Readers’ Scoop: Lakewood’s Stimulus Scams?

Readers Scoop smallThis school year, 2009-2010, Lakewood schools have been awarded $6.8M in regular federal Title 1 funds, plus an additional $5.9M in Stimulus Title 1 funding.  Stimulus funding is authorized under the American Recovery and Reinvestment Act of 2009 (ARRA).  In short, a total of $12.7 Million in Title 1 is up for grabs this school year. Title 1 funding is intended to ensure that all children have a fair opportunity to obtain a high-quality education and reach grade level proficiency. Basically, the funds are there to help disadvantaged learners by closing the achievement gap between high- and low-performing children.  It makes no difference if the children are enrolled in private, religious schools, or in public schools. All are equally eligible, with funding allocated according to a federal formula. Roughly speaking, in Lakewood, where the school-age population ratio is 4-to-1 private/public (20,000 private/5,000 public), 80% of the Title 1 funding is earmarked to the private school (mosdos) children, while 20% to public school children. 

Scam # 1—hang on to your children with special needs: Faced with a sudden bounty of riches, the Lakewood Board of Education (LBOE) decided to siphon-off from the mosdos $2M, and expand the pre-school program.  As discussed in the Scoop previously, the LBOE last year paid 3 times as much per child for pre-school ($1,250 per month), at Tiny Tots, as for a privately-placed child ($400) in the same facility.  Special Ed services such as Occupational Therapy, Physical Therapy, etc. were separately contracted and paid for by the LBOE at Tiny Tots. In short, taxpayers footed the extra 200% charge.  With such huge profit margins, it is small wonder that some heavy hitters were able to persuade the LBOE to plunder the Title 1 funding bonanza to create a mindboggling boondoggle.  Mr. Michael Inzelbuch got up at a recent meeting and announced that the Lakewood mosdos willingly volunteered to forego the $2 Million earmarked for their disadvantaged students, in favor of expanding the pre-school program. The educators we spoke to say this is not true. Moreover, they were upset by the mere suggestion. Why would they agree to have two-thirds of the $2 Million go straight into someone’s pocket, with a 200% profit margin, instead of for services for educationally disadvantaged children. 

Scam # 2—Hang on to your homes, Everyone: A question was asked to Mr. Inzelbuch at the public session. The Stimulus money runs out in 2 years. If you expand the Pre-School program, where is the $2 Million going to come from when the stimulus money runs out after the 2 years? Will you shut down the (expanded) pre-school program?  Mr. Inzelbuch answered that one honestly: No, we will not shut it down, the money will come from local taxpayers as part of the regular local school budget, if and when federal funding runs out. How much more in local taxes for the average homeowner? 

Scam # 3—Hang on to your wallets:  Reacting to mounting local criticism, spearheaded by a politically savvy watchdog group, attacking the LBOE plan to award no-bid preschool Stimulus-funded contract, Mr. Inzelbuch recently caved-in and announced he will do a Request For Proposals (RFP).  This RFP is a smokescreen. Especially coming so late, after the start of the school year, when stimulus money was awarded at the beginning of the 2009 calendar year, seven months ago.  No one can really bid at this late stage, get the space and staff up and ready. Not unless the “fix” was in, and they had advanced knowledge of what’s coming down the pike. 

And so some local askanim are not falling for any of these scams, especially the so-called RFP process. They claim the money will be awarded to Tiny Tots’ affiliates, like the other 85% of all district-funded pre-school moneys in the kehilla.  Word on the street is that the RFP was delayed until Tiny Tots’ affiliates can line-up their new licenses to qualify to ‘compete’ for these funds. Maybe, or maybe recent scandals triggered it. 

Perhaps the “RFP” was forced by a spate of recent articles, reporting massive abuses in the award of federal Stimulus monies. First it was reported that Colorado Gov. Bill Ritter has awarded some of the state’s first stimulus moneys to his former employer in a no-bid contract.  Another report showed that the Pentagon has so far spent more than one-fourth—around $242 million—of its stimulus funds on no-bid contracts for construction and repairs, a huge waste of taxpayer dollars. The agency saves more than triple the money when companies compete, according to a recently-published news report.  And just last week, the New York papers were full of reports  that one federal agency has awarded $6 million in stimulus funds to a huge international construction management company that has been the focus of two criminal investigations in the last two years and was suspended in June from bidding on and performing work at New York City schools. The company, Bovis Lend Lease LMB, avoided manslaughter charges late last year in the deaths of two firefighters at the former Deutsche Bank building in 2007.  

