>>
Gary: JUST AHEAD ON "NEED TO
KNOW," A WEEK AGO THE CITY
SCHOOL DISTRICT CELEBRATED ITS
ACTION TO CLOSE A
17-MILLION-DOLLAR BUDGET GAP,
BUT THAT JUST TAKES CARE OF THE
CURRENT SCHOOL YEAR.
NEXT YEAR, THE BATTLE TO STAY
AFLOAT IS FAR FROM OVER.
WE'LL TAKE A LOOK AT THE
AFTERMATH OF THE VOTE AND WE'LL
TOUCH ON THE AFTERMATH OF THE
ENRON DEBACLE RIGHT HERE AT HOME
IN THE WEEKLY BUSINESS REPORT
WITH THE "DEMOCRAT AND
CHRONICLE'S" ELLEN ROSEN.
THIS AND A TRIBUTE TO FLOWER
CITY HISTORY ALL THIS WEEK ON
"NEED TO KNOW."
>> MOST OF THE TALK, IF NOT ALL
THE TALK FOR A NUMBER OF WEEKS
WAS ARE WE GOING TO GET CAUGHT?
WHAT'S THE LATEST?
HOW DID WE GET IN THIS
SITUATION?
>> THIS IS "NEED TO KNOW," THE
ROCHESTER AREA'S ONLY IN-DEPTH
NEWS PROGRAM.
"NEED TO KNOW" IS A PRODUCTION
OF WXXI NEWS AND PUBLIC AFFAIRS
COVERING ISSUES, POLITICS,
EDUCATION AND CURRENT EVENTS.
>> "NEED TO KNOW" IS MADE
POSSIBLE BY THE DAISY MARQUIS
JONES FOUNDATION, BY DORSCHEL
LEXUS AND THROUGH THE SUPPORT OF
VIEWERS LIKE YOU.
>> Gary: THANK YOU FOR JOINING
US.
I'M GARY WALKER.
THIS YEAR'S CITY SCHOOL BUDGET
GAP WAS CLOSED WITH WHAT'S BEING
DESCRIBED AS MINIMAL AMOUNTS OF
LAYOFFS AND FEWER PROGRAM CUTS
THAN EXPECTED.
SO SMOOTH SAILING FROM HERE?
WELL, NOT QUITE.
ALTHOUGH CITY OF ROCHESTER CITY
COUNCIL DID HAVE SOME RESTORED
FAITH IN THE DISTRICT, IN
RESPONSE COUNCIL MEMBERS JUST
VOTED TO ISSUE MORE THAN $21
MILLION IN BONDS FOR SCHOOL
CONSTRUCTION AND RENOVATION
PROJECTS.
COUNCIL PRESIDENT LOIS GUY SAYS
THE FUNDS WILL BE REIMBURSED BY
THE STATE, SO ESSENTIALLY THE
STATE SAID THE CITY WILL GET ITS
MONEY BACK.
THE DISTRICT SAYS IT'S SOLVED
ITS CURRENT PROBLEMS WITHOUT A
HEAVY-HANDED APPROACH BY CUTTING
78 TEACHING JOBS, SEVERAL
NON-MANDATED SCHOOL PROGRAMS BY
EXPECTING ABOUT $7 MILLION IN
STATE AID.
BUT THERE'S STILL NEXT YEAR'S
BUDGET TO THINK ABOUT.
AND CRITICS FEEL THE CUTS
WEREN'T DEEP ENOUGH AND THAT
IT'S MORE THAN LIKELY SOME OF
THE SAME ISSUES WILL COME UP
AGAIN.
TONIGHT WE HAVE THE SCHOOL BOARD
PRESIDENT, THE TEACHERS' UNION
AND THE MAYOR OF ROCHESTER ON
HAND.
BUT FIRST YOU MAY BE WONDERING
WHAT LIFE IS LIKE NOW FOR THOSE
HIT HARDEST BY BUDGET CUTS.
"NEED TO KNOW'S" MATT CUMMINGS
MET WITH A GROUP OF TEACHERS AND
STUDENTS AT SCHOOL NUMBER 58,
WHO ARE DEALING WITH THE BUDGET
AFTERMATH.
>> WELL, I KNEW THAT SOME OF THE
TEACHERS WERE GOING TO BE LAID
OFF AND SOME OF THE LIBRARIANS.
>> Matt: EVEN AS A SIXTH GRADER
AT SCHOOL 58, ADRIAN ELAN KNOWS
FULL WELL WHAT THE IMPACT OF THE
ROCHESTER CITY SCHOOL DISTRICT'S
BUDGET CRISIS COULD HAVE BEEN.
SO DOES CLASSMATE CASEY JACKSON.
>> I ACTUALLY HEARD THAT MAYBE
ONE OF THE FOURTH-GRADER
TEACHERS WAS GOING TO HAVE SOME
TROUBLE WITH THAT, AND THAT
WOULD HAVE AFFECTED BECAUSE THE
FOURTH GRADERS, IT'S A BIG TIME
WITH THE E.L.A. TESTS, AND IF
THEY HAD TO BE TAUGHT BY
SOMEBODY ELSE, I THINK THAT
WOULD HAVE HAD A HUGE EFFECT ON
THE STUDENTS.
>> Matt: WHILE ADRIAN AND CASEY
MAY NOT KNOW THE FULL EXTENT OF
THE RECENT BUDGET CRISIS, THEY
AREN'T ALONE.
MARK POWERS TEACHES COMPUTER
CLASSES AT WORLD OF INQUIRIES
SCHOOL NUMBER 58.
>> ON THE COMPUTER, ON THE
SCREEN, LOOK FOR THE BLUE "E"
THAT SAYS "INTERNET EXPLORER"
AND CLICK ON THE BLUE "E," NOT
ON THE WORDS BUT ON THE BLUE
"E."
>> Matt: HE SAYS WAITING TO HEAR
JUST HOW THE DISTRICT WOULD
CLOSE THE REMAINING
17-MILLION-DOLLAR BUDGET GAP WAS
AN EMOTIONAL RIDE.
>> FROM WHAT I UNDERSTAND,
SCHOOL 58, THE ONLY IMPACT IT
MAY HAVE HAD WOULD HAVE BEEN WE
MAY HAVE LOST ONE TEACHER.
SHE WAS A CONTRACT SUB.
