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THE HASTINGS

VOLUME 159, No. 24

NEWS BRIEFS Author Gary Schmidt to speak in Hastings Friday evening, June 15, award-winning author Gary D. Schmidt will speak at the Barry Enrichment Center at 7 p.m. His visit is the culmination of the Hastings Public Library’s fifth anniversary celebration. The event is free. Schmidt is the author of a number of nonfiction books and young adult novels. In 2005, he won a Newbery Honor and Printz Honor for Lizzie Bright and the Buckminster Boy. In 2008, he won the Newbery Honor for The Wednesday Wars, which is in large part autobiographical. He is currently a professor of English at Calvin College and lives on a farm in Alto with his wife and six children. Attendees are encouraged to pick up tickets ahead of time so staff can estimate attendance.

Father’s Day car show is Sunday More than 1,000 vehicles are expected to be exhibited at the 31st annual Father’s Day Car Show at Historic Charlton Park in Hastings, Sunday, June 17. The event is sponsored by the Southern Michigan Street Rod Association, featuring door prizes, cash prizes, and 42 other awards. The show also will include music, festival food and a swap meet with more than 100 vendors. Show hours will be 8 a.m. to 4 p.m., rain or shine. The awards ceremony begins at 3 p.m., and participants must be present to win. Additional information can be found online at www.charltonpark.org or by calling 269-945-3775. The recreation area will be closed that day. South Charlton Park Road, from M-79 to River Road, will be closed from 5:30 a.m. to 10 a.m., except to residential and event traffic. Residents and event visitors may proceed northbound only on Charlton Park Road.

BANNER Devoted to the Interests of Barry County Since 1856

PRICE 75¢

Thursday, June 14, 2012

County veterans affairs director on leave following investigation by Doug VanderLaan Editor Almost like waking from the same bad dream, Barry County Commissioners learned at their meeting Tuesday that, for the third time in four years, they may again be victims of employee fraud. “We have evidence and admission that it has occurred,” County Administrator Michael Brown commented to commissioners in describing four discovered instances of improper use of funds by the administrator of the Veterans Affairs Committee, a three-member, county-appointed board that hires its own administrator to distribute federal, state, and county fund money to honorably discharged and indigent veterans. Though Brown informed county commis-

sioners that the administrator had been placed on unpaid leave Friday morning, he did not identify the employee in his public remarks. Commissioner Robert Houtman confirmed after the meeting that the employee in question is Holly Steiner who is listed in the Barry County Directory as the authorized agent for the Veterans Counsel/Trust Committee and Soldiers Relief Commission. Steiner declined comment after a call was placed to her home on Wednesday afternoon. Though an investigative audit will be ongoing, Brown said the funds in question total $1,966, used improperly on four occasions, dating as far back as late 2010. The timing of the allegations made Tuesday’s public announcement even more uncomfortable. Just three weeks ago, the

board received a stellar audit report from its accountant Rehman Robson of Grand Rapids. In his remarks at that meeting May 22, Stephen Blann, principal of government/nonprofit services for Rehman, termed the county’s record keeping as “clean and unqualified, the highest level of assurance that we can give during an external audit.” “[County Clerk] Pam Jarvis got a tip on Thursday,” related Brown, “and we spent that afternoon and evening investigating it. On Friday morning, we notified the sheriff’s department and the prosecutor’s office. On Friday, I also met with the administrator who admitted to the four instances identified. “We then engaged the Walker Fluke and Sheldon company to do an internal audit of the program to see if we need to look back

See INVESTIGATION, pg. 13

Consultant unveils plan to balance school budget Cuts proposed for coming school year by Sandra Ponsetto Staff Writer “Nip it in the bud.” That is the advice financial consultant Don Sovey repeatedly gave the Hastings Area Schools Board of Education during a budget overview he presented at the board’s monthly work session Tuesday evening. According to Sovey, the district will end its 2011-12 fiscal year with a $875,861 shortfall in revenues, leaving the district $535,081 in the red as of June 30. “The point here is [the $535,081 deficit] starts increasing geometrically if you don’t nip it in the bud early,” he said. “So, how can we nip it early on to give you two to three years of financial peace? Correct it in the 2012-13 year; [the next two] years will fall into place.” Sovey presented long-range projections indicating that, without a deficit-reduction plan, the deficit would continue to increase until the districted ended its 2014 -15 fiscal year with a $2,178,005 shortfall resulting in a $3,697,292 deficit. However, Sovey said if the district “nips it in the bud the first year” by establishing a deficit-elimination program, the district could end the 2014-15 fiscal year with a positive balance of more than $1.1 million despite a projected $578,005 shortfall

in revenues. The deficit-elimination plan calls for a $1.6 million budget reduction during the 2012-13 fiscal year. Proposed reductions include: Turning lunch/breakfast supervision over to food service, $77,784; reducing general elementary paraprofessionals, $71,000; reducing compensation at all levels, $23,625; reducing middle school band repairs, $1,000; eliminating middle school department budgets, $2,500; reducing contracting services for band by eliminating seasonal instruction, $15,000; reducing repairs to high school band equipment, $1,000; reducing alternative education supplies, $4,000; reducing the purchase of alternative education equipment, $1,000; middle school special education service to other district due to student returning to district, $22,000; data director moved to Title II grant, $11,250; licensing high school alternative education moved to At Risk grant, $17,575; reducing miscellaneous equipment repairs, $20,000; eliminating Business Industry and Education meeting costs to be assumed by community partners, $2,000; reducing miscellaneous expenses for executive administration, $600; reducing secretary overtime, $9,275; reducing repairs to equipment, $2,000; limiting high school athletics to one-way transportation, $7,000; eliminating

