DeKalb County’s new school superintendent wants to shelve or scrap 35 building projects after discovering a $41 million shortfall in the sales tax-funded construction account.
The projects include improvements for disabled students, new school air conditioning systems, running tracks, emergency generators, kitchens and plumbing fixtures at facilities across the county.
Superintendent Cheryl Atkinson proposed the cuts at a special meeting of the school board Wednesday. School district officials revealed they had discovered a $41.35 million shortfall in the five-year construction sales tax program that expires this summer.
The board postponed a vote on her proposal, with a possible meeting again next week.
The Special Purpose Local Option Sales Tax that started in 2007 was supposed to generate $513 million for new schools and renovations. But $26 million in interest and other financing expenses weren’t accounted for, Atkinson said. With most big projects completed, she had to assemble a hasty list of small cuts to close the deficit.
“Something messed up, something happened,” said Atkinson, hired last year. She would not identify who was responsible.
School board members voiced outrage.
“I’m livid; I’m furious beyond belief,” said Nancy Jester, of North DeKalb.
Facilities management and planning staffers discovered the problem in recent weeks when they realized that the projected cost for the reconstruction of Chamblee High School was $10 million too low. They went looking for money elsewhere and “realized that we had a greater issue,” Atkinson said.
The bulk of the shortfall -- $26.15 million -- stems from the repayment of interest and financing costs associated with borrowing years ago. School systems sometimes borrow against anticipated proceeds to expedite construction projects, and soon after voters approved the sales tax, DeKalb borrowed nearly $61 million. Atkinson said she could find no money set aside to cover that debt.
Another big chunk is the $10 million cost increase for Chamblee High, which Atkinson wants to complete. Most of that $79 million project is being paid for with federal grants. Also, nearly $5 million in state funding won’t materialize as expected before the sales tax expires. Finally, officials found a $500,000 deficit for the sales tax that ended five years ago.
DeKalb schools have been beset by embarrassing financial troubles. Former superintendent Crawford Lewis and chief operating officer Pat Pope, also known as Pat Reid, are under indictment. Prosecutors allege the defendants funneled more than $80 million in contracts to associates through some type of fraud. Their trials are pending.
Michelle Penkava, a parent from Tucker who pushed for more oversight on the five-year sales tax that voters just approved in November, said the news was disappointing yet encouraging. She’s confident that Atkinson has instituted better oversight of the next sales tax.
“It sounds to me like this was a knuckleheaded move that somebody made,” Penkava said. “If money was pouring in like it was 10 years ago, they might not have discovered it.”
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