A frequent commenter, Bertram took exception to my suggestion that a federal grant for education jobs in the amount of $122,545 would be spent unwisely and grow future obligations as we face austere days ahead. Bertram commented that he or she was present when Superintendent Vitta warned the board that no future grants exist to maintain staff hired with the jobs fund.
While Vitta drew attention to the jobs fund, Verbist freed up $212,055.47 to be used in any manner the board desires, regardless of future impact. By stealing funds from last year the board is able to pay severance to retiring building administrators, which is a current year expense. As a result, $212k in current year funds are available to hire and sustain staff
Here’s how it works. Because prior year funds are covering a current year expense, the new found current funds remain part of the tax levy and subject to 2% annual increases.
In the past, Abbott districts have been penalized for such chicanery with reductions in state aid but the Verbist/Vitta scam involves the local levy…not a state problem.
Our fist line of defense is elected board members but it appears they lack the technical skill to recognize the problem nor do they really care.
The above explanation shows why improper encumbrances violate GAAP as well as official DOE directives. Sign up for vote by mail and remind your neighbors as well