Thursday, July 3, 2008
This is for the Record...Just in case
My name is Diana Vice. I am a wife, mother, grandmother, and taxpayer who is being persecuted for exercising my First Amendment right of free speech and my Constitutional right to petition my government for a redress of grievances. An out-of-state, multi-million dollar roofing corporation sued me, along with Taxpayers United for Fairness, for telling the truth about an illegal bid rigging scheme that is costing Indiana taxpayers millions of dollars.

I have been harassed with “anonymous” phone calls for months, with one verifiable call coming from the corporate headquarters of Tremco, Inc., the Ohio roofing company that is trying to silence me and others. I have reported two stalking incidents to the police, and after hearing the stories of others who have received death threats after they exposed similar illegal activities in their states, I decided to make a record of what I have uncovered. My personal safety may depend on it. Here’s what the schemers do not want you to know.

It was my concerns that resulted in the drafting of a bill by Senator Tom Weatherwax as well as the commissioning of a study committee for the purpose of revising the state’s bidding laws to put an end to the taxpayer abuse that I helped expose. The following excerpts of an address that I gave before the Senate Education Committee last winter provide a brief overview of the situation.

In 2004, concerned taxpayers brought to my attention the fact that officials at the Rossville Consolidated School District failed to follow Indiana bidding laws pertaining to public works projects when they contracted for a $700,000 partial roof replacement that I’m told could have been completed for half the cost. I determined that those concerns were valid and requested bidding documents. When I discovered there were none, I contacted the State Board of Accounts. An audit was performed, and the field auditor cited the school district for violating all bidding laws pertaining to public works projects.

After this story was reported in the Frankfort Times, I began receiving phone calls from roofing contractors, a California architect, and other professionals in the roofing industry from our state and around the country, all of whom shared similar concerns. I soon realized that the seriousness of this situation extended beyond the boundaries of the small school district where I reside and pay taxes, and I also discovered that I had not been the first person to uncover these types of abuses relating to public works projects contracted through the Association of Educational Purchasing Agencies (AEPA), which was designed to provide cooperative purchasing of consumable goods and smaller ticket items for participating schools.

Brennen Baker, a former employee of Tremco (a.k.a. Weatherproofing Technologies, Inc.), the Ohio based roofing company that is being used exclusively by the Wilson Education Center, a member of Indiana’s AEPA informed me that my discoveries were with merit and that I had only scratched the surface of what he referred to as “the biggest case of fraud against schools [and taxpayers] in Indiana history”.

Details of the Scheme
Baker provided details and evidence of how the bid rigging scheme worked, and some of the evidence has now surfaced in a legal brief that I obtained from the Hamilton Circuit Court file of Baker vs. Tremco, Inc. Page Two states, “Tremco participated in a scheme to circumvent public bidding laws, thereby defrauding and overcharging public schools in Indiana of hundreds of thousands of dollars in relation to roofing materials and services.”

Page Eight begins a detailed description of the various Indiana school corporations that participated in this scheme, Baker discovered while serving as Tremco’s sales representative for these specific projects. Since I’m familiar with the Rossville project, I’ll share a few details of that project to show you what is happening to school districts around the state at the expense of taxpayers.

In 2002, it was determined that the school building was in need of a roof replacement. The school corporation bypassed the state’s bidding and public works laws and initiated a contract through the Wilson Education Center for Tremco to replace the roof for approximately $700,000. Tremco, in turn, subcontracted the work to Blackmore & Buckner Roofing Co. for $451,834.39. That leaves a lot of left over change, does it not?

The only way that I could obtain the subcontractor agreement was through the subpoena process because it was not a matter of public record. Taxpayers were initially unaware that a subcontractor was involved and that they were actually paying two roofing companies in addition to the Wilson Education Center who receives a percentage fee for serving as the “middle man” in the process. It was quite an elaborate scheme, and things appeared to be going well for the schemers until I started asking questions and requesting public records.

The breakdown in price shows that Tremco charged Rossville taxpayers $39,214.16 for hypalon flashing, which was not used in the project according to Tremco’s former sales rep. Baker’s legal brief also states that Tremco charged Rossville $201,882.55 for removal of the existing roof for which Blackmore only charged Tremco $44,638.79, a difference of $157,243.76. Rossville was the third school district to use this illegal bidding scheme to replace a school roof and, according to Baker’s brief, the alleged abuse continued with each subsequent project.

For instance, Baker alleges that Tremco charged Center Grove School $9,290.52 for rental of a crane for which the subcontractor only charged Tremco $1,000. Several of these school corporations were charged for cold or bad weather storage when no unusual storage requirements resulted in the need for either. There are many other references to this type of “overcharging” for schools such as Westfield, Western, West Grove, and others. Baker has documentation, including invoices and receipts to prove his claims.

