By Juan Montoya
What happened to the Brownsville Independent School District in the last two years?
The district - with a budget near or above $500 million - has gone from having a $7.2 million surplus heading into 2008 to a $8 million budget shortfall at the end of 2008, and $27 million in 2009.
Now, with the 2010 budget process underway, the once-bright financial future of the district looks headed into deficits and possible state control.
In other words, things cannot continue to go forward as they have in the last two years.
Budget workshop documents indicate that in 2008, the district overly-optimistic projected revenues of $393 million did not materialize and the district collected only $387 million. At the same time, the district spent $395 million, a deficit of some $8 million.
Likewise, in the 2009 budget, the record is even worse. The district projected collecting $390 million but collected only $384 million. At the same time it spent $411 million, a staggering $27 million cost overrun in operations.
In short, the district overspent $35 million more than it had in the last two years. And with tax collections (and delinquent tax collections) lagging, will this result in personnel cuts and a brake on new facility construction?
Most of these overruns were in facility construction, which should raise red flags and close inspection of which architects and local contractors were the major beneficiaries of the BISD's nonchalant largess.
The working budget papers indicate that the district seriously miscalculated on several budget items, notably personnel salaries and construction costs.
District planners projected costs for salaries for instruction (teachers, aides, etc.) to total $199 million in 2009. The actual amount spent turned out to be $206 million – $7 million more than the projected amount.
The figures for construction of facilities are even more egregious. Working budget papers indicate that the district miscalculated the costs of the new construction in 2008 by $92 million which is listed as a deficiency on page 31 (Exhibit C-3). Additionally, district planners estimated that they would spend $2.6 million in 2009 for facilities acquisition and construction and the actual amount totals $24.8 million.
Do some of these architects and construction firms or their representatives appear in the political contributors' lists for Rick Zayas, Ruben Cortez, or Dr. Enrique Escobedo, all running for re-election this coming November?
The district - with a budget near or above $500 million - has gone from having a $7.2 million surplus heading into 2008 to a $8 million budget shortfall at the end of 2008, and $27 million in 2009.
Now, with the 2010 budget process underway, the once-bright financial future of the district looks headed into deficits and possible state control.
In other words, things cannot continue to go forward as they have in the last two years.
Budget workshop documents indicate that in 2008, the district overly-optimistic projected revenues of $393 million did not materialize and the district collected only $387 million. At the same time, the district spent $395 million, a deficit of some $8 million.
Likewise, in the 2009 budget, the record is even worse. The district projected collecting $390 million but collected only $384 million. At the same time it spent $411 million, a staggering $27 million cost overrun in operations.
In short, the district overspent $35 million more than it had in the last two years. And with tax collections (and delinquent tax collections) lagging, will this result in personnel cuts and a brake on new facility construction?
Most of these overruns were in facility construction, which should raise red flags and close inspection of which architects and local contractors were the major beneficiaries of the BISD's nonchalant largess.
The working budget papers indicate that the district seriously miscalculated on several budget items, notably personnel salaries and construction costs.
District planners projected costs for salaries for instruction (teachers, aides, etc.) to total $199 million in 2009. The actual amount spent turned out to be $206 million – $7 million more than the projected amount.
The figures for construction of facilities are even more egregious. Working budget papers indicate that the district miscalculated the costs of the new construction in 2008 by $92 million which is listed as a deficiency on page 31 (Exhibit C-3). Additionally, district planners estimated that they would spend $2.6 million in 2009 for facilities acquisition and construction and the actual amount totals $24.8 million.
Do some of these architects and construction firms or their representatives appear in the political contributors' lists for Rick Zayas, Ruben Cortez, or Dr. Enrique Escobedo, all running for re-election this coming November?
Already, challengers are lining up to take on the three. Cortez and Zayas are members of the so-called Gang of $4 which hold the majority on the board along with Rolando Aguilar and Joe Colunga.
If you remember, Zayas ran for the two-year term for the seat held by Pat Lehmann. Now those two short years have passed and Zayas has been dogged by his business relationship with Cortez in the Cameron County Jail Commissary contract from which their management firm pulls a cool half-million smackers a year. It doesn't hurt that Gus Reyna, the Sheriff's chief deputy, is Cortez's cousin.
Sheriff Omar Lucio, bowing to public pressure on the contract, promised to take bids on it. Then, after a committee reviewed the bids, guess who the committee recommended? The BISD duo, of course. Oh, well. The more things change, the more they remain the same!
Now, with cuts almost mandated by the district's budget woes, district observers are wondering whose ox will be gored and whether public disgust with this situation will spill over into the fall elections.
2 comments:
You sure have raised a red flag regarding whether the contractors and architects are benefitting from our tax dollars. I believe Zayas,Cortez, Aguilar, Colunga and SALDANA have all benefitting from OUR tax dollars.
They are so shameless, they have balantly abused their positions and our tax dollars.
I recall seeing Zayas Michael Rodriguez and Terry Ray sitting in the Bond Committee and how they objected to the administration's first recommendation on the architects recommended for the new high school. Suddenly as soon as administration forcefully changed their recommendation, zayas and Ray along with Michael Rodriguez step down from the Bond Committee.
If you ask me this looks pretty fishy. How ironic that there is a huge deficit in the construction budget. It is crystal clear who is benefitting our hard earned tax dollars and forgetting our children's education and employee's livelihood.
These FOUR have got to go in NOVEMBER 2010...
If Springston, Fuller and George Borrego say there is nothing wrong with the budget and nothing to worry about,why haven't they presented the entire budget at the Budget Meeting and to the public? What are they hiding? If the budget is really 28 million in the deficit, this is something to worry about unless they don't care.
Sugar Land is laying off people and they are only 11 million in the deficit. How in the world does BISD expect not to layoff any employees.
Teachers, parents, and employees need to start speaking out and hold the 4 board members, the superintendent and the CFO accountable for the mismanagement of the district.
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