Lee County residents press supervisors over $5.6 million in school carryover funds

Supervisors for Lee County held a public hearing Sept. 16 on a school-board request to reappropriate $5,623,269.56 in state and federal carryover funding, drawing more than an hour of public comment asking that the money not be left under the school board’s control.

Many speakers said they had lost confidence in the school board’s transparency and stewardship. Ben Richmond of Jonesville said, “They’re not transparent. They’re not trustworthy, and they are not good stewards of our money,” and urged supervisors to withhold the funds. Donnie Lundgardner alleged procedural irregularities around prior board actions and argued the carryover “doesn’t need to go to a school board that can’t manage the money.”

County staff and officials responded with legal and fiscal context. A county official explained the carryover consists of four ‘pots’ of funds — including state basic aid, textbook money and infrastructure/operations funds — some of which the county cannot legally repurpose. The official said certain state-derived sums must revert to the Commonwealth if not reappropriated locally, and noted the carryover reflects state funds that required local matching, which the official estimated represented roughly a 4:1 ratio of state to local contribution.

Speakers traded questions about whether the county could hold funds in escrow, require conditions, or use the money for a forensic audit. Officials said capital-reserve (joint account) funds could not be used for an audit, that some carryover pots are legally required to be carried forward by the school division, and that if funds are returned to the state the locality would have little or no control over how they are spent.

Public commenters pushed for an independent audit and for mechanisms to monitor any funds left under school-board control. Dana Hobbs of Jonesville said she felt personally harassed after speaking at a prior meeting and urged supervisors to provide oversight. Several speakers and at least one supervisor said they would prefer to keep the money in Lee County if there were a way to ensure oversight rather than sending it back to the Commonwealth.

The board did not adopt a final appropriation. After discussion and questions, a motion related to transferring funds was tabled pending additional information and written guidance from state authorities; board members discussed reconvening by special or emergency call once required information is received. The chair closed the public hearing and the matter remains pending.

What’s next: County staff said they would contact the state treasury and the Department of Education for written clarification of deadlines and permissible reappropriation options; the board discussed the option of a special-call meeting once answers are in hand.