Page 23 of Baker’s brief addresses the need for public bidding requirements: “When awarding contracts for public works, for which the school board expects to make payment in excess of $100,000, the school board must adhere to the procedure set forth by Ind. Code 36-1-12-4.” He cites a specific case, which reads, “The purpose behind competitive bidding statutes is to safeguard the public against fraud, favoritism, graft, extravagance, improvidence, and corruption and to insure honest competition for the best work or supplies at the lowest reasonable cost...A school board must safeguard the competitive bidding process in order to fulfill its duty to secure the best possible performance at the lowest price...”

The legal brief details the specific bidding violations and accuses Tremco of “gross overcharging and bait and switch tactics.” This comes from a former employee who was responsible for selling these projects to the schools, for overseeing their completion, and from one who walked away from a high paying job because he refused to engage in the illegal practices.

Page 25 summarizes the scheme. “By convincing school officials that the [Tremco] general contracting process and the AEPA/Wilson line-item contract would enable schools to save money on Tremco roofing materials and avoid public bidding requirements [Tremco] was able to charge for Tremco roofing materials, services and equipment it never provided to the schools. [Tremco] was also able to charge exorbitant prices for other roofing materials, services, and equipment. [Tremco’s] excessive and fraudulent charges are particularly egregious in light of the school board’s obligation to obtain the “best possible performance at the lowest price.

“In the handful of projects discussed...[Tremco] charged $662,366.28 in excess of its subcontractors’ charges for completing the projects. Further [Tremco] charged at least $165,533.24 for materials, equipment, or services [Tremco] falsely represented would be provided at the projects...Tremco - either independently or in concert with its affiliate, WTI - has engaged in numerous acts of inequitable and unlawful conduct...”

Board Minutes Reveal Reactions to SBA Audit Report
Officials at the Wilson Education Center (WEC) claim that they obtained bids for the roofing projects; however, what they are referring to are bids obtained by the AEPA and awarded to Tremco at a December 2000 meeting in Las Vegas, Nevada. This meeting predates the Rossville project by two years and some of the others longer than that. There was never a specific bid for a specific roofing project that was contracted through the WEC, and I’m told that taxpayers could have saved hundreds of thousands of dollars had the projects been put out for competitive bid according to Indiana laws.

In addition, I obtained copies of some of Wilson’s board minutes, which are very revealing. The April 21, 2004 minutes read, “The Director reported to the Board that Jim Hanna, Superintendent at Rossville Schools was recently audited by the Indiana State Board of Accounts and they took exception to the AEPA Roofing Bid sponsored by the Wilson Education Center...As the agency contact for the 260+ ESC member school corporations in Indiana, the Wilson Education Center has a moral and ethical obligation to fight this audit. Mr. Risk noted that Jim Hanna has agreed to offer his time and to officially appeal and Tremco...has agreed to underwrite legal costs.”

In the end they were unsuccessful in their attempts to reverse the audit findings. Wilson’s board minutes from the October, 2004 meeting reveals that board members were not optimistic about the future of the roofing contracts as notations from an apparent board member questions the legality of the bidding scheme. One note reads, “It looks like we will lose this case. What $ do we have invested?”

Connecting the Dots...The Trail that Leads to the Statehouse
After Tremco sued me, I had no choice but to dig a little deeper to find additional evidence for my defense. I recently spent a few hours at the Wilson Education Center reviewing public records, and all the dots started to connect. I discovered that prominent government officials were lobbied to possibly ignore the illegal bidding scheme. This might explain why taxpayers have had a difficult time convincing some government officials, such as the attorney general, to take action against the schemers.

According to WEC board minutes, government leaders, who had a responsibility to protect Indiana taxpayers, were lobbied by lawyers from two big Indy law firms on behalf of Tremco, apparently in an attempt to convince them to disregard the concerns of taxpayers and to rescind a valid audit report. State Board of Accounts auditors stood firm despite the enormous pressure from Tremco lobbyists.

The June 1, 2004 meeting report outlines the strategy of hiring a lawyer from the Ice Miller law firm, a “former attorney for the Governor’s Office”. The law firm that was chosen for the lobbying task had also donated thousands of dollars to Governor Mitch Daniels’ gubernatorial campaign.

An excerpt from the report reads, “The Director informed the Board that on June 1, 2004, the Indiana Dept. of Education held its annual finance meeting and the AEPA roofing bid was singled out for discussion. Mr. Risk further stated that several conference calls with Tremco and Ice Miller have been held and a new attorney, Fred Besecker, former attorney for the governor’s office, has been assigned.”

To be fair, I will say that Governor Daniels has sent representatives from his office to meet with taxpayers on several occasions to listen to our concerns, but for now the jury is still out as to what extent the possible lobbying efforts, if any, had on the governor. Time will certainly tell.

The WEC board meeting minutes also reported the fact that Tremco agreed to underwrite legal costs on behalf of the Rossville School District and the WEC in their failed attempts to have the audit report rescinded. In fact, the thwarted efforts resulted in a letter being drafted by Kevin McDowell, a State Board of Education attorney, which stated that the bidding scheme was illegal. Despite the fact that they were advised by two government agencies that their actions were illegal, Tremco operatives continued the practice of circumventing public bidding laws by selling “overpriced” roofs to various Indiana school corporations, and they apparently felt safe in doing so.

In fact, Tremco made claims before the Hamilton Circuit Court as well as the Indiana Appeals Court that the attorney general had exonerated them of wrong doing. Attorney General Steve Carter has recently denied the claims of exoneration, and stated to me personally when he visited my home last May that it was not the case. Tremco operatives apparently based these claims on an awkward statement made by a spokesperson to a Frankfort Times reporter in response to my request for the attorney general to investigate the matter. If they were so certain that Carter had exonerated them from wrongdoing, they should have deposed the attorney general rather than rely on an ambiguous statement from a spokesperson. Maybe they didn’t do that because they were afraid of the real truth.

According to Carter, his position has always been that he did not have the legal authority to pursue the matter, and that it was up to local prosecutors to bring charges. Local prosecutors, on the other hand, have reportedly considered it to be a matter for the AG, leaving taxpayers stuck in the middle. Unfortunately for Brennen Baker, a Circuit Court judge issued a ruling based on the faulty information provided by Tremco. His case is currently pending before the appeals court with the erroneous information still intact.

Taxpayers are now asking these questions: Is it ethical for a private vendor to be paying the legal fees of public agencies for lawyers and lobbyists to peddle their influence to high ranking government officials? And why are government officials shirking their responsibilities to taxpayers by allowing this illegal scheme to continue?

Big Indy Law Firms Hired to Protect the Interests of the Schemers
The information found in the board minutes could lead many to conclude that the lobbying efforts paid huge dividends for the schemers, and it could answer questions as to why the attorney general refused to meet with taxpayers or refused to pursue an investigation. The details are quite interesting, and they raise many more questions than they provide answers to.

A May 19, 2004 WEC meeting report revealed the follow-up plans after the failed attempts to have Rossville’s audit report rescinded. “...We need to continue fighting this audit exception, with the possibility of recruiting a prominent legislator to take this issue to the State Attorney General or introduce legislation that speaks to the statutes conflict.”

Lobbyists used a bi-partisan approach by recruiting Senator Brandt Hershman, a Republican who represents taxpayers in Rossville’s taxing district, and Connie Sipes, a Democrat representing a Southern Indiana district where the Wilson Education Center is located, to co-sponsor Senate Bill 504. The legislators were apparently unaware of the details of the scheme and were hoodwinked into believing that the proposed legislation would save taxpayer’s money by authorizing a school corporation to enter into a public works contract through the multistate cooperative purchasing program run by the WEC. Fortunately for taxpayers, it failed by a narrow margin. Hershman is now on board with taxpayers and will reportedly be participating in the task force that will be studying the issue this summer.

Taxpayers are still left to wonder if a “prominent legislator” used his or her personal influence with the attorney general to lead him away from looking into taxpayers’ concerns. Taxpayers are not convinced that the attorney general has no legal authority to pursue the matter. He sued telemarketers for violating the no call statutes and threatened mom and pop gas station owners with prosecution for price gouging on a small scale, so why can’t he look into price gouging claims for school roof projects on a larger scale? What is the real reason for his lack of action? Are the jurisdiction questions legitimate, or did the lobbying efforts pay off for Tremco?

The WEC minutes tell quite a story, wherein it appears that an Ohio-based roofing company with questionable business practices may have received preferential treatment from government officials over Indiana taxpayers and businesses. Taxpayers asked to meet with Attorney General Steve Carter on more than one occasion to discuss the Tremco/AEPA/Wilson bidding scheme to no avail. The lobbyist hired by Tremco may have used an inside track to influence high ranking government officials, and they obviously wasted no time or expense in taking full advantage of their political connections.

