Updated: June 26, 2008
On Monday June 23, 2008, the Vernon Board of Education voted, 7-2, in favor of keeping the excess funds coming from insurance premiums.
“When we start talking money, it’s not the board’s money and it’s not the town’s money — it’s the citizens money — and every effort should be made to keep in mind their burden and relieve it in any way possible,” Apel said.
The funds may or may not be returned to the Town depending on if the Board of Ed needs other items funded. IE: $50,000 was already taken for another teacher.
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The headlines reads at the Hartford Courant on June 10, 2008.
(note windfall definition: “an unexpected, unearned, or sudden gain or advantage” Merriam Webster dictionary )
“A reduction in health insurance premiums for school employees has created a $380,000 windfall in the school budget, but Mayor Jason L. McCoy on Monday urged the board not to spend it. The money is rightfully in the school budget, and the board of education has the authority to use it as it sees fit. But McCoy suggested using the money to pay down town debt, saying that could result in long-term tax savings.
Board member David Kemp told his colleagues they should review cuts they made earlier this year in the school budget and consider restoring some of the programs.
“The board of education decides what it spends its money on,” Kemp said. “That’s not negotiable.”
McCoy praised the board for renegotiating its insurance contract and saving taxpayers money, but was firm in his request that the board not spend the money.
After the meeting, Kemp said it was important for the school board to take a second look at its budget in light of the $380,000 windfall. “I think the board needs to consider what decisions it made previously,” he said.
Also Monday, the board adopted a new mathematics curriculum for pre-kindergarten through fifth grade. Using the Everyday Mathematics program will cost about $147,000 for textbooks and other materials. School officials plan to implement the new curriculum, which they say should help Vernon’s Connecticut Mastery Test scores, in the fall.”
You can see the entire Courant article link here.
Here are some comments at the Courant website, a week after the Courant article ran.
“Betty: Normally, I would agree with Mr. Kemp but the Town has bonded over $60 million for school construction projects and it would be a good thing to put this windfall toward debt service. In the long run, I think that the BOE and the Town would benefit from such a move.
Sig: Here’s an analogy to the Vernon windfall: say I’m driving a 50K Escalade and owe 48K to the holder of the note; I want to be hooked up with new flashy rims for 8K from Tires & Wheels in Hartford’s South End, but cannot afford them due to my 48K debt; I renegotiate my SUV insurance at Geico and get an 8K check back. So I then should spend the 8K check on the fancy rims I could not originally afford, instead of paying down the original note???
Sounds like a reckless thing to do doesn’t it? I agree with Mayor MCCoy. Vernon should apply the windfall to the bond debt. It’s not as flashy as new rims, but it saves a heck of a lot on interest in the long run.
P.S. I’m one of those idiots that pays extra each month towards my mortgage principal and I’m on track to pay off my 30 year mortgage in 17 years. And no - I don’t have flashy wheels on my S-10 pickup.
Bart: I agree with both of you. The Mayor is right on this one.
Anna: We should all remember this when we vote to reelect the Board of Education. They really do not care about the struggling citizens of Vernon .
Frank: Oh I think they understand the need to conserve money. They are always in a spot when it comes to money because they are charged with doing what is best for the education of kids, first. I think that there are lots of programs that they have cut in the past and the chance to use the money to do some of these things, is a strong desire for them. I think that when they thoroughly deliberate this, they will do the right thing, which in my opinion is to put the money into debt service. I don’t share the attitude that the BOE has no concern for the taxpayer. I think that is a old tune that has been sung for too long in Vernon by some short-sighted folks. There is nothing more important than education, both kids and adults alike and whatever money is spent, is worth the price. Right now, somebody is going to have to figure out how this world is going to continue to servive without oil and that is going to take people with good education!
Sig: I have a really stupid idea. Why not have the Town of Vernon return the “windfall” back to the Vernon taxpayers?
Isn’t it actually THE TAXPAYER’S Money ? I bet that idea was never even considered.”
James Hoover wrote to the Journal Inquirer on May 29, 2008 . See entire article
“Foremost, Vernon must continue to dig through the details of its own budget, removing the hidden extra pockets of funds that only insiders are aware of. This was started recently when Councilman George Apel performed a self-audit of the Board of Education that revealed $600,000 in errors and duplication. There is much more that needs to be purged.”
The Journal Inquirer wrote April 2, 2008 : ( See the entire article )
” VERNON — A windfall of found cash in the teachers salary account means the Board of Education can forget about further cuts.
Town Council members learned at their meeting Tuesday that roughly $617,000 was over-budgeted for teacher salaries in the 2007-08 fiscal year — a mistake that was made when school officials added an extra across-the-board step increase in the account for all 342 teachers….”
…” McCoy persisted in questioning the discrepancy, saying “it didn’t make sense.”
So school board member George Apel and Stan Karasinski, the recently hired school finance director, conducted an audit.
…”In the review, they found 20 teachers had their salary increased by 20 percent, McCoy said…”
…“This gives us some breathing room,” school board Chairwoman Catherine Rebai said after the council meeting, adding, “I want to compliment the mayor for not taking it all…”
“..But leaving the $300,000 in the school budget saves the board from having to make further cuts, and also allows the board to finance the $84,900 needed to replace textbooks…”
So to recap: $ 617,000 extra found 4-08 in teachers Salary.
& $ 380,000 Health Insurance reduction (not returned to Vernon Town Council).
$ 997,000 – Questioned Money & Potential Savings
Carl Slicer, blog editor, www.VernonGop.com “Where my change $ ? What happened to my change $ ?”
click:
