The city’s School Construction Authority has made decisions on spending billions of taxpayer dollars over the past year without the required oversight, education watchdogs told The Post.
The SCA, which designs and builds NYC public schools, is mandated by law to maintain three trustees at all times — the chancellor and two others appointed by the mayor.
“Each appointed member shall continue in office until a successor has been appointed and qualifies,” the law states.
Mayor Adams (right) let the SCA operate for a year without appointing a legally required third trustee, leaving only Chancellor David Banks (left) and another mayoral appointee to run the agency. Robert Miller
Banks and one other SCA trustee, missing a third, have made decisions due to cost taxpayers billions of dollars. Michael NagleBut when trustee Lorraine Grillo left on Aug. 31, 2023, the mayor didn’t replace her.
Only schools Chancellor David Banks (or first deputy Daniel Weisberg acting in his place), and technology businessman Peter McCree have overseen the sprawling agency — raising questions about the legality of SCA actions.
In the last year, the two men approved contracts with consultants and construction companies worth hundreds of millions of dollars, passed a $287.3 million operating budget, and adopted a $17 billion four-year capital plan.
“It shows a fundamental disrespect for the law and a continued trend of poor leadership by the mayor and those running the show at the SCA and Department of Education,” said Leonie Haimson, executive director of Class Size Matters, who called attention to the missing trustee.
The mayor has total control of the SCA with the power to appoint all three trustees, including the chancellor, noted civil-rights lawyer Laura Barbieri, who specializes in education,
“There is no independent oversight,” Barbieri said.
A stalled construction project at PS 9 in Prospect Heights, Brooklyn, in 2020 left a massive hole in the playground. Paul MartinkaThe SCA’s inspector general, William Schaeffer, also serves as its vice president — an unusual dual role. He is apointed jointly by the SCA and the city Department of Investigation, and reports to both – but is on the SCA payroll. His job is to guard against waste or fraud, and ensure the agency follows the law.
“We need to appoint a third trustee, not because we’re violating the law, but because that’s what the statute requires,” Schaeffer told The Post.
Schaeffer insisted that having only two trustees take actions is okay because SCA law states, “A majority of the whole number of trustees shall constitute a quorum for the transaction of business.”
Peter McCree, a technology businessman, approved construction projects and agency budgets along with Chancellor Banks, without a third trustee required by state law. Linkedin Peter McCreeIllegal or not, the neglect of the SCA is alarming, said David Bloomfield, an education professor at Brooklyn College and the CUNY Graduate Center,
“This longtime board vacancy reflects the mayor’s casual attitude toward governance and disrespect for due process in this key function,” Bloomfield said.
City Hall denied that Mayor Adams has “failed” to appoint a third trustee. “Our search is active and ongoing,” a spokeswoman said.
