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FEATURES | D1

WHAT?
Junior put a bean up his nose — should you panic?
LOUISVILLE, KENTUCKY

Your kid did

Wildcat enjoys his Indiana All-Star role
Marquis Teague impresses both states
$1.00
75 cents in Hardin County

SPORTS | C1

METRO EDITION

State Auditor Crit Luallen and Louisville Mayor Greg Fischer are likely to meet with MSD officials to work out details of the management audit the mayor requested.

Broad audit of MSD is planned
By James Bruggers
jbruggers@courier-journal.com The Courier-Journal

CHRISTINE JOHNS

Finalists for JCPS post get good marks at home
DONNA M. HARGENS

courier-journal.com

T H U R S D AY , J U N E 9 , 2 0 11

USPS 135560

‘Everything on the table,’ mayor says

Louisville Mayor Greg Fischer wants “everything on the table” for a management audit of the Metropolitan Sewer District, a spokesman said Wednesday. Unlike last year’s financial audit of MSD, the new audit Fischer called for Tuesday should focus on such issues as the management structure of the 660-person agency; its spending and procurement policies, including no-bid contracting; and the oversight function of the board, including how it sets sewer rates, Fischer spokesman Chris Poynter said. Fischer’s call for the management audit followed Courier-Journal stories about questionable spending practices and allegations of mismanagement at MSD. It was announced just before the newspaper published a story about MSD paying almost $300,000 in bonuses to its 18 highest-paid employees during the recession. “There are questions about MSD,” Fischer said during a WFPL public radio interview Wednesday. “These folks do a lot of good work every day. Let’s remove the questions.” Kentucky Auditor Crit Luallen has agreed to work with MSD and the mayor’s office on the scope of the audit and in the selection of a private consulting firm to do the work. She said the consulting firm should be independent of MSD and chosen through competitive bidding. MSD will pay for the audit. Luallen said her office does not have the resources to do the work See MSD, A2, col. 2

Christine Johns of Utica Community Schools in Michigan answers questions this week at Louisville Male High School.

By John Sommers II, Special to The Courier-Journal

Donna Hargens listens as Wake County, N.C., fourth-grader Christy Simmons, left, tells Hargens about a math award she received.

By Michael McLoone, Special to The Courier-Journal

‘Visible’ administrator worked up career ladder
By Antoinette Konz
akonz@courier-journal.com The Courier-Journal

STERLING HEIGHTS, Mich. — When Christine Johns arrived as superintendent of Utica Community Schools in July 2006, her mission was to make the well-regarded, high-performing school district in a working-class suburb of Detroit even better. It was the first superintendent job for Johns, who had started her career as an elementary school teacher in Prince George’s County, Md., then worked her way up the career ladder as a curriculum specialist, principal, assistant superintendent and deputy superintendent in school districts in Maryland and California. “We were a good district, but I think you could say that we were comfortable See JOHNS, A4, col. 1

Age: 45 Current home: Shelby Township, Mich. Family: Husband, Bob Haines Education: 2004,Harvard University, doctorate in administration, planning and social policy; 1997, Harvard, master’s of education in administration, planning and social policy; 1992, Johns Hopkins University, master’s of science in administration and supervision; 1988, University of Pittsburgh, bachelor’s of science in elementary education. Awards: Meritorious Service Award from the Teachers Association of Baltimore County, 2003; Outstanding Administrator’s Award from Prince George’s County Chamber of Commerce, 1996

CHRISTINE JOHNS

‘Quiet’ leader navigated N.C. busing controversy
ckenning@courier-journal.com The Courier-Journal

By Chris Kenning

RALEIGH, N.C. — When Donna Hargens was asked to become interim superintendent of Wake County Public Schools here last year, the 143,000-student district was deep in crisis. Suburban parents, disgruntled about the district’s groundbreaking but controversial student-assignment plan, elected a new conservative majority to the school board, which promised to end busing in favor of neighborhood schools. In response, the superintendent abruptly quit, saying he couldn’t do his job in good conscience. Furious activists disrupted school board meetings so badly that several were arrested. And the NAACP filed a discrimination comSee HARGENS, A5, col. 1

Age: 53 Hometown: Milwaukee Current home: Wake County, N.C. Family: Husband, Jeremy, 54; son, Josh, 27; daughter, Jenna, 25 Education: 2005, Seton Hall University, doctorate in education leadership, management and policy; 1988, UNC-Chapel Hill, master’s in educational administration/supervision; 1979, Marquette University, bachelor’s degree Career: Chief academic officer of Wake County schools, 2006 to present; interim superintendent, 2010-2011; assistant superintendent for curriculum and instruction, 2005-06; area superintendent for western Wake, 2003-05

DONNA M. HARGENS

FINALISTS ONLINE | Go to courier-journal.com/education to read previous coverage, see videos of the two candi- INSIDE | Donna Hargens
dates and submit questions before a C-J Editorial Board interview with Donna Hargens at 1:30 p.m. today.

speaks at a public forum, B1.

