States

Audit Questions Oversight of Ill. Education Agency

By Kerry A. White — March 26, 1997 3 min read
  • Save to favorites
  • Print

A state audit has raised serious questions about accountability and oversight at the Illinois education department and about Superintendent Joseph A. Spagnolo’s stewardship.

The voluminous report, released March 12 by William Holland, the auditor general, describes a “breakdown in the fundamental principle of administration” of the agency’s $23 million operational budget. It cites 45 examples of what the auditors see as mismanagement and other errors, including inadequate oversight of federal grant programs, personnel, and contracts.

The audit, which covered the two years that ended June 30, 1996, also cites “deficiencies in control” over Mr. Spagnolo’s travel, headquarters, and other expenses.

The report comes at a critical time for Republican Gov. Jim Edgar and Illinois lawmakers, who seem poised to revamp the state’s school funding formula after years of political wrangling. Schools in the state receive most of their money from local property taxes, and wide spending disparities exist between property-rich and poor school districts. (“Odds Seen Better for Funding Reform in Ill.,” Feb. 5, 1997.)

The state audit, said Larry McNeal, an associate professor of school finance at Illinois State University in Normal, could erode support for reform efforts.

“It’s diverting attention from the vital issue of providing resources and a quality education to kids,” he said. “Critics will use this to say, ‘If there’s that much money to mismanage, there’s too much money in the first place.’”

Gov. Edgar, who has been traveling the state to trumpet his ideas for raising income taxes, lowering property taxes, and changing the school distribution formula, said a review of the audit found “no smoking guns.” But some legislators disagreed.

“It’s the worst audit I have ever seen in my 20-some years around here,” Senate President James “Pate” Philip, a Republican, told the Copley News Service the day after the report was released. “It was very poor management. ... I’ve never seen [an audit] that bad, ever.”

Another leading gop lawmaker, Dan Cronin, the chairman of the Senate education committee, told the news service that Mr. Spagnolo’s hold on the appointive position may not be secure.

“It’s fair to say that, while I like [Joe Spagnolo] personally, there are some serious questions that have to be answered,” he said.

No Plans To Leave

In an interview last week, Mr. Spagnolo conceded that “mistakes were made” and that “record keeping was not as detailed as it should have been” at the agency. But he said he had no plans to leave office.

“There was never a doubt about my staying. The board is supportive; the governor is supportive,” he said. “We’ve taken some positive steps to address the problems and are anxious to get on with the business at hand.”

The state board appointed Mr. Spagnolo in June of 1994. His contract expires in 1999.

The schools chief has been under fire since last fall, when questions first surfaced about several highly paid consultants to the agency, dozens of no-bid contracts, and excessive expenses for business travel.

In December, a new law pared the state board of education from 17 members to nine and authorized Gov. Edgar to appoint members and name the board’s chairman.

At the time, several lawmakers asked the governor to appoint a board that would oust Mr. Spagnolo. But the governor praised the superintendent’s education initiatives and supported his continued tenure.

In January, the Senate confirmed five of the governor’s new appointees, including board Chairman Louis Mervis. But it delayed confirming four returning board members until the state audit was released.

On March 17, the senate voted 56-2 to confirm the returning board members, and the new board met for the first time last week.

Oversight Plan

Kim Kanauer, a spokeswoman for the board said the audit has provided the new board and the superintendent with an opportunity to develop a systematic oversight plan that will better detail the use of the agency’s funds.

The plan, released this month in response to the audit, includes monthly board meetings to review expenses, the retraining of the agency’s 700-plus staff members on bookkeeping protocol, and the appointment of a “second in command” to Mr. Spagnolo who will work to improve management of the agency and of the superintendent’s office.

In the coming months, a liaison from the U.S. Department of Education will help the board revise its record keeping for $24 million in federal grants.

Events

Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Making AI Work in Schools: From Experimentation to Purposeful Practice
AI use is expanding in schools. Learn how district leaders can move from experimentation to coordinated, systemwide impact.
Content provided by Frontline Education
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being & Movement Webinar
Building Resilient Students: Leadership Beyond the Classroom
How can schools build resilient, confident students? Join education leaders to explore new strategies for leadership and well-being.
Content provided by IMG Academy

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

States With Federal Commitment Shaky, States Move to Codify Protections for Homeless Students
Washington and Oregon have taken action, and others states are considering moves of their own.
4 min read
Image of a student sitting on a stoop with a school bus in the distance. Ghosted in the background is the Capitol building.
Illustration by Laura Baker/Education Week + Getty + Canva
States Federal Appeals Court Upholds Texas Ten Commandments Law
The 9-8 decision delivered a boost to backers of similar laws in Arkansas and Louisiana.
3 min read
Students work under Ten Commandments and Bill of Rights posters on display in a classroom at Lehman High School in Kyle, Texas, Thursday, Oct. 16, 2025.
Students work beneath Ten Commandments and Bill of Rights posters displayed in a classroom at Lehman High School in Kyle, Texas, on Oct. 16, 2025. A federal appeals court ruling now allows Texas to require such displays in public school classrooms.
Eric Gay/AP
States 'Not Our Job': Principals Decry a Proposal to Track Student Immigration Status
A principals group has publicly opposed efforts to require schools to track immigration status.
5 min read
Democratic Senator Raumesh Akbari hugs a young demonstrator as people gather to protest an immigration bill outside the Senate chamber at the state Capitol Thursday, in Nashville, Tenn. The bill would allow public school systems in Tennessee to require K-12 students without legal status in the country to pay tuition or face denial of enrollment, which is a challenge to the federal law requiring all children be provided a free public education regardless of legal immigration status.
Democratic state Sen. Raumesh Akbari hugs a young demonstrator as people protest an immigration bill outside the Senate chamber at the state Capitol on April 10, 2025, in Nashville, Tenn. The legislation is part of a broader push in Tennessee to require schools to collect students’ immigration status, raising concerns among educators about trust, access, and compliance with federal law.
John Amis/AP
States A State With a Short School Year Wants to Stop the 'Bleeding' of Classroom Time
A new order aims to discourage districts from reducing instructional hours to fill budget gaps.
4 min read
A teacher and rising kindergarten students at Vose Elementary in Beaverton during story time on April 16, 2026. Gov. Tina Kotek asked the State Board of Education on Thursday to prohibit school districts from using student-contact days as furlough days to balance budgets, in order to preserve instructional time.
Story time in a kindergarten class at Vose Elementary School in Beaverton, Ore., on April 16, 2026. Oregon Gov. Tina Kotek has issued an executive order in hopes of blocking any further erosion of instructional time in a state that has one of the shortest school years in the country.
Mark Graves/The Oregonian via TNS