Comments on: Interim CFO to drop the “interim” from his title

By: Oakland’s part-time CFO - The Education Report - Katy Murphy covers what’s going on in the Oakland schools

Thu, 25 Sep 2008 05:30:03 +0000

[...] July, however, the state administrator approved a two-year contract for Glaster that expired in 2009. That contract now has “void” stamped across the top. [...]

By: sharon

sharon — Sat, 13 Oct 2007 00:44:30 +0000

I love the things you say, you guys. Thank you for being the voice of sanity in this absolutely insane situation.

By: turner

turner — Tue, 09 Oct 2007 16:09:44 +0000

It would not work for teachers, Mr. Mordecai. And it’s not going to work for Mr. Glaster.

The IRS has very strict rules about who can be paid as a consultant as opposed to an employee. If OUSD is not careful, they will find themselves in legal trouble of the worst kind: a fight with the IRS.

The IRS is very clear: “A general rule is that anyone who performs services for you is your employee if you can control what will be done and how it will be done.”

Mr. Glaster is an employee. He will be working as an employee and he will be supervising employees. I don’t know what OUSD is trying to pull here.

A responsible citizen would be wise to forward this agreement to the IRS. We should not be party to any agreement that allows anyone to circumvent our tax process.

Turner

By: Jim Mordecai

Jim Mordecai — Tue, 09 Oct 2007 06:32:59 +0000

I am not against hiring an experienced and recognized expert in finance such as Mr. Glaster. In fact he is far more qualified than the newly hired interim State Administrator that would not be qualified to be State Administrator because by law the State Administrator needs to be a recognized expert in finance and management. At least Mr. Glaster has one of the two expertise required under SB 39.

I assume that because Mr. Glaster is retired that being paid as a consultant allows him to continue to receive his retirement pay. Yet, having a CFO paid as a consultant seems highly unusual as he will be no longer interim CFO but permanent OUSD’s CFO.

By: Jim Mordecai

Jim Mordecai — Tue, 09 Oct 2007 06:13:20 +0000

CFO position is now going to occupied by a consultant who does not pay withholding taxes. Since this is an excellent example of how to avoid withholding, perhaps all teachers should be hired in Oakland as consultants that do not have to pay withholding. Would not this be a way to attract more teachers than other Districts because Oakland has found a way to hold back the mean ole IRS and its withholding claws?

Doesn’t those who work for a consultant end up like members of the army might feel taking orders from Blackwater? This consultant in the role of CFO raises some interesting and unusual questions that might need a lawyer to clarify. But, since the IRS tax law is involved maybe both labor lawyer and a tax lawyer are needed to analyze this situation.

By: Pat Hudson

Pat Hudson — Tue, 09 Oct 2007 00:49:16 +0000

Gee, Oakland Unified is a lot larger than I thought. Reimbursing the CFO for 1,000 miles a month ($500) for mileage seems excessive. Going to make it harder to those financials certified by the county.