Sharing the blame

There’s a substantial factual error in today’s Times-News’s otherwise perceptive, if belated editorial taking Erie Schools Superintendent James Barker and the board to task for the $37 million bond refinancing exercise they undertook back in 2003 without assessing its true implications or inquiring how much it would cost.

Normally, these are financial exercises designed or intended to save money. But this one clearly cost the district taxpayers an unknown but significant sum exceeding $1 million, plus the significant but as yet undetermined fees the broker charged to handle the transaction. (See this blog, Barker’s cover story, Oct. 14, 2007).

However, the Times-News also bears some responsibility for its longstanding failure to bring the matter to light, which was only revealed recently when a New York City news organization, Bloomberg News, exposed the costly blunder, scooping the local paper in its own backyard.

Today’s editorial says: “But back in September 2003, Barker and the board seemingly decided to push ahead with refinancing about $37 million in bonds in a complex transaction to enable the district to net about $750,000 as it was trying to solve its annual budget challenges.”

In fact, the original savings from the refinancing transaction had initially been presented by the broker as $1.5 million, double the figure cited in the editorial. So the actual but as yet unknown costs to the district are significantly higher than indicated therein.

According to the editorial, “Three board members who supported it and are still on the board - Jim Herdzik, Mary Frances Schenley and Eva Tucker Jr. - should share responsibility for this apparent failure.”

If the Times-News is going to finger-point, it should take the exercise one logical step further. News coverage at the newspaper is dictated by its editorial board which reportedly makes decisions collectively as to which matters are to be covered, which aren’t, and how.

Among them are Executive editor Rick Sayers, Managing Editor Pat Howard, Editorial Page Editor Bryan Oberle and Public Editor Kevin Cuneo. To put it in their terms, seems they “should share responsibility for this apparent failure“ to expose this important matter at the time it occurred, rather than allow an out-of-state reporter to scoop them four years later.