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Pontiac Schools seeks federal stimulus money

Published: Wednesday, August 5, 2009

By Diana Dillaber Murray, Journal Register News Service

Keeping doors open may depend on winning lawsuit

Oakland Schools intermediate district is offering to pay a portion of legal fees to help the financially struggling Pontiac district win a decision from federal and state officials to use stimulus funds to keep operating.

If Pontiac is successful, other cash-strapped districts in the county may benefit as well.

If Pontiac is not successful, officials say they can't predict what will happen to the district that has already cut $16 million through downsizing and restructuring and is still short $7.6 million to pay teachers and keep school doors open.

Oakland Schools would provide the first $25,000 in legal fees for expert Washington, D.C., attorneys to help Pontiac win some flexibility in the rules governing the stimulus dollars, said Pontiac school district attorney George Pitchford.

As it stands now, stimulus funds that go directly to local school districts are earmarked and can only be used for special education and programs for at-risk students.

"We are of great importance to Oakland Schools, as they are to us, and they have a vested interest in our success in obtaining the flexibility," Pitchford said.

Oakland Schools Superintendent Vickie Markavitch and other intermediate staff have worked closely with district leaders for more than two years to help the district turn Pontiac schools around and increase student achievement.

Now Pontiac school officials are worried their redesigned schools will be off to a rough start if they are not allowed to use the stimulus dollars.

The Pontiac Board of Education learned at a meeting Monday night that Oakland Schools would provide $5,000 toward fees for Washington, D.C., attorneys Brustein & Manasevit, who were already hired by the financially strapped district, and will pay up to $20,000 in fees for a second group of Washington, D.C., lawyers, Hogan and Horston. Pontiac school district would be responsible for the fees over that amount.

Brustein & Manasevit charge about $250-$300 an hour while Hogan and Horston charge $300-$600 an hour, according information provided the board.

When questions arose about whether it was wise for trustees to assign such expensive attorneys to the job when the district is in such bad financial condition, John Dietz, interim deputy superintendent of business and auxiliary services, reminded trustees that the 2009-10 budget is based on use of the $7.6 million of stimulus funds.

The two legal firms have the kind of knowledge and experience in Washington "that can allow the system to survive next school year," Dietz said.

"It is not a slam dunk and it requires those kind of people who do this on a daily basis every year."

Dietz explained earlier that in order to make the budget work, the district has to move $7.365 million worth of people, employees, teachers and others from being paid by the general operating fund to being paid by Title 1 funds for children that are high risk.

Trustees are expected to vote on the request at their Aug. 17 meeting.