GISD files lawsuit against Flint School District - ABC 12 – WJRT – Flint, MI

GISD files lawsuit against Flint School District

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FLINT (WJRT) -  (07/09/14) - The Genesee Intermediate School District is suing Flint Schools.

Auditors say the Flint School District improperly spent millions of dollars in tax money, and now it's heading to court.

The Flint School Board is holding a closed-door meeting at 5:30 p.m. Wednesday. They are expected to discuss this lawsuit in a closed-door session.

In an audit of Flint's finances, they discovered Flint owes the GISD $8.6 million. That money comes from a county wide property tax mil that was meant for the Genesee Area Skills Center, but auditors say it was used to pay off expenses through Flint's general fund.

Both sides have been in negotiations over the exact amount. However, GISD superintendent Lisa Hagel says those discussions aren't getting anywhere.

In the mean time, Flint's deficit is growing, so they filed a lawsuit on Tuesday.

"But with Flint growing in deficit and us not making any progress, the tax payers of our county and the students that attend that skill center deserve their money to be used, as it was intended to be so. As a last resort, we've been forced to file this suit," Hagel said.

Flint no longer operates the Skills Center. They sold it to the GISD last year when this audit information came out.

Their deficit is currently more than $20 million, not including the money owed to GISD.

School Board President Isaiah Oliver sent us a statement that reads, in part:

"When the financial advisors determined that FCS (Flint Community Schools) had made substantial excess cash contributions to the operations of the Genesee Area Skill Center over several years which had not been properly accounted for in the past, FCS provided this information to the GISD. Unfortunately, the GISD was not willing to consider such excess cash contributions by FCS to the Genesee Area Skill Center, and efforts by the parties to resolve the dispute, without judicial involvement, were not successful."
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