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

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 The Nation's Largest State Strips Most Power From Elected Schools Superintendent
The state superintendent's authority will transfer to an appointee of the governor starting next year.
Howard Blume, Los Angeles Times
5 min read
California Gov. Gavin Newsom, gives his last May revise in the Swing Space on Thursday, May 14, 2026 , in Sacramento, Calif.
California Gov. Gavin Newsom speaks in Sacramento, Calif., on May 14, 2026. Newsom and legislative leaders pushed for a policy passed as part of the state budget that will scale back the authority of the elected state superintendent.
Hector Amezcua/The Sacramento Bee via TNS
States Anti-DEI Efforts Reshape How States Serve English Learners
A new research study shed light on how anti-DEI policies affect English-learner education.
5 min read
Katherine Alfaro works with students at Russellville Elementary School, in Russellville, Ala., Aug. 9, 2022. Alfaro is an aide for English Language Learner students, many of whom speak Spanish at home. Russellville schools have the highest percentage of English Language Learners of any district in the state, and officials there have invested in aides and teachers who know how to work with those students.
Katherine Alfaro works with students at Russellville Elementary School, in Russellville, Ala., Aug. 9, 2022. Alfaro is an aide for English learners, many of whom speak Spanish at home. English-learner education is not immune to anti-DEI policies and politics, according to a new research study.
Rebecca Griesbach/AL.com via AP
States A State Puts Property-Tax Cuts on the Ballot This Fall—But Shields Schools
Florida lawmakers turned down a more sweeping property-tax reduction plan, leaving school taxes alone.
3 min read
A waterfront home, photographed on Tuesday, May 5, 2026, in Fort Lauderdale, Fla. Governor DeSantis has pushed property-tax reform for over a year. “The property tax has become a big, big burden for millions of people in this state,” he said on June 1 in highlighting his proposal, which would expand the homestead exemption for property taxes from the current $25,000 to $150,000 in 2027 and $250,000 in 2028.
A waterfront home in Fort Lauderdale, Fla., photographed on Tuesday, May 5, 2026. Gov. Ron DeSantis called a special legislative session this month to consider a major property-tax reduction measure. Lawmakers scaled it back to shield property taxes that make up almost half of school budgets statewide.
Phelan M. Ebenhack via AP
States Texas Considers a Bigger Role for Christianity in Schools This Month. Here's How
The state board will vote on a required reading list that includes biblical passages.
Silas Allen, The Dallas Morning News
7 min read
The State Board of Education meeting room is pictured on Sept. 26, 2022 inside the William B Travis Building (which houses the Texas Education Agency) in downtown Austin, Texas .
The Texas State Board of Education meeting room is pictured on Sept. 26, 2022, inside the William B. Travis Building in downtown Austin, Texas. The board will vote later this month on revised standards and a required reading list that include biblical passages.
Tom Fox/The Dallas Morning News via TNS