Town seeks answers from school board on health care funds

March 26-- Mar. 26--WINDHAM -- Top town boards are trying to figure out how Windham Public Schools misappropriated more than $5 million intended for health care costs.

Last week, the Windham Board of Finance discussed the possible violation of town ethics policies in the over- expenditure of the Windham Board of Education budget in the last four years.

The concern centers around the school employees' health care fund.

According to board of finance member Kevin Donohue, the insurance plan budget has been underappropriated and then overspent in the last four budget years.

Donohue said Lockton, an independent insurance brokerage firm, provides predictions on the town and school district's health care expenditures.

According to Donohue, in 2015, Lockton estimated $ 8.9 million, while the education board appropriated $8.5 million. In 2016, Lockton estimated $9 million and the board appropriated $8.1 million.

In 2017, Lockton estimated $9.2 million and the board appropriated $7.1 million.

Finally, in 2018, Lockton estimated $ 9.6 million, but the board appropriated $7.9 million.

"This is a covert diversion of public funds away from a critical area, health care, into other areas," Donohue said. "This is a major, major problem for this town."

In the next budget year, the board of education has, again, appropriated less than Lockton's estimates. However, Windham Finance Director Christian Johnson said the board is seeking a new estimate from Lockton because it believes its original prediction was too high. The board of finance asked Windham Board of Education Chairman Lynne Ide to meet with her board to create a plan for addressing these issues.

Ide will have to report back to the board of finance and explicitly explain how the finance issues will be investigated by April 11.

Then, the board of education will report its full findings by July 1.

The board of finance did not take any formal action last Wednesday evening, but it verbally asked Ide

TOWN, Page 4

This is a covert diversion of public funds away from a critical area, health care, into other areas. This is a major, major problem for the town.

Kevin Donohue

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Town seeks answers on health funds

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to report back.

After the meeting, Ide said she was glad the finance board decided not to forward the issue to the ethics commission or to a forensic auditor.

"I didn't believe it belonged to the ethics commission," Ide said. "The board of education takes this matter very seriously."

Ide said the yearly budgets were balanced by covering the extra health care expense through the reserve fund, which was then depleted.

Windham Superintendent of Schools Patricia Garcia said the health care fund is funded by both the town and the school budgets and the town also had issues for two years.

Donohue said the town did not have any problems and it was only the school district at fault.

Garcia said she did not believe any members of the school staff or school board acted unethically or irresponsibly.

According to Garcia, the finance director makes his own recommendations based on a number of different factors.

"We are looking at the discrepancy between the two estimates right now," Garcia said. "We have to make sure it's aligned."

Windham Town Manager Jim Rivers said this problem is just now coming to light and allowing more time for the education board to analyze the issue would be helpful.

Rivers also said he spoke with Windham Town Attorney Rich Cody and they did not believe sending the issue to the ethics commission was appropriate.

" This is a complicated issue, but I don't know if this is a question of ethics," Rivers said.

Donohue disagreed with Rivers' statements and said Rivers was just " blowing fog."

He also said Rivers was confusing "legal" and "ethical."

Town staff and board members agreed everyone involved should have been more mindful of the underappropriation.

Finance board member Douglas Lary, who has served on the ethics commission, favored involving the ethics commission as well as an external audit.

"The ethics commission is primarily interested in motivation," Lary said. "Not just what happened, but why."

The board of education meets for its regularly scheduled meeting on April 10 at 7 p.m. at Windham High School.

The board of finance meets for its next regularly scheduled meeting on April 17 at 7 p.m. in Windham Town Hall.

Follow Claire Galvin on Twitter -- @CGalvinTC.

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