by Sean Rieber
A few weeks ago an article came out in the press referencing the NYS Comptroller’s Audit of Monticello Schools and the fact that they had a fund balance of $16.5 million when only 4% of their budget, or $3.3 million, was allowed by law.
Several days later, in typical government fashion, the district administration released a statement essentially blaming prior administrations.
What is extremely bothersome about this whole saga is the information I found after further research and the total downplaying and/or ignorance of it by sitting board members.
When I questioned one long time board member about it the response was “I can safely say that our board first learned how much there was actually in the fund balance when the report came out. We are not pleased with the information either.”
A follow up remark to that was then “We rely on the people we pay to give us the information to make informed decisions.”
I then spoke with another long time board member who indicated that he didn’t believe that the figures were that high and that the comptroller is a political animal (which is very true). That board member went on to state that they now have a great superintendent and this will never happen again.
Let’s hope that is true…but who is going to be held accountable for what went on?
Let’s correct the first board member’s comments first.
After analyzing her two quotes I did some digging, namely filing a FOIL request for the last 3 years internal audits. Those are the pesky little documents required by the State and performed annually at great cost to taxpayers. They are also a perfect example of “information given to board members so that they can make informed decisions” and the auditors would be an example of people “they pay.” Each and every board member receives a copy of the audit.
June 30, 2012 Audit: Page 38, NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY:
The district’s unassigned fund balance in the General Fund is in excess of the amount permitted by law. New York State Law limits the unassigned fund balance to 4% of the ensuing year’s budget. As of June 30, 2012, the District’s General Fund unassigned fund balance is approximately 16% of the ensuring year’s budget.
June 30, 2013 Audit: Page 39, NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Identical wording as above…..but….As of June 30, 2013 the District’s General Fund unassigned fund balance is approximately 18% of the ensuing year’s budget.
June 30, 2014 Audit: Page 39, NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Identical wording as above…but…As of June 30, 2014 the District’s General Fund unassigned fund balance is approximately 21% of the subsequent year’s adopted budget.
Are we seeing a pattern here folks?
The board members have the information, the administration has the information….the question is ARE THEY BOTHERING TO READ IT??
Now…what are the consequences?
Was the public misled?
I’d sure say so.
I then reviewed the budget presentations for this past year on the District’s website. Strangely, not a single mention of the fund balance in the powerpoint. I guess if I had $16 million that I didn’t want to tell anyone about I wouldn’t put it in there either. Unfortunately for the administration though, that’s not their money. That’s our money.
The worst part of it is the doom and gloom stories told to the public, apparently told to the board and the deceiving way in which budget votes happened.
Take these excerpts from the May 12, 2013 Town of Forestburgh meeting in which a member of the administration (person still in the position, can’t blame the last guy) attended and gave the following remarks:
“….reduction in staff of 38 persons. All programs and athletics are intact…”
“We do have a healthy fund balance, but it will be reduced quickly and it is not just us, it is state wide.”
“We feel this is a fair budget, but if it is defeated at the polls, we will go to our contingent budget which is 2.06% no new equipment will be purchased and the community will be charged to use our fields and facilities. We have no choice but to do that. ALSO, WE WOULD HAVE TO DECREASE OUR WORKFORCE BY ANOTHER 1.2 MILLION DOLLARS.”
“With everything that the Governor has put on us, it is becoming more difficult to do a budget, this is a very fair budget – WE FEEL WITHIN FOUR YEARS OUR FUND BALANCE WILL BE DEPLETED.”
Meanwhile, per their own internal audit, the fund balance increased by another $3.4 million dollars since then.
So, essentially, the administration was going around scaring the public into voting for a budget and never informing them of the fact that they had a fund balance of FOUR TIMES the amount allowed under the law and easily could have hired more teachers rather than threaten to lay them off.
This isn't the only place they are irresponsibly hoarding money.
Per the NYS Comptroller audit the district has a worker’s compensation fund balance of three years of expenditures or $2.6 million and an unemployment insurance reserve of 7 years of expenditures or $1.1 million.
We all believe in saving for a rainy day….but 3 years and 7 years worth of expenditures in the bank???
Don’t let the district blame prior administrations.
Many of the board members have been there for years. The current superintendent was hired as a Deputy in July 2012 and the Deputy Superintendent for Business (formerly known as Business Manager) has been there since August 2011.
There is no question that they inherited a pattern of abuse and a bloated fund balance….but what has been done since and why wasn’t the Board informed (if the Board member who said they had no idea was being truthful)? Why wasn’t the public informed? Did they stay quiet based on the orders of the prior Superintendent or on orders from the Board? We as the taxpaying public are owed answers.
What about the teachers? Downsizing has occurred and was clearly unnecessary. Countless young teachers have had sleepless nights and knots in their stomachs wondering if the pink slip was coming. Many parents still complain about the quality of the education. There are or were overcrowding issues. Our teachers are the lowest paid in the area and in the largest school district. Their contract is coming up for negotiation. Certainly the district can’t cry poverty in these contract talks. All this is going on while there is a money hoard in the bank.
The end result is a person or people MUST be held accountable.
The public was lied to, plain and simple.
The taxpayers are owed a refund, the students are owed a better school system, and teachers are owed fair pay.
And most importantly, the voters are owed explanations and/or resignations. It is unfathomable how you can have an extremely expensive audit handed to you each and every year but not even bother to read it.
A suggestion to the present administration. Tell the truth.
If a 4% fund balance is an antiquated law and not reflective of the current state of economics in education then simply say so. Put the fund balance out to the public and publicly state that you don’t think 4% is enough and you are going to hold back 8% regardless of the state law. Any reasonable member of the taxpaying public will respect that, including myself.
But we can all agree that 21% is outrageous and borderline criminal.
Finally, a question to the Board….if you were not getting accurate information from the people that you pay, what have you done about it?
Millions were bilked from the taxpayers….simply saying “now, now…don’t do that again” isn’t good enough.
Simply put…he who is complacent is complicit.
