A Stoddard County board voted July 19 to stop funding the majority of programs scheduled to open in nearly $1.3 million worth of new buildings paid for with taxpayer money since 2017.
The Senate Bill 40 board could use more than one-fourth of annual revenues, for up to 25 years, to repay a loan on these buildings, which were to hold a new thrift store and sheltered workshop, along with another county program.
All of these entities are meant to provide opportunities for the county's developmentally disabled, but have been embroiled for years in controversy over how money is spent.
Stoddard County commissioners recently appointed three new SB40 board members, and this was the first meeting of the new board. The nearly four-hour meeting prompted a new resignation, of treasurer Larry McGonigal. The meeting was contentious and at times chaotic, with arguments between members of the board, as well as the board and members of the audience.
"I asked for cooperation, accountability and transparency. Boy, we sure didn't get any of those things," McGonigal said near the end of the meeting, adding he hoped in the future the board could come together to do the things that were needed for the individuals SB40 is meant to serve.
Split votes by the board directed staff to remove approximately $66,000 in an operating account for Echos, a thrift store set to open this month, and return it to SB40. A majority of board members also voted to stop funding Stoddard County Progressive Industries, which was created by the previous board to open as a new sheltered workshop and replace an existing sheltered workshop.
Echos and SCPI have a total of four paid employees at this time, all supervisors. Echos had received applications from 17 developmentally disabled individuals, according to a report from staff.
The new SB40 board voted to restore funding to the existing sheltered workshop, under management for the past three months by Devin Miller. The former SB40 board voted six months ago to stop funding the existing sheltered workshop, saying financial information was not provided when requested and a number of repairs were needed to the building.
The former SB40 board contends the existing sheltered workshop was asked to partner with them in the new facility, and they were turned down.
The two new buildings, which were constructed without taking bids, have been paid for with a commercial construction loan, according to discussion Thursday. The money has been spent, but an interest rate and terms of the loan still need to be secured. The board asked for a 90-day extension to review options. Information presented at the board by a bank official and board members indicated a loan term could be for up to 25 years, or much shorter, depending on decisions by the board.
Board member Don Rhodes estimated SB40 will spend more than $110,000 a year on payments.
A 2019 budget proposal estimated revenues at $400,000. The budget proposal was not approved by the board, and will likely miss an August deadline to be published in the newspaper, according to administrator Dana McClure. The proposed budget estimated loan payments at around $90,000, and did not have figures for some budget items still to be determined. The board would have less than $24,000 in revenues left, under that proposal, before costs for budget items left blank were determined.
The meeting was attended by Dan Gier, state director of the Division of Special Education Extended Employment Sheltered Workshops.
Gier praised the new sheltered workshop building, as well as both Miller and the woman selected to run the new sheltered workshop. Miller is a proven go-getter, who has been making changes to the existing sheltered workshop, according to Gier. The existing building has facility needs that can only be remedied by money, especially in the bathroom facilities, he added.
The woman chosen to lead the new sheltered workshop program is very intelligent and impressed staff at a new manager's training in St. Louis, Gier said.
"You've got problems over there (existing workshop), but together you can solve those problems and certify and help the disabled members of this community," Gier said. "It would be a waste to the disabled individuals of this county if you all don't let (Miller) do his job and let her (new manager) do her job... The work is here. You've got a proven go-getter and you've got some brains. That is amazing, so don't blow the opportunity. It's here.
"At the end of the day, it's about the folks."
The new board also asked for a $100,000 payment to targeted case management to be reviewed. TCM occupies one of the new buildings and was a blended unit with SB40 until this year.
TCM, Echos and both sheltered workshops operate under independent boards that are self appointed. They receive the majority of their funding from SB40 tax dollars and income generated through contracts.
Previous board members say the $100,000 was repayment of a loan.
New board member Josh Hester demanded proof in SB40 minutes that it was a loan.
The payment has already been made to TCM, McClure said, on the approval of three SB40 board members who make up an executive board. The executive board approves items between SB40 board meetings, which are held every other month, she said. No minutes or records are kept for the SB40 executive board.
The payment, while already made, was on the agenda Thursday to be approved by the SB40 board. The board did not approve the payment, asking for more investigation.
The board also asked to hold an "email vote" at a later date to decide on a new auditing firm, after getting additional bids.
SB40 is still waiting on a 2015 audit from its current firm.