Valley View Lack of Transparency Cost Taxpayers $83.5 Million in Debt

The VVSD board approved an additional $83.5 million in district debt at the April 12 board meeting. But you would not know that from reading the news. And if you search the district’s website for details on the $83.5 million debt, you won’t find it. The PMA Securities presentation detailing the $83.5 million debt was removed from the district’s website shortly after the April 12 board meeting. (Even though the PMA Securities presentation was removed from the VVSD website, I obtained a copy by filing a freedom of information act request and have made it available here.)

How did the VVSD sneak $83.5 million in debt onto the backs of taxpayers? VVSD hired JAR Consulting on January 3 to help draft Senate Amendment 1, which was attached to non-germane HB5289 (now Public Act 96-1546). HB5289 was pushed through the General Assembly and passed both houses a week later on January 10 - just hours before the school board meeting that same day when the JAR Consulting contract was approved by the board. How’s that for transparency?

Superintendent Gary Grizaffi is VVSD’s designated representative to the JAR Consulting contract.

Public Act 96-1546 allows VVSD, and only VVSD, to extend debt repayment on previously authorized referendum bonds that were to be repaid in 20 years to 25 years. This additional wiggle room added $83.5 million to district debt. Even if you agree with this outcome, didn’t taxpayers have a right to know and give public input on such a large increase in district debt? Unfortunately, the VVSD board didn’t think so.

Board member Rick Gougis would only reveal the $29 million net present value when I inquired at the March 14 board meeting as to the total amount of additional debt. My subsequent FOIA request for the information was denied.

The board’s complete lack of transparency on such a substantial financial issue is great cause for concern. What else has VVSD board done behind closed doors that taxpayers and parents should be aware of? How many other actions will the VVSD board engage in before obtaining board approval in public, as required by the Open Meetings Act?

The district has spun this as tax relief, but all they’ve done is burdened future generations with this debt. Instead of having an aggressive plan to pay down the debt, the district will spend more money on capital improvements and salary and benefit increases. And once again, taxpayers will be stuck with the bill.

Did VVSD have other debt restructuring options that did not include adding $83.5 Million to district debt? Was the board’s lack of transparency a result of the April 5 elections?