new cameras for buses, $46,000; reducing technology coordinator repairs to equipment, $3,635; reducing technology coordinator miscellaneous supplies, $1,000; absorbing two elementary school teaching positions through attrition, $130,000; moving athletic trainer and coaches to Professional Education Service Group, $16,000; reducing cell phones for maintenance and transportation, $2,000; eliminating special maintenance position, $58,000; eliminating central receiving position, $62,000; reducing all building budgets by 25 percent, $95,976; reducing compensation or position, $1.6 million, for a total reducing $2,303,220. Sovey said that many of the reductions did not mean the elimination of services or personnel but rather funding from alternative sources, such as grants, or being moved to areas of the budget. Hastings Area Schools Interim Superintendent Michelle Falcon said some reductions are already in the works. As of July 1, all Community Recreation and Education Center and child care staff would also be PESG, which would eliminate retirement costs for those employees, consolidating food service with a neighboring school district, and more. Larry Cook, director of the district’s maintenance department, and Robin Girrbach, one of two long-time maintenance employees being laid off by the district, during the pub-

Deadline nearing for Country Showdown Monday, July 2, at 5 p.m. is the deadline to submit contestant entry forms to WBCH, 119 W. State St. in Hastings, for this summer’s Texaco Country Showdown coming to the Barry County Fair July 16 and 17. An official contestant entry form is required, available at Bosley Pharmacy, Walker Music and Textile Co., Thornapple Valley Community Credit Union in Hastings or Delton, and at Family Fireworks. All contestants should also go to www.wbch.com and click Country Showdown for local information and rules. Preliminary competition will take place at 7 p.m. Monday, July 16. Up to a dozen acts performing Monday evening will be invited back the next evening to compete in the local final. One act will be judged the winner and will go on to compete in the state final at the Ingham County Fair, where the prize for the winning act is $1,000 and the right to go on to one of five regional contests to determine who will win an allexpense-paid trip to the national final in Nashville, Tenn., where the grand prize is $100,000.

further. The sheriff’s department, on its own, will be doing a criminal investigation.” Most commissioners are familiar with the routine. In July, 2008, deputy county clerks Jamie J. Holtman and Elizabeth Lapekes were sentenced to jail, probation and restitution payment after embezzling from a jury fund administered by the county clerk’s office. Though the two were required to pay a combined $26,000 in restitution, a local accounting firm determined that more than $64,000 had been taken from the fund over a period of years. In April, 2010, Hastings Airport Manager Jason Blair was arraigned on charges of

Michigan Avenue Bridge begins to take shape The eight 100,000-pound concrete box beams placed throughout the day Friday help the new Michigan Avenue Bridge in Hastings begin to take shape. Construction of the bridge deck is expected to take two weeks. (For more photos, see page 20.

lic comment portion of the meeting, expressed their dissatisfaction with the cuts to their department. However, the proposed cut that garnered the most discussion was the limited one-way transportation for high school athletes. The cost-reduction measure would mean buses would transport athletes and coaches to events in neighboring districts, but it would be up to the coaches, students and staff to provide or find their own transportation home from the event. Board Trustee Gene Haas said that every year he reads about students who are killed or injured returning from school sporting events and would rather put the $7,000 back into the budget to ensure the safety of student athletes. Despite the need to cut the budget, Sovey said the district will still have to spend money in certain areas, such updating its computer file servers. Technology Director Brian Osterink said the district’s servers are 8 years old. “We have one more hard drive to go and we won’t have a server,” said Osterink, who added that the district would borrow money to update the server over the summer. “It will take our current infrastructure from its current 1G back to about 10G, which will mean a lot more speed and services to the school.” Osterink said a quote for the update was $630,00 but is now down to $350,000. “This is something that could be helped by additional funding; but, of course you don’t have additional funding right now and this is the only way to keep that going,” said Sovey. The transportation department will lease five new buses to replace those that were redflagged during a recent inspection. The department also will receive software that will help the district save money by streamlining busing schedules. Falcon said every district that uses the software has been able to save money by eliminating at least two bus runs. “It pays for itself in the first year,” she said. Sovey closed his presentation recommending the following planning considerations: Develop a strategic plan for the district, conduct a facilities feasibility study, employ best business practices and hire a strong financial manager. He recommended the district look for a financial manager with CPA credentials and strong managerial skills. In other business, the board also approved a bid from Abraham and Gaffney for a threeyear auditing contract. The St. Johns firm entered the low bid, ranging from $18,900 for the 2012-13 fiscal year to $19,900 for the 2014-15 fiscal year, beating out the $25,820 for each of the next three fiscal years from Norman and Paulsen of Sturgis, which has had an auditing contract with the district for several years. The board will hold a public hearing on the proposed 2012-13 budget during its regular meeting at 7:30 p.m. Monday, June 18, in the multi-purpose room of Hastings Middle School. All Michigan school districts are required to pass a balanced budget before July 1. During Monday’s meeting, the board will discuss or take action on the following: The final amendment to the 2011-12 fiscal year budget; a transition plan in the wake of Falcon’s resignation (see June 7 Banner), policy committee tasks, personnel committee tasks and financing for improvements for the district’s technology infrastructure.


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