Afghanistan envoy nominee: Mission isn’t hopeless
Senate airs worries in confirmation hearing
By Donna Cassata
Associated Press

WASHINGTON — President Barack Obama’s choice for U.S. ambassador to Afghanistan insisted Wednesday that the U.S. must continue its multibillion-dollar investment to foster a “good enough” government in Kabul that would prevent the country from

backsliding into a sanctuary for terrorists. Ryan Crocker was challenged repeatedly by skeptical senators who questioned a costly war now in its 10th year and nation-building that a fresh congressional report found has had limited success despite nearly $19 billion in foreign aid over a decade. That’s more than the United States has spent in any other country, including Iraq. “Our current commitment, in troops and dollars, is neither proportional to our interests nor sus-

tainable,” said Sen. John Kerry, DMass., chairman of the Senate Foreign Relations Committee. Looming large as senators pressed Crocker to state an Afghanistan endgame was Obama’s upcoming decision on how many of the 100,000 American troops to withdraw from Afghanistan in July. The death of al-Qaida leader Osama bin Laden, reservations about unreliable ally Pakistan and significant U.S. budget constraints See ENVOY, A2, col. 2

Ryan Crocker, President Barack Obama’s choice to become envoy to Afghanistan, testifies Wednesday on Capitol Hill before the Senate Foreign Relations Committee.
J. Scott Applewhite Associated Press

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Time: 06-08-2011 22:01 User: mmatherly

PubDate: 06-09-2011 Zone: KY Edition: 1 Page Name: A 2

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THURSDAY, JUNE 9, 2011 | THE COURIER-JOURNAL

FROM PAGE ONE |

courier-journal.com

KY-

Some of last night’s lottery results were received too late to be included in this edition. Those results will be published tomorrow. Call for more information: Kentucky: (502) 583-2000 Indiana: (800) 955-6886 (tollfree) Illinois: (800) 252-1775 Ohio: (800) 589-6446 (toll-free) Tennessee: (877) 786-7529 (toll-free) All numbers for Wednesday, June 8 except where noted.

LOTTERIES

Continued from A1

MSD | Fischer says he wants ‘everything on the table’ for audit
itself. An initial meeting of the mayor, MSD officials and Luallen will likely be required to start working on such details as their roles and how to select the auditor, Poynter said. MSD board attorney Larry Zielke said he’s preparing a resolution to go to the board as early as Monday, authorizing the audit, which he expects to cost as much as $80,000. Board members would have to approve it for the study to go forward. “It’s my understanding that the state auditor will select the firm and establish or recommend the scope of the review (and) purpose … not MSD,” the agency’s staff attorney, Paula Purifoy, wrote in an email. “Obviously, it would be a conflict for MSD to be involved in this. The MSD board will only approve the recommendation, agree to cooperate and pay whatever it will cost.” Board President Arnold Celentano did not return calls Wednesday. But in a news release from the mayor’s office Tuesday, he said the board would likely approve the mayor’s recommendation. “I believe we should operate as efficiently as possible and this review may result in recommendations that would lead to improvement,” he said. “I also look forward to any recommendations that improve the relationship with our customers.” Questions about spending and management at MSD have surfaced as it has steadily increased rates to pay for sewer system improvements mandated by the Clean Water Act. The agency in 2005 agreed to make an estimated $850 million in upgrades to greatly reduce spills of untreated sewage into the Ohio River and its local tributaries, especially during heavy rains. Customers in Louisville — who have already seen their rates rise 5 percent to 7 percent a year since the mid-1990s — can expect more of the same. The board has tentatively approved a 6.5 percent increase for the coming fiscal year — the third straight annual increase of that size. By 2024, MSD has estimated the annual rate for a typical Louisville household will be $810, up from $402 in 2010. “They keep adding more and adding more, and there is nothing you can do about it,” said Robert Jones, 84, of Pleasure Ridge Park. He said he welcomes the audit. “They’ve been paying out a lot of big bonuses to people,” he said. In recent weeks, the newspaper has also found that MSD: Has spent more than $7 million on outside lawyers since 2006, in addition to supporting a staff of four attorneys. Paid $350 an hour for a teambuilding coach in 2009 and 2010. Increased an outgoing human resources director’s salary in the last five months of her career in 2008 to boost her public pension. Settled a threatened whistleblower lawsuit in December with the agency’s most recent human resources director for $140,000 and a promise of silence after he raised allegations of waste, fraud and mismanagement. Paid raises and bonuses to Executive Director Bud Schardein and chief engineer Mark Johnson in 2009, just months after Schardein promised both would take 10 percent wage reductions for that year. The paper also reported earlier this year that three MSD board members owned businesses that did work for the agency, including the chairman, vice chairman and former chairwoman. The three resigned and have been replaced. Louisville Metro Council President Jim King, D-10th District, praised Fischer for his decision to call for the management audit. “It more or less confirms my faith in the mayor’s intention to address this, and do it in an incremental and logical manner,” King said. He also praised MSD. “I’ve never had any complaints about MSD. They have been very responsive to me and my constituents.” Metro Councilwoman Tina Ward-Pugh, D-9th, said she remains a big supporter of MSD’s plan to renovate its sewer system. But she said Wednesday she was concerned to learn that Schardein’s and Johnson’s pay was essentially restored quickly after the announced cuts in 2009. “That just seems so glaring. I am keenly interested in the explanations and justifications for those kinds of bonuses and incentives.”

