From the Department of Local Government Finance, I got this explanation of the actions of the school district:
The school borrowed $23 million from a private bank in 2007 in temporary loans. Instead of paying down this loan when they received tax distributions in 2007, 2008 and 2009 – they simply made payments on the loan interest. The school is now attempting to pay this loan off as quickly as possible over the next few years. The loan has not been converted to debt service debt but remains a temporary loan. Only the interest on the loan is included in the debt service fund, which is typical of all temporary loans. Keep in mind that the temp loans (with exception of interest) are being paid back within the limitations of the school “normal – maximum and cap rate” levies.
This debt – both the temp loan and interest – will not be treated similar to a referendum. An approved referendum project or tax levy would be outside of the circuit breaker caps. This debt – as it was not approved in a referendum vote – is still subject to the circuit breaker cap limitations.
The good news part, obviously, is that only the interest on the loan, 2.5%, can be paid from debt service, which is funded entirely from property taxes. The bad news is that Superintendent Don Stinson and the entire School Board, Dale Henson, Don Huffman, Doug Greenwald, Judy Collins and Cathy Wiseman, HAVEN'T PAID THIS BILL FOR 3 YEARS and are hoping to do so within the next 4.
These guys have been spending like sailors in port, and back when economic times were great they couldn't even pay off a tax anticipation warrant when it was due. Now, with the economy in the worst recession since the Great Depression, the chickens have come home to roost. They have no one to blame except themselves.
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30 comments:
Diamond Don and his cake-eating cronies on the school board strike again. If the state said they were authorized $18 million by law, and they took out the TAW for $23 million, where did the extra $5 million go???
Thank you, Pat, and thank heaven that the D.L.G.F. people had this information to help us out. I'm betting Gary Pellico is in a rage because the state is releasing information that he's being paid to keep concealed.
Pat,
Will the "unfunded" retirement benefits for administrators be paid out of the debt service fund????
anon 6:33 - no, it would come out of operating money, which is entirely provided by the State now and goes for salaries. The same is true of the up to $100,000 a year for their health insurance premiums.
Just to throw a monkey wrench into that simple statement... The Board recently approved the transfer of $6 million from debt service, where it could have paid a chunk of the tax anticipation warrant, to operating fund, which was the source of money for the retirements.
Its a web.
HEI:
Interesting. Likewise, some may find the board minutes of December 2007 and what Dr. Baer said about the need for emergency loan.
Here's the quote from the Dec '07 minutes that anon 7:04 referred to:
"Dr. Baer asked the Board to approve a Resolution Regarding Financial Emergency Due to Property Tax Shortfall. He explained the history of temporary loans reminding the Board that at the November meeting he had informed them that some 2007 temporary loans may be carried over to 2008 because of property tax reassessment. He said that he now had the amount of 4.2 million dollars for the shortfall. The resolution was at the recommendation of the State Board of Accounts.
The resolution serves the purpose of asking the board to recognize this financial emergency due to collections in property taxes and gives permission for temporary loans to be carried over to 2008. He informed the board that because of the way local property taxes are being handled the cost will eventually impact taxpayers because of borrowing larger amounts of money and extending loans for a longer period of time."
I think NOT REPAYING the loan is worse. I suppose that's just me, since that's certainly not the attitude of the Board and the Central Office.
HEI wrote:
"The Board recently approved the transfer of $6 million from debt service, where it could have paid a chunk of the tax anticipation warrant, to operating fund, which was the source of money for the retirements."
OMG, how can Stinson and the board members stand to look at themselves in the mirror???? The fleecing of Decatur taxpayers continues. Stinson and his friends intend to retire and live the sweet life at our kids expense!!!!!!
Next Tuesday, August 17 is the next chance for Decatur taxpayers to go to the Board meeting and stand up and speak their piece. Don't be intimidated. The Board and Superintendent don't believe you will do it.
Agree that not repaying the loan is worse. It is totally irresponsible. Again, another piece of evidence that they knew exactly what they were doing. As with other things, they were padding their pockets and feeding their need to fly around the country, dine and party. All of this in the name of education. Very sad.
A four year loan of $19 million at 2.5% interest rate, would equate to a roughly $5 million per year payment for 4 years.
$5 million per year would pay for about 100 teachers.
That's what not paying back the money when they should have means to Decatur schools and education.
Well the school board, Stinson, and Baer hav always said "No laws were broken therefore no harm done". It's like robbing a bank when they will not be charged with a crime.
Would think that Gov. Daniels, legislators, and the media would think this information is worthy of their attention. Everyone is too busy to really provide for children's education. The people of Decatur Township need to step and speak up. The Decatur teachers' silence on this makes me wonder about teachers' commitment and dedication to Decatur children. The Board, Superintendent, and Jeff Baer are inept. The other retiring administrators have willingly bought into this insanity. This is really sad.
"The Decatur teachers' silence on this makes me wonder about teachers' commitment and dedication to Decatur children."
So very true. How many educators and staff are employed with the township? At least a hundred?
The silence is deafening.
This adminstration has all employees so afraid of losing their jobs. They have been threatened with job loss and are intimidated.They wouldn't say they were being fired for speaking up. They would use another reason. How sad that even as taxpayers they are afraid to speak up.
Just for completeness sake, there has to be 700 or more employees overall. No administrators live in Decatur and not a great fraction teachers, either. Our fellow Decaturites are the custodians and bus drivers and cafeteria workers, mostly.
And, yes, the Administration, led by Stinson and supported by the School Board, do intimidate all employees to keep the truth of what goes on to themselves. Many have sent me information anyway - and I thank them for that.
Hi,it's me, Anon @August 14, 2010 5:09 PM
You're right,I'm aware of the vindictive nature and pettiness of the self acclaimed Masters Of The Universe running the school system. In fairness,I should have included that I've also noticed a dearth of support coming from township educators and staff for the administration and board.
