School board must decline $14M plan for improvements
Citing the opinions of the state accountant’s office and its own legal counsel, the Warren County Board of Education declined Thursday night to enter into an agreement with the Warren County Commission to jointly fund a proposed $14 million schools improvement project.
“According to Bobby Palmer (a state accountant) and our attorneys, the school board cannot obligate funds past the current budget year,” Director of Schools Dr. Jerry Hale told school board members. “We’re back to square one.”
The $14 million project in question was proposed earlier this month by Commissioner David Hill during a meeting at Centertown School in which the school board presented its “wish list” of school improvements, as requested by the commission. Included on the list are a bevy of improvements, including renovations to the middle school auditorium and Nunley Stadium, as well as a new school at Centertown and the construction of a “multiplex” at the high school.
Hill proposed for the county commission and school board to share the cost of these improvements, with the commission paying the principal of a $14 million bond and the school board paying the interest. In this case the interest would be an estimated $700,000 a year for 20 years.
“I can’t recommend the board do this,” school board attorney Michael Galligan advised members. “It’s something you can’t do because you’re not a funding system, but an expenditure system.”
Galligan added that if the school board did commit to such a plan and could not make future payments, Hale and board members could be held personally liable.
Hale noted Friday the only way the board could legally commit to Hill’s proposed plan was if the commission co-signed any contract, agreeing to pay the interest if the school board could not.
For their part, board members seemed disappointed they could not legally agree to the plan, but expressed interest in the possibility of another yet-to-be-created plan with the county commission to fund the school improvements.
“If they want to go another route, we’ll work with them,” said newly appointed school board chairman David Sneed.
The county commission is currently in recess awaiting word of the school board’s decision. The commission will reconvene to discuss the matter tomorrow night.