BUT AS OF LAST WEEK WHEN THE
BUDGET WAS APPROVED, THE FINE
PRINT STILL WASN'T WORKED OUT
AND, TO TELL YOU THE TRUTH, WE
DON'T KNOW WHAT'S GOING TO
HAPPEN.
ACTUALLY THIS KIND OF WORRIES A
LOT OF PEOPLE.
THEY DON'T KNOW WHAT'S GOING TO
HAPPEN.
>> Matt: AND THE PARENTS.
>> I TALKED TO A NUMBER OF
PARENTS, AND THE PARENTS WERE
VERY CONCERNED ABOUT A MIDYEAR
INTERRUPTION WHERE A CHILD WOULD
BE BONDED WITH THEIR TEACHER, BE
USED TO THE -- YOU KNOW, THE
POLICIES AND PROCEDURES IN THAT
CLASSROOM AND THEN SUDDENLY HAVE
THAT TEACHER RIPPED OUT MIDYEAR.
>> Matt: POWERS SAYS HIS BIGGEST
CONCERN WAS A PROPOSAL TO FORCE
LIBRARIANS AT SMALLER CITY
SCHOOLS, LIKE NUMBER 58, TO GO
PART-TIME, WHICH MEANS THE
LIBRARY WOULD NOT ALWAYS BE OPEN
FOR ADRIAN, CASEY AND
CLASSMATES.
>> WHICH I THINK WOULD HAVE
REALLY CHEATED THE STUDENTS OUT
OF THE INFORMATIONAL SKILLS, THE
READING THINGS THAT THE
LIBRARIAN WORKS ON WITH THE
KIDS.
>> Matt: NANCY WESTENDORF IS
SCHOOL 58's LIBRARIAN.
>> IT IS MY JOB, MORE THAN IT IS
THE TEACHER'S JOB, TO BE ON TOP
OF THE NEWEST AND GREATEST
MATERIALS.
>> Matt: HER FULL-TIME STATUS
WAS IN JEOPARDY DURING THE
RECENT BUDGET CRUNCH.
BECAUSE OF HER TENURE, SHE
WOULDN'T HAVE LOST HER JOB, BUT
SHE COULD HAVE BEEN SCHEDULED
PART-TIME AT TWO DIFFERENT
SCHOOLS.
WESTENDORF IS THANKFUL THE
DISTRICT AND THE BOARD DECIDED
NOT TO LET THAT HAPPEN.
SHE SAYS IT COULD HAVE BEEN
DEVASTATING FOR STUDENTS AND
TEACHERS.
>> IT IS THROUGH ME THAT THEY
ARE ABLE TO FIND MATERIALS THAT
ARE CULTURALLY RELEVANT AND ARE
ACCURATE AND TIMELY.
IF LIBRARIANS ARE NOT PROVIDING
THOSE MATERIALS TO TEACHERS
CONSTANTLY, THEN TEACHERS WILL
SETTLE FOR THE SAME OLD SAME
OLD, THE TRIED AND TRUE THAT
THEY'VE USED FOR YEARS AND MAY
NOT BE INTRODUCING JUST THE
RIGHT MATERIAL THAT WILL TURN
THESE KIDS ON TO LEARN.
>> Matt: LAST THURSDAY'S VOTE
ENDED MONTHS OF FINANCIAL
TURMOIL AS DISTRICT LEADERS AND
THE ROCHESTER BOARD OF EDUCATION
CRUNCHED THE NUMBERS TO
ELIMINATE A BUDGET DEFICIT SOME
SAY REACHED $49 MILLION; AND
WHILE A FINANCIAL RESOLUTION FOR
THIS FISCAL YEAR HAS BEEN
ACHIEVED, THERE IS ALREADY
WIDESPREAD CONCERN ABOUT NEXT
YEAR'S BUDGET.
>> I THINK ANYBODY WHO HEARD
JOANNE GIUFFRIDA THAT NIGHT SAY
THAT, NEXT YEAR, EVERYTHING'S ON
THE TABLE SHOULD BE NERVOUS AND
WORRIED AND CONCERNED AND
LOBBYING FOR THEIR PROGRAM OR
THEIR SITUATION BECAUSE THE
BUDGET COULD BE MUCH LARGER.
BUT HOPEFULLY BECAUSE IT WILL BE
IN THE BEGINNING OF THE YEAR AND
WE'LL HAVE SOME PLANNING TO DO
OR SOME WAY TO FIGURE THINGS OUT
INSTEAD OF HAVING IT HAPPEN
MIDYEAR, IT SHOULD BE -- YOU
KNOW, THE EFFECTS SHOULD BE LESS
THAN HAD IT COME MIDYEAR BUT,
YOU KNOW, SHE SAID ANYTHING'S
GAME.
>> Matt: POWERS SAYS HE DOES NOT
BLAME SUPERINTENDENT CLIFFORD
JANEY.
HE BELIEVES MUCH OF THE
RESPONSIBILITY FOR THE
DISTRICT'S FISCAL SHORTFALL LIES
WITH LOCAL AND STATE
GOVERNMENTS.
>> I DON'T KNOW IF REPLACING
JANEY WOULD CURE THE PROBLEM.
I THINK THE PROBLEM IS MAYBE THE
RELATIONSHIP BETWEEN THE CITY
GOVERNMENT AND THE SCHOOL BOARD
AND THE RELATIONSHIP BETWEEN THE
STATE GOVERNMENT AND THE LOCAL
-- YOU KNOW, THE LOCALITIES.
BECAUSE THE MONEY -- THEY'RE
JUST NOT GIVEN THE MONEY THAT
THEY HAVE, THAT THEY SHOULD BE
GIVEN.
>> Matt: ASSEMBLYWOMAN SUSAN
JOHN RECOGNIZES THE NEED FOR
STATE EDUCATION FUNDING, BUT SHE
SAYS THE BLAME FOR THE
DISTRICT'S FINANCIAL WOES SHOULD
NOT BE DIRECTED AT STATE LEADERS
IN ALBANY.
>> STATE FUNDING HAS MADE THE
DISTRICT'S LIFE POSSIBLE FOR THE
PAST SEVERAL YEARS, SO IT IS
DISINGENUOUS FOR THE DISTRICT TO
SUGGEST THAT STATE FUNDING HAS
PLAYED A ROLE IN ITS PROBLEMS.