MEGA MILLIONS

For June 7 Worth: $24 million 29 32 35 47 52 13 (Last number is MEGA BALL) No five-number + Mega Ball winner. Three five-number winners: $250,000 each. 32 four-number + Mega Ball winners: $10,000 each. Pick Three Midday – 7 9 3 Pick Four Midday – 7713 Numbers from June 7 3 Line Lotto 1 3 11 29 35 36 One six-number winner on one line: $100,000. Six five-number winners on one line: $500 each. One 10 or more-number winner on all lines: $2,000. Cash Ball 6 8 30 31 19 (Last number is CASH BALL) Kicker 44312 Pick Three Night – 8 4 1 Pick Four Night – 1479 Daily Three Midday – 9 3 2 Daily Four Midday – 3069 Lucky 5 Midday – 3 8 12 13 27 Numbers from June 7 Daily Three Night – 7 9 2

Kentucky

Daily Four Night – 8762 Lucky 5 Night – 6 12 18 29 36 Mix and Match 11 12 31 32 48 Pick Three Midday – 8 6 4 Pick Four Midday – 0134 Numbers from June 7 Pick Three Night – 7 9 5 Pick Four Night – 2458 Little Lotto 9 12 18 22 30

Illinois

Metro Councilman Jerry Miller, R-19th, said he welcomes the audit. “It’s very important we restore confidence in MSD,” he said. This is the second time that Luallen has gotten involved in MSD matters. The state auditor’s office in September asked MSD’s private financial auditor, Crowe Horwath, to look into allegations of financial and other irregularities within the agency. That inquiry was launched after allegations of mismanagement were raised by Future Fund, a land trust that had been fighting a sewer line extension in eastern Louisville. But after reviewing the work by Crowe Horwath, Luallen concluded there was no merit to some of Future Fund’s concerns, and others were beyond the scope of a financial audit. That audit found no evidence of fraud or abuse of the agency’s finances. Jeff Frank, executive director of Future Fund, said he welcomed the broader scope of the new audit. He said he hoped auditors will look at issues he considers unresolved, such as how MSD has structured a debt that totals $2.6 billion, including interest, as well as MSD’s practice of partnering with developers to build sewer lines. “The day is set for the best and the brightest to step in and take an independent look at MSD,” he said.
Reporter James Bruggers can be reached at (502) 582-4645.

