Is Interest On County Money Now Unimportant?
WKSR accurately reported today that the School Board recently voted to allow $250,000.00 to be moved from the school general fund into the Federal programs because the federal government was slow paying their bills. As WKSR stated, "The board unanimously approved the transfer of $250,000. $175,000 of the money will be used to cover payroll and $75,000 for any additional expenditures that would need to be paid before the federal stimulus package money is received. After a brief discussion, the board members and Garner agreed the money should be transferred back into the general fund as soon as the federal money is received."
This all seemed simple enough until last night when the School Committee of The County Commission met. There the request was made by Mr. Jackson that the money be transferred into the federal funds "and kept there until June of 2010".
Why would this money be taken out of the general funds where it can earn interest until used and basically placed in a box where it just sits until possibly used? The state auditors have authorized this action but have not required it.
I asked the question, "even if it only makes 1% in interest would that not be worth keeping it in the general fund and moved only if needed as the School Board voted". The answer was "that's only a couple thousand dollars". It seems the committee felt if the money was needed later they would have to vote on the matter again and that wasn't acceptable.
No one was willing/able to explain why there is the necessity or what benefit there would be in putting this much money aside for ten months where it draws no interest for the county. Allen Barrett
This all seemed simple enough until last night when the School Committee of The County Commission met. There the request was made by Mr. Jackson that the money be transferred into the federal funds "and kept there until June of 2010".
Why would this money be taken out of the general funds where it can earn interest until used and basically placed in a box where it just sits until possibly used? The state auditors have authorized this action but have not required it.
I asked the question, "even if it only makes 1% in interest would that not be worth keeping it in the general fund and moved only if needed as the School Board voted". The answer was "that's only a couple thousand dollars". It seems the committee felt if the money was needed later they would have to vote on the matter again and that wasn't acceptable.
No one was willing/able to explain why there is the necessity or what benefit there would be in putting this much money aside for ten months where it draws no interest for the county. Allen Barrett
posted by Allen Barrett | 2:39 PM
33 Comments:
A couple thousand dollars will help out way the economy is. Who is on the committee that thought a couple of thousand dollars would not help the county? Some money is better than no money at all!!!
It is my understanding that the county auditors made the suggestion to move the money. Whether the money is in General Funds or Federal is still in the county trustee office, the same interest is earned on both funds. Try talking to the auditors and get a better picture. Apparently someone is not good at explaining the situation.
If it is true TJ said the money would be there until June 2010, he had better ask his boss (board of ed) about this. At the last school board meeting, there was a discussion about this, and Don
Story especially asked the money be returned as soon as possible, not in 10 months from now. Sounds like TJ is hoping everyone will forget about this quarter million dollars and then he can spend as he wants, not as the budget intends. Hopefully, the board will keep close tabs on this money.
I fear the slanderous remarks are going to land someone in court very soon. Just an observation.
7:34
Where is slanderous remarks? If what someone says is true and they have information to back it up then I guess they probably don't care if the truth goes to court.
Ok. Take it for what it's worth pal.
It will be in the board minutes that the board asked that it go back immediately when federal money is sent. Board will have to hold Jackson's feet to the fire on this one. The state expects the school systems to run federal programs but don't want to get the money to them on time. Then it makes the federal program/special ed look they are the ones doing wrong.
There should be many people in court after the last 2-3 month fiasco~but apparently not, business as usual~only thing changes is now Mr. Holcomb took the fall. I hope everyone hasn't given up around voting time.
Maybe a request for another thread---given what the Pulaksi Aldermen (some)ignored the general feeling of the public and just ushered in the Mayor's request for appointments to the power board~maybe the aldermen should be put to the same scrutiny as PES/Holcomb had to go through---people wanted change and they should be asked why they ignored the several hundred people that attended those meetings.
I agree. Start a signature drive so we can get aldermen to answer questions.
Why would moving money from one pot to another be so important to Mr. J? It's like buying a drunk another beer - it's important for the moment & if you have someone else's wallet, why not empty it!
General fund money has been under the eye of the public! Federal money is just some more crumbs for the pigeons - no one knows why or what for, other than it's critical that he spends it!
We've had our own stimulus plan for some time now & know beyond doubt that it is the best plan ever devised to spend money, but that is where it begins and ends! There is no real reason to throw money away! What is the reality of where the money will be spent and the return on that investment? (none?)
