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McCain's Education Adviser Was Accused Of Mismanaging Money
Lisa Graham Keegan, one of Sen. John McCain's top education advisers, is a forceful proponent of school vouchers and other market-based education policies.
But when it comes to managing money herself, she doesn't have a great track record.
Keegan was among four education advisers the McCain camp trotted out yesterday in a conference call with reporters to explain McCain's new education policy.
Nobody on the call asked her about her stint as CEO of the Education Leaders Council, a conservative non-profit, school-reform group that she led from 2001 to 2004.
With Keegan at the helm, the group began to prosper with money from Bush's No Child Left Behind law. The ELC raked in about $23.4 million in federal money, part of which it was later accused of mismanaging. An audit report(pdf) from the Department of Education's Inspector General ultimately recommended that the group give back about $500,000 in taxpayer dollars.
A large chunk of the earmarks and federal grants the group received were for a program to help schools with technological upgrades and getting curriculum in line with Bush's No Child Left Behind law.
Money management under Keegan became a source of tension when an internal audit in 2003 found Keegan was being paid a $235,000-a-year consulting fee and one of her aides from Arizona was paid $200,000 under a similar contract, according to an April 4, 2004 report in the Arizona Republic.
At least four board members out of 18 resigned shortly after the internal audit, according to the newspaper.
The Department of Education eventually got involved and concluded that the groups books were a mess with "weak or non-existent internal controls" that led to money spent on things not legally covered by the grant.
According to the audit (pdf):
Also, included in the questioned amounts were costs for alcoholic beverages, advertising, fundraising, and interest that are specifically unallowable under applicable cost principles.
A spokesman for McCain did not respond to a request for comment.













Just wondering ... Education Leaders Council got money for technological upgrades. I remember that one of Bush's brothers was selling educational software and wonder whether ELC bought any.
July 17, 2008 1:40 PM | Reply | Permalink
That was Neil, another failure named Bush, also known for his patronage of prostitutes in Thailand.
July 17, 2008 1:53 PM | Reply | Permalink
I'm glad the national media are picking up on this. I did an in depth look at Keegan's legacy in Arizona education on my blog.
http://roguecolumnist.typepad.com/rogue_columnist/2008/05/lisa-graham-kee.html
July 17, 2008 1:43 PM | Reply | Permalink
Apparently things have changed in Az.
I graduated from Tucson High in 1963, and the public schools at the time were excellent IMO. While it would be nice to be young again, I'm glad to have finished my schooling when I did.
This Keegan character is just another example of wingnut welfare.
July 17, 2008 2:39 PM | Reply | Permalink
Jon Talton!
Great to see you on the Interwebs. You sure are missed in AZ.
July 17, 2008 1:53 PM | Reply | Permalink
It seems that everybody McCain chooses lately has toxic baggage.
July 17, 2008 2:01 PM | Reply | Permalink
""The ELC raked in about $23.4 million in federal money, part of which it was later accused of mismanaging.""
According to...
http://www.huffingtonpost.com/gerald-bracey/the-us-department-of-edu_b_80766.html
....part of this funding was from EARMARKS!!
"There was the notorious $3.5 million [earmark] to the scandal-ridden and now defunct Education Leaders Council, plus about $3 for KIPP Academies, and a million each for Teach for America and the Black Alliance for Educational Options.
July 17, 2008 2:10 PM | Reply | Permalink
You don't get it do you?
Bushes No child left behind program was all about kickbacks to their campaign donors.
Vouchers are just another fig leaf to hide the graft behind.
July 17, 2008 2:11 PM | Reply | Permalink
Keegan is listed at the organization's CEO in their 2004 IRS 990 filing.
Oddly, she's paid as a "contractor" and was based in Arizona.
The organization itself is in DC - not Arizona.
July 17, 2008 2:12 PM | Reply | Permalink
Stealing from charity to feed addiction? Sounds like his type.
July 17, 2008 2:26 PM | Reply | Permalink
Frankly, I wish they'd spent more money on booze. If they'd spent more time liquored up, maybe they wouldn't have done as much damage elsewhere.
