Split vote on a tough choice

A ‘yes’ vote meant thousands in unbudgeted spending at a time when the Willow Springs school district’s finances are under a microscope. A ‘no’ vote meant retiring employees would not receive payouts as promised.

 

For the second month in a row, superintendent Dr. Marty Spence presented a paid time off (PTO) payout policy to the board. In January, he introduced the problem: the district’s written policy of paying out unused PTO did not match the district’s practice. 

 

Either the practice or the policy should change, Spence told the board in January. 

 

In the February meeting, Spence presented more information, including information that vacation time for 12-month employees has a similar policy/practice difference. He recommended that the board approve a change to the policy to match the practice in place and then review it again in April for the future.

 

For four years, the district has been paying out unused PTO at a rate significantly higher than the written policy. Staff retiring this year have already been promised a dollar amount according to the practice. These retirements have been announced and accepted by the board. 

 

This year, the district’s cost according to the established practice will be an additional $20,900 of unbudgeted spending, confirmed the district’s independent financial consultant Kelly Lowe in last Monday’s meeting. 

 

“How do we get a practice that isn’t in line with our policy?” board member Matt Hobson asked Spence. 

 

According to Spence, the 2022  change was, “missed in transition,” before he became superintendent. The board never voted on changing the policy four years ago, and Spence did not come to the meeting with any evidence that the decision had ever been brought to the board.

 

Policy changes and financial decisions, according to the Missouri State School Board Association (MSBA), must be decided by a majority vote of the board. Neither administration nor staff members have the authority to change district financial practice. 

 

“Why wouldn’t we just follow the policy [as written]?” Hobson asked.

 

“We’ve got staff that have retired early with the expectation that this is the financial contribution that they’ll get from the district,” Spence answered. “Because of practice.”

 

Longtime board member Brent Colley said he doesn’t remember ever talking about this change. 

 

“You’re asking the board to adjust this back to what was not done properly,” Hobson said to Spence.

 

“I’m asking you to amend it to reflect what was done for the last four years,” Spence answered.

 

The debate continued as the board members grappled with the impact of the vote that night.  

 

“The crux of the issue is amending the policy to reflect the way it has been handled in the past and the way that the people retiring understood it was going to be when they chose to retire,” summarized board president Mac Gum. 

 

“Do we have the $20,900?” asked board member Roger Shanks

 

“It’s not currently in the budget,” Marty answered. 

 

“It’s not a good situation either way,” said board member Scott Foster. “I don’t feel good about making an example out of the people retiring cause essentially, it’s our mistake, not theirs, correct?”

“If ‘our’ means the district. I mean the board, if something was never brought to us…”Hobson began.

 

“It was never brought to the board,” Spence commented. 

 

“I agree this is a tough one,” Shanks picked up the conversation. “From a strictly business point of view, you have to follow policy, but we have been paying. They have done the math on what they need to retire and what they planned on…”

 

The policy, as written, would be half the cost of the practice. Spence explained that the practice was meant to incentivize early retirement announcements and employees not using their PTO to save the expense of a substitute. 

 

When Gum, as board president, asked for a motion to amend the policy to reflect the practice, the board was silent. 

 

After about ten seconds, Gum himself made the motion. 

 

Meagan Jones seconded the motion. 

 

After a roll call vote, the motion passed 4-3. Dissenting votes came from Adam Webb, Brent Colley, and Matt Hobson.

 

In the monthly financial update, Lowe pointed out that with five months to go in the fiscal year, the district has only spent forty-six percent of its budget. Spending remains down, with the majority of line items well under budget. District expenditures are $2.7 million less compared to this time last year. 

 

Revenues are lagging behind. Again citing, the “aggressive” revenue projection model used to prepare the budget, Lowe told the board. The month of January collected over $127,000 less than anticipated, but tax revenues fluctuate, and Lowe’s reports says, “We wait and watch…This concerns me to a degree; however, we will remain positive until proven otherwise.”

 

The balance of all funds as of the Feb. 9 meeting was $3,200,467.57. The prior month, the balance was $1,393,336.78, and the balance one year ago was $3,086,486.91.

 

Falling enrollment and lack of investment income will be a continuing factor in declining revenues. 

 

In other actions:

-The board approved the purchase of a Bluebird bus for the amount of $143,982 for FY27. The district solicited one bid for the bus purchase, with Spence commenting in an email to Howell County News, “There is only one source in Missouri for Blue Bird bus purchases. We must keep our fleet consistent for maintenance.”

-The board voted to gather bids on auditing services and on a surplus modular trailer. For information on bidding on the trailer, see page XXXXX

-Summer school dates are approved as May 26 through June 18.

-In a closed session, the board approved the hire of new administrators for the middle school. See page XXX for more on that story. 

-As part of the consent agenda the board accepted resignations from Mindy Cooper, Middle School Teacher, Julie Leija, Middle School Teacher, and Judith Tilley High School Teacher. They approved Checotah Wade as a substitute.