IS IT PAYBACK TIME AFTER HANDING OVER THE DELINQUENT TAX ACCOUNT TO LINBERGER?

Oh what a tangled web we weave,

When first we practise to deceive!

Sir Walter Scott (1771 - 1832)

By Juan Montoya

From the Brownsville Independent School District Feb. 2 agenda:

VII. Consent Agenda: A. Recommend approval of the following General Function Item: 2. Recommend approval of Resolution #024/11-12 increasing the Delinquent Ad Valorem Tax Collection Penalty from 12.5 percent to 15 percent.

Just last meeting, a majority of the board decided to do away with Peña and Associates as the district's delinquent tax-collection company. The change resulted in some $700,000 in attorney's fees switching from the Brownsville-based Peña and Associates firm to delinquent-tax mega-giant Linebarger Goggan Blair & Sampson, LLP, a firm that started in Texas but quickly evolved to become a player on the national stage. It is now a major player in public-sector delinquent tax-collection business "serving" 2,200 clients from offices in Colorado, Delaware, Florida, Illinois, Missouri, Nevada, Ohio, Pennsylvania, Tennessee, and Virginia.

Traditionally, the BISD has had some $12 million pending in potential delinquent-tax arrears by local property owners. Most companies – Linebarger and Peña included – average between a 31 to 35 percent collection rate.

That results in between $4 to $4.5 million in income for the district, and about $700,000 for the firm awarded the tax-collection contract.
when the BISD board decided to switch companies, they did so under the justification that Linebagrer would do a better job of collections, without showing the number to prove it. Now, after the award to the tax giant, a proposal on the consent agenda is calling for an additional 2.5 percent in attorneys' fees to be charged the local taxpayer who has fallen behind on his taxes (and who hasn't at least once?) will be voted on by the very majority that awarded Linebarger the contract.
On Tuesday, BISD legal counsel Arturo Michel  said the terms of the contract were still being negotiated. The contract is to be negotiated for a one-year term with an option to renew, according to information provided during the meeting.
Peña and Associates, which has been BISD’s delinquent collection firm for the past five years, received a fee of 12½ percent of all delinquent taxes, penalties and interest actually collected and deposited into BISD accounts.
Note: an item under the "consent" agenda means that there is no objection from board members and that there is no discussion planned for the item.
What does the 2.5 percent increase in the attorneys' fees mean in real dollars? Would you believe that the BISD will not get more than what is usually collected (about $4 to $4.5 million), but that Linebarger will be able to charge local property owners an additional $125,000 for its services.
Now, even though this money is not coming from the pockets of the BISD, it will come from the very people who voted in the current board.
A local blogger known for his continual crying "wolf" over supposed nefarious conspiracies to purchase the favorable votes of local politicians apparently has done his homework and we (without his permission) post now the political contributions by Linebarger and its known supporters (and employees like Rene Oliveira, et al). 

CHRISTINA SAAVEDRA
12/13/2010 $500 from Rene Oliviera
12/13/2010 $1,000 from ERD International
12/14/2010 $1,000 from Linebarger (tax collection company)
12/13/2010 $500 From Esparza & Garza (they promote Linebarger)
no date $250 from Mullen Pension & Benefits Group
12/13/2010 $1,000 from Gilbert Hinojosa (lobbies locally for Linebarger)
11/01/2010 $500 from Rene Oliviera
10/05/2010 $1,000 from Linebarger
10/06/2010 $600.00 from Sylvia Atkinson

LUCY LONGORIA

10/08/2010 $1,000 Linebarger

ENRIQUE ESCOBEDO

11/15/2010 $1,000 Linebarger

10/04/2010 $500 Rene Oliviera

10/04/2010 $500 Rene Olivera (who he named BISD's interim counsel) 

10/19/2010 $500 Linebarger

10/04/2010 $750 Esparza & Garza

That makes a total of $5,250 paid to three of the seven-member BISD board who were running in the last election. If we include the vote of Catalina Presas-Garcia, who led the move to do away with Peña and Associates, it is more than likely that a BISD majority will hand over the $125,000 to Linebarger come Thursday.

Unless there have been money changing hands between Linebarger or its suporters and board members that has not appeared on political contribution reports, that would mean that Linebarger will make a 25-fold return on its $5,250 investment.

Will a majority on the BISD board have the gall to brazenly hand over the gift-wrapped bonus to Linebarger?