Indiana

Pick Three Midday – 6 0 8 Night – 5 2 7 Pick Four Midday – 9874 Night – 9 4 5 9 Cash Five 10 26 34 35 38 Classic Lotto 1 12 16 21 40 46 Cash Three Midday – 7 3 0 Evening – 4 3 9 Cash Four Midday – 8105 Evening – 5338

Ohio

Continued from A1

ENVOY | Key issues make Congress reconsider Afghan mission

Tennessee

Past results, more information: www.kylottery.com www.hoosierlottery.com www.illinoislottery.com www.ohiolottery.com www.tnlottery.gov

ON THE WEB

CORRECTION
Because of reporter’s errors, Wednesday’s story about the prosecution of Iraqis in Bowling Green on terrorism offenses should have said they are believed to be the first refugees from Iraq to be prosecuted in federal court in the United States on such charges. The story wasn’t clear in all references. Also, the story should have noted that Waad Ramadan Alwan — one of the Bowling Green men charged with conspiracy to kill U.S. nationals abroad — is the fifth foreign national to be prosecuted in the U.S. for alleged terrorism actions in a U.S.-occupied territory such as Iran or Afghanistan during wartime, according to the Justice Department. We publish corrections in a timely fashion. If you feel an error has been made, please call (502) 582-4600; fax (502) 582-4610; or e-mail readerline@courier-journal.com.

Terrorism charges

have forced even the more hawkish members of Congress to rethink continued U.S. involvement in Afghanistan. The administration has not said what will be the size of the drawdown or whether it will include combat troops. On a glide path to Senate confirmation, Crocker said the U.S. can’t afford to abandon Afghanistan — where the most realistic goal is a relatively stable government rather than the creation of “shining city on a hill.” “Governance that is good enough to ensure that the country doesn’t degenerate back into a safe haven for al-Qaida,” Crocker told the Foreign Relations panel. He recalled Defense Secretary Robert Gates’ warning that the U.S. walked away from Afghanistan in 1989 with disastrous results. “We cannot afford to do so again,” said Crocker, who argued progress is hard, “but hard does not mean hopeless.” Sen. Chris Coons, D-Del., summed up the frustration of lawmakers. “If we’re not going to walk away, how long are we going to stay and at what level?” he asked. Crocker said bluntly, “I just don’t know the answer now.” He said the goal was avoiding a return to an al-Qaida haven. “The trick is, how do you do it and how much does it cost and how long does it take?” he added. The career diplomat, who has served in Beirut, Baghdad and Islamabad, pointed to the upcoming transfer of control of seven provinces and districts to Afghan authority, a significant step as the United States pushes toward removing all its troops by 2014. But that prompted Sen. Jim Webb, D-Va., to argue that it does not necessarily guarantee a blow to enemy forces, who can move. “International terrorism and guerrilla warfare in general is intrinsically mobile,” Webb said. “I fought a guerrilla war in Vietnam.” Kerry and the panel’s Democrats released a report late Tues-

Code Pink demonstrators protest behind Ryan Crocker, President Obama’s nominee for envoy to Afghanistan, as he arrives to testify to the Senate Foreign Relations Committee. At right is Sen. John McCain, R-Ariz.
day that found that despite $18.8 billion spent by the U.S. to help stabilize and rebuild Afghanistan, that nation is at risk of falling into financial crisis when foreign troops leave in 2014. Misspent foreign aid can result in corruption, alter markets and undercut the ability of the Kabul government to control its resources, said the report, posted Tuesday night on the Senate committee’s website. The World Bank found a whopping 97 percent of the gross domestic product in Afghanistan is linked to spending by the international military and donor communities. Crocker said corruption “totally unchecked becomes … a second insurgency.” The State Department and the U.S. Agency for International Development are spending about $320 million a month on foreign aid there, relying on the money to “win hearts and minds.” Among the successes has been a sevenfold increase in the number of children attending school and gains in health care. But the report said the U.S. must look closer at how it spends the money, relying heavily on contractors. The U.S. must do a better job of oversight, especially as it funds more aid through the Afghan government. One recommendation was to standardize Afghan salaries and work with Kabul on staff limits. The panel’s Democrats also suggested Congress implement multiyear aid programs and closer scrutiny of stabilization programs. “Transition planning should find the right balance between avoiding a sudden drop-off in aid, which could trigger a major eco-

J. Scott Applewhite/Associated Press

nomic recession and a long-term phase-out from current levels of donor spending,” the report said. State Department spokesman Mark Toner said the administration welcomed but did not endorse all the conclusions in the report. “I think that USAID is already addressing many of the issues that were raised in the report concerning sustainability and oversight,” he said. “And you know, we’ve undertaken, we believe, in the past years, some good efforts to change the way we do business.” Republicans and Democrats are pressing for a robust drawdown of the U.S. forces from Afghanistan, especially in a time of serious U.S. financial woes. The administration is seeking about $3.2 billion in foreign aid for Afghanistan in next year’s budget, an amount likely to be closely reviewed.

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