According to other documents that I obtained from the WEC, Tremco operatives hired another big Indy law firm, apparently in an attempt to influence a State Board of Accounts examiner regarding an audit that was pending for the WEC. In a letter written by a Barnes & Thornburg attorney to the examiner, it was revealed that “multiple telephone conversations” had taken place between the two “regarding the State Board of Accounts activities and [Tremco]. Apparently there was concern that questions would arise regarding the legality of the AEPA bidding scheme during the audit. The attorney asked to be contacted to arrange a meeting between he and Tremco representatives to discuss “concerns” and to allow them the “opportunity to provide you our legal opinion regarding such issues…” He even went on to state that they would like to have the meeting prior to the issuance of the SBA audit of the Wilson Education Center.

It remains to be seen what effect, if any, the lobbying efforts by the attorney had on the SBA. So far I’ve been impressed with the SBA examiners. They’ve stood firm against the lobbying efforts of the Ice Miller attorneys in their attempts to have the Rossville audit rescinded, and they have always been responsive to taxpayer concerns. An SBA official also testified before the Senate Education Committee last January that his office was currently conducting audits of school corporations that have entered into contracts with Tremco.

The final conclusions of those audits may be in question; however, since many of the records pertaining to the illegal bidding scheme are not available to the public or state auditors, which makes it extremely difficult, if not impossible, for them to make a proper determination as to the full scope and impact that the illegal bidding scheme is having on taxpayers. This is why it is absolutely necessary for the attorney general and/or a local prosecutor to convene a grand jury so that the records can be subpoenaed and reviewed.

Former state senator Rex Early was right when he made these comments in his book, It’s a Mighty Thin Pancake.” “When Governor Mitch Daniels was first deciding whether to run for governor, we had a meeting. During that meeting, Mitch made mention of how the big law firms have an inordinate amount of influence with both the state and city government. I agreed with him,” Early wrote.

So, it’s obvious that the governor knows there’s a huge problem. The next question is what does he intend to do about it? Just how does he intend to stand up against these big law firms that have donated thousands and thousands of dollars to his campaign? It’s quite a dilemma, isn’t it?

Tremco operatives hired three of Indy’s biggest law firms to influence elected officials and to sue Indiana citizens, and they’re all big contributors to various campaigns, including that of the governor, attorney general, and other high ranking government officials and legislators. The Barnes and Thornburg law firm is listed as having donated $784,422.65 to various political campaigns. Individual attorneys from the law firms also donate money. In fact, the attorney who was hired by Tremco to lobby a State Board of Accounts examiner donated money to Governor Daniels. Several high ranking government officials have benefited from such generosity, including former governor Joe Kernan, Todd Rokita, Brian Bosma, Tim Berry, and Becky Skillman, just to name a few. Party affiliation doesn’t seem to matter when it comes to big law firms donating to campaigns. Rex was right about that, too.

Is it any wonder that taxpayers have been running into governmental brick wall after brick wall in their quest for answers and justice? And is it any wonder that taxpayers were sued for alerting government officials of the illegal bidding scheme? The financial interests of an out-of-state roofing corporation were protected by lawyers from big Indy law firms who obviously used their influence and political connections to the detriment of Indiana citizens and businesses.

Indiana Business Executives Speak Out Against Tremco Tactics
I’m not the only one complaining about this illegal bidding scheme. There are several Indiana roofing manufacturers and hundreds of roofing contractors who are adversely affected by it as well, and some have taken their complaints to legislators. Several Indiana roofing executives and I attended a meeting last February hosted by Senator Weatherwax.

“What’s it going to take to get people to listen to Diana?!” demanded an executive from one Indiana roofing manufacturer to legislators and government officials in attendance. Legislators carefully listened to the concerns as the business representatives related additional details as well as confirmation that everything I have been saying was true. One supportive legislator commented that ending the illegal bidding practice would do more for property tax relief than any measure that was currently pending before the state legislature.

It was pointed out that Indiana roofing businesses were being left out of the bidding process entirely, and that Indiana’s economy has been affected by it. The concern was also raised that Johns Manville, Firestone, and GAF, Indiana roofing companies that sell roofing products and services, are losing potential business to an Ohio roofing corporation because of the illegal bidding scheme. The Firestone Corporation’s world headquarters is located in Indianapolis and yet they don’t have an opportunity to bid on the school roof jobs in question. It was also pointed out that the only ones defending the illegal bidding scheme are the very ones who profit from it.

A special meeting at the statehouse was called after Tremco lobbyists derailed Weatherwax’s bill that initially appeared to have unanimous, bi-partisan support after roofing executives and I testified before the Senate Education Committee last January. In fact, several members of the committee praised my efforts and personally thanked me for them. The committee’s chairperson, Teresa Lubbers, stated that there would be a follow-up hearing a week later and that no additional testimony would be heard. To the disappointment of taxpayers and Indiana business executives in attendance, Lubbers failed to keep her word and allowed testimony from Tremco representatives at the second hearing. The lobbying efforts paid off for Tremco. The bill was killed for the moment, but Senator Weatherwax didn’t give up on taxpayers and continues to pursue the demise of the illegal bidding scheme even after his retirement from the Senate. He’s a true American patriot.

