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Legal Action On Bonds Not Stopping AISD From Spending

Updated: Monday, November 18 2013, 05:32 PM CST

The Travis County Taxpayers Union has filed a lawsuit accusing the Austin Independent School District for misleading voters in the bond election. If you recall back in May voters approved a $489.7 million bond package. But the union has argued in court AISD broke the law.

"The law says on the ballot it has to have the interest rate on the proposition, and it didn't," said attorney Stephen Casey.

AISD confirms that did happen, but it was voiced elsewhere. Earlier this summer a judge ruled in favor of the district. Now the union is appealing.

"It's a truth in lending type of case. You would not give a blank check with at an unlimited interest rate with any personal car loan. Why should you do it when it comes to a government bond," said Casey.

Despite the legal action AISD is pushing forward on projects without the funding.

Voters approved $7 million allocated for a new payroll system.

Chief Financial Officer Nicole Conley explains the current decade old system has miscalculated salaries.

"As a result we had to go in and manually process payroll records, which is something you shouldn't have to do in an organization of our size of 12,000 employees," said Conley.

Conley says the district could borrow the millions from the district's $734.4 million operating budget.

"The board could take action on a resolution that declares that we will reimburse our general fund when the bond monies become available" said Conley.

If AISD loses Conley says the implication could mean layoffs.

"That would be sort of an ugly adverse effect," said Conley.

A judge could make a decision on the lawsuit as early as January.

By Christie Post

Legal Action On Bonds Not Stopping AISD From Spending


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