TUSD Board Nixes Wasteful Spending, Sanchez Stumped

On Tuesday, the Tucson Unified School District Governing Board took action to reverse years of wasteful spending and concentrated control. For the first time in years the Board’s business was conducted in a professional manner and ended only moments after 10:00 p.m.

A presentation of the Comprehensive Annual Financial Report (CAFR) was made by representatives of Heinfeld, Meech & Co., to the Board. Board members attempted in vain to get straight answers, but had little success.

When the newest member of the Board, Rachael Sedgwick, asked whether expected late payments from the State of Arizona and timed payments from tax proceeds could be better managed by the District if a system was put in place to deal with shortfalls and overflows in a proactive way, Superintendent H.T. Sanchez asked in a very defensive manner, if there were any limitations as to the amount of money TUSD could carry forward each year. It was clear that he expected the representatives to say yes, but the answer, in no uncertain terms, was no. He appeared to be completely stumped by the response.

He also appears to be completely over his head and unaware of District finances in any meaningful way.

One expert told the ADI after the meeting that they will be encouraging the District to find another firm to prepare future CAFRs. Aside from lack of detail, the presentation confirmed that the Proposition 301 funds had been poorly managed to the point that they had become “out-of-control.”

While Board members Michael Hicks and Mark Stegeman expressed frustration over the lack of answers regarding the Proposition 301 monies, they indicated that the presentation was instructive. Stegeman asked about the $37 million decline in TUSD’s net financial position over the past two years, but the auditors could not explain it. They said they would investigate the question and report findings to the Board.

According to Stegeman and Hicks, the CAFR clearly demonstrated a need for an internal auditor.

The District’s questionable use of Proposition 301 monies has been a source of controversy this year. Part of Proposition 301 monies are intended to be paid out to teachers in the form of performance-based bonuses. Instead, the administration has used that money to cover other expenses.

One expense that the District has regularly incurred is Board member attendance at National School Board Association (NSBA) junkets. Board members Kristel Foster and Adelita Grijalva as well as Superintendent H.T. Sanchez have attended the NSBA’s annual days long soirée over the objections of the public, Stegeman and Hicks. While Grijalva and Foster tried to claim that the expensive trips and lodging made them better Board members, Sanchez was candid. He told the Board that the NSBA trips were the only compensation the Board received for their service. His admission that the trips were really nothing more than perks shocked nearly everyone.

After asking tough questions, Sedgwick voted with Hicks and Stegeman against the expensive excursion this year. The NSBA vote was a symbolic victory for all District stakeholders who for years insisted that the District spend more money in the classroom and less on perks.

After the meeting, Sedgwick stated, “We have a lot of work to do to make sure that TUSD continues its upward climb, but I think we’ve shown that we’re capable of working together to make beneficial decisions for our schools. I’m excited to see what kinds of great things we will do together.”