Catching the drift, and wary of finding itself splattered across the front page of every national and local paper, the Lakewood Board of Education caved-in, and decided to ‘RFP’ for its stimulus-funded preschool services.  Strangely, for its regular (non-stimulus) Title 1 services, LBOE sought, paid for, and got a legal opinion that it does not have to go to bid.  Since then, it promptly dispensed with the RFP process. This happened right after it was publicly accused by one persistent vendor of bid rigging.  Seems like the recently exposed scandals of no-bid stimulus contract award scared off the LBOE. 

We do not know if any of these allegations have any basis in fact. But we certainly support the demand by parents, schools, and community askanim for a full and impartial investigation. Taxpayer are entitled to know how their money is spent. After all, this is not the first time that the LBOE was accused in a front page newspaper article of ‘steering ’Title 1 contracts. Nor is this the first time that the LBOE was caught red-handed plundering millions of Title 1 funds from our mosdos. As recently as 3 years ago everyone in town was asleep while millions of Title 1 dollars earmarked for our mosdos were “misappropriated”, on Mr. Inzelbuch’s watch. 

With such a dismal track record, an impartial investigation into these 3 scams is the minimum we expect, before the funds disappear again. Let the truth shine forth. Its not only our tax dollars that are at stake. It’s our children’s futures.

Signed,

A concerned parent.

This content, and any other content on TLS, may not be republished or reproduced without prior permission from TLS. Copying or reproducing our content is both against the law and against Halacha. To inquire about using our content, including videos or photos, email us at [email protected].

Stay up to date with our news alerts by following us on Twitter, Instagram and Facebook.

**Click here to join over 20,000 receiving our Whatsapp Status updates!**

**Click here to join the official TLS WhatsApp Community!**

Got a news tip? Email us at [email protected], Text 415-857-2667, or WhatsApp 609-661-8668.

75 COMMENTS

  1. Thank you TLS for posting the letter about the BOE, it’s long overdue, time after time, scandal after scandal, BOE slips away from scrutiny. It’s time for them to go. If only the people with the “goods” that can get them disbarred, would speak up.

  2. We appreciate the exposure that is long overdue. But there is a lot more to go. Who does the BOE insurance??? Why is Ostreicher sitting as president when he is a known crook? We must all get together and send emails and calls to Inzelbuchs office demanding a full investigation into this and the entire budget. ENOUGH IS ENOUGH!!
    Just as an side…..these stories were never exposed before the LAC shed the spotlight on the BOE. While they may not have any direct involvement in this, they have raised the awareness and we all have to call and email to create massive pressure!

  3. Sounds more like the writer, who NEVER BACKED UP ANYTHING HE STATED, is a farbissne guy who is trying very hard to dip his hands in the cookie jar by creating hock on this blog..

  4. I’m sure TLS is getting heat for this, TLS can you confirm??
    BUT we must all make sure that these articles keep getting printed.
    If we allow the powers to be to censure the media our problems will get worse.
    FULL DISCLOSURE is needed in all public funds.

  5. to the letter writer.

    on scam number #1 who were the educators you spoke to?

    i think they must be the ones not on the take, bacause those on the take may very well be letting him get away with it so that they can get a few extra bucks at other peoples expense.

  6. The writers never backed-up their claims? Look again.
    YOU are in denial. Back in June they posted on TLS the BOE figures compiled from BOE Minutes, showing Tiny Tots in 2008 got $3,137,732 for 223 children, or $14,071 per child, per year. The going rate is $400 p/m for 10 months a year, or $4,000 for private clients. In other words the taxpayers are paying 350% the going rate. It’s easy to find the original article and evidence. Use the handy search feature; just type in “Inzelbuch” and click on the June 2, ’09 story when it comes up. Go to the bottom, click on the supporting documents. It’s all there for you to see and double check if you wish.
    Sure am Farbissen when I am pick-pocketed by the people YOU cover-up for.

