Sisters School Board followed Oregon law

The Sisters School District borrowed $2.1 million this spring to finance much needed repairs to the elementary school and classroom renovation at the middle school. The district followed Oregon law to the letter, and the recent accusations of wrong-doing by Mr. Morgan and Mr. Yinger as reported in this paper reveal a complete misunderstanding of applicable law.

In choosing its course of action, the board carefully considered four options: not undertaking the repairs; paying for them out of this year's budget; paying for them with general obligation bonds secured by a new tax levy; and long-term borrowing repaid out of current tax obligations and other revenues. Obviously, footing the entire bill this year would result in a big cut in school programs; putting off the repairs would have led to further deterioration; and asking the voters to approve a new tax levy was judged to be an unnecessary burden on the taxpayers.

The board, as citizen representatives of the district, chose a sensible way to finance the needed repairs and renovations without raising taxes. In the opinion of the district's bond counsel, "the borrowing was legally authorized under Oregon and Federal law and did not require voter approval."

A school district's authority to borrow money is governed by several different statutes, notably ORS Chapter 328 and Chapter 271. ORS chapter 328 requires that school districts obtain voter approval if they want to issue a bond and pay it off with new taxes. Alternatively, ORS Chapter 271 provides a variety of ways that a school district can borrow money without raising new taxes and without, therefore, needing voter approval.

Mr. Morgan alleges that school districts can only finance capital improvements through general obligation bonds with an associated tax increase. That is not what Oregon law says.

Far from "obscure" as Mr. Morgan alleges, Chapter 271 is routinely used by school districts and local governments throughout Oregon to borrow money for new school buses, repairs, additions, covering operating fund needs in anticipation of state financing and land acquisition. Unlike general obligation bonds covered under Chapter 328, borrowing under chapter ORS 271.390 does not impose any new property taxes and, therefore, does not require voter approval. The borrowing that the district did (technically called "certificates of participation" or "full faith and credit obligations") is authorized under this chapter.

In his letter Mr. Morgan also alleges a violation of ORS 332.055 because no vote was taken regarding the acceptance of interdistrict transfers. Policy JECB, adopted on June 12, 2006 in conjunction with its Administrative Regulation (JECB-AR) approved March 12, 2007, delegates the authority for approving or denying interdistrict transfers to the Superintendent, unless the board acts to limit or withdraw that authority.

During the April 23 meeting, I advised the board of my intent to accept interdistrict transfers only at the elementary and high school. No action or vote by the board was required unless it disagreed with my decision.

Mr. Morgan has also stated elsewhere that once we accept an interdistrict transfer the student has the right to remain in our system until he or she graduates. This is also not correct. Interdistrict transfer agreements are renewed each year.

The board and its superintendent are unequivocally committed to complying with Oregon law as we strive to do what is best for the students, staff and taxpayers. Because the laws are complex, we seek the advice of specialized legal counsel. That is the board's responsibility as the elected leaders of the Sisters School District and mine as the superintendent of the district.