Pontiac Schools (Update: Meeting yesterday afternoon)

Pontiac schools financial review team to report to governor by Aug. 2

Thursday, July 18, 2013 1:43 AM EDT

By DIANA DILLABER MURRAY
diana.dillaber@oakpress.com, @DDillybar

Some  residents are so concerned about the future of the district and students’ education that they asked the Pontiac Schools Financial Review Team appointed by Gov. Rick Snyder to recommend an emergency manager be put in place to run the district.

Others, such as city activist Rev. Douglas Jones, pleaded with the high-level team of experts — at a 4 p.m. public hearing Wednesday — to keep the district operating in Pontiac. Jones is against the district being dissolved as some have proposed.

The team of state officials and private financial experts was there to get input from parents and community members as it does fact-finding to determine whether the Pontiac school district, which has a $37.7 million deficit, is in such a financial emergency that corrective measures need to be taken. 

 Fred Headen, former director of Treasury’s Local Government Services Bureau, now legal advisor for the Michigan Department of Treasury, acted as unofficial chairman of the team at the public hearing. He said the group plans to finish its work and turn in its report by Aug. 2, which is 30 days before its allotted time under law and a month before the new school year starts in the fall. 

So far this week, the team has been with the Pontiac Board of Education, administrators, teachers and other key people, said Terry Stanton, spokesman for the state Department of Treasury. Candidates for Pontiac city council and mayor were also at the meeting to give their input.

 If a financial emergency is found to exist, the Pontiac Board of Education will determine how the crisis is remedied by selecting one of four options: a consent agreement; an emergency manager; a neutral evaluation process; or Chapter 9 bankruptcy.

“Please recommend an emergency manager be brought in to right a sinking ship,” said Bill Walker, whose wife, Susan Walker, is a math teacher at Pontiac High School. 

 “At the very least, allow Oakland Intermediate School District to take over for several years and clean up this mess and then turn it over to the district,” said Walker, who objected to the board being allowed to pick the option for correction.

Members of the financial review team appointed by Snyder included, in addition to Headen, such experienced people as John Baritone, director of the authority finance division of the Department of Treasury; Doug Ringer, chief executive auditor and director of the Department of Technology, Management and Budget’s Office of Internal Audit Services; Carol Wollenberg, deputy state school superintendent; Max Chiddister, president of Chiddister and Associates; and John Axe, president of Axe and Ecklund.

Community activist Kevin Stewart, a Pontiac Central High School graduate, advised the team, “ Not all citizens are upset that there might be an emergency manager. I’m sure you see this financial mismanagement didn’t occur overnight,” he said

Students, such as 13-year-old Jose Francisco Ybarra, and teachers, such as Elouise Williams, urged that whatever happens the International Technology Academy should continue operation. Many praised its programs.

And several teachers pleaded that something be done help employees get health insurance, now that their coverage has been canceled because the district did not pay insurance premiums. 

Many praised the teachers and talked about how they have been providing supplies, including toilet paper, and how some schools didn’t have copy machines to print work sheets for students. 

Pontiac Education Association President Aimee McKeever urged the committee recommend that the district get an emergency loan from the state to cover pay for health insurance and cover payroll for teachers who have three more checks coming.

“Every union has made sacrifices,” McKeever noted. “We need an emergency loan ... Please consider doing your report earlier so we can have an emergency loan, she said noting that no insurance carrier will provide coverage to district employees now unless they are paid up front. 

Auburn Hills City Councilman Robert Kittle, the only person from outside the city who gave their input, said Auburn Hill provides more than 50 percent of tax revenue for Pontiac schools. The city is one of several township and cities that have a portion in the district. 

Kittle, also noted that his summer tax bill was higher this year because of a court-ordered tax levy to cover $7.8 million in unpaid health insurance premiums. That amount has grown to more than $11 million now.  Kittle said he has donated help to the district through his business at no charge. 

Beverly Garrison, who has been involved in the district for more than 30 years, said she called the state last year and asked officials to do something about the district and she was told to talk to the board or the superintendent.

“Why can’t you find this money that is missing.” Garrison asked, referring to investigations started a few years ago about possible mismanagement or worse of district funds as deficits increased over the years. So far, only one person has been charged with a crime in connection with funds. s 

Former Pontiac schools assistant superintendent Jumanne Sledge, 42, was sentenced to one year in prison, one year on home confinement, three years of supervised release, and restitution in connection with charges of embezzling $236,000 from the district.

Public comment will also be taken at edsentinel@michigan.gov.