L.A. Unified payroll woes linger, teachers and others say

But school officials insist the problems are largely fixed.
By Jason Song, Los Angeles Times Staff Writer
March 15, 2008
Patricia Albrecht died of gallbladder cancer in December 2006. The former Los Angeles Unified School District cafeteria worker's next paycheck arrived several months later and paychecks kept coming until this January.

"I thought it was pretty ironic. . . . I never thought I'd have to pay my mom's taxes after she passed," said her daughter, Jennifer Albrecht, who faxed her mother's death certificate to L.A. Unified last spring in the hope that she could return the money. She said she has yet to hear from anyone.

Albrecht's problem illustrates the continuing difficulties that employees are having with the district's payroll system. Part of a $95-million technology upgrade, the system launched in January 2007 is riddled with glitches. Thousands of teachers and other workers were paid the wrong amount or not at all. The teachers union sued the district in April over the problems.

Los Angeles Unified officials insist that the problems are largely fixed, and the union and district settled the lawsuit earlier this month. "I think we can say this crisis related to [payroll] is over," said David Holmquist, the district's chief operating officer, at a meeting this week.

The district has secured an additional $35 million to help resolve the problems.

Yet Albrecht's daughter and many district employees say they are still having problems, including W-2 forms that don't match year-end pay statements and an unresponsive trouble-shooting team.

District officials said that they've issued about 3,300 corrected W-2s and that there are 134 cases that still need to be resolved.

Those cases should be settled before the April 15 tax deadline, Holmquist said. The district has issued about 120,000 W-2s.

But union officials, teachers and other employees are far from convinced that the problem has been solved. At a recent United Teachers Los Angeles meeting in Koreatown, about 50 teachers and workers lined up to complain about their payroll woes to state and federal tax officials, Rep. Brad Sherman (D-Sherman Oaks) and state Controller John Chiang.

"I'm not here to discuss with you whose fault it is. I think you already know," Sherman said.

Most of the complaints were similar, with teachers saying their tax forms didn't match their year-end pay stubs.

District officials have told employees that they should use their W-2s as their year-end statements but, given past problems, many teachers said they don't trust the district.

Magnolia Avenue Elementary School teacher Marcia Liebman, a 28-year-veteran, reviewed her paychecks for the last year and realized that there was almost a $30,000 difference between her pay of nearly $90,000 and her W-2, which listed $58,000.

"The last thing I want is to get audited," she said.

Liebman contacted the district. But when she received her revised W-2 this week the information was still incorrect, she said.

Union officials said that's a common complaint. "Our biggest issue with this has been the district's inability to follow through," said David Goldberg, UTLA's treasurer.

Holmquist said he wasn't aware of anyone being "ignored" by the district, but at this week's meeting with board members he acknowledged that "we need to have increased customer satisfaction."

When Bancroft Middle School teacher Martha Smithwick realized that she'd been overpaid, she made an appointment with a Los Angeles school district "recoupment" representative to determine how much money she needed to return to L.A. Unified.

After bringing her accountant to the district's downtown headquarters on a Saturday in December and waiting an hour for her meeting, Smithwick agreed to repay almost $3,300 by having the amount taken out of future paychecks.

The district also offered her an interest-free loan to ease any financial burden the sudden repayment might cause.





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