Board questioned on whether bond money was spent properly

By Lauren Brown
Burns Times-Herald

Teachers, parents and students showed up in force for the Oct. 14 Harney County School District No. 3 School Board meeting primarily to hear the board discuss budget issues.

A standing room only  crowd of more than 50 people were there to discuss the district’s beginning fund balance and concerns over how bond money was spent.

Business Manager Petrina White gave the board her monthly report in which she stated the district’s beginning fund balance was $160,000.

There was some discussion as to what the actual beginning fund balance should be because the district borrowed $500,000 from a Tax Anticipation Notes (TAN) pool, which is a short-term borrowing program open to Oregon school districts.

Originally, the district was only going to use $155,000 of that $500,000 to balance last year’s budget, but additional funds were needed when the days cut from last year’s calendar weren’t enough to balance the budget. This left a beginning fund balance for the 2008-2009 school year of about $160,000.

Audience member Tim Colahan wanted to know how the board was going to make up for that additional money that was borrowed.
Board member Jackie Shipp stated that the district has budgeted to pay the original $155,000 back, however, the district does need to find areas in which it can cut $185,000, preferably throughout the year, to make up for the lack in the starting balance.

Board member Steve Bull said he felt the budget board needed to start meeting early in the year to keep a close eye on the budget. “We limped out of last year. I think that’s why everyone is here tonight,” he said.

Colahan agreed and said he doesn’t think the district should resort to cutting days at the end of the year.

Audience member Tammy Wheeler said that if the board finds that the only way the district can save money is to cut days, perhaps they can try to spread them throughout the year rather than lopping them all off at the end of the year.

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Another important issue that produced a heated discussion was whether or not bond money was used to pay employee salaries.

District Superintendent David Courtney said that he talked with legal counsel concerning the situation. Indeed about $84,000 of bond money was used to pay district staff, mostly custodians, who worked on bond projects. However, Courtney said the attorney indicated that the district simply needed documentation to prove how many hours were actually spent on those projects.

Colahan stated that three years ago he served on the bond project committee, which made presentations to the public informing residents that bond money would only be used on bond projects. Ultimately, he said he believed bond money was used to help reduce last school year’s $600,000 budget shortfall. He didn’t feel the district documented the work properly.

Business Manager White said that about 75 percent of the bond work done by district staff was documented.

Board member Bull said that he felt the district needed to institute a new policy in how bond project work is documented. He also broached the possibility of  the district paying back that $84,000 if the board felt the funds were misspent.

Audience member Monica McCanna said she felt the district has a public relations problem. If the public perceives that bond money was spent on salaries, and in fact, that is not the case, the district needs to correct that perception.

Acting Board Chairman Randy Parks suggested that White find how much of the bond project work is documented and bring that information back to the board at the November meeting.

The next Harney District No. 3 School Board meeting will be at 7 p.m. Nov. 18 at the Lincoln building.