SHOCKED and AWED! (As in Awe Shucks it wasn't my fault...can I get a "Do-Over?")

Ex-CEO: DPS lost purchasing power on bond

By LORI HIGGINS

FREE PRESS EDUCATION WRITER 

Detroit Public Schools lost at least $120 million in pur chasing power by not spending until 2004 any of the $1.5-bil lion bond money voters ap proved in 1994, the district’s former chief executive officer said during an investigative hearing Friday.

Kenneth Burnley, who was appointed CEO in 2000, said “it was much more expensive to do business in 2000 to 2005 dollars in an expanding econo my.” But Burnley testified Fri day that despite that, he and his administration “saved the taxpayers of Detroit millions.” Robert Bobb, the DPS emergency financial manager, has been holding the investiga tive hearings periodically since October amid questions about several high-profile real estate deals. He and other DPS offi cials have concluded the dis trict overpaid by millions for land to build the new Cass Technical High, Detroit School of Arts, a maintenance hub near Eastern Market, leased land from the city and space in the Fisher Building.

Burnley defended his ten ure, saying he wanted the best for students, par ents and taxpay ers. “I collective ly pursued that outcome with honesty, integri ty and urgency,”Burnley said. It was during his tenure that the district made the con troversial decision to move its central office to the Fisher Building and leased space in adjacent buildings.

Supporting documents Burnley provided included an analysis showing the total cost of moving the district head quarters for the first 10 years would be $55.3 million, while staying in the old location would have cost $57.3 million during the same time period.

A DPS analysis came up with a different conclusion — that the move will cost the dis trict more than if it had stayed put.

Burnley’s testimony came after Bobb and his investiga tors heard from Robert Fran cis, a former DPS official who oversaw construction projects funded by the 1994 bond, and Robert Moore, the district’s former senior deputy chief executive officer who was sec ond in command when the dis trict spent much of the bond money. Their testimonies came at separate hearings in the last week.

Steven Fishman, Burnley’s attorney, said that based on testimony from Burnley, Fran cis and Moore, he would be shocked “if anyone, including Mr. Bobb, believed that there was anything questionable about any of the transactions.”