A profited Superintendent gains control of school system by influencing school board members through: trips around the country, business deals, free meals, employment for family and friends, retirement packages, all at the expense of the Taxpayers. Power is a dangerous thing when giving to any one person by the elected body choosen by the people by means of bribery.
Taxpayers need to start attending school board meetings in large numbers. The next meeting is Tuesday night at 7:00 p.m. Lack of attendance at this PUBLIC budget hearing says the taxpayers are very trusting of this board and superintendent.
Anon 3:27...We DO trust the School Board and Administration. Why do you think no one goes to the School Board meetings? Quit hiding behind your computer and YOU go to the meeting.
It is VERY obvious that the superintendent and the board do not want to publicly answer questions so-o-o just like you we will hide behind the computer and ask questions. The facts presented by HEI have not been disputed by facts presented by the superintendent and the board s0-o-o if the truth hurts grin and bear it. We'll wait for the governor, legislature, and the media to get more involved.
Anon 2:30 PM wrote:
"A profited Superintendent gains control of school system.."
Did you mean "profited", or "profiteering"? I think the latter fits better.
Question? They are charging students $10 for a parking pass and they must pay book rental before being able to buy the parking pass. Do students who qualify for free/reduced lunch have to pay the $10 - their books are paid for by the State of Indiana??????
I find it quite ironic that a bunch of people who will only comment anonymously on a blog have the chutzpah to call out the teachers and other employees of Decatur Township.
I wonder where you all get the gall to do so, but only feign actual involvement in the educational process.
How many of you are volunteering in your child's classroom? How many of you are speaking regularly with your child's teacher, asking if there's anything you can do to partner with them in your child's education?
Maybe teachers are spending more time doing what they should be doing--educating the children of Decatur Township.
My spouse regularly spends hours upon hours working at home and after hours to improve the classroom environment and educational opportunities of the students.
In the end, I'm sure it's much easier to pretend to be involved than to actually be involved.
The Teacher's Spouse
Teacher's Spouse:
Statewide, the data indicates that students are achieving more in school - Decatur?? Many have praised the work of teachers for this improvement. What about the importance of parental involvement?? If things get worse, many blame the home. If things get better, many praise the teachers. Well, it seems like it takes both - great teachers and great parents. Any agreement? By the way, the data on this blog has in no way blamed the teachers for the $$$ problems. That blame is none other than the superintendent and the board.
Teachers Spouse -- the point that was made was that there seemed to be no outcry from the teachers regarding the fiscal disaster and reckless fiscal decisions being made by the Board and Superintendent. I think it is a point that was properly open for discussion.
These reckless fiscal decisions are increasing class sizes as we speak. While the threat of dismissal for taking a public stand makes the silence understandable, and while those who have been helping with information outside of sight of this School Board and Administration breaks that silence... it is still a point worth discussing.
Nobody was talking about academic accountability; which is open for public discussion as well, and rightfully so. Its just that we are focusing on reckless fiscal decisions that surely and absolutely must affect the quality of education in our district. One would think this has not escaped the attention of all the teachers.
Anon 404,
I nor my spouse denies the partnership necessary between parents and teachers to make for a thriving educational environment. Sadly, though, that experience for my spouse has been few and far between.
Also, I wasn't commenting on the blog posts themselves, but rather to comments to this particular post.
HEI,
See, the problem I see with the comments in this thread of discussion is that some wish for teachers to make a public stand, which could cost them their jobs, all the while hiding behind the anonymity offered by blogs such as this. You obviously understood that as the point of my comment, or else you would not have inferred as much in responding to me.
Regardless of what one thinks of the superintendent, the administration, and the school board, most teachers deserve your and your commenters's respect for the hard work, time, and money they put into educating the children of Decatur. For that, I think they deserve to either be respected through your anonymous commenters's silence or through your insistence that they identify themselves before calling out others.
Until that time, I will continue to state that calling on others to risk job security by speaking out publicly while hiding behind the veil of Internet anonymity is the height of cowardice.
By the way, the comment at 552 is from me.
The Teacher's Spouse
There is absolutely nothing a rational and reasonable response can do to assuage the hostility from this individual. This anonymous character is either a bad attempt at dark comedy or just simply Schlock.
One can almost predict when the trolls will arrive to bring the focus of discussion and comment away from the subject matter of a particular post.
There is so much wrong with the previous contributions from The Teachers Spouse,it's not worthy of a lengthy reply. Suffice to say,there is absolutely nothing a rational and reasonable response can do to assuage the hostility from this individual. This anonymous character is either a bad attempt at dark comedy or just simply Schlock.
One can almost predict when the trolls will arrive to bring the focus of discussion and comment away from the subject matter of a particular post.
Anon 7:45,
Interesting that you, also an anonymous individual, would rather declare my comments unworthy of response than to respond to them. Instead, it seems you, along with others on this blog, would rather continue the sessions of verbal masturbation that has frequently been the hallmark of the comments section of this blog than to actually engage in real, substantive discourse. That's fine by me, as it is your right. However, let not you or anyone else who comments on this blog assume that you're making a substantial contribution to bettering the educational opportunities for the students of Decatur Township. Instead, it seems that most here would like to do what most people do--criticize from without while never risking enough to actually get involved and make a difference.
If I'm wrong in this, I'd welcome a conversation with you regarding the issues you feel I have misunderstood in this discussion. Lacking that, I'm left to assume that you're like most here--comfortable sitting at home in your pajamas, hiding behind the wall of anonymity, lobbing complaints at those actually trying to do something (in this case, teachers), but too lazy to do anything to change it.
The Teacher's Spouse
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