THEY HAVE RECEIVED RECORD AID
INCREASES FROM THE STATE, AND IN
THE YEAR THAT THEY RECEIVED A
RECORD STATE AID INCREASE, AN
AMOUNT THAT WAS SOMEWHERE
BETWEEN 30 AND $35 MILLION IN
INCREASED AID, THEY HAD TO SPEND
THEIR CASH RESERVES TO BALANCE
THEIR BUDGET.
THE SCHOOL DISTRICT HAD BEEN
ANTICIPATING AN AMOUNT OF STATE
AID THAT WOULD HAVE MATCHED OR
NEARLY MATCHED WHAT HAD BEEN THE
RECORD INCREASE THAT THEY HAD
RECEIVED THE PRIOR YEAR.
YOU CAN'T EXPECT THAT YOU'RE
GOING TO GET A RECORD INCREASE
EVERY YEAR.
>> Matt: POLITICS ASIDE, CASEY
REMAINS CONCERNED.
>> IF SOMETHING REALLY BAD
HAPPENS, LIKE A LOT OF TEACHERS,
LIKE EVEN FROM MY SCHOOL GET
LAID OFF OR SOMETHING, THAT WILL
BE A BIG IMPACT TO ANYBODY.
(Music)
>> Gary: THANK YOU, MATT.
AND THAT SETS UP OUR DISCUSSION.
LET'S BEGIN RIGHT AWAY WITH THE
PRESIDENT OF THE BOARD OF
EDUCATION HERE, JOANNE
GIUFFRIDA.
JOANNE, HELLO.
>> HI.
>> Gary: THANK YOU FOR COMING
ON.
THE BOARD AND DISTRICT WERE
DOING -- FEELING PRETTY GOOD
ABOUT WHAT THEY DID LAST WEEK,
CUTTING THE -- MEETING THEIR
BUDGET WITHOUT A LOT OF -- LOTS
OF -- FEWER LAYOFFS THAN WE
THOUGHT.
BUT DID YOU MISS AN OPPORTUNITY
TO BEGIN SERIOUS STRUCTURAL
CHANGES HEADING INTO THIS NEXT
BUDGET YEAR?
>> NO, I DON'T THINK SO, GARY.
I THINK THAT WE DO NEED TO MAKE
SERIOUS STRUCTURAL CHANGES.
DOING IT IN THE MIDDLE OF THE
SCHOOL YEAR IS NOT THE IDEAL
TIME TO DO THEM.
THE WAY I LOOK AT IT, WE DODGED
A BULLET LAST WEEK BUT WE'RE
STILL IN THE MIDDLE OF THE WAR,
AND THE WAR IS REALLY THE NEXT
THREE MONTHS AS WE PREPARE OUR
BUDGET FOR THE NEXT SCHOOL YEAR.
>> Gary: LET'S TURN RIGHT AWAY
TO ROCHESTER MAYOR -- YOU KNOW
WHAT?
I WAS ALMOST GOING TO CALL YOU
THOMAS RYAN.
>> I WAS JUST ABOUT TO CALL YOU
JACKSON.
(Laughter)
>> Gary: MAYOR JOHNSON.
>> YOU DID WORK FOR JACK.
>> Gary: I DID NOT.
MAYOR JACKSON -- MAYOR JOHNSON,
LET'S DO IT THIS WAY.
LAST WEEK YOU WERE PRETTY
CRITICAL OF THIS STOPGAP
MEASURE.
YOU'VE BEEN SAYING RIGHT ALONG
THAT THERE ARE SOME STRUCTURAL
PROBLEMS ON THE BOARD BUDGET
THAT REALLY NEEDS TO BE CHANGED.
SO I ASK YOU NOW, ARE YOU HAPPY
WITH WHAT HAPPENED LAST WEEK
AND, IF NOT, WHAT WOULD YOU WANT
THE BOARD TO DO?
>> WELL, I THINK THAT SUSAN
JOHN'S WORD "DISINGENUOUS" HAS
REALLY HAS GOT TO BE STATED
HERE.
WITH ALL DUE RESPECT TO JOANNE,
MY FRIEND, THE REASON THEY WERE
FORCED TO CUT IN MIDYEAR WAS
BECAUSE THEIR STAFF, THE PEOPLE
THEY HIRED TO RUN THE SCHOOL
DISTRICT, WERE NOT AS ASTUTE AS
THE ADMINISTRATIVE LEVEL SCHOOL
DISTRICTS AROUND THIS STATE
COULD RECOGNIZE BACK IN THE
SUMMER THAT STATE AID'S NUMBERS
WERE NOT GOING TO MATERIALIZE,
AND THEY BEGAN TAKING THE ACTION
SO THAT THEY WOULDN'T DISRUPT
THE CITY AND THEY WOULDN'T HAVE
TO DO IT IN THE MIDDLE OF THE
SCHOOL YEAR.
I THINK WHAT THEY'VE DONE HERE
IS REALLY JUST DELAYED WHAT IS
INEVITABLE.
THEY'RE GOING TO HAVE TO FACE
THIS 17 MILLION, 29 MILLION, 49
MILLION, WHATEVER THE SIZE OF
THIS BUDGET DEFICIT WAS.
THIS YEAR THEY'RE GOING TO HAVE
TO FACE IT ALL OVER AGAIN, PLUS
MORE NEXT YEAR.
IF THE PEOPLE WHO COULDN'T DEAL
WITH THE PAIN -- AND I HEARD
THESE TEACHERS TALK ABOUT
LOBBYING TO PROTECT THEIR
POSITIONS.
IF THEY COULDN'T DEAL WITH THE
PAIN IN JANUARY OF 2002, I
REALLY DON'T SEE HOW THEY'RE
GOING TO BE ABLE TO DEAL WITH IT
IN APRIL OF 2002.
AND THAT'S WHEN THEY'RE GOING TO
HAVE TO DEAL WITH IT.
TWO MONTHS.
>> Gary: LET'S GO RIGHT NEXT
DOOR TO YOU.
WE HAVE TOM GILLETTE, THE FIRST
VICE PRESIDENT OF THE ROCHESTER
TEACHERS' ASSOCIATION.
TOM, EVERY UNION, NOT JUST THE
TEACHERS' UNION, GAVE UP SOME
CONCESSIONS.
