Following the money and uncovering an embezzlement

Dana Black

Not in our wildest dreams did we think of embezzlement. As a

parent of two boys, a happy PTA volunteer, a Cub Scout leader and a

classroom volunteer, I was shocked to learn that all elementary art,

music and [physical education] teachers would be laid off the next

year because of budgetary shortfalls.

We had just completed another successful jog-a-thon at Mariners. I

decided we could volunteer our time and money to keep these teachers

at our campus. I talked it over with some of the parents at Mariners

and at Kaiser, and it was decided I would be the one to go to the

Board of Education meeting and give them the good news.

I wasn’t nervous because I was coming to offer them our help. I

quickly realized that I would not be celebrated for our great offer.

Dr. John Nicoll told me that he did not have the time or the

wherewithal to educate me in public finance. I left that meeting with

the resolve to learn everything about public school funding.

I asked several parents with expertise in different areas of

finance to help me dissect the budget. They were Alesia Erickson,

Margie Gardner, Phil Richardson and Sherry Kallab. I have to mention

all our spouses and our children, as we would not have been able to

spend the time without their support. We met in the evenings at my

office after dinner and homework was done. We each took a section and

would be responsible for researching funding sources (this is how I

learned the effects of Proposition 13 on public education) and how

the district used these funds. By the way, the Board of Education has

control of only 7% of budget expenditures.

Every board member contacted me and offered explanations and help.

However, it wasn’t until Kallab discovered an account that was not an

open account on all of our actual budgets. We contacted Judy Franco

and asked her for a copy of her most recent budget. Kallab, along

with Phil Richardson, was able to download the information. That was

when we first suspected this was not mismanagement, but someone may

have been stealing.

Kallab and I went to the county Department of Education and waded

through all the past budgets to 1976 for Newport-Mesa Unified School

District, copied the information and put together a possible

scenario. But who? We met with all board members, the superintendent,

staff and, of course, Steve Wagner, who was steering us toward Tom

Godley (assistant superintendent).

Easter of 1992, I had Easter brunch in the morning, and then had

Kristina Lindgren, an investigative reporter from the Los Angeles

Times, her assistant, Liz Parker from the county Board of Education

and a member of the Grand Jury at my home in the afternoon. We shared

the information, and the rest is history. You will have to wait for

the book.

* DANA BLACK is a Newport-Mesa Unified trustee.