School Districts Abuse Funding

Posted on February 7, 2012 by

In the school district I attended a public high school, for 3 years every year there was a vote on a levy to increase taxes so the schools could receive more money. Every year until my senior year, the public voted against it. Their concerns revolved around the misappropriation of funds, and now I can see why from Market Ticker:

SPRINGFIELD — Making local school districts pick up the employers’ portion of teacher retirement benefits could save more than $1.3 billion a year for Illinois’ beleaguered state treasury. It also could mean financial ruin for some local school districts, school administrators say.

Financial ruin? How did that happen?

“That would kill school districts, at least most districts. For us, we’re living paycheck to paycheck,” said Tony Sanders, chief of staff for Elgin School District U-46, the state’s largest district outside Chicago. Sanders said the state owes it $12 million for this school year. “There is no magic pool of dollars waiting for us to swim in.”

So what did you promise the teachers with when you negotiated the contracts, including those pensions? Where was the magic pool of dollars then?

Oh, see, that’s the fraud, and everyone involved in it both needs to get run out of town on a rail and be prosecuted. There was no magic pool of money, but boy oh boy did those promises get made.

This is identical to what happened in this area when the School District tried to get a 1/2 cent sales tax levy for replacement of refrigerators and roofs on school buildings. Refrigerators and roofs that were installed years ago, which the school district knew damn well had a service life and therefore should have an impound account that is funded every year so as to provide that “pool of money” with which to replace the now-worn-out items.

But the district instead effectively stole those funds and spent them elsewhere by not allocating them to that impound account in the first place, thereby allowing the district to spend money it didn’t factually have. Once the shortfall became apparent years later they bleated to the people and asked that we pay twice.

Good riddance! Does anyone do honest accounting anymore?