YOU JUST HEARD THE TALK THAT'S
GOING ON.
ARE THE TEACHERS READY TO GIVE
UP MORE NEXT YEAR?
>> WELL, I THINK THE INTERESTING
PERSPECTIVE ON THIS IS THAT
THERE ACTUALLY ARE TEACHERS WHO
ARE GOING TO BE LAID OFF.
THERE HAVE ALREADY BEEN TEACHERS
LAID OFF.
WE'VE HAD A REDUCTION IN OUR
WORKFORCE.
THERE LIKELY WILL BE FURTHER
REDUCTIONS GOING INTO THE NEXT
SCHOOL YEAR.
I'M EXPECTING THERE ARE GOING TO
BE REDUCTIONS IN OTHER
BARGAINING UNITS BECAUSE THEY
WERE SPARED THIS TIME, AND I
THINK THAT'S FINE.
BUT THE FACT OF THE MATTER IS WE
HAVE TO BECOME A MUCH MORE
EFFICIENT ORGANIZATION, AND THAT
MEANS SOME REDUCTIONS IN SOME
OTHER AREAS THAT WERE SPARED ON
THIS EVENING.
>> Gary: LIKE WHAT ARE YOU
REFERRING TO?
>> I THINK WE'VE GOT BOTH
BUILDING LEVEL AND CENTRAL
OFFICE ADMINISTRATION THAT IS
FAR MORE THAN WE CAN AFFORD.
I THINK WE HAVE OTHER SUPPORT
STAFF THAT WE'RE GOING TO HAVE
TO LOOK AT EVERY SINGLE PROGRAM,
AND THERE PROBABLY ARE FURTHER
ECONOMIES THAT WE CAN ACCOMPLISH
AMONG THE TEACHING FORCE.
>> CAN I FOLLOW UP QUICKLY?
>> Gary: YES, YOU'RE THE MAYOR.
>> TOM MAKES VERY GOOD POINTS.
WE NEED TO LOOK AT ONE AREA.
THE SUPERINTENDENT'S DIRECT
STAND, SINCE 1996, THE BUDGET
HAS INCREASED BY 135%, GOING
FROM ABOUT $4.5 MILLION TO OVER
$9 MILLION IN THIS CURRENT
BUDGET YEAR.
I BELIEVE TOM IS CORRECT; NOT A
SINGLE ONE OF THOSE PEOPLE WERE
TARGETED FOR ELIMINATION.
AND WHEN YOU LOOK CLOSELY AT THE
BUDGET, THERE ARE PEOPLE LIKE
MAURICE BELL AND -- WELL, I'M
NOT GOING TO CALL NAMES, BUT THE
SUPERVISING DIRECTORS WHO WENT
OFF OF THE SUPERINTENDENT'S
CHART BUT ARE SOMEWHERE ELSE IN
THE ORGANIZATION.
THEY DON'T SHOW UP.
THOSE PEOPLE STILL WORK.
I THINK THAT I WOULD -- IT MIGHT
SHOCK ADAM URBANSKI TO HEAR ME
SAY, THIS BUT I AM ABSOLUTELY
AGREEING WITH THE FACT THAT
THERE ARE AREAS WHICH ARE NOT
TOUCHED AT ALL WHICH HAVE TO BE
CLOSELY EXAMINED BY THE SCHOOL
BOARD IN THIS NEXT ROUND.
THE SUPERINTENDENT HAS TO
JUSTIFY WHY HE NEEDS ALL OF THIS
TOP-HEAVY ADMINISTRATION THAT HE
HAS BROUGHT IN IN THE LAST THREE
OR FOUR YEARS AND RECOMMEND ONE
OF THEM FOR ELIMINATION IN THIS
ROUND OF BUDGET CUTS.
LET ME JUST SAY IT LIKE IT IS.
>> Gary: WELL, MAYOR, YOU
TOUCHED ON A VERY -- YOU TOUCHED
ON A TOPIC THAT EVERYONE'S
TALKING ABOUT BUT NOT OUT LOUD,
AND I HAVE TO ASK THE PRESIDENT
OF THE SCHOOL BOARD, YOU KNOW,
WHERE DOES THE BUCK STOP FOR
MULTI-YEAR OF RED INK?
CAN YOU BLAME BUDGET STAFF AND
SAY IT STOPS THERE?
MY QUESTION TO YOU, THE BOARD,
IS SUPERINTENDENT JANEY'S BOSS.
>> CORRECT.
>> Gary: WE INVITED THE
SUPERINTENDENT HERE BUT WE
HAVEN'T HAD MUCH LUCK GETTING
HIM ON THIS PROGRAM.
YOU'RE THE BOSS OF THE
SUPERINTENDENT.
IS IT TIME TO HAVE A CARPET
SESSION?
SHOULD HE STAY IN HIS JOB?
WHAT?
>> WELL, I'VE BEEN THE SCHOOL
BOARD PRESIDENT FOR FIVE WEEKS
NOW, AND SO --
>> Gary: CONGRATULATIONS.
>> YEAH, RIGHT.
I'LL TELL YOU HOW I'M
APPROACHING IT, AND THE WAY
WE'RE APPROACHING IT, FIRST OF
ALL THE FIRST MONTH THAT I'VE
BEEN THE PRESIDENT AND SHIRLEY
THOMPSON HAS BEEN THE VICE
PRESIDENT WITH ME, WE'VE
BASICALLY BEEN SO FOCUSED ON
CLOSING THIS BUDGET DEFICIT,
IT'S BEEN HARD TO BEGIN SETTING
UP OTHER REGULAR OPERATING
PROCEDURES WITH THE
SUPERINTENDENT.
WE ARE JUST BEGINNING THAT
PROCESS NOW.
WE RECOGNIZE THAT IT'S OUR
RESPONSIBILITY TO BE VERY CLEAR
WITH THE SUPERINTENDENT ABOUT
WHAT OUR EXPECTATIONS ARE, AND
WE WILL BE GETTING FEEDBACK FROM
HIM FREQUENTLY TO MAKE SURE THAT
HE'S ON TRACK WITH THE PROCESS
THAT WE HAVE SET OUT FOR HIM.
WE'RE ASSISTED IN THAT BY THE
FACT THAT THE BOARD, FOR THE
FIRST TIME, HAS A RESEARCH STAFF
PERSON NOW SUPPORTING ITS WORK.
