Why I Voted NO on the Bailout Loan

By Edward J. Maritz, Jr.

My rationale of what has caused the District's Financial Crisis and why the $3 Million Dollar Bailout will not solve the Districts financial problems. In many cases, it will only compound the problem.

According to Maritz, this three-year 24% increase in total District spending is one of the root causes the District is currently seeking a 3-Million Dollar bailout.

"Spending on Administrative Costs is up 21%, while spending on Instructional Support Costs is up 62%. In one year alone, legacy costs, or benefits paid to salaried retirees, went up $121,495 or 47%. Clearly, the Administration and Majority Board Directors have not been fiscally responsible to the taxpayers in controlling costs over the last three years" Maritz said.

Maritz, a School Director since 1993, released a three-year trend analysis of District Audit Findings from 2005 to present. Maritz noted that District Auditors cited the board in its most recent audit for violating the Pennsylvania School Code last year when the Total District Expenditures Exceeded Budgetary Appropriations.

"I'm deeply concerned that the Majority School Directors are rushing through a 3-Million Dollar Bond issue without first identifying how costs will be contained in the future, said Maritz. This bailout will straddle future generations under a mountain of new debt and no reasonable assurance is being given that the District won't be in the same situation again in future years if spending continues at its current pace."

A group of citizens concerned about the bailout have posted excerpts of board meetings on YouTube. Current Board Meetings related to the bailout can be found on YouTube by visiting http://www.youtube.com and searching for "sto-rox bailout."

Maritz noted, "Unfortunately, the Sto-Rox community experienced their School District going financially distressed back in 1992. It is incumbent upon all community members to attend board meetings and demand better accountability from elected school directors so that Sto-Rox is not destined to repeat this dark chapter in its history."