School & District Management

St. Louis School District Gets Its House in Order

By John Gehring — June 23, 2004 4 min read
  • Save to favorites
  • Print

A year after the St. Louis school board brought in a private management firm to run the city’s troubled schools, the district’s business practices are much improved, but significant academic challenges remain.

The $4.5 million contract with the New York City-based Alvarez & Marsal expires at the end of July. At that time, Deputy Superintendent Floyd Crues will take over as interim superintendent while the school board searches for a permanent schools chief. Mr. Crues, who began teaching in St. Louis in 1978, was appointed on June 8 to a one-year contract.

Settling for an interim superintendent was a disappointment for district leaders, who said last fall that they wanted the management firm to clean house so that St. Louis could attract a top-quality candidate. (“Private Managers Stir Up St. Louis Schools,” Sept. 3, 2003.)

The board aggressively courted former New York City Schools Chancellor Rudolph F. Crew for the job. But Mr. Crew, who served as an adviser to the district under Alvarez & Marsal, turned down the post to run Florida’s Miami-Dade County district.

Robbyn Wahby, an education aide to Mayor Francis G. Slay of St. Louis, said the district is steadily moving in the right direction, and she credited the management firm with laying a strong foundation to build on.

“They have done a lot of the heavy lifting that needed to be done,” Ms. Wahby said last week. “New dollars are now going into the classroom, instead of into an ineffective and inefficient bureaucracy.”

Cleanup Job

When the seven-member school board hired Alvarez & Marsal to run the 40,000-student system last June, it was a controversial move.

The goal was to clean up a district that had so much trouble handling basic operations that $5 million worth of textbooks sat unopened in a warehouse, accurate financial projections were hard to come by, and the district was inching toward insolvency. William V. Roberti of Alvarez & Marsal, a former chief executive officer of the Brooks Brothers clothing retailer, was hired as the district’s acting superintendent. To the praise of some and the dismay of others, he quickly closed 16 schools, cut $60 million in expenses by outsourcing services, and fired some 1,400 employees.

These days, school board members receive monthly updates on the district’s finances, accounting practices have been standardized, and the transportation service has been streamlined.

“Financially, the system was flying blind,” said Vincent C. Schoemehl, a school board member and a former mayor of St. Louis. “The transparency is infinitely improved. We know to the nickel where we are. We’ve demonstrated that there is a way to connect the cultures of the private sector with the culture of urban education. I would recommend the model to any public entity that needs to refresh itself.”

Despite the improvements made to the business and financial practices, a June 14 report from the Missouri state auditor projected a $38 million deficit in the district’s $450 million budget for this fiscal year. If additional cuts are not made, the audit warned, that could grow to a $54 million deficit for fiscal 2005.

Among other steps, the audit called for the district to do even more to evaluate the efficiency of its school buildings, many of which are under capacity because of declining enrollment.

The district requested the audit and acknowledges that financial challenges remain as a result of past mismanagement. But school board members said that considerable progress has been made and that business practices are improving every day.

Public Skeptical

William Tate, the chairman of the department of education at Washington University in St. Louis, said the management team failed, however, in a crucial task: persuading the public that the changes it made were necessary.

“They didn’t do a good job marketing or communicating,” said Mr. Tate, who believes parents and community members never had the chance to buy into the plans of the turnaround firm. “It was done so naively.”

Alvarez & Marsal, he added, has been narrowly focused on improving business operations while giving short shrift to improving academics.

“If you’re running a restaurant, you need to have your accounting in order, but you don’t stop serving food,” Mr. Tate said. “It’s important to have your financial place in order, but it’s mandatory, when as an organization your mission is teaching and learning, to pay attention to education. They don’t talk about academics.”

Mr. Roberti asked the Council of the Great City Schools, a Washington-based organization that advocates for urban schools, to evaluate the district’s efforts to improve academic performance.