The schools have increased spending 3 times the inflation rate over the past five years. That bloat remains undiminished, in spite of the fact that no dollar increase was given this year! That reckless trend will continue for 2010, in spite of the economic hardships the citizens have this year! We are in a period of deflation, not inflation! It's time to cut and roll the fat back.
People who can't innovate and find ways to cut costs while improving operations have no business running an education system! The technological changes in communications, recordkeeping, etc. have been astronomical, yet the school system apparently knows nothing of that fact & keeps shoveling more money into a garbage pit.
We're being had again - nothing new!
I don't know if this comment goes on this topic or not. I think Bill Holt and Tommy Campbell called a special meeting the other morning at 9:00am. If I am correct then wouldn't it be like double dipping for Holt since he is receiving a salary for elementary school and commission pay. I'm sure this is not the first time this has happened. They should hold their meetings after work hours so citizens who work can attend. Holt needs to be at the elementary school trying to do his job he gets paid to do. If he is attending all these commission meetings during school hours then he should not get commission pay. Save tax dollars.
JAT says:
Aug/27/3:34 PM
Congratulations!!!!!
You are finally begining to see the light!
We are for us and to HELL with the citizens. We are in power and to HELL with anyone who tries to keep us from not being in power.
JAT
I see that we are having another Agri-Park meeting next week at 9:30am. Why in the world do they need so many meetings for the
Agri-Park? It looks the same as it did last year. Would it be to collect their dues?
Yes.
How much did the stadium cost?
Does anyone know how much the stadium cost?
I would venture to guess that it certainly went over the 2 million that he said. He asked for 7 million to start with and my bet is that he spent that even though people voted against it to begin with. This is really a democracy when a vote doesn't go like someone wants it to, that it is put to a vote again with a little threat to make it go.
The construction is over or near over! Why isn't there an accounting of what was actually spend - money paid plus money owed also any contingency!?
It's the city, isn't it? If they don't want to come clean - it's real easy to shop somewhere else! I'd hate to do that to the merchants, but it appears to be the only only way to get an answer!
Remember folk the commissioners waived the county right to the optional sales tax for 20 years in order for the city to receive all the funds, With the extra work being done on the stadium you can bet the costs went over the $2 million.
There is a law that enables the voters to petition to remove that optional sales tax. Anyone wanna try it and see what Speer does?
7:09, What code section are you refering to?
709 GREAT IDEA!!!!
Again, HOW MUCH DID IT COST!
Mr J needs the money moved to the Federal Account because the checks that pay the Federal supplements for the employees who work in the Fed programs are written out of a seperate account from regular school employees. This moving money from the General Fund to the Federal Projects account happens every year because the funding does not get from the Federal government to the state until at lease the middle to last of September. Sometimes later.
As soon as this money arrives the money is as it should be used to replace the money from the General Funds.
This arrangement has been in place for at least the last 25 years that I know about. In fact it has probaby been in effect since the IDEA programs were passed by the Federal government sometime in the middle to late 1960 era.
Remember they are dealing with the Federal people---nothing moves fast with them. Even the car dealers have found out that Federal money does not flow very quickly.
Melanie
Read TCA 67-6-701
I think you are wrong. There is nothing in the code that provides for a petition to repeal the tax.
Carter County did it and their petition started off "Pursuant to TCA 67-6-701.
While the money in general funds may have been moved to federal funds before never has it been moved for such a long period of time and the co mingling of funds is strictly forbidden.
I believe the correct Code section is TCA 67-6-709
GTC
TCA 67-6-701 is just the beginning of that section of the law. Regardless, does anyone want to look into it for Giles Co?
from what I gathered at the last School Board Meeting they intend to move the money back into the General Fund as soon as possible after the Feds come through.
Who is the person who is watching to see when the Fed. money comes in to school systems hand? Maybe us as tax payers need to keep asking everyday has the money arrived yet and has it been moved back to the general fund. We don't want Jackson to get his hands on it.
We pay a Financial Mangager to check funds.
We pay a Financial Mangager for a lot of things---do they all get done???
One does wonder if it all gets done, especially when she is questioned at some meetings and cannot give an answer when she knew ahead of time that her report was to be scurtinized.
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