Hallsville Board of Education: It’s a “possibility” district mishandled funds

The Hallsville R-IV Board of Education released a statement Friday amid speculation the district may have mishandled funds from a $2 million bond issue. The Board President also addressed the media Monday afternoon.

Voters in the school district approved the bond issue in April of 2013 to replace aging science and fitness classrooms, along with additional upgrades.

According to a press release, the district says it has worked with their law firm to “conduct an extensive evaluation of the construction project.”

The release also states that the work performed by B&B Services–including demolition of the old building–was “not completed under a formal written contract and was not let out to public bid.”

While the district acknowledges the oversight, they insist there is “absolutely no evidence…that any past or present District employee or Board of Education member received or diverted project funds for personal gain.”

They do, however, admit that it’s a “possibility” the district “overpaid on some aspects of the project.” They also say the construction company has agreed to pay the district $10,000 to “resolve the parties’ differences” in the matter.

“This is the day we put that project behind us and move forward…our counsel advised us it would take a year to get before a judge. It would take us two years to get into a court room and as a board we made the decision to not expend our resources that way,” Board President Jon Bequette said Monday.

The Hallsville School District was forced to make major budget cuts this year in order to help refill their reserve fund. Some of those reserve fund were used due to their overspending from the bond issue. When those cuts were first announced back in February, former Hallsville Superintendent John Robertson resigned.

“The project kind of got started late and the expenses increased by the time they were ordered and things like that,” Susan Daly, Board of Education President, told ABC 17 News back in February.

The district approved the final budget for the 2016-2017 school year June 30. The budget includes $427,854 in total reductions–largest cuts coming from the elimination of five full-time teaching positions.

“We tried very hard to distribute the reductions across the school district in an equitable way and to have the least impact on students as we can,” current Superintendent John Downs told ABC 17 News in June when the budget was approved. “If we have to make continued reductions they absolutely will have a deeper impact on educational programs and on student learning.”

Residents in Hallsville say they want a thorough breakdown of any future spending from bond issues.

“I would like to hear how the money was spent and why–as far as I know we’ve never heard how it overran the costs that were supposed to have been there. I know they’re wanting to put up another bond issue I would like a really good explanation how it’s going to be used and for us to have a say on it,” Donna Hibbs tells ABC 17 News.

The district is hoping to move forward and regain the public’s trust.

“Full trust of the district is earned and we are in the process of earning that trust now,” Bequette said.