This was not the first meeting I had attended. Senator Weatherwax arranged for taxpayers to meet with Brian Renner, deputy commissioner of the Department of Administration, three years ago. We were hopeful at that time that our grievances would be taken seriously. We later wondered why nothing was done, especially after Mitch Daniels had made a campaign promise to address school construction spending. But, of course, that was before we knew the effects and influences that lobbyists may be having behind closed doors at the time. Many of us, including Indiana business owners who were experiencing their first taste of government and how it operates, have become disillusioned by it.

Has the Public Safety Been Compromised?
Public safety is another important concern of this illegal bidding scheme. The State Board of Accounts audit report for the Rossville Consolidated School District revealed the fact that there were “no plans or specifications” that were approved by an architect or engineer as required by law. This is extremely important since roofing materials must meet various local, state, and federal fire safety regulations. Since questions have been raised about the materials used for the Rossville project, no one can be certain if the roof meets required safety regulations. And since similar questions have been raised by the State Board of Accounts and a former Tremco employee, it would be wise to have all the Tremco roofs tested to ensure the safety of hundreds of school children and teachers.
The issue of safety was the focus of a Channel Six (Indianapolis) television news report a few years ago regarding a Tremco roof at the Westfield-Washington Intermediate School. In addition, testimony was given by an Indiana roofing contractor at the January hearing before the Senate Education Committee in regard to safety issues of the roof in question.

According to the testimony, the Westfield-Washington roof was tested after concerns were raised about its safety, and it was determined that the roof did not meet state and federal safety requirements. Tremco’s subcontractor was forced to apply a fire retardant coating on the roof. The contractor also testified that he had heard reports that the coating may now be peeling off in places, and raises additional cause for concern about the safety of school children at Westfield-Washington Intermediate School.

There will likely be many more chapters to write as I continue to pursue justice and accountability. This is the abbreviated version of a continuing saga that has severely damaged the public trust in government officials who were elected to prevent these types of abuses. I am stuck in the middle of a legal quandry with no way out but to investigate further and to expose every sordid detail of this illegal bid rigging scheme, including the key players in this carefully orchestrated scheme to rip off taxpayers.

Facts are Stubborn Things
I drafted a newsletter directed to government officials in which I quoted from reliable and reputable sources, including newspaper reports, television news reports, and government documents, and for this I was sued.

Tremco didn’t sue the Dayton Daily News, the San Francisco Weekly, the Frankfort Times, or other news sources for writing negative reports about their business practices and activities. They sued me for repeating what had been written. In fact, what I wrote pales in comparison to what others have written. The newsletter for which I was sued is a matter of public record in the Hamilton Circuit Court and the attorney general’s office. Janet Campbell, a California architect and original Tremco whistleblower, has also posted the newsletter to her blog, which can be found at http://schoolroofingscam.blogspot.com/.

Janet Campbell received death threats after exposing the scam in California. Doug Wicks, a New Jersey roofing consultant who was responsible for convincing a New Jersey Commission of Investigation to look into roofing scams in his area, also received threats of lawsuits after he exposed the scam in his state. That N.J. Commission is specifically tasked with investigating organized crime. Gerard Beloin, a New Hampshire roofing manufacturer, has received numerous death threats after exposing a school roofing scam there. In fact, he was charged with felony wiretapping for tape recording some of the threats! He alleges that public officials are in on the scam, but he has resisted their attempts to bring him down and has gone public via the Internet. He was recently a guest on the G. Gordon Liddy show where his story was aired. Google “Gerard Beloin No Trial” and you’ll get an earful.

Here’s what the New Jersey Commission of Investigation summarized after conducting an extensive investigation into the practices of various roofing companies: “[T]he Commission’s findings in this investigation should serve as a wake-up call to legislators, school administrators, taxpayers and parents alike. We have identified a host of systemic problems that are costing millions of dollars every year and possibly placing the safety of our children in jeopardy. At the same time, however, we have also identified an opportunity – an opportunity to address and rectify these abuses before they become worse.
The manner in which we go forward from here is critically important. With the state poised to invest billions in school construction and renovation, steps must be taken to assure the citizens of New Jersey that their money is spent wisely and prudently. They deserve nothing less.” These words apply to Indiana as well. None of us can afford to remain silent, and so once again, without malice and in good faith, I appeal to elected officials to come to the aid of embattled taxpayers. I ask them to stop listening to the lobbyists who are paid to promote the financial interests of special interest groups and to start listening to the taxpayers whom they are elected and paid to serve.