AS YOU KNOW WE ARE SEVEN PEOPLE
WHO ALL HAVE OTHER JOBS.
WE DON'T WORK FULL-TIME AT THE
DISTRICT OFFICE.
SO HAVING A RESEARCH PERSON
SUPPORTING OUR WORK HAS BEEN OF
INVALUABLE HELP TO US.
SHE PROVIDES INFORMATION TO US.
SHE CAN FOLLOW UP FOR US.
SHE IS THERE ALL DAY.
SO THAT'S PART OF THE MODEL THAT
I THINK IS GOING TO RESULT IN
SOME CHANGE.
>> Gary: I KNOW IT'S EARLY FOR
YOU.
YOU'VE ONLY BEEN ON THE JOB AND
ON YOUR WATCH FOR FIVE WEEKS.
ARE YOU HAPPY WITH THE JOB
THAT'S BEEN DONE THE LAST TWO
YEARS FROM CENTRAL OFFICE?
>> LET ME SAY, AND I'VE BEEN
CLEAR ABOUT THE FACT I'M NOT
GOING TO LAY BLAME OR DO ANY
FINGER-POINTING.
I'VE BEEN CLEAR WITH Dr. JANEY
ABOUT THAT.
BUT LET'S JUST SAY THAT MY STYLE
AND SHIRLEY'S STYLE AS THE
LEADERSHIP TEAM ARE VERY
DIFFERENT THAN THE PREVIOUS
BOARD LEADERSHIP TEAM.
OUR STYLES ARE TOTALLY
DIFFERENT.
SHIRLEY AND I ARE BOTH
AGGRESSIVE, WE'RE VERY DIRECT
ABOUT COMMUNICATING, AND WE
EXPECT TO GO FORWARD THAT WAY.
>> Gary: MAYOR JOHNSON, YOU HAVE
ON RECORD AS SAYING
SUPERINTENDENT JANEY'S POSITION
AS A LEADER DEPENDS ON THE DEEP
TOPIC OF SOLVING THIS DEEP
STRUCTURAL PROBLEM.
WHAT DID YOU MEAN BY THAT?
ARE YOU HAPPY WITH THE JOB
Dr. JANEY'S DONE?
>> WELL, I THINK Dr. JANEY HAS
BROUGHT FORTH MANY EDUCATIONAL
REFORMS.
I THINK AS AN EDUCATIONAL REFORM
LEADER, I THINK HE IS ABSOLUTELY
BRILLIANT.
BUT CERTAINLY YOU CAN'T SEPARATE
THE JOB OF FISCAL OVERSIGHT FOR
THIS DISTRICT.
AND THE FACT OF THE MATTER IS
THAT THEY WERE SLOW IN
RECOGNIZING A CRISIS, AND I
THINK THEY WERE TEPID IN THEIR
RESPONSE TO IT.
THE BOARD COULD REALLY ONLY
REACT TO THE PROPOSALS WHICH THE
SUPERINTENDENT AND THEIR STAFF
PUT BEFORE THEM.
AS JOANNE HAS INDICATED CLEARLY,
THEY DON'T WORK OVER THERE.
THEY HAVE OTHER JOBS AND OTHER
RESPONSIBILITIES.
AND I JUST THINK THAT -- I'VE
BEEN VERY, VERY DISAPPOINTED IN
WHAT I CALL LEADERSHIP COMING
FROM THE SUPERINTENDENT IN THESE
PAST FEW WEEKS BECAUSE HE COULD
HAVE BITTEN THIS BULLET.
HE COULD HAVE LED THIS DISTRICT
TO A VERY RATIONAL WAY OF
DOWNSIZING.
EVEN TOM GILLETTE HAS SAID THEY
NEED MORE EFFICIENCIES.
WE'D RATHER FOCUS ON THE FACT
THAT, IN THE LAST SEVEN YEARS,
THE DISTRICT STUDENT ENROLLMENT
HAS ONLY INCREASED BY 250
STUDENTS, AND THEY'VE INCREASED
THEIR STAFF ABOUT 1,100 PEOPLE.
NOW I'M NOT SAYING THAT'S WRONG,
BUT SOMEBODY NEEDS TO REALLY
EXPLAIN TO ME WHY WE HAVE ONE
EMPLOYEE, ONE FULL-TIME EMPLOYEE
FOR LESS THAN SIX STUDENTS.
MAYBE IT'S BECAUSE OF THE KIND
OF EDUCATIONAL IMPAIRMENT THAT
OUR STUDENT BODY HAS, AND I'M
CERTAINLY AN ADVOCATE FOR
IMPROVING THE MODEL OF
EDUCATION.
BUT CAN WE DO WITH FEWER
EMPLOYEES?
CAN WE PROVIDE A QUALITY PRODUCT
TO THESE STUDENTS WITH FEWER
EMPLOYEES?
THAT'S THE CENTRAL ISSUE THAT
HAS NEVER REALLY BEEN ADDRESSED
BY THE SUPERINTENDENT.
>> Gary: JOANNE GIUFFRIDA, I SEE
YOU'RE SHAKING YOUR HEAD.
TOM GILLETTE, I SEE YOU SHAKING
YOUR HEAD IN AN AFFIRMATIVE
FASHION.
ARE THERE TOO MANY PEOPLE
WORKING FOR THE ROCHESTER CITY
SCHOOL DISTRICT?
>> IN A WORD, YES.
>> Gary: HOW ABOUT TEACHERS?
>> WELL, SOME OF THE COMMENTS --
AND I'VE ALREADY SPOKEN TO THAT
ABOUT TEACHERS, BUT JUST TO GO A
LITTLE BIT FURTHER, WE'RE
TALKING ABOUT MOVING INTO A
BUDGET PROCESS, AND THE
PROSPECTS ARE DIRE AND HOW ARE
WE GOING TO GET THROUGH THIS?
I'LL TELL YOU, SITTING HERE
AFTER 30-PLUS YEARS OF
EXPERIENCE IN THE DISTRICT, I
THINK IT'S ONLY GOING TO BE
DIFFICULT IF WE CHOOSE NOT TO DO
WHAT MUST BE DONE.
AND ALL OF US KNOW, AND I THINK
MANY PEOPLE IN THE DISTRICT, THE
HANDWRITING ON THE WALL IS IN
LETTERS SIX FEET HIGH.