A team of leaders from urban districts that have improved achievement visited St. Louis in January and issued a report blunt in its criticism. The 130-page document praised the district for hiring literacy coaches in all schools, creating interim assessments, and channeling cost savings into the classroom. But it found the overall picture dim.

“The school district has no instructional focus; it lacks a plan for raising student achievement; its instructional staff is poorly organized; and its sense of direction has splintered,” the evaluation found. “The district is also marked by little sense of urgency for improving achievement, no accountability for results, and very low expectations for children.

“To make matters worse,” it said, “the district has piled one program on top of another for so many years that one cannot tell what the system is tying to do academically and why.”

Mary Armstrong, the president of the St. Louis Teachers and School Related Personnel Union, called the report “right on target.”

For years, she said, the union has been saying some of the same things. But Ms. Armstrong worries that changing the culture in St. Louis’ schools could be an uphill fight.

“I have never seen the morale as low as it is right now,” Ms. Armstrong said.

Events

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
Special Education Webinar
Integrating and Interpreting MTSS Data: How Districts Are Designing Systems That Identify Student Needs
Discover practical ways to organize MTSS data that enable timely, confident MTSS decisions, ensuring every student is seen and supported.
Content provided by Panorama Education
Artificial Intelligence Live Online Discussion A Seat at the Table: AI Could Be Your Thought Partner
How can educators prepare young people for an AI-powered workplace? Join our discussion on using AI as a cognitive companion.
Student Well-Being & Movement K-12 Essentials Forum How Schools Are Teaching Students Life Skills
Join this free virtual event to explore creative ways schools have found to seamlessly integrate teaching life skills into the school day.

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

School & District Management Q&A How a Leader Developed Farm-to-Table School Lunches Without Breaking the Bank
An Arizona school nutrition director discusses how districts can overcome logistical hurdles and negotiate prices.
5 min read
District poses for a portrait at the Garden Cafe in Phoenix, Arizona, on Jan 21, 2026.
Cory Alexander, child nutrition director for Osborn School District, poses for a portrait at the Garden Cafe in Phoenix on Jan. 21, 2026.
Adriana Zehbrauskas for Education Week
School & District Management Leader To Learn From How This Leader Uses Gaming to Change Students’ Lives
Laurie Lehman helped her district see the power of esports to illuminate new career paths for students.
12 min read
Portrait of Laurie Lehman in the classroom at La Cueva High School in Albuquerque, New Mexico, on January 23, 2026.
Laurie Lehman, the esports manager for New Mexico's Albuquerque Public Schools, visits La Cueva High School on January 23, 2026.
Ramsay de Give for Education Week
School & District Management Free Speech Debates Resurface With Student Walkouts Over ICE Raids
As students walk out to protest immigration enforcement tactics, schools face questions about safety and speech.
5 min read
Students protest U.S. Immigration and Customs Enforcement outside the Pflugerville Justice Center after walking out of their classes, Monday, Feb. 2, 2026, in Pflugerville, Texas.
Students protest U.S. Immigration and Customs Enforcement outside the Pflugerville Justice Center after walking out of their classes on Feb. 2, 2026, in Pflugerville, Texas. Student walkouts across the country to protest U.S. immigration enforcement are drawing concerns about safety from school administrators and pushback from some politicians.
Jay Janner/Austin American-Statesman via AP
School & District Management Heightened Immigration Enforcement Is Weighing on Most Principals
A new survey of high school principals highlights how immigration enforcement is affecting schools.
5 min read
High school students protest during a walkout in opposition to President Donald Trump's policies Tuesday, Jan. 20, 2026, in Los Angeles. A survey published in December shows how the Trump administration’s immigration enforcement agenda is upending educators’ ability to create stable learning environments as escalated enforcement depresses attendance and hurts academic achievement.
High school students protest during a walkout in opposition to President Donald Trump's immigration policies on Jan. 20, 2026, in Los Angeles. A survey published in December shows how the Trump administration’s immigration enforcement agenda is challenging educators’ ability to create stable learning environments.
Jill Connelly/AP