New report shows how Brockton schools overspent by $18 million

General incompetence in budgeting and accounting, not misappropriation or criminal activity, caused the massive budget deficit that shocked the Brockton school officials last year, according to two newly released independent reports.

Last August, Brockton school officials were shocked by the deficit, which ended up being $18 million. The City of Brockton and Brockton Public Schools each commissioned separate reports into how the deficit occurred.

The city’s 180-page report, authored by Nystrom Beckman & Paris, found that while there was no evidence of misappropriating funds, financial fraud, theft, or any criminal conduct, there were significant structural failures.

“Incompetence, territorial boundaries, and woefully inadequate checks and balances were pervasive,” the report reads. “The School Department culture regarding budgeting and spending was one of: ‘we’ll figure it out later.’” 

Report: Brockton Superintendent Thomas ‘did as he pleased’

The city’s report rips into Superintendent Michael Thomas, who has been on paid leave for more than a year. Thomas refused to lay off 100 staff members despite not having the needed funds, led with an “iron fist,” and deferred too much to the two leaders of the School Finance Department, it says. 

“Thomas claimed that his focus was all about the students, which is laudatory, but his leadership was guided by gut instinct, force of personality, and a commitment to people who viewed the world his way and did not question his decision making,” the report says.

Thomas “often did as he pleased,” including when he hired former NFL player Jermaine Wiggins as the head football coach for Brockton High School, the report says. Though the position had a stipend of around $15,000, Wiggins was offered a $100,000 salary. Thomas attempted to cover the difference with grants, falsely saying he would mentor students “who are at risk for gang involvement.”

CFO Aldo Petronio, of the School Finance Department, and his deputy Chris Correia presented a budget to the School Committee that was misleading and failed to include millions of dollars. They also failed to track spending or compare it to what was spent in the previous year. The report called Petronio’s practices as “substandard, antiquated, and (lacking) transparency.”

Petronio and Correia are on administrative leave.

The report also said the School Committee took a “hands off approach,” didn’t ask questions about what was being spent, and was “inept, inexperienced, and collectively lacked rudimentary finance skills.” 

“When approving a budget, the Committee did not have the data to determine whether a line item should be increased or decreased based upon actual spending in the prior year,” the report said. “Nor did they ask for the data.”

Around March or April of 2023, the School Finance Department realized they were facing a massive deficit and told Mayor Robert Sullivan and Petronio, according to the report. The document notes that it was “too late” then, anyway.

“Yet no meaningful steps were taken during FY23 to confront and mitigate the looming financial crisis,” the report said.

Previously, Sullivan, who also chairs the School Committee, has said he learned of the deficit in August. He stood by his statements at a School Committee meeting Tuesday night.

School Committee‘s report was ‘thin’ in comparison, Sullivan said

At a School Committee meeting, some committee members heavily criticized the report the committee commissioned in February. The report, authored by RSM, comes to similar conclusions as the report commissioned by the city.

“It doesn’t tell me anything I don’t already know,” Vice Chair Tony Rodrigues said Tuesday. 

RSM found no misappropriation or misuse, but identified that overspending in teacher salaries, transportation, and special education tuition wasn’t tracked or reported to the Brockton School Committee.

The report also noted that 80 percent of the more than $200 million budget was placed on one line item in the city’s accounting system. 

Joyce Asack, a committee member who previously requested the National Guard to step in at the high school, said the report was very disappointing. Jorge Vega, a new member, fired back that the School Committee approved the contract.

“When we talk about accountability, we need to understand that this sits with the former superintendent, this sits with the former CFO, and this sits with members of this committee,” Vega said. “It’s difficult for me to sit here and call out RSM when they’re delivering what the contract said.”

RSM also reported that Sullivan was potentially told about the budget in April of 2023 but “was not able to confirm, based on the data available to us, whether such a meeting took place.”