Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
The DOE Has A $1 Billion Dollar Consultant Problem
By
Garth Johnston
Published May 25, 2011
Modified May 25, 2011
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Garth Johnston
Published May 25, 2011
Modified May 25, 2011
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
The Department of Education, meant to be one of the defining triumphs of Michael Bloomberg's mayoral career, has become a "fiscal black hole" with a serious consultant problem to the tune of $982 million, according to Manhattan Borough President Scott Stringer. That title comes after yet another consultant-related financial scandal came out of the department. Turns out the former Chief Financial Officer of the DOE, George Raab, and several consultants used their time their to plot Raab's exit to a private financial firm, according to a report [PDF] from Richard J. Condon, the special commissioner of investigation for the city schools.
According to Condon (who has been on a scandal busting roll this year) Raab—who joined the DOE with a salary of $196,000 in October 2008 from the late Bear Stearns—used his position and choice of consultants to assist him in planning a department at Guggenheim Securities, where Raab ended up just 11 months after starting at the Department. Raab and four consultants from the late Stearns allegedly used DOE e-mail systems and resources to make plans for Guggenheim—and then charged the department for their time.
The ever-vigilant DOE only started to notice something fishy after the Bear gang was gone, but once they did they immediately reported it to the special investigator, they swear. But since no actual crime was committed by the group and since none of them still work for the city, Condon has recommended banning them from further work for the DOE and the DOE seems to agree.
But maybe it should just stop with the consultants all together? In the light of this latest development, Stringer has been on a press rampage regarding the massive amounts of cash the city is spending on education consultants while threatening to fire teachers. According to Stringer the DOE's spending on outside consultants soared 455% from 2004 to 2012, rising from $177 million to $982.3 million.
For an example of what exactly these consultants are doing, look no further than William Howatt, one of the consultants hired by Raab and implicated in Condon's investigation. For less than a year's work Howatt received $374,000 to help the DOE's mid-level managers by "improving their ability to adapt to change." Which we're totally sure he did...from his home in Nova Scotia where he billed the majority of his hours from. Jeez, where can we get one of these consulting gigs!
Tagged
bad government employees
consultants
DOE
richard condon
scandal
Garth Johnston
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Hochul names NY AG James as special prosecutor on alleged rape case at Cornell University
The governor said she does not have faith that the police and the Tompkins County DA effectively investigated the case.
By
Jon Campbell
Published Oct 1, 2026 at 9:04 p.m. ET
Founder of NYC LGBTQ therapy practice charged with rape after alleged sexual assaults
Joseph LoGiudice is the second therapist at Liberation Psychotherapy to be accused of sexually abusing a patient.
By
Giulia Heyward
News
Founder of NYC LGBTQ therapy practice charged with rape after alleged sexual assaults
Joseph LoGiudice is the second therapist at Liberation Psychotherapy to be accused of sexually abusing a patient.
By
Giulia Heyward
US judge in NY indefinitely blocks ICE from making arrests at immigration courthouses
By
Arya Sundaram
Lawyer challenging NYC rent freeze releases Mamdani officials’ emails and text messages
By
David Brand
Push to strengthen NY sexual assault laws gathers steam after Cornell rape allegations
By
Walter Wuthmann
and
Jon Campbell
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .