The Education Leaders Council (ELC), which has been grappling with financial and leadership issues for several months, is merging with another non-profit organization based in Washington. Lisa Graham Keegan, the CEO of ELC, will step down this week and will be replaced by Theodor Rebarber, the president of AccountabilityWorks. The merger, approved by the board of directors, will result in a new organization that will manage the Following the Leaders project, which has received $23.5 million in federal grants. This project assists states and school districts in meeting the requirements of the federal No Child Left Behind Act.
The decision to merge the organizations comes after a period of turmoil for ELC, during which three of its employees left and its national conference had to be postponed due to the Florida hurricanes. Ms. Keegan attributed the delay to the natural disasters, which would have impacted attendance. The conference, a significant fundraising event for ELC, will now take place in December.
Regarding the organization’s finances, two anonymous sources claimed that ELC heavily relied on federal money to sustain itself in recent months and was at risk of using funds designated solely for non-administrative activities. However, Ms. Keegan denied these allegations and stated that she took internal measures to prevent misallocation of funds. She did accept that she had been unsuccessful in securing funding from sources other than the federal government.
AccountabilityWorks, with whom ELC has a contract for the Following the Leaders project, will contribute to the financial stability of ELC through the merger. Mr. Rebarber acknowledged the need for internal improvements to ensure ELC’s financial stability.
Mr. Rebarber assured that the merged organization has obtained clearance from officials at the U.S. Department of Education to use the federal grant money. The department’s spokeswoman, Susan Aspey, confirmed that the concerns about ELC had been addressed and the organization had complied with all requests.
Critics viewed the merger with AccountabilityWorks as a financial bailout and a means for Ms. Keegan to save face. Ms. Keegan, who was hired in 2001 to strengthen ELC’s national influence, plans to remain on the council’s board and support ELC as a volunteer consultant and speaker. ELC was established in 1995 as an alternative to the Council of Chief State School Officers by a small group of state schools chiefs.
Mr. Horne dismissed suggestions that the organization was in serious trouble, emphasizing that they are currently undergoing a reformation. He stated that they need to downsize, reduce the workforce, and cut costs, but he is optimistic about the future. Mr. Horne also mentioned the possibility of the newly reconfigured ELC operating independently from Following the Leaders.
The ELC was granted $3.5 million from the Education Department’s discretionary fund, overseen by Secretary of Education Rod Paige, for the project. In addition, it received $20 million in congressional appropriations for the same purpose over the past two years. The council is now seeking an additional $12 million in congressional appropriations for fiscal year 2005. Some states have also requested their own earmarks for specific work related to Following the Leaders in their respective states.
Ms. Keegan confirmed these requests and mentioned that the ELC typically operates with an annual budget of approximately $1.5 million. However, Ms. Yecke, a former board member, expressed concerns about how the money is being spent and called for transparency in the project’s finances before any further funding is provided.
Regarding the Following the Leaders program, Ms. Keegan explained that it primarily focuses on assisting schools in improving student achievement, aligning with the goals of the No Child Left Behind law. The program works with more than 600 schools, using tests based on state academic standards to track students’ progress. Faye Taylor, the director of Following the Leaders, acknowledged that the program had faced initial delays but defended its effectiveness by highlighting the significant test-score gains seen in Mississippi schools receiving support from the program.
However, not everyone is convinced that the program has made optimal use of the federal funding it has received. Ms. Yecke voiced her concerns, stating that the program’s objectives were unclear. She argued that any organization utilizing taxpayer money should be responsible and transparent in its financial management, suggesting that this was lacking in the case of Following the Leaders. Ms. Keegan mentioned that an evaluation of the program is currently underway to address these concerns.
Mr. Rebarber, who has experience in the education sector and policy circles in Washington, leads AccountabilityWorks. He expressed confidence in the reorganized Education Leaders Council, believing that it will find a more successful path forward. Mr. Rebarber emphasized their efforts to unify everyone around a shared plan and vision, remaining transparent throughout the process. Their focus is on determining the organization’s future direction and mission.