WE HAVE ENLARGED OUR STAFF TO
THE POINT WHERE WE HAVE TO MAKE
REDUCTIONS IN BOTH PROGRAM AND
IN PERSONNEL AND STILL MAINTAIN
QUALITY EDUCATION FOR KIDS, AND
I BELIEVE WE CAN DO IT.
I DON'T THINK IT'S GOING TO BE
HARD, UNLESS WE DECIDE THAT WE
DON'T WANT TO MAKE THE RIGHT
CHOICES.
>> Gary: BUT ARE THERE TOO MANY
TEACHERS?
THERE'S ABOUT 3,000.
THERE'S ABOUT 33,000 KIDS.
ROUGHLY ONE-IN-TEN RATIO.
ARE THERE TOO MANY TEACHERS
TEACHING?
>> WELL, THERE ARE 78 FEWER THAN
THERE WERE BEFORE, ACTUALLY
ALMOST 100 FEWER COUNTING PHASE
ONE.
I THINK WE CAN ECONOMIZE EVEN
FURTHER AMONG THE TEACHING
RANKS.
BUT THIS IS NOT A BUDGET THAT'S
GOING TO BE BALANCED ON
TEACHERS' BACKS.
IF THERE AREN'T SIGNIFICANT
REDUCTIONS IN OTHER AREAS, YOU
CAN'T DO IT ON TEACHERS' BACKS.
>> Gary: MAYOR, IS IT WRITTEN IN
STONE THE CITY'S GOING TO CUT
FUNDING TO THE SCHOOL BOARD NOT
TO THE SCHOOL DISTRICT NEXT
YEAR?
>> REMEMBER THE WAY I PROPOSE
IT, AND I'VE SENT A COPY OF THAT
LETTER TO Dr. JANEY TO JOANNE.
I SAID TO THEM THIS IS AN
EXCELLENT OPPORTUNITY FOR THE
SCHOOL DISTRICT AND THE CITY TO
TALK ABOUT WAYS OF CONSOLIDATING
CERTAIN SERVICES.
THEY'RE SAYING THAT I WANT TO
CONCEIVE THAT THEY SHOULD BE
FOCUSED ON EDUCATION.
I ABSOLUTELY AGREE WITH THE
PREMISE THAT WE NEED TO DO
EVERYTHING WE CAN TO MAXIMIZE
THE TEACHING EXPERIENCE FOR OUR
YOUNGSTERS.
BUT DO WE NEED ARCHITECTS,
LAWYERS, INFORMATION
SPECIALISTS?
MAYBE THERE ARE WAYS OF LOOKING
AT SAY ABOUT 8 OR $10 MILLION
WORTH OF BUDGET EXPENDITURES
WHICH THE DISTRICT HAS, AND WE
CAN CREATE ECONOMIES OF SCALE,
AND THAT'S WHY WE REALLY WANT TO
PUT SOME TIME, AND THE
SUPERINTENDENT REALLY HASN'T
DEALT WITH ME ON THAT ISSUE YET.
>> Gary: JOANNE GIUFFRIDA, I'M
GOING TO GIVE YOU THE FINAL
WORD.
>> OH, GREAT.
>> Gary: WHAT'S ON YOUR PLATE?
YOU'VE HEARD THIS CONVERSATION.
>> WELL, I AGREE WITH WHAT BOTH
TOM AND BILL JOHNSON ARE SAYING.
CONSOLIDATION OF SERVICES IS AN
OBVIOUS PLACE TO LOOK.
AS YOU KNOW I'VE WORKED FOR BOTH
CITY AND COUNTY GOVERNMENT, SO I
HAVE A GOOD FEEL FOR WHAT'S OUT
THERE, AND THAT MAKES A LOT OF
SENSE.
WE CAN'T AFFORD TO CONTINUE
DOING THINGS SEPARATELY, BUT I
THINK THAT WE HAVE A HUGE TASK
AHEAD OF US TO REINVENT THE
SCHOOL DISTRICT PROGRAMS AND
BUDGET IN A THREE-MONTH PERIOD.
WE'RE GOING TO HAVE TO BE VERY
FOCUSED ABOUT OUR WORK.
WE ARE GOING TO NEED STRONG
LEADERSHIP FROM THE
SUPERINTENDENT IN THIS PROCESS,
AND WE'RE GOING TO HAVE TO STAY
ON TASK EVERY WEEK FOR THE NEXT
THREE MONTHS.
>> Gary: THANK YOU ALL.
THANK YOU VERY MUCH FOR BEING
HERE.
UNFORTUNATELY THAT'S ALL THE
TIME WE HAVE FOR THIS
DISCUSSION.
NOW, FOR MORE INFORMATION ON
THIS STORY, LOG ONTO OUR WEB
SITE AT wxxi.org/ntk.
WHILE YOU'RE THERE YOU CAN ALSO
TAKE PART IN OUR WEEKLY SURVEY
QUESTION.
AND FOR COMPREHENSIVE DAILY
COVERAGE OF STATE ISSUES AND
NEWS, IT'S NYCITIZEN.ORG.
THE ENRON INVESTIGATION
CONTINUES.
WHAT'S IT MEAN FOR US HERE IN
ROCHESTER?
LET'S ASK BUSINESS EDITOR ELLEN
ROSEN.
IT'S TIME FOR THIS WEEK'S
EDITION OF THE BUSINESS SECTION
WITH THE "THE
DEMOCRAT
AND CHRONICLE."
(Music)
JOINING US NOW IN STUDIO IS
ELLEN ROSEN, THE BUSINESS EDITOR
FOR THE "DEMOCRAT AND
CHRONICLE."
BEFORE WE BEGIN, THOUGH, IN OUR
DISCUSSION LAST WEEK ABOUT
TELECOM ALLEY, WE SPOKE OF THE
DIFFICULTY OF GETTING VENTURE
CAPITAL FOR THESE BUSINESSES,
WHICH MAY HAVE LED TO A
MISUNDERSTANDING OF CHOICE ONE'S
FINANCIAL SITUATION.
CHOICE ONE HAS ADEQUATE CAPITAL
TO IMPLEMENT ITS PLAN, BUT
ACCORDING TO STANDARD AND POOR'S
HAS AN EXTREMELY LIMITED CUSHION
IN THE EVENT OF UNFORESEEN
BUSINESS CRISES.
