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Taxpayers' Group Accuses Hen Hud District of Fraud

MONTROSE, N.Y. – The Hendrick Hudson School District’s $25.1 million bond referendum has inspired delight in some, and derision in others. One opposition group has gone so far as to forward a number of the district’s documents to the New York State Attorney General, the Commissioner of Education, and the New York State Education Department’s Waste and Fraud Division.

“It’s not facilities that educate kids, it’s the teachers,” said John Mattis, a long-time resident who reluctantly commented on the bond. Initially, Mattis said, he did not want to become involved in the debate because he volunteers for the school district. Mattis, along with some other opponents, have joined the “Taxpayers for Good and Common Cents,” group to oppose the bond.

The controversial bond includes $25.1 million worth of projects for the district, including a stand-alone performing arts center, new synthetic turf fields, upgraded science facilities and infrastructure repairs. The bond goes to a vote on Dec. 14. Polling will take place at Frank G. Lindsey Elementary, from 7 a.m. to 9 p.m.

The district has earmarked $10.3 million from a recent settlement to offset taxpayers’ annual bills relating to the bond. The district says the average Cortlandt taxpayers’ bill will increase $192 per year. The average Peekskill taxpayers' bill will increase $100, for homes assessed at $7,700. The district will not comment on whether the upcoming budget will additionally increase taxes, although pension and health care costs are expected to rise. Currently, 66 cents of every tax dollar collected in the Town of Cortlandt goes toward education, according to town Receiver of Taxes Mary Breining.

Opposition leaders maintain that the bond earmarks millions of dollars for the bond, when the RESCO settlement funds should be used to lower the district’s tax levy. They also contend the bond would finance unnecessary projects during a tough economic environment. Proponents of the bond argue the new facilities, including the PAC and turf fields, would increase students’ achievement.

 “We have people in Montrose and Verplanck collecting bottles and cans to feed their families,” said Terry Pierce, a substitute teacher for the district, former music teacher, and vocal critic. Pierce, along with other members of “Taxpayers for Good and Common Cents,” have been posting lawn signs opposing the bond throughout the town.

One taxpayer, Robert Tinari, a senior financial service professional, has collected the district’s various documents, and is mailing them to the New York State Commissioner of Education, the New York State Attorney General and the New York State Education Department of Waste and Fraud.

Tinari criticized the district for not releasing details about contractual obligations to teachers. Hendrick Hudson School District teachers are still working within a contract that expired last June. He also said the district is not planning for the possible closure of the Indian Point Energy Center. According to the district’s own records, the energy facility contributes about $19 million annually, or 27 percent of the district’s total budget. Governor Andrew Cuomo has pledged to shut the facility down.

“The district has orchestrated this effort with an intent to obfuscate, to mischaracterize and distort facts, to misrepresent key facts, and to hide material risks- with all of this being done in the ‘dead of night,’ with an accelerated time frame in the midst of the holiday season for voting designed to maximize the voter turnout of likely supporters and minimize the turnout of the likely opposition,” Tinari wrote in a nine- page letter sent to district and state education officials.

He also said the district’s most recent “Soundings,” was misleading, saying the statement that the “Total Cost to Taxpayers” is $11.7 million is untrue. “Bond investors will not accept a ‘limited liability’ structure, where taxpayers’ liability is limited only to the portion (47 percent) of the project costs… Bond investors will require that taxpayers will be legally liable for every cent of interest and principal.”

“The stuff about the bond has been on our website, put out numerous press releases, we’ve been in touch with publications such as yours and there have been numerous stories written about it,” said Rick McCormack, district spokesperson. “There’s been a lot of attention to this issue and we do our best to make sure we reach all segments of our population,” he said to criticisms that the district has not publicized bond information.

About new funds from the RESCO settlement, McCormack said, “We told people it’s going to cost $96, and they get the tax bill and it costs $112 that puts us in a different light. The point is it’s new revenue coming in. We could earmark it for whatever we want to earmark it for, and at this point we earmarked it for the bond.”

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