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Officials: Money Owed To State Used For Local School Needs

POSTED: 3:15 pm CDT September 9, 2010
Millions of dollars that were supposed to go to the state of Texas under the "Robin Hood" school financing law was instead used by the Hallsville school district's business manager to provide money for teacher raises, health benefits, library improvements and school facility upgrades, officials with the district said.

There was no evidence any money was used for personal benefit -- although the Hallsville Independent School District is still in trouble with the state for not paying the money. They've taken out a loan to pay the state.

Texas' "Robin Hood" law requires more affluent school districts to send money to the state to help less-affluent districts. HISD missed two payments totaling $9 million. There was also a $3.9 million overpayment by the state that was not reported. Officials said those payments were supposed to be handled by former Assistant Superintendent for Finance Tim Brittain, who resigned in February and now works for another school district. The money was spent on teacher raises, stipends, flu shots for employees, health benefits, upgrading literacy libraries, teacher training technology and upgrades to campus facilities, HISD spokeswoman Carol Greer said.

Officials believe it was more a case of taking money that was supposed to go to the state and using it for local needs they didn't have other money for.

Harrison County District Attorney Joe Black said his office is not investigating.

Texas' attorney general could have jurisdiction to prosecute because payments were not made as required.

The CPA firm that audits HISD said it didn't catch the non-payments because they were provided the wrong information.

"The financial records were falsely presented to the superintendent and the school board," Greer said.

HISD has paid back $5 million from its accounts and borrowed more than $7 million to finish paying the state.
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