,000 people has 1,150 different pay grades contributing to an extremely complex payroll system. After paying a consulting firm $55MM to install the software programs and train LAUSD employees, the system went on to overpay some employees a total of $53MM last year while underpaying others, and leaving some completely unpaid for months at a time.
In response to the crisis, the LAUSD has paid around $700K in legal fees to sue the consulting firm (Deloitte). The question now remains, can the District and its superintendent, David Brewer, be trusted to handle over $19B in bond funds to rehabilitate old, and build new school facilities?
Link: http://www.latimes.com/news/opinion/la-oe-rutten13feb13,0,6611148.column
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