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School board's lawsuit ties up its money

Burke County School Board Controversy

More articles about the Burke County School Board Controversy

By Steve Welker | The News Herald

Published: November 5, 2009

Morganton, NC - Burke County Public Schools Finance Officer Keith Lawson went to Tuesday's county commissioners' meeting with a request for $73,200 to meet the school board's expenses in the coming quarter.
He went away empty-handed.
Lawson said he understood the commissioners' situation, but also said "some people aren't going to be happy."
"Some people" could include school board members Tim Buff, Tracy Norman and Karen Sain. All are registered to attend the North Carolina School Boards Association's annual conference Nov. 16-18 in Greensboro. Lawson's request included $4,440 for board members' per diem and travel and conference expenses (see details below).
County Manager Ron Lewis was prepared to recommend the transfer of funds.
However, Redmond Dill, the county's attorney, advised the commissioners to postpone any decisions about school funds because a Superior Court judge issued orders Monday concerning the school board's lawsuits against the county.
Dill said he and county finance manager Paul Ijames need time to analyze the financial impact of the orders. Also, he pointed out, the rulings could be appealed.
Superior Court Judge Donald Bridges of Shelby signed and filed his orders with the clerk of court's office shortly before noon Monday. That started a countdown toward deadlines for appeals. Because one state statute specifically governs the lawsuit over the county's support for public education, the school board and the county commissioners have only 10 days, until Nov. 16, to appeal.
Regular rules for civil procedure govern the other two lawsuits, one concerning the schools' local capital outlays budget and a second over the 2005/08 consent agreements on distribution of property-tax revenues. The deadline for those appeals is 30 days away, which is Dec. 2.
County Manager Lewis has said the county commissioners will not appeal.
An e-mail inquiry to the school board's special counsel, Richard Schwartz, and a phone call to Norman had not been answered at press time.
Dill told county commissioners he and Ijames would go over the orders, calculate the county's obligations and probably put a recommended budget amendment in the commissioners' hands for action at their Nov. 17 meeting — if the school board does not appeal the judge's rulings. Lawson could submit his request at that time.
Meanwhile, Lawson said the schools are operating on a "hand-to-mouth" fiscal diet, improved only slightly by recent receipt of the quarterly fines and forfeitures money. Unfortunately, he said, it was less than hoped for.
Lawson said as the schools receive state, federal and local revenue, he first sets aside money for payroll, then for the most pressing expenses. Although the $363,800 withheld by the county may not seem like much compared to the schools' $100-million-plus operating budget, he said money is so tight this year he feels the pain of spending a few thousand.
His budget request to the county board includes $23,619 for legal judgments (an old settlement unconnected to the current lawsuits) and $15,000 for the board of education attorney's fees.
Lawson can transfer some money for expenses from the fund balance, also known as the schools' savings account. He didn't have an up-to-the-minute estimate of the fund balance on Tuesday, but it's believed to be near a tenth of what it should be — $120,000 instead of $1.2 million.
Under the circumstances, it shocked some people when Susy Tilley of Morganton, who coordinates the volunteer S.M.A.R.T. program to provide supplies to the schools, learned that Buff, Norman and Sain are registered to attend the N.C. School Boards Association Conference.
The conference costs $460 per person, though NCSBA is paying for Buff's registration because he sits on the association's board. NCSBA also will pay for one of his three nights at the Four Seasons Sheraton in Greensboro. Board clerk Sue Lowdermilk said it's her understanding that Norman and Sain would share one of the $138-per-night (plus tax) rooms.
Lowdermilk said all of the board members attended the 2008 convention.
In addition to networking with other district's board members, they can receive some of the annual training required by state law.