  7. This scandal surfaced exactly two years ago. It’s about time it was exposed.

    Bezalel Hebrew Day had 36 kids in a preschool program funded by the BOE through Tiny Tots, at the Bezalale school on Fifth Street. They were getting $400 per child, per month. Then they discovered that Tiny Tots, the “Sponsor”, was pocketing an addditional $850 per month per child. Bezalel’s kids, facility, staff, food – – everything. Still, Tiny Tots was getting twice as much, off the top, just for being the “Sponsor”.

    When Bezalel approached the BOE to cut out the middleman for a huge savings, they were rebuffed in no uncertain terms, TT had the “Contract”, all funds had to go only through TT.

    Bezalel shut down their preschool program, realizing the money they were getting was “Blood Money”., refusing to be accomplices in this corruption.

    TT frantically moved that program elsewhere, almost overnight.

    Now comes the “RFP” to make this scam “kosher”, pouring kosher salt on our wounds.

    We would like to see a real bid process, so 3.5 times as many kids can be enrolled, for the same dollar amount.

  8. What i wanna know is why are the tiny tots teachers who are certified making so little money while tiny tots bills tax payers triple the salery?

  9. Farbissene at 1:52 ~

    Stop making up more stories.. THERE ARE NO SUPPORTING DOCUMENTS posted on TLS for anything on any of the previous bashmutzing of MI. GURNISHT. NADA. If there would be then it should’ve indeed been posted here as a .jpg or similiar format.

    YOU NEED TO BACK UP UNFOUNDED COMPLAINTS WITH EVIDENCE. BUT THERE IS NO EVIDENCE!

    SO YOU ARE FALLING FOR THIS LOW & FARBISSENE BADMOUTHING AND ARE NOW STUCK SOMEWHERE IN LA LA LAND.

    FOR YOUR OWN SAKE PLEASE COME BACK DOWN TO EARTH!!

  10. Countering hard evidence with SHOUTS only discredits you.
    Everyone else easily found and accessed the documents without a problem. They are posted for all to see, and are carefully compiled straight from the BOE Minutes. Ask Michael Inzelbuch. He will surely confirm.
    What evidence do you specifically disagree with? We will gladly try to enlighten you, so long as you sincerely seek truth, and not “don’t confuse me with the facts”.

  11. To Taxpayer at 3:19,

    I fully agree. Let’s continue waiting for TLS to post real docs, and then we the public can decide if there IS OR IS NOT evidence proving the exact complaint put forth by the rumor-mongers..

    My hunch is, that just like TLS never provided ANY evidence for his previous posted rumors – he won’t come through on this hock either..

  12. i think eveyone reading this should put this up in yeshiva and in the shuls. people have to know what the BOE is really about and who the cronies are.most people in lakewood do not have internet and it is important that people know. it will make it a lot harder for them to steal the money if they dont have partners in crime.

  13. who are the educators? reminds me of the story with famous ttzaddik who humbly said he knows 1/2 Shas. When asked which 1/2, he answered, any 1/2 you want.

    Which educators protest the $2 Million diversion? Anyone you ask.
    We asked 9, All said, “No Good, never even consulted”. Do you own research.

  14. I repeat, SHOW US THE SUPPORTING DOCS. Why haven’t you yet backed up every single rumor posted as news on this blog? What’s the big deal to post them on TLS?? why has it still NOT been done??? Is it because the supposed proof really doesn’t exist?!?!

    If you have even a shred of what you consider evidence then please email it to TLS Thank you.

  15. I have yet to see one document of proof for any of the stories.. What do you think you’re doing..running a tax office or something…

    If you want to make the claim then BRING THE PROOF!!

  16. it looks like the feds will have to send a bus instead of a car to lkwd, it will be such a chillel hashem again. is there anyway we can get rid of these guys before their pictures are all over the papers ?

