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MADE ON MASS.

HOLDING THE LINE

New store follows handcrafting trend Pulse 5B

O-line coach analyzes Jayhawks’ depth Sports 1B

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SUNDAY • AUGUST 7 • 2011

Nonprofit’s overhead costs raise concerns

Program brings ‘dramatic change’ DISTRICT JUDGE LEE FOWLER conducts Lyon County’s Drug Court. The program gives offenders a second chance at getting straight with the help of a strict program set up by the judge and a team.

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Only 11 percent of funds went to help veterans By Shaun Hittle sdhittle@ljworld.com

Fundraisers for the Tonganoxie-based Purple Heart Veterans Foundation have been spotted at booths in front of several local stores recently, collecting donations to “support the troops.” But for every dollar you might have given them, only 11 cents would actually make it to a veteran or a member of the armed services, according to a Journal-World investigation. You’ve got Based on interviews to spend with foundation President Andrew Gruber, as money to as an examination of make money.” well the foundation’s IRS nonprofit tax forms, the — Andrew Gruber, investigation revealed: president of Purple ● Nearly $541,000 was collected by the foundaHearts Veterans tion in 2010, but almost Foundation out of Tonganoxie, who said $420,000 of that was paid to Independent Promohis relatively new tions, an Indianapolisorganization’s effibased for-prof it ciency will improve fundraising company after a few years. operated by Scott Gruber, Andrew’s brother. Only $61,000 was actually paid to support organizations for veterans or on care packages for troops. ● Gruber started another nonprofit this year, registered at his home address, named the Kids Vs. Cancer Foundation. Tax forms for this organization were not yet available. The organization is run by Andrew’s other brother, Steven Gruber, in Corpus Christi, Texas. ● Andrew Gruber was paid $20,000 in 2010 as foundation president but will make $48,000 this year, a decision approved by the board of directors, which includes Gruber and two other people. The Journal-World asked three representatives from organizations that monitor nonprofits to review the foundation’s tax forms. All three representatives expressed concern about the foundations. “It’s not adding up,” said Lindsay Nichols, a spokeswoman from the nonprofit watchdog group GuideStar. Is Gruber operating a well-orchestrated, multistate scheme for his and his family’s

Richard Gwin/Journal-World Photos

Jody McKinsey, drug offender who completed the first phase of the program

District Judge Lee Fowler, who oversees Lyon County’s Drug Court

3-stage drug court aims for rehabilitation of offenders

E

MPORIA — After Judge Lee Fowler calls her name, Jody McKinsey strides to the front of the large Lyon County courtroom. McKinsey, 24, of Emporia, hands Fowler a small book that operates as her daily planner. She stands there looking up at the judge as he thumbs through the book. Fowler likes what he sees in the planner, and he’s happy about the report he received an hour earlier from a probation officer about McKinsey, who is serving a probation sentence for marijuana possession. She’s obtained a sponsor for drug treatment. She’s working full time, and she’s enrolled in classes for later this month at Flint Hills Technical College. “Everything looks pretty good. You’ve gone to all your meetings,” Fowler says. “I’m going to move you into phase two.” Immediately, the other defendants there

Shelly Wright, executive director of Path to Recovery in Emporia

for Lyon County’s drug court session and the team of probation officers and treatment providers, who are sitting in the jury box, break into applause. “It’s kind of a confidence booster. It’s a reminder that I’m on the right track, and I’m doing the right thing,” said McKinsey, who said participating in the court in the month since her conviction has allowed her to renew her focus on her two young children and her career. “It’s a dramatic change. It was pretty much a 180.” The positive reinforcement is not typical for a court setting, but Fowler’s drug court is an intensive probation program aimed at reducing substance abuse among drug offenders, keeping them out of jail and prison and making them productive members of society. Please see COURT, page 6A

Story by George Diepenbrock • Video at LJWorld.com

Please see NONPROFIT, page 5A

City auditor encourages policy U.S. downgrade raises anxiety — for distribution of rate dollars DEBT RATING

but what exactly does it mean?

By The Associated Press

The real danger from the downgrade of U.S. government debt by Standard & Poor’s isn’t higher interest rates. It’s the hit to the nation’s fragile economic psyche and rattled financial markets. S&P’s decision to strip the U.S. of its sterling AAA credit rating for the first time and move it down one notch, to AA+, deals a blow to the confidence of consumers and businesses at a dangerous time, economists say. The agency is “striking at the

heart of what makes the global economy tick,” says Chris Rupkey, chief financial economists for the Bank of Tokyo-Mitsubishi UFJ. “It isn’t just dollars and cents.” A look at this downgrade, and downgrades in general — and what they mean:

Q: A:

What did Standard & Poor’s do?

The ratings agency downgraded its rating on the federal government’s long-term debt one level from

the top AAA grade to AA+. Long-term debt includes notes and bonds that come due in more than one year. They have terms ranging from two to 30 years. Short-term debt includes Treasury bills that have terms ranging from a few days to 52 weeks. The rating on the government’s short-term debt was not downgraded. Of the $9.4 billion in publicly traded U.S. government debt, 72 percent is longterm.

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You probably already know that those water and sewer bills you pay to the city of Lawrence likely will be a bit higher next year. City commissioners at their meeting Tuesday are expected to finalize 2 percent increases for both water and sewer rates for 2012. What may be a surprise, though, is some of that extra money you’ll pay will go to help other city departments — ranging from the folks who fix streets Please see DEBT, page 2A to the attorneys who keep the

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city’s legal affairs in line. In 2012, the city is budgeted to take $3.08 million the city receives in water and sewer rates and disperse it to other city departments. That fact isn’t particularly unusual. Cities across the country make similar types of transfers, but now the practice in Lawrence is drawing concern after the city auditor in 2008 highlighted that the city has no policy for determining how many rate dollars ought to be diverted. Three years later, the city still doesn’t have a policy.

Lawrence City Manager David Corliss said he expects to present a policy for distributing rate funds to city commissioners in Please see POLICY, page 2A the fall.

COMING MONDAY We introduce you to Leann Williams, a volunteer at CLO’s Midnight Farm in Baldwin City.

Vol.153/No.219 50 pages

Energy smart: The Journal-World makes the most of renewable resources. www.b-e-f.org

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