Speaker Menin on DOE contract transparency failures

While the executive plan includes new investments in the education system, it also includes a savings plan of $922.2 million.

In fiscal 2027.

This savings plan heavily relies on cost containment strategies for class size and due process cases.

The plan recognizes a savings of $149 million for due process cases coupled with investments in pre-K special education as well as services for students in non-public schools.

The Council appreciates the due process briefing that you provided last week, and we just want to say that this is in stark contrast to what we feel is a lack of transparency on DOE contracting, which is something we're going to focus on.

We look forward to discussing the savings plan with the DOE and better understanding how the DOE will realize these savings next school year.

Additionally, the savings plan includes multiple savings and contract spending, most notably $30.3 million for procurement reform, as called for in the Council's fiscal 2027 preliminary budget response.

While the Council is pleased to see an effort from the DOE to reform the DOE's $12.8 billion contract budget, there is a concerning lack of transparency in this spending.

The Council has continually called on the DOE to provide more details on their contract budget, especially the procurement method.

However, these calls have largely remained unanswered.

DOE's initial response to the Council's preliminary budget follow-up on DOE contracts was, quote, this is being reviewed and we will get back to the Council.

council, end quote, a response that was provided weeks after our request.

OMB's response similarly avoided answering the council's questions about DOE contracts, suggesting that DOE would separately follow up with specific information.

While the DOE did share some information on DOE contracts with the council just late last week, the lack of transparency on DOE contract spending, a significant portion of not only DOE's budget, but the whole citywide budget is very concerning.

The Council continues to seek additional information to fully evaluate the procurement methods, scope, purpose, and cost of DOE contracts, so we very much look forward to a robust discussion today on DOE's contracts and savings plan.

I will now pass it back to Chair Lee.

Great.