  17. Scam # 2—Hang on to your homes, Everyone: A question was asked to Mr. Inzelbuch at the public session. The Stimulus money runs out in 2 years. If you expand the Pre-School program, where is the $2 Million going to come from when the stimulus money runs out after the 2 years? Will you shut down the (expanded) pre-school program? Mr. Inzelbuch answered that one honestly: No, we will not shut it down, the money will come from local taxpayers as part of the regular local school budget, if and when federal funding runs out. How much more in local taxes for the average homeowner?

    how is he going to use regular tax money to cover a private school program ?

  18. This letter is full of false accusations.

    As a parent of a special needs child that sends to tiny tots thru the Lakewood BOE, My child gets allot more services then a regular child would get from Tiny Tots or any other licensed day care.
    1. Fully equipped therapy rooms
    2. An education director that follows my Childs IEP and progress
    3. A shadow for my child
    4. Social worker for behavioral issues
    5. Certified teachers in the classroom
    6. Teachers aids in classrooms that know more about teaching then most moras in basements
    7. Teacher training and workshops that happen on a weekly basis
    8. Toys in classrooms that teach mechanical and sensory skills

    My child could have gone to schi at a cost of $80,000 plus a year, instead he is being mainstreamed into a regular class room with regular kids at a cost of $1250 a month with the hope that he will be able to mainstreamed to a regular yeshiva

    The district and the taxpayer got the bargain of their lifetime.

  19. Walt Kelly, creator of the famous Pogo comic strip, said it best and said it first: We have met the enemy and it is Us.

    You are right. We voted these guys in.
    And we’ve been had. Big Time.
    But there’s another election coming in April.

    We will not make the same mistake again.

    We will ask every candidate some probing questions. First, will you continue no bid contracting?

    Yoni, please ask the District Business Manager for a report.
    How much did Big Bucks/Tiny Tots take out of the District in 2007 and 2008. For how many children? Were special ed services included in the tuition or separately contracted and paid for? Was rent included or separately paid for? Was there an RFP? If so, How many bid? If not, why not? Why only for Stimulus money services?

    Let’s get some answers..

  20. you are entirely missing the point.

    All the special services your child received are paid for by the BOE on TOP OF the basic monthly $1,250 tuition. Comparing apples to apples, TT charges private clients $400 monthly, BOE clients $1,250 for basic tuition, BEFORE special services.

    The only one getting the bargain of a lifetime is Tiny Tots.

  21. “how is he going to use regular tax money to cover a private school program ?”

    He is doing that right now at Tiny Tots. What’s the problem? He is ‘only’ going from $3M to a cool $5 Million per year.

    Besides, what’s the difference using federal tax or local tax moneys? Once you’ve let him in, he will go after your home.

  22. to TLS for focusing on this vital community issue. It touches thousands of homes, whether as taxpayers or as parents of children with special needs.

    Thank you also for maintaining high standards, filtering out purely personal attacks that only detract from the isssues discussed.

    Keep up this robust discussion. You are serving the tzibbur in a public forum not available elsewhere.

  23. does the BOE as to give a disclosure how they spent their title one money?

    who is their to call to prevent such frauds?

    can th BOE be sued to expose where the money is going?

  24. to..Bargain of a lifetime Indeed

    You are missing the point.
    All those services are not paid for by the BOE.The only thing the BOE pays for is the therapists and the bussing. All the services listed Tiny Tots provides with the $1250 they get…
    The taxpayer is getting the bargain. Know before you speak.. you might just get a little smarter

  25. you’ve exposed yourself the minute you gave your name as The writer of this letter is Sick.

    When you resort to name calling its the first sign that you lost the argument on the merits. Note, I’ve consistently maintained a respectful tone. So let us try to stick to the issues, for a meaningful exchange, as we try to get to the bottom of this.

    Now, back to the facts. Using your list (reproduced below) please tell me which of the items are provided by TT, and included in the $1,250 tuition charge, and which are paid for separately by the BOE:

    1. Fully equipped therapy rooms
    2. An education director that follows my Childs IEP and progress
    3. A shadow for my child
    4. Social worker for behavioral issues
    5. Certified teachers in the classroom
    6. Teachers aids in classrooms that know more about teaching then most moras in basements
    7. Teacher training and workshops that happen on a weekly basis
    8. Toys in classrooms that teach mechanical and sensory skills.