What Can You Do to Help?
The corporate bullies know better than anyone that what they are doing is wrong. Their purpose in suing citizens is to intimidate, harass, bankrupt, and silence simply because we told the truth. I also believe I was sued in retaliation for notifying the State Board of Accounts of the illegal bid rigging scheme, and I firmly believe that there would be no chance for change had I not been sued. I am willing to make the necessary sacrifices, and I’m asking others to join with me. Together we can make great changes as we demand accountability from those whom we elect.

This affects all of us in many ways. It has a chilling affect on all of our rights, because it could cause others to think twice before writing a letter to the editor, or speaking out at a city council or school board meeting. It also affects the bottom line for property taxes that we pay. Since school budgets take the lion’s share of the property tax pie, the illegally bid, overpriced roof jobs are costing Indiana taxpayers millions of dollars. It’s time that we unite to put a stop to these abuses.

IS THIS WHY PEOPLE HATE SCHOOL DISTRICTS?
LINK

In the property tax debate, I argue the schools have been the worst offenders. They are anywhere from 40-80 percent of the property tax problem. They complained about caps on assessments. They also fought against referendums on school projects in order to keep costs under control. And if all that wasn’t bad enough, here’s a prime example of a school district that doesn’t get it.

According to the Franklin Township Informer, Franklin Township Schools in Marion County collected more than $36,000 in revenue from its Pepsi vending machines. The funds were collected from January 2005 to October 2007. Initially school was allowed to the profits from the vending machines, however a policy change left only $2,500 at each school.

So what did the school district do with the leftover cash? Check this out. According to detailed records, the district spent $581.00 on an administration breakfast. $473 went to Bobby Jones Beef and Brew restaurant. More than $5,400 was spent on staff retirement lunches or parties. Franklin Township also spent $467 on donuts for a school bus tour. $73 was spent at Kabuto Japanese Steakhouse. The district also spent more than $500 on flowers for various occasions. And here’s the kicker, the district spend $355 on a piano for a retirement party.

But perhaps the most disturbing expenditure of all was $1,500 to a group called Stand Up For Education, the money was used to put down on a bond deposit to fight against a remonstrance for a school building project. So in other words, the school used taxpayers’ dollars to fight against individuals who didn’t want their property taxes increased because of new construction.

When asked if any of these expenses were the proper use of vending machine funds, Franklin Township School Director of Business James McWhirt told the paper, “It’s not the taxpayers’ money. There are no restrictions on how it is spent, it is open-ended.”

That’s obvious.

The State Board of Accounts does not audit these funds per se, however such funds should generally be used for the benefit of the student body as a whole, rather than a select group of students or administrators.

Could someone tell me how retirement parties, pianos, donuts, flowers, and meals at a Japanese Steakhouse benefit the students as a whole?

25 Responses to IS THIS WHY PEOPLE HATE SCHOOL DISTRICTS?

1. Not Surprised: January 30th, 2008 at 7:55 am
This is not just a problem in Franklin Twp. school. With the property tax crisis financial expenditures need to be scrutinized more closely. For example, in Zionsville a new elementary and middle school have been built in the last year and they are not even being utilized to capacity. The elementary school is currently sitting vacant. The middle school with full athletic facilities is being partially used. I understand that projections may have thought the need for these capital projects, but currently there are no students to fill these buildings. I just hope I am proved wrong and these buildings eventually get used sooner than later.

2. DICK TRACY: January 30th, 2008 at 7:56 am
WOW!! I’m glad I live in Wayne Twp. where we spend our money on things that really help kids learn. Like…. stainless steel inserts and multicolored terrazzo floors… indoor running tracks… dedicated “cardio” rooms. Referendums for ALL spending decisions!!! The townships are out of control.

3. Party Money: January 30th, 2008 at 7:58 am
I am one who believes that we need to eliminate the excessive layers of government, especially all Township offices. I also think school boards should lose the ability to raise taxes, and that authority should be by referendum.
However, another issue is introduced here: how can a governmental body pay for certain social events (some necessary & appropriate ie: retirement party or refreshments for professional conferences) if not permitted by tax dollars? One way is to put vending machines as a fundraiser for such events.
I have no problem with the proceeds from those vending machines being used in the manner stated.

