$1.8M Needed: Commissioners to vote Monday on whether to allow schools to tap into bond proceeds

Credit: Journal Photo by Walt Unks

Meadowlark Elementary School's fifth-grade classes are taught in a seven-classroom pod behind the school, which also has a four-classroom pod.

By: Wesley Young | JOURNAL REPORTER
Published: September 12, 2009

School and county officials in Forsyth County were hoping that federal money would cover the cost of lease-purchase payments this year on 32 pods -- those multiple-classroom units that the school system has often turned to for extra classroom space.

The county took over the pod payments in the 2008-09 fiscal year, but didn't appropriate any money in the current fiscal year.

Now, school officials say they need to use $1.8 million from 2006 school-bond proceeds to make the pod payments.

"Our original thinking this spring was that we would be able to use part of the $12.5 million that we are allocated through federal stimulus money for construction to purchase the pods," said Superintendent Don Martin of Winston-Salem/Forsyth County Schools.

Martin said that it turned out that under federal regulations, the school system couldn't use the stimulus money to pay for the pods. When some other financing ideas were also found to be unworkable, officials decided to use money from the 2006 school-bond package.

The schools have been saving money on construction projects. So much so that taking $1.8 million of the money won't affect construction schedules.

On Monday, the county commissioners will vote on whether to grant the school system's request. In a recent commission discussion, though, Commissioner Walter Marshall questioned whether it was proper for the schools to incur the pod debt without permission from the county.

County Manager Dudley Watts said that although schools can legally enter into lease-purchase arrangements without county permission, the county and schools have agreed that any future pod purchases will be discussed.

"On both sides we need to communicate about capital needs and what is out there," Watts said. He said that when commissioners adopted the 2009-10 budget a lot of questions about how the state and federal budgets would affect the schools were unanswered.

Kerry Crutchfield, the director of financial services for the schools, said that some confusion between the county and the schools may have arisen because "we all thought that we could use the federal stimulus (money)."

Commissioner Gloria Whisenhunt said she believes that the county should be responsible for pod payments because "by law we are supposed to provide classroom space."

"To me that is just like a school," she said.

Watts said that the pod issue will come up again when the schools and county discuss the 2010-11 budget.

Martin said he thinks that the schools and county have a good working relationship, but agreed with Watts that future pod purchases need airing between the boards.

"It can be approached differently but the need is still there," Martin said.

■ Wesley Young can be reached at 727-7369 or at wyoung@wsjournal.com.