July 17, 2008 2:39 PM | Reply | Permalink
There is another scandal brewing at another Bush
charity where Neil Bush was ceo apparently Points of Light Charity has sold millions of dollars of summer travel on ebay and is now refusing to honor any of them this is a 14 page forum dis cussion here forums.ebay.com/db2/thread.jspa?threadID=1000730763&start=280 Its is amazing what is being discussed Points of Light since 2003 has recieved in Federal Tax dollars 77 million It is amazing the forum states there are thousands of people defrauded I know that this was not in this discussion other than Neil Bush being brought up brie
FEDERAL FUNDING TO POL FOUNDATION:
Assistance to Recipient(s) "points of light"
(FY 2000-2006)
List of Recipients for FY 2006
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$13,724,148
Total recipients for fiscal year 2006: 1
Federal funding (within this search) for the year : $13,724,148
List of Recipients for FY 2005
------------------------------------------------------------
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$11,197,507
Total recipients for fiscal year 2005: 1
Federal funding (within this search) for the year : $11,197,507
-------------------------------------------------------------
List of Recipients for FY 2004
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$18,226,>>565
Total recipients for fiscal year 2004: 1
Federal funding (within this search) for the year : $18,226,565
-------------------------------------------------------------
List of Recipients for FY 2003
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$3,400,000
Total recipients for fiscal year 2003: 1
Federal funding (within this search) for the year : $3,400,000
---------------------------------------------------------------
List of Recipients for FY 2002
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$10,676,493
Total recipients for fiscal year 2002: 1
Federal funding (within this search) for the year : $10,676,493
------------------------------------------------------------
List of Recipients for FY 2001
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$11,472,388
Total recipients for fiscal year 2001: 1
Federal funding (within this search) for the year : $11,472,388
---------------------------------------------------------------
List of Recipients for FY 2000
Recipient Name
State
Federal Funding (for this search)
POINTS OF LIGHT FOUNDATION
District of Columbia
$9,207,497
Total recipients for fiscal year 2000: 1
Federal funding (within this search) for the year : $9,207,497
July 17, 2008 2:42 PM | Reply | Permalink
Don't be too quick to criticize Keegan.
She was instrumental in helping to (try to) reform Arizona's education system in a very, very tough political environment. She fought like hell to improve funding and management, ultimately refusing to open schools until the state legislature acted. She's not your typical political tool.
Besides, $230k is not that much more than 1st year lawyers make. It's not at all out of the ordinary for a lobbyist.
July 17, 2008 2:47 PM | Reply | Permalink
Besides, $230k is not that much more than 1st year lawyers make.
Wow, did you just pull that figure right out of your ass?
The TOP end for a 1st year lawyer in Phoenix is $120,000 according to salary.com (the median is $92,000).
As far as lobbyists go, the top end is $170,000 while the median is $107,000.
I guess your assessment of Keegan is about as accurate as your salary estimate, which is to say if you think she did a good job then chances are she is just as bad as this report makes her seem.
July 17, 2008 3:24 PM | Reply | Permalink
Besides, $230k is not that much more than 1st year lawyers make. It's not at all out of the ordinary for a lobbyist. Uh, huh? According tot he BLS: http://www.bls.gov/oco/ocos053.htm
we find:
Median salaries of lawyers 9 months after graduation, 2005
All graduates: $60,000
Private practice: $85,000
Business: $60,000
Government: $46,158
Academic/judicial clerkships: $45,000
So, no.
July 17, 2008 3:46 PM | Reply | Permalink
And on top of that OKM,
While this woman may be applauded for caring about education, how can she justify 230K a year for her salary! If she was wanting to reform education, then fine, but why should she be compensated so much when much of that money could have been spent towards the program. You make it sound as if she was a selfless fighter trying to fight for the education system, but really she was a very well compensated employee working for a government (earmark) funded initiative to reform our education system. Have you been to a school lately? My Mom's been a school teacher for over 30 years and over that thirty year period the education system has in many ways gotten worse in terms of the performance of its students and the performance of teachers and administrators. Much of the money we spend now days goes to adminstrative jobs rather than teaching jobs or the supplies and technologies used in the classrooms. Looking into this problem, I always saw a simple solution for which my mother agrees with me, the more teachers you have the better students will perform (ie. smaller student to teacher ratios). And yet we spend billions fo dollars on Testing, books, administrators and other such programs. Its a disgrace!
July 17, 2008 3:54 PM | Reply | Permalink
And did they give the money back? And if not, why not?
July 17, 2008 4:10 PM | Reply | Permalink
Yeah, old Johnny sure has surrounded himself with high priced lobbyists. How can he ever find a VP who hasn't been a lobbyist? He also sure does a fine job vetting these people he puts on conference calls. How many have gone down the tubes so far?
July 17, 2008 4:13 PM | Reply | Permalink
AZ DoE, under Lisa Keegan as State Superintendent, the No Child Left Behind program really did make headway and show improvement statewide that very really encouraging, at least while the program ran under the Clinton Administration.
AZ Republicans were very upset than, when Bush didn't give her the Education Secretary cabinet position. Instead Bush gave her a token position, but I guess one that paid very well indeed.
Bet there are alot of Bush appointees that got gravy jobs but also mis-spent taxpayer money, so you'd think McCain would steer clear of Bush people, unless Bushites suggested her and McSame can't NOT do otherwise.
July 17, 2008 4:18 PM | Reply | Permalink
---the No Child Left Behind program really did make headway and show improvement statewide that was very encouraging.
I need preview button.
July 17, 2008 4:21 PM | Reply | Permalink
Come on guys, it's not like she stole huge dollars! She was just looking for a little change she could believe in!
July 17, 2008 5:26 PM | Reply | Permalink
Everybody around this guy is a crook!
July 17, 2008 7:39 PM | Reply | Permalink
Bush = Nixon
McCain = Bush
Therefore McCain = Nixon
July 18, 2008 4:59 PM | Reply | Permalink