4. schoolboardgreg: January 30th, 2008 at 8:21 am
This revenue should not be used as the central office slush fund. The answer to this and other almost identical situations is to decentralize authority (and responsibility) into the hands of school building Principals. The Principals, working with teachers and parents, should be in charge of each building’s finances. This practice is key to the success of the Weighted Student Formula school management technique.

5. Andy: January 30th, 2008 at 8:27 am
As a Franklin Township resident, this is irritating. Good to hear the school district is using all available funds in the most efficient manner to help offset the ~$5,000 I pay per year in property taxes. When you see things like this, it makes it harder to give any credence to the cry of the administrators that insist they’re going to be slaughtered by the property tax caps. The 1% cap would be a huge relief for me.

6. garry moore: January 30th, 2008 at 8:48 am
i am a franklin township resident, and i am amazed that its not the taxpayers money. who pays the electric bill for these pepsi vending machines? who payed pepsi for the product to put in the vending machines? who payed for the schools for the vending machines to sit in? i think it is high time for merging all township schools into one district. marion county has nine township school districts , and it also has speedway lawrence and beech grove. we are spending way too much money on overhead…cut cut cut, the taxpayers are paying to much and not getting the return for their dollars

7. varangianguard: January 30th, 2008 at 9:22 am
C’mon now Abdul. School Boards are “forced” to pay competitive salaries to retain their Superintendents. After all, these people are DOCTORS for goodness sake. That cachet means that they should be accorded all the respect and renumeration that their lame theses deserve.
For that, they need more and more money every year.

8. BigRic: January 30th, 2008 at 9:27 am
Finally, we see where the real problem is when it comes to our property taxes. Schools. $12.8 million on a pool at North Central HS. Interesting fact about that NC pool is that Jim Schellinger’s wife was on the school board at the same time Jim Schellinger’s construction company was awarded the bid for the project…

9. sure: January 30th, 2008 at 9:49 am
As a father with two students in the Franklin Township School Sports Developoment Corporation I’ve had it up to here. Everyday I drive by the Mini Lucas Oil Football Stadium for the Highschool. Well, at least the kids feel good about their sports. Of course, let’s not worry about the book learning portion.
Go Flashes, beat whoever, help our ego.

10. Shorebreak January 30th, 2008 at 11:25 am
Double standards.
How many here have had their kids letter in math or chemistry? The message is clear - we don’t want science fairs on Friday night. We want football. That attitude won’t change unless we own it personally and we commit to changing it.
And spending? How many of us are guilty of re-electing state and federal reps who spend most of their time filling up the trough rather than working on meaningful legislation that reduces government? Look at what’s happening now in the State House. How many of these people will get re-elected? I’ll bet most of them. Our culture operates by giving officials a pass, yet we expect school administrators to measure up to a higher bar?
It’s another double standard.
Fingers need to pointed, but let’s not forget the old adage that when we point fingers, we’re pointing three fingers back at ourselves. We want change. Unless each of us takes it upon ourselves to change our own attitudes and perceptions, there will be no fix. If we want schools to meet our demands, Friday nights should see a community emerge to witness and celebrate academic excellence. And local officials should be constantly aware that representatives who don’t spend wisely don’t get re-elected.
We can point fingers and remove a symptom. But until we commit to change as individuals, we will never fix the problem. We demand one thing, yet we enable another. Upon reflection, I’ve been a part of it. How about you?

11. mely January 30th, 2008 at 12:20 pm
Abdul, you need to contact Diane Vice up in NW Indiana. She is a homemaker activist that is busting open price fixing in their school system. Her blog is called “Welcome to My Tea Party. She discover that a roofing contractor, Tremco, is charging three times higher rates and locking other companies out of the bid process after local roofers started complaining that they couldn’t bid or get school jobs.
Meanwhile, after she complains to two helpful Senators, Ice Miller comes in and slaps this activist with a libel lawsuit on behalf of the roofing company.

12. Diana January 30th, 2008 at 12:30 pm
The one minor correction I will make is that the Ice Miller law firm is not the firm representing Tremco in the libel suit against me and Taxpayers United for Fairness. Make no mistake about it, though, they are actively involved in this. Ice Miller lawyers have been lobbying senators and using every bit of influence they have to silence taxpayers and critics of the AEPA bidding scheme that has cost Indiana taxpayers millions of dollars. And it was Fred Biesecker, an attorney with the Ice Miller firm who unsuccessfully lobbyed for the Rossville School audit to be rescinded. According to Wilson Education Center minutes, Tremco also paid for lawyers to lobby the Attorney General, and we’re currently seeking public information and records regarding conversations and correspondence that took place between Tremco operatives and Steve Carter.
An Ice Miller attorney also met privately with Senators last week in an attempt to derail Senator Weatherwax’s bill that would have effectively put a stop to the way the Wilson Education Center has been doing business.
It’s time for taxpayers across this state to get actively involved.
http://diana-vice.blogspot.com/

13. schoolboardgreg January 30th, 2008 at 1:06 pm
According to some sources, Indiana spends 50% more per square foot for school construction than the national average.

