Eyewitness News on Demand March 15, 2010
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Audit Shows Poor Accounting For Class-Size Reduction Funds

Details of Audit, Response

Dec. 28, 2000-- Money was given to Utah schools to reduce class size. Now the question is, where did it go?

Martin Stephens/Speaker of the House: THIS IS THE SECOND AUDIT IN A ROW, THAT WE'VE FOUND THAT THEY'VE BEEN IN VIOLATION OF STATE LAW.

More disturbing news today about millions of dollars given to Utah schools to reduce class sizes. The latest legislative audit charges some school districts with breaking state law in spending the funds and failing to keep track of those expenditures.

News Specialist Shelley Osterloh reports.

Just a month ago the legislature heard similar problems in an audit of money designated to improve textbooks. Now today's audit shows more discrepancies in how educators have used money designated to reduce class size.

Since 1990 the legislature has allocated nearly $345-million to reduce class size in Utah schools. Just last year, schools got $56 million to deal with class size issues.

But, in an audit released today, Legislators were told school districts cannot document how almost 60 percent of that money was spent, perhaps as much as $148-million in the last decade. That, in spite of a Utah law requiring them to account for the spending.

Another portion of the audit focused on expenditures from what's called board leeway revenue -- much coming from local property taxes.

This money is also intended for classroom reduction, but 28 percent, more than $4-million, was apparently used for things like teacher benefits, salaries and cost overruns.

Martin Stephens/Speaker of the House: WELL, THE FRUSTRATION IS, WE HAVE EDUCATION PEOPLE COME UP TO THE LEGISLATURE, THEY TELL US ABOUT IMPORTANT NEEDS IN EDUCATION. WE FUND THOSE NEEDS AND THEN WE FIND OUT THAT WHEN THE MONEY GOES BACK TO THE DISTRICTS, THEY SPEND THE MONEY SOMEWHERE ELSE. AND THAT ALLOWS THEM TO COME BACK TO THE LEGISLATURE THE NEXT YEAR AND SAY, WE'VE GOT THE NEEDS AGAIN. AND IT'S A FRUSTRATION.

Representatives from the State office of Education say they don't condone this kind of misuse and admit the need for improved tracking procedures.

Gary Carlston/Dep. Superintendent, Utah State Office of Education: THE LACK OF DOCUMENTATION WILL ALSO HAVE TO BE CHANGED IMMEDIATELY.

Carlston points out that poor documentation doesn't mean the money was misused. But legislators aren't so sure.

Martin Stephens/Speaker of the House: I'M SURE THE STATE OFFICE WOULD LIKE TO TELL US THAT IT'S JUST DOCUMENTATION, BUT WE DON'T KNOW THAT. UNTIL WE CAN DOCUMENT IT, WE DON'T KNOW WHAT THE PROBLEMS ARE.

The audit does reveal that class sizes in Utah schools have been reduced by about 2.7 fewer grade school students per class in the last ten years.

Wayne Welsh/Utah Auditor General: BUT I GUESS THE QUESTION REMAINS, COULD THERE HAVE BEEN MORE HAD ALL OF THE FUNDS BEEN USED AS THEY WERE INTENDED?

The audit says the average elementary school class has about 24 students. That's an improvement from ten years ago, when the average class had nearly 27 students.

The Utah Office of Education acknowleged the reporting deficiencies revealed in the audit and says it commits to resolving those weaknesses.

The USOE also raised several concerns about the audit. For more on that, click here.


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