    Please respond item-by-item, numerically, so we can see just who is getting the Bargain of a Lifetime, and who is missing the point..

    Just the Facts, please, Sir.

  26. no one else can get into the cookie jar ONLY the bigs guys who already have their hands in it V’hamaivin Yuvin who they are. We are paying taxes for these people to be big Askoninim in our community and give tzedaka to organizations and have their pictures in the paper……while there are 100’s of children who are not lucky enought like the person whose child got serviced in TINY tots vs schi and saving us so much money. what he forgot to mention is that they are only 5-6 kids in that program on that calibera of those services, the rest are placed in non public and told “there is no money”. So they are wealthy peopel cause tehy are taking alittle percent off everything we are entltled too. And my child needs services and guess what i am paying out of my pocket and collect money for him!

  27. in light of the recent back and forth here, Yoni should also ask the District Businesss Manager how much was spent by the District for therapies, transportation, special services, and all ancillary cost for Tiny Tots in 2007 and 2008. Maybe that’s the reason there is no money for kids elsewhere.

    What’s the true total cost to the taxpayers for this cash cow called Tiny Tots, when you figure in all the ‘extras’? $5,000,000.00? $6,000,000.00?
    Anyone on the School Board know? Willing to share?

  28. How do I know personal attacks are being filtered out?
    Ruach Hakodesh? No.
    It’s Simple.
    I compared this thread to the one back in June.
    You could do the same.
    A world of difference.
    Shkoiach Again, TLS!!
    Much improved.

  29. To…Bargain Indeed says…

    Not trying to get personal but you should get your fact straight before you post… That was my point about this anonymous letter. It accuses without knowing the facts
    All the services listed is included in the $1250. I spoke to the director many times and she confirmed.
    • 1. Fully equipped therapy rooms
    2. An education director that follows my Childs IEP and progress
    3. A shadow for my child
    4. Social worker for behavioral issues
    5. Certified teachers in the classroom
    6. Teachers aids in classrooms that know more about teaching then most moras in basements
    7. Teacher training and workshops that happen on a weekly basis
    8. Toys in classrooms that teach mechanical and sensory skills.

  30. Please provide the Director’s name so we can call and verify. Our information is to the contrary. Checked and double checked. Inasmuch as the Director’s child is NOT the subject, you cannot hide him/her under the “privacy” shield. Let’s see if the Director is telling the truth or is a co-conspirator.

    Our liaison will contact, verify, and if we stand corrected, we will do so publicly on this forum. Let’s get verification, Sir. It’s easy to bluff.

  31. This is not fair. With a child who needs Early Intervention which ends at age 3 , I was told my Jod would have to go to TT after 3 year old playgroup otherwise I can not get the therapy they need ?? Here I am willing to pay money for a regular playgroup and put some $ into the economy. But then I lose my rights to get therapy for my kid ? Totally not fair ! As well as plain stupid !

  32. Am still waiting and waiting for back-up proof of the complaints..

    Will it EVER come??? I remember commentors asking for docs proving the hock way back in June, but here we are today in September and still NOTHING. ZILCH. KLUM.

    Why does TLS let himself give staging to these rabblerousers!!?

  33. no name, no verification. empty statements.
    contrast that with the BOE Minutes, showing vast expenditures for special services at TT paid by the BOE.
    ’nuff said.
    Will wait outcome of investigation.
    Patiently.

    The wheels of Justice grind slowly.
    But very finely.

  34. How come Tashbar pays 1500.00 per month to the borad of ed for classroom space and the board of ed pays kanarek 17,000 per month for classroom space? does this make any sense?

  35. the facts are there is an enormous ampunt of money spent to tiny tots therapists besides the $1250.00 per child any one who wants to look at previous agendas can see the approvals in black and white.when schi numbers are discussed vit ncludes all therapists. tiny tots does not!!! so the true costs are hidden and it actually comes out almost as much it is a huge scam.any one who wants to search the agenda archives can see all the huge approvals besides basic tuition

  36. who wrote the comment under the name of L Solakian, please note that this has been sent to the attorney general and prosecutor., if you want to impersonate someone, make sure it is someone who doesn’t care. L Solakian did not write that statment. It would be wise to remove it.

