Otero Treasurer Reports Over $500K in School District Funds Being Held for Lack of State Compliance

Description: $546,305.90 in county tax revenues is being held from two Otero County school districts until they are within state compliance, according to Otero County Treasurer Sharon Jones.

Otero Treasurer Reports Over $500K in School District Funds Being Held for Lack of State Compliance

At the August 26th Otero County Commissioners meeting Otero Treasurer Sharon Jones reported during the semi-annual treasurer's report that two school districts have over half a million dollars in suspended payments from the county until they are in state compliance.

According to Jones, through June 30th Otero county had $41,308,773.15 of that $546,305.90 is in undistributed funds because two school districts are not in compliance with the state, so the Treasurer's Office is required to hold funds.

Commissioner Tim Knabenshue asked which two districts it was and Jones replied that it was East Otero (La Junta) and Fowler School districts.

Commissioner James Baldwin asked Jones if she knew the reason, and she replied that she did not. She went on to say they have not submitted their new budget for the year. Baldwin said, "that could be all that it is. Somebody better get it rolling."

Jones said, "You would think they'd want their money, I mean they have bonds to pay."

"I know they've had a lot of changes in the office and I don't know if they know or understand." I know that CB&T keeps in contact with them regarding their bond fund, so she is sure they are aware, Jones said.

Knabenshue asked if the payment was annual, and Jones said it was distributed monthly.

Commissioner Baldwin said, "When they go to make payroll they'll probably be..." 

"...Someone's going to be screaming," Jones said.

Baldwin asked Jones to reiterate the amount being held and she said, "Right now it's $546,305.90."

Jones reported the county earned $467,917.92 in interest so far this year, while last year the annual earnings in interest was $654,525.25, so we are over half of what we did over (this time) last year, Jones said.

SECO News reached out to both school districts to give them opportunity to respond.

The East Otero School District reported that, "the audit needs to be completed before the county will release tax revenues. We had a new auditor this year and he suggested an extension, that was approved by the Colorado Department of Education." For districts in similar situations the state offers short term borrowing programs and all districts are automatically enrolled.

The Fowler School District reported, "Due to several different situations, the Fowler School District R4J has not submitted its FY23 audit to the Colorado State Auditor's office. The district is working diligently to complete this task."

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