Unethical NK Town and School Government

Letter to NK Taxpayers

In a recent newspaper article Superintendent Phil Auger was quoted as saying the Council’s Republican majority was “disingenuous at best” when it voted on April 28 to reallocate $500,000 from the school’s operating budget to the town’s capital reserve for school projects. Auger opines and wines that the reduction was not discussed during the two budget sessions in March, nor at hearings April 11 or April 21. Least he forgets “his” unethical and illegal sole source office lease with the QDC costing the taxpayers an unnecessary $500,000.

I submit this council’s action was appropriate and that a $500,000 operating budget decrease was not, in any way, a devastating impact on our educational system.

However, I am disappointed that our three Republican Council members (McKay, Houston and Albuquerque) did not clearly articulate their underlying rationale to reduce the school’s operating budget by $500,000. I’m equally perplexed and disappointed with Council members Maloney (I) and Waxman’s (D) dissension, absent any understanding of the school operating budget.

What strikes me very odd and inexcusable is that, as of this writing, not a single Council member has come forward with a transparent, succinct, and unambiguous explanation concerning, in my opinion, an unethical/illegal, and undisclosed financial transaction that Superintendent Auger architected in FY15.

Based on my review of the FY15 town audit I have concluded the Council reduced the FY17 school operating budget only after they became aware of certain unique financial transactions and unexpected school surpluses exposed by the audit. One of my findings exposed the fact that the school department had under spent their $59,055,083 operating budget by some $1,550,269. (Of course, Auger also whined “woe is me, the sky is falling” in his FY15 budget submission)

More incredulously, another of my findings revealed that school department inexplicably transferred a total of $3,206,642 from its FY15 operating fund which contributed to an end of year operating deficit of $1,553,654. In a sleight-of-hand to balance the FY15 school fund books and complete the shell game, the school department, without (to my knowledge) the Councils awareness or notification, transferred $1,553,654 from its school fund reserve account to a separately created reserve account, leaving a paltry $2,240,700 school fund reserve to begin the fully funded FY16 school year.

Another other transaction tells us that $4,219,643 was transferred into a heretofore, rather covertly established school special revenue account (not fund) titled “Capital Improvement Project”. The source of this funding included the transfer of $1,021,035 from the council’s municipal capital project and school capital reserve fund accounts. Surprisingly, the remaining $3,198,608 came directly from the Councils FY15 school budget appropriation.

This stinks to high heaven, shame on the Council for not releasing this information. What were they trying to hide? To me it was simply “to hide” the fact that for the last 20 years there has been no Council oversight of our town and school budget expenditures. This includes both Republican, Democrat and Independently elected council persons who on whole failed their fiduciary responsibilities to taxpayers of North Kingstown.

I highly recommend for those who are seeking “change in government” included an inward look at our local community government. I for one think it’s time for a new broom to sweep clean and with it bring new fresh “minds” that value integrity, fiscal transparency and service to the community over party and special interest.

Bill Mudge,

Former, NK School Committee Member

PS:

A more detailed report on this subject can be viewed at the following address http://patch.com/rhode-island/northkingstown/letter-town-councils-lack-depth-school-budget-talks-alarming

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See attached email to the Town Council and Finance Director regrading my budget concerns.

From: Bill Mudge [mailto:billmudge@verizon.net]
Sent: Friday, June 10, 2016 2:01 PM
To: tprzybyla@northkingstown.org
Cc: towncouncil@northkingstown.org
Subject: FY 17 Town Council Funding Approvals

To: NK Finance Director (T. Przybyla)

Rhode Island General law 16-2-21 (b) states that if “the amount appropriated by the town meeting, the city or town council, or budget referendum is either more or less than the amount recommended and requested by the school committee, the school committee shall, within thirty (30) days after the appropriation is made, amend its estimates and recommendations so that expenses are no greater than the total of all revenue appropriated by the state or town or provided for public schools under the care, control, and management of the school committee. (b) If the amount appropriated by the town meeting, the city or town council, or budget referendum is either more or less than the amount recommended and requested by the school committee, the school committee shall, within thirty (30) days after the appropriation is made, amend its estimates and recommendations so that expenses are no greater than the total of all revenue appropriated by the state or town or provided for public schools under the care, control, and management of the school committee”.

Accordingly, I would like a copy of the official FY17 Town’s Munis (excel format) school budget (all expenditures and revenues), filed with your office which reflects the approved Town Council appropriation of $61,710,465.

Similarly, I would like an excel copy of all official school enterprise fund budgets (code 60) and special revenue fund budgets (code 20), filed with your office which reflects the approved Town Council appropriation for each “FUND”.

Finally, I would like an excel copy of the School Capital Reserve Fund Budget and Capital Improvement Budget appropriation approved by the Town Council. For reference these Capital Project “Projects and FUNDS” can be found in the FY15 Town Audit (Page 108). I would also like to know when the Town Council approved the $4,219,643 to the Capital Improvement Projects “account (fund ??)” and the budgeted expenditure of account totaling $3,133,790.

Thank You

Bill Mudge

CC NK Town Council