  37. how can you compare tiny tots to schi? schi charges $ 85000 per child… the total cost of a tiny tots child after bussing and therapy does not get near $25000. the scam is that schi three years ago was charging $25000 until they built the new building …

  38. I plan on prosecuting this letter writer and all the evil commentors for spreading deliberate falsehoods, untruths, and lies!! The truth will yet rise and shine and send the cowards scurrying for cover… But there will be no where to hide! Mark my words..

  39. can someone please explain to me whats wrong with using title one money to put children into a real classroom rather than sitting in a basement with a morah that goes unsupervised. Thats the intent of these funds.How is that considered taking money out of the hands of our mosdos. Does anyone know if the mosdos sbmitted an RFP to provide this service and were denied? so what trigerred the writer of this articl.

  40. What’s wrong?
    1. Spending 3.5 times the going rate,
    2. Denying services to other kids, but approving services for tiny tots kids,
    3. Giving contracts/money to your cronies only,
    4. Feifing-on the mosdos’ neediest children,
    5. Feifing-on all the mosdos’ menahalim by falsely claiming they went along with this scam,
    6. NO bidding for Title 1 services,
    7. Ramming this down the kehilla’s throat at the last possible minute, after sitting on the money for seven months, until they figured out a way to steal the money,
    8. The entire scheme and scandal that the $125 Million school budget is one man’s financial empire to spend as he wants, in a Michaelvillain manner of divide and conquer.

    We can go on and on, but if you read the discussion and still pretend not to know what’s wrong, there’s no purpose.

  41. With bad weather, downed tree limbs and cars on fire, the fire department turned off the power to the area, including power to Tiny Tots Preschool today. Imagine a place with hundreds of infants, toddlers and small children suddenly caught without any electricity!

    While it could’ve been the makings for a total panic, it wasn’t at Tiny Tots. With the owners on the premises to ensure that everything went smoothly, the staff got all the parents of the babies to pick up their little ones, while the two year olds and older kids were transported by bus to their other preschool nearby.

    My kids weren’t scared or upset at all by the experience, mostly because the adults set the example by remaining very calm. Great example of professionalism in action. Way to go, Aviva and the Tiny Tots staff. Many thanks to the owners of Tiny Tots. Clearly you all care very much about the well-being of our children!

  42. The true Heartbeat of America are people who speak out passionately about what they believe in. To start slinging mud and referring to their passion as some sort of scam is just ridiculous. You know who you are stay on topic.

  43. I plan on prosecuting this letter writer and all the evil commentors for spreading deliberate falsehoods, untruths, and lies!! The truth will yet rise and shine and send the cowards scurrying for cover… But there will be no where to hide! Mark my words..

    Haven’t you ever heard of freedom of speech which is truely the Heartbeat of America. By denying people this right you are creating a scam on America’s right to speak out.

  44. TO THE PERSON WHO WROTE THIS:

    I plan on prosecuting this letter writer and all the evil commentors for spreading deliberate falsehoods, untruths, and lies!! The truth will yet rise and shine and send the cowards scurrying for cover… But there will be no where to hide! Mark my words..

    I agree in freedom of speech so lay off! The poster who states the Heartbeat of America is the people who stand up for what they believe in and speak freely about scams are the true Americans so stop blowing off steam.

  45. Obama is the Heartbeat of America don’t let others scam you!
    If You Have Health Insurance, the Obama Health Care Plan:

    * Ends discrimination against people with pre-existing conditions.
    * Limits premium discrimination based on gender and age.
    * Prevents insurance companies from dropping coverage when people are sick and need it most.
    * Caps out-of-pocket expenses so people don’t go broke when they get sick.
    * Eliminates extra charges for preventive care like mammograms, flu shots and diabetes tests to improve health and save money.
    * Protects Medicare for seniors.
    * Eliminates the “donut-hole” gap in coverage for prescription drugs.

Comments are closed.