Wawasee OKs Venture That Could Provide Longterm Funding
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Kathy Cone-kcone@timesuniononline.com
SYRACUSE – The Wawasee Community School Corp. board agreed at a special meeting Tuesday to join a business enterprise that could possibly generate $10,000 or more every year for the next 100 years. Schools attorney David Cates explained that an anonymous donor approached him with the plan that would give WCSC money for years to come. “There is a local philanthropist, who wishes to remain anonymous, selling his business and wants to put the proceeds into a limited partnership,” he said. Cates said the annual distributions to Wawasee schools is estimated to be at least $10,000. He added, “This is a very significant gift.” The arrangement would be set up to be in effect for 100 years. Superintendent Tom Edington said that he became aware that there were folks interested in donating, and who wanted to do so by the end of the month. That timing was the reason the special meeting was called. The money would come with the stipulation that it must be used for Hispanic and English Language Learner program participants; children with drug and substance abuse issues; and those from the poorest households. Board members asked what would be the schools’ tax liability. Cates said he had examined this, with assistance from attorneys at Ice Miller LLP, Indianapolis. They went over the legality of such a project and its tax implications. He said they concluded the school could legally proceed with no tax liabilities associated with these funds. “Just to cover us,” he added, “the partnership would reimburse, or indemnify, WCSC.” Cates also said that although the partnership would be set up for 100 years, the school corporation could get out of it at any time. Board member George Gilbert asked, “You don’t see any downside?” Cates said, “When someone hands you money and you can get out of it any time...” and shook his head to indicate “no.” Edington said that the schools were already working on the programs stipulated in the partnership agreement. Money for ELL and disadvantaged students currently comes out of the general fund. This gift would free up money from that fund. He added that other agencies might additionally be contracted to work with students: Bowen Center, area churches and government agencies, for example. Edington said that colleges are usually the beneficiaries of such arrangements. Cates said another area school is doing something similar, and that “there is no prohibition on entering into this partnership.” The board voted unanimously to accept the donation. Only Mary Lou Dixon was absent. In one other item of business, the board approved on first reading a change to its policies regarding school-sponsored publications and productions. Now that the high school has a radio station, care must be taken to make sure no inappropriate content gets through. The new policy includes the language that prohibited speech is “speech that is indecent, profane” added to the already listed “defamatory, libelous, obscene or harmful to juveniles.” “The FCC has specific regulations for these,” said Cates. Edington told the board, “Songs we get from the internet are already censored. We’re pre-censored.” This new policy will apply also to advertising. It was suggested that sports interviews might have to be delayed or pre-taped, but right now that is not an issue.
