Minnesota State Auditor Rebecca Otto

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Note:  In the following article, State Auditor Pat Anderson states that "the discrepancy between the two reports stems from the Auditor’s Office report including more schools than the education department used in its analysis."  But in fact, the State Auditor counts fewer schools, skipping 32 schools that the Department of Education includes, schools which had millions of dollars in revenue and hundreds of students.  See for yourself hereIf a line is blank, that school is skipped.

What the State Auditor report does do is include the three intermediate school districts separately, while the Department of Education includes their students in their member districts (intermediate school districts draw students from participating member school districts).  But this does not affect the total.  No matter how you slice it or dice it, the total revenue and total student counts differ widely between the two state agencies, with no explanation or discussion of the divergence.  Which is right?  Dept of Ed or State Auditor?

The State Auditor also states that the use of the CPI is "standard within the Auditor’s Office and has been for years," but last year's schools report does not use the CPI.  See this And the Auditor gives no explanation for why calendar year CPI was used instead of fiscal year CPI, when schools do their books on a fiscal year and the report clearly states that is it analyzing fiscal year numbers.

Reprinted from

             
Posted: 9/21/06
Clash of calculators continues in state auditor's race
 

by T.W. Budig
ECM capitol reporter


The clash of the calculators continues in the state auditor’s race with Democrat Rebecca Otto charging Republican State Auditor Pattricia Anderson with more accounting errors.

Anderson said Otto’s charges are wrong and annoying.

At a Capitol press conference on Wednesday (Sept. 20) Otto charged that an 2006 Auditor’s Office report on the financial trends of Minnesota school districts and charter schools varied from Department of Education numbers by some $87 million.

“It’s just not close enough,” said Otto.

Additionally, Otto criticized the auditor’s office’s uses of the consumer price index (CPI) in its calculations, arguing instead an alternative pricing variable, the implicit price deflator, should be used in budget analysis.

By using the CPI, Anderson’s school report makes school revenues seem to have grown by hundreds of millions of dollars, Otto explained.

But use of the implicit price deflator would show school funding lagging behind the cost of inflation, she explained.

“Is it deliberate? — I don’t know,” said Otto when asked if Anderson was trying to spin the numbers.

Otto, over the course of the state auditor’s campaign, has repeatedly attacked Anderson for faulty bookkeeping.

She believes people have been paying attention to her criticisms. “For me it’s frustrating,” said Anderson of Otto’s charges, which she deems baseless.

The discrepancy between the two reports stems from the Auditor’s Office report including more schools than the education department used in its analysis, explained Anderson.

As for the use of the CPI, that’s standard within the Auditor’s Office and has been for years, Anderson explained.

Anderson said voters do not ask her about Otto’s criticisms. But it’s frustrating, said Anderson, because time has to be spent figuring out what Otto is talking about, she said.

 

© Rebecca Otto.  All rights reserved.      Paid for by Otto for Auditor, 12697 N 177th St, Marine, MN 55047

 rebecca@rebeccaotto.com

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