A History of the Concerned Ohio Retired Educators

In March 2002, an STRS newsletter contained this simple statement, “Spousal subsidy may change due to Health Care costs.”  Upon hearing of large increases in health care premiums at the same time that STRS board members were enjoying many perks and STRS Staff was receiving bonuses up to 115% of their salaries, recipients of STRS Health Care began to call STRS and attend Board meetings. At a time when the stock market was plummeting, it seemed contradictory to spend lavishly on STRS employees and raise retiree health care costs. Those retirees who had made life choices based on prior health care costs and retirement benefits found themselves subject to enormous cost increases that greatly diminished their spendable income.

Retirees began to email other retirees whom they met at STRS Board meetings.  Discussions soon led to the formation of a “grass-roots” movement dedicated to monitoring the actions of the STRS Board, the spending of pension funds, the awarding of staff bonuses/perks, and increases in health care premiums.  As interest in this group grew, informal meetings were organized and the group became known as CORE (Concerned Ohio Retired Educators).  The primary focus of CORE ultimately became issues related to health care, the make-up of the STRS Board and reform of STRS spending practices.

Dr. Dennis Leone and Mr. John Lazares, both Superintendents in Ohio schools, began hearing comments about the lavish new headquarters of STRS, unbridled spending by STRS Board members and staff on junkets across the country, extravagant “perks” and bonuses being paid to employees as well as a growing sense of entitlement among Board members and administrators.

Dr. Leone and Mr. Lazares decided to investigate for themselves and paid a visit to STRS headquarters.  What they saw changed their perspective of STRS spending and operations forever.  Dr. Leone requested information and asked questions of then STRS Director, Herb Dyer, and was met with a dismissive attitude.  After several months, Mr. Dyer referred his questions to staff member, Damon Asbury.  After Dr. Leone received the requested data he began an investigation that ultimately lead to an extensive report presented to the STRS Board in May of 2003. The report detailed lavish spending by the STRS Board with members voting to approve all expenditures 100% of the time. It may be read by clicking >>here<<

Dr. Leone’s report was verified and substantiated by investigative reporters Steven Ohlemacher of the Cleveland Plain Dealer (who investigated Dr. Leone's findings and not only validated each finding but also found others) and Paul Kostyu of the Canton Repository (Columbus Branch) who was awarded the AP investigative Reporting Award in 2004 for his outstanding and consistent coverage of the STRS story.  Dr. Leone was awarded the First Amendment Award from the Central Ohio Chapter of the Society of Professional Journalists. He was praised for his “courage to take on the STRS, alerting the media, and his diligence in pursuing public records requests in the face of many barriers, including widespread criticism from the Ohio Education Association and fellow superintendents.”  In addition, the Government Finance Officers Association presented its 2005 Ethics in Government Award to Dr. Dennis Leone in Cleveland on Sept. 14. for “exposing a terrible and arrogant entitlement culture” at the State Teachers Retirement System beginning in 1994.

Neither OEA nor ORTA joined the effort to bring change to STRS.  Dr. Leone and Mr. Lazares, as well as retirees across the State had thought that our professional organizations would pick up these issues and demand reform at STRS. Instead, they “circled the wagons” and supported STRS.  Gary Allen, OEA Executive Director, sent a memo to all of his executive committee and local presidents on June 5th, 2003 calling Dr. Leone's findings to be "allegations and misrepresentations without clear direction and purpose".  ORTA officials ignored retirees’ request for action and refused to support either Dr. Leone or Mr. Lazares in their campaigns for election to the STRS Board.

In May 2003, retirees who were attending STRS Board meetings regularly met with Dr. Leone after he spoke to the STRS Board.  CORE began the daunting task of organizing an E-mail chain that could quickly disseminate information to retirees across the State.  Because neither the Ohio Education Association nor the Ohio Retired Teachers Association chose to heed Dr. Leone’s warnings or support the reform of spending practices at STRS, CORE used its contacts to educate fellow retirees and active teachers of the misuse of retirement funds.  In late 2003 CORE was chartered with the State of Ohio as a Chartered Nonprofit Corporation.

Marilyn Gibbs, Sue Jacoby, Marianno Lijoi, Diane Varawas, Senator Kirk Schuring, and Tom Curtis organized a rally at the State House. Approximately 400-600 educators attended the rally. After the rally, the group walked to the STRS building to attend the August Board meeting and express their desires for change by making 3 minutes speeches to the Board. This brought sufficient media coverage and placed more pressure on STRS and the legislators. CORE member Sondra Stratton, one of the initial E-mailers and a CORE contributing member was able to convince the Ohio Ethics Commission (OEC) to start an investigation of STRS. Sondra also contacted the FBI. We have no way of knowing, if the FBI is also completing an investigation, as they do not provide that information to the public.

As a result of pressure placed on the Governor, the Legislature, and the results of the Ohio Ethics Commission investigation of the Fire & Police Retirement System, Governor Taft pressed for and was provided a revised substitute SB 133. It provides many mechanisms supported by CORE. It adds another retiree to the Board. It allows the STRS membership to bring charges against Board members for failure to perform their fiduciary responsibility. If any Board member spent over $10,000 per year on travel or expense related items during the years 2000, 2001, and 2002, that person is prohibited from running for re-election or being appointed to the Board ever again. The Governor signed SB 133 into law on June 16, 2004.

In an effort to effect change at STRS, CORE supported the campaign of Mr. John Lazares for a seat as an active member on the STRS Board.  He was elected in 2004 to replace incumbent STRS board member Eugene Norris.  CORE immediately began a campaign to elect Dr. Dennis Leone as a retiree representative on the STRS Board.  He was elected to the STRS Board in 2005 replacing Joe Endry.

CORE retirees wished to be part of the solution and to be proactive in bringing positive resolution to retirees’ concerns.  In June of 2006, CORE began a reorganization which included the writing of a formal constitution by CORE members Paul Boyer and Ryan Holderman and the election of officers.  The constitution was ratified in September of 2006 and officers were elected in October of 2007. 

The first officers of the organization were:

As required by the CORE Constitution, a Board of Trustees was formed.  Members are:

- Removal of former STRS Executive Director, Herb Dyer.  Mr. Dyer was also found guilty of ethics violations for improperly accepting gifts. At the February 2004 Board meeting, Damon Asbury was approved as Executive Director and  given a 3-year contract. This action was taken without completing a national search as the Board had promised they would do.

- The following former STRS Board members were convicted of ethics violations, paid fines, served community service and are banned from holding office at STRS for life:

       Hazel Sidaway

       Joseph Endry

       Michael Billirakis

       Jack Chapman

       Eugene Norris

       Deborah Scott

- The STRS Childcare center, fitness center, and cafeteria are all cost neutral.

- STRS employee perks have been cut in six areas saving the pension fund approximately $410,000 per year.

- STRS health insurance for full-time rehired STRS retirees will end in 2009.

- A spending cap was imposed on the STRS Executive Director.  Board approval is now required for expenditures over $100,000.

- Thirteen changes were made to the travel policy for STRS staff and Board members.

- A policy was adopted mandating that a summary and total cost estimate of any “big ticket” vendor contracts must be presented to STRS Board members for their review before they are to vote on such action.

Further information about CORE can be found at the official CORE website: www.concernedohio.org and CORE member Kathie Bracy’s Blog: www.kathiebracy.blogspot.com