$95 Million Computer System Flunks LAUSD Payroll Work. More than 10,000 employees of the Los Angeles Unified School District were without paychecks for two weeks due to problems with the $95 million computerized payroll system. Furthermore, district officials expect similar problems in March. Officials say they will review the contract and possibly consider legal action against the suppliers. Charles Burbridge, district chief financial officer, said there was inadequate training and insufficient staffing, along with technological glitches that plagued the first pay period under the new system.
There also have been questions about the district's choice of SAP Public Services for the system, despite a history of problems at other schools, according to the Los Angeles Daily News. It reported that a lobbying firm representing SAP also represented the district in seeking legislation that allowed the district to use a less-stringent bidding process. The district's new superintendent, David Brewer III, said there would be "due diligence to see if it was as good deal." (Sources: Los Angeles Daily News and Los Angeles Times, February 14.)
Caltaxletter February
16, 2007
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