14. Tim Dugan January 30th, 2008 at 1:50 pm
The roofing company in question is a company from Shaker heights Ohio called Tremco Inc. which is a subsidiary of B.F Goodrich rubber company. I know this because I had a price fixing law suit against them myself.

15. Tom January 30th, 2008 at 3:17 pm
The placement of these vending machines…
Did the Township enter into a contract and get paid some $$ to have these machines placed in the schools?????.
Or did they use taxpayers money and buy them outright?
How does this work???

16. Diana January 30th, 2008 at 5:22 pm
Tim Dugan,
I need to talk to you about this. Please contact me via this blog link.
http://diana-vice.blogspot.com/

17. melyssa January 30th, 2008 at 6:29 pm
Flipper you will like Diane and vice versa.
Abdul you need to contact Diane. Her information will take your audience further down the rabbit hold of school spending.

18. Snark January 30th, 2008 at 7:43 pm
Why the heck are there Pepsi machines in Franklin Township schools?
Isn’t that flavored-sugar-water merely junk food? Is that what we want our kids to be drinking?

19. William January 31st, 2008 at 1:17 am
James McWhirt should resign pending Charges of Criminal Conpriracy in the Misuse of Public Funds…. Ignorance Of The Law Is No Excuse! (Particularly by someone who presumes to “know better than us ‘peons’ who pay his wages and pension” ?? )
Git’owttahir’Jimma! or we’ll ryn’yuh’otta’hir’on’ah’pol!!
No wonder the kids can’t read or write after “graduating” from ‘high’ school. They can’t even ‘pass’ my dumbed-down employement applicant test for entry level positions. It’s a shame!
It’s Criminal.
“Those who CAN - Do.
Those who CAN’T - teach.”
The NEA and the AFT are criminal conspiracies funded with OUR property taxes.
See the RICO legislation, they qualify - those 2 organizations qualify by definition of the law … if only anyone chooses to enforce it..
Well, comes one. It’s War.
Those who don’t want to cop-a-plea now, can join the defendants later.
This will never be “business as usual”, anymore.

20. anonymous January 31st, 2008 at 6:03 am
Price fixing, misuse of funds. Who approves this misappropriation of money? I would like to say that Bart the liar was aware of all of this and probably had a relative in charge so he gave it his blessing as a cost of doing business BUT THEN that assumption is not based on fact. On the other hand, I’m still confused about lottery profits. Exactly what is funded by those millions of dollars? Ohio has excellent schools systems, all 100% lottery funded. If we are going to allow illicit activity, the least we can do is use it to educate our children. Many Indiana parents can’t afford book fees!

21. Diana January 31st, 2008 at 6:39 am
Here’s a personal invite to my Tea Party:
http://diana-vice.blogspot.com/

22. push it January 31st, 2008 at 9:40 am
Diana, are you trying to push your new blog site or something, lol?!

23. Kevin Barrer February 1st, 2008 at 12:43 pm
Profits from in-school vending machines should stay in the school - buy a breakfast for the teachers or do something special for the students. If the administration wants to go out to a restaurant let them roll the quarters from the vending machines in the admin building!

24. Indiana Land of Taxes February 7th, 2008 at 11:08 pm
The vending machine debockle is only the tip of the manure pile. Franklin Township schools are overspending and overbuilding at a rate higher than the community they serve can support. On the average the facilities are nicer than most of the homes whose taxes support them. The schools are crying their eyes out over the impending loss of revenue, in the past all they had to do is spend and tax. Now they are being called to the carpet by the taxpayers. “Accountability???” I attended FT schools graduating in 1969, and have been a lifelong resident. The old school system was simple and no swimming pools, tennis courts and multimillion dollar stadiums. It is time they learn to live within their means. I don’t care if they go bankrupt, it’s their own fault.

25. Sean Shepard March 21st, 2008 at 6:38 pm
In the private sector, a business owner could decide whether to use their vending machine funds to reduce expenses, add to profits or as an office “slush fund”.
Once we’re talking about public institutions, operating on public tax-payer funded property and with a captive audience/client-base then absolutely those funds become public funds and should be used to reduce or cover educational related expenses.
They have no right to those funds for use in retirement parties or fun little gatherings. Again, in the private sector the boss can decide if he/she wants to cover those costs. In the public sector, the bosses are the tax-payers and most I know have had enough.