ELLEN?
SPEAKING OF CRISES, I READ THE
FRONT PAGE OF THE PAPER THIS
MORNING.
WE HAVE AN ENORMOUS LAWSUIT ON
THE PART OF INVESTORS AGAINST
GLOBAL CROSSING, AGAINST THE
EXECUTIVES OF GLOBAL CROSSING.
>> YEAH.
>> Gary: IS THAT UNPRECEDENTED?
WHY SUE THE EXECUTIVE?
>> TYPICALLY YOU WOULD SUE THE
EXECUTIVE BECAUSE THEY MAKE THE
DECISIONS.
THEY SIGN THE 10-K's AND OTHER
S.E.C. DOCUMENTS.
AND YOU WOULD SUE THE COMPANY.
BUT IN THIS CASE YOU CAN'T SUE
GLOBAL BECAUSE THEY HAVE
BANKRUPTCY PROTECTION,
BANKRUPTCY FILING.
>> Gary: I SEE.
SO THEY'RE GOING AFTER THE
EXECUTIVE.
>> THEY'RE GOING AFTER THE
EXECUTIVE.
>> Gary: THEY'RE ALSO MAKING A
CLAIM THAT THE EXECUTIVES,
WITHIN THE TIME PERIOD THAT THE
LAWSUIT IS CITING, SOLD $149
MILLION IN GLOBAL CROSSING
STOCK.
>> YES.
MOST OF THAT BEING FROM THE
CHAIRMAN AND FOUNDER OF THE
COMPANY, GARY WINNICK, SOMETHING
LIKE 123 MILLION DURING THAT
PERIOD WHICH WAS LIKE 10% OF HIS
GLOBAL HOLDINGS.
>> Gary: NOW, ACCORDING TO YOUR
STORY THIS MORNING, THE
PLAINTIFF'S ATTORNEY IS
BASICALLY SAYING, I THINK THE
QUOTE WAS WE'RE ACCUSING THEM OF
COOKING THE BOOKS.
>> UH-HMM.
WHAT THEY'RE SAYING IS THAT THEY
POSTPONED OR THEY PUMPED UP
REVENUES AND POSTPONED DEBT TO
ACTUALLY MAKE THEIR FINANCIALS
LOOK BETTER AND DID THAT IN
THEIR OFFICIAL FILINGS TO THE
SECURITIES AND EXCHANGE
COMMISSION, WHICH THEN LED
INVESTORS OR POTENTIAL INVESTORS
TO BELIEVE THE COMPANY WAS IN A
BETTER POSITION THAN IT WAS IN.
AND THEN THE STORY BEHIND IT
WOULD BE THAT THEY REALLY KNEW
THE TRUTH; THEY WERE CASHING OUT
WHILE OTHER PEOPLE WERE BUYING.
>> Gary: NOW HERE'S THE THING.
I MEAN, THIS AGAIN SMACKS OF
ENRON IN THE SENSE THAT, YOU
KNOW, WHO DO YOU TRUST IN THESE
BUSINESSES?
I MEAN, IF YOU'RE AN INVESTOR
OR, YOU KNOW, YOU'RE AN EMPLOYEE
WITH YOUR FUTURE IN A 401(k)
WITH A COMPANY STOCK, I MEAN HOW
DO YOU TRUST WHEN SOMEONE SAYS
WE'VE HAD RECORD EARNINGS?
>> THAT'S VERY TRUE.
I THINK THAT'S ON THE MINDS OF A
LOT OF INVESTORS.
AS A MATTER OF FACT WE'LL HAVE A
STORY JUST TALKING JUST ABOUT
THAT IN SUNDAY'S "DEMOCRAT AND
CHRONICLE."
BASICALLY, TRADITIONALLY YOU
WOULD THINK OF THE AUDITORS AS
BEING THE REAL WATCHDOGS.
THEY'RE OUT THERE FOR YOU AND
THE ACCOUNTANTS AND THE SAME
THING.
BUT THAT'S NOT TRUE ANY MORE.
ARTHUR ANDERSEN'S BEEN CALLED
INTO QUESTION WITH THE ENRON
SCANDAL.
SO WHO DO YOU REALLY TRUST?
BOTTOM LINE IS YOU PROBABLY HAVE
TO TRUST YOURSELF.
YOU HAVE TO DO YOUR RESEARCH.
THAT MAY MEAN DOING YOUR OWN
RESEARCH, BUT IT MAY ALSO MEAN,
AND PROBABLY MORE LIKELY WOULD
MEAN FINDING SOMEBODY PERSONALLY
THAT YOU CAN TRUST, A BROKER OR
FINANCIAL PLANNER OR SOMEBODY
WHOSE ADVICE YOU REALLY TRUST
THAT'S WATCHING OUT FOR YOU,
BECAUSE YOU HAVE TO DO A LOT OF
RESEARCH.
YOU'VE GOT TO REALLY READ THEIR
FINANCIAL FILINGS AND REALLY SEE
WHAT'S GOING ON.
>> Gary: SO THE DAYS OF
INVESTING AND SAYING THAT OTHER
PEOPLE ARE GOING TO HANDLE YOUR
MONEY, YOU HAVE TO TRUST THEM,
ARE PRETTY MUCH OVER?
>> YEAH.
YOU HAVE TO KEEP IN
COMMUNICATION WITH WHOEVER'S
HANDLING YOUR MONEY,
AND A GOOD ADVISOR WILL DO THAT
FOR YOU.
THEY WON'T JUST TAKE YOUR MONEY
AND RUN WITH IT. THEY'LL LET
YOU KNOW.
THEY'LL GIVE YOU ADVICE.
THEY'LL TELL YOU WHEN SOMETHING
LOOKS A LITTLE FUNNY.
>> Gary: HERE'S WHAT I GET OUT
OF IT, AND IT'S A QUESTION OF
CONFIDENCE.
LIKE THIS MORNING I THINK IT WAS
CISCO SYSTEMS ANNOUNCED AN
EXPLODING FOURTH QUARTER, GREAT
FOURTH QUARTER, AND I'M THINKING
TO MYSELF, WELL, IF I WAS AN
INVESTOR, YOU KNOW, DO I BELIEVE
THAT NOW?
>> I THINK THAT'S WHAT
EVERYBODY'S WONDERING, BECAUSE
THERE ARE SO MANY WAYS -- YOU
KNOW, AS THEY SAY, ACCOUNTING'S
NOT A SCIENCE; IT'S AN ART.
THERE ARE SO MANY WAYS THESE
THINGS CAN BE DONE, I THINK
THAT'S GOT EVERYBODY WORRIED
ABOUT WHAT'S REALITY HERE?
IS THAT ACCOUNTING MAGIC OR IS
IT REALITY?
THAT'S WHAT THEY ARE TALKING
ABOUT IN CONGRESS, WHETHER THERE
NEED TO BE PROTECTIONS AGAINST
-- WITH 401(k)s AND OTHER THINGS
BECAUSE A LOT OF THESE
SHAREHOLDERS THAT MAY END UP
JOINING THIS GLOBAL SUIT COULD
BE PEOPLE THAT ENDED UP WITH A
401(k) WHEN GLOBAL BOUGHT
FRONTIER.
>> Gary: RIGHT, ELLEN, PEOPLE ON
THE STREET WHEN WE TALK ABOUT
IT, THEY'LL SAY THINGS TO ME --
IT'S FARFETCHED BUT I'LL PUT IT
TO YOU.
SHOULD WE WATCH WHAT THE
EXECUTIVES IN A COMPANY WE'RE
INVESTING IN ARE DOING WITH
THEIR SHARES OF THE COMPANY IF
THEY SELL?
>> YOU MIGHT.
BUT SOMETIMES THERE'S GOOD
REASONS WHY THEY SELL.
FOR INSTANCE THEY HAVE STOCK
OPTIONS THAT ARE GOING TO MATURE
OR THEY'RE GOING TO LOSE THEM
AND SO THEY HAVE TO SELL.
SO THEY HAVE SOMETIMES PERSONAL
REASONS.
BUT, YEAH, YOU SHOULD WATCH
EVERYTHING THAT'S GOING ON WITH
YOUR COMPANY.
>> Gary: IT'S NOT EASY.
>> NO, IT'S NOT EASY AT ALL.
IT'S VERY COMPLICATED.
>> Gary: SO WE'RE GOING TO HAVE
A STORY ABOUT FAITH IN
COMPANIES.
>> AND WHO DO YOU TRUST?
THAT'S SUNDAY'S STORY.
>> Gary: ALL RIGHT.
ELLEN, THANK YOU SO MUCH FOR
THIS WEEK'S REPORT.
AS YOU MAY HAVE SEEN THE PBS
SPECIAL "WAR LETTERS" RECENTLY,
WELL, WXXI CREATED ITS OWN
VERSION WITH A LOCAL SPIN,
"WAR LETTERS: ROCHESTER WRITES
HOME."
IT FEATURES CORRESPONDENCES TO
AND FROM LOCAL SOLDIERS WHO HAVE
SERVED IN EVERY CONFLICT AMERICA
HAS ENTERED.
HERE'S A LOOK.
(Music)
>> NOVEMBER 13th, 1918,
ROCHESTER.
"MY DEAR HENRY: WELL, HERE'S THE
EXCITEMENT I WAS GOING TO TELL
YOU THAT HAPPENED ON THE DATE OF
YOUR LAST LETTER NOVEMBER 7th.
ABOUT ONE O'CLOCK IN THE
AFTERNOON, AN EXTRA CAME OUT
THAT PEACE WAS DECLARED, AND YOU
SHOULD HAVE SEEN THIS TOWN!
THE NEWS SPREAD LIKE FIRE, AND
BEFORE 2 O'CLOCK, EVERY PLACE IN
TOWN WAS CLOSED UP AND MAIN
STREET WAS A WONDERFUL SHOW OF
PEOPLE, PARADES, BANDS, NOISE
AND EVERYTHING IMAGINABLE.
IT CAME SO SUDDENLY, IT WAS
HARDLY BELIEVABLE.
WELL, JUST BEFORE GOING TO BED,
DAD CAME HOME AND SAID HE HEARD
THAT THE NEWS OF PEACE WAS A
FAKE.
THAT, OF COURSE, TOOK ALL THE
GOOD OUT OF US.
WELL, THE NEXT MORNING, FRIDAY
THE 8th, THE TRUTH CAME OUT.
THE PAPERS WERE PUBLISHED AND,
BELIEVE ME, ROCHESTER WAS A REAL
DISAPPOINTED PLACE.
BUSINESS WENT ON AS USUAL, BUT
WE ALL FELT THE END OF THE WAR
WAS NEAR.
JOHN WANTED TO BET WITH ME THAT
GERMANY WOULDN'T SIGN THE
ARMISTICE.
AT 4:15 a.m. MONDAY MORNING, I
WAS SORRY I DIDN'T TAKE HIM UP,
FOR THE NEWS THAT THE GERMANS
HAD GIVEN UP STRUCK TOWN.
THIS TIME IT WASN'T A FAKE.
I WOKE UP AND HEARD THE WHISTLES
AND BELLS AND THOUGHT IT WAS 6
O'CLOCK.
THE WOMAN NEXT DOOR HOLLERED
"HOORAY!" AND WITH ALL THE DOORS
AND WINDOWS CLOSED IT SOUNDED
LIKE "HELP!"
MOTHER HEARD IT AT THE SAME TIME
I DID, AND WE BOTH JUMPED OUT OF
BED THINKING OUR HOUSE WAS ON
FIRE OR SOMETHING.
BUT WHEN WE OPENED THE DOOR SHE
HOLLERED "HOORAY!" AGAIN, AND
WITH ALL THE NOISE WE KNEW THE
END OF THE WAR HAD COME AT LAST
AND THAT ALL OUR PRAYERS WERE
ANSWERED."
MARIE O'KEEFE.
(Music)
>> Gary: FOR MORE INFORMATION ON
"WAR LETTERS" AND THIS WEEK'S
EDITION OF "NEED TO KNOW" OR TO
DISCUSS ANY OF THESE TOPICS, LOG
ONTO OUR WEB SITE wxxi.org/ntk.
THAT'S ALL FOR THIS WEEK.
WE'LL SEE YOU NEXT WEEK WHEN
WE'LL DISCUSS CASINOS IN
ROCHESTER.
(Music)