FISD: Mindful Spending

Where does a school district’s money come from?  School funding is largely in the hands of states. The primary job of the state finance system should be to account for differences between the districts in the cost of providing the right educational quality level, and then to distribute the funds.  About 30 years ago the Texas Supreme Court ordered the Texas Legislature to fix the state’s unequal school funding system.  The fix by lawmakers is often called the “Robin Hood” recapture plan.   In 2023, three school districts voted to stop paying the recapture money to the state and two of those districts are here in North Texas.  Carroll ISD and Keller ISD led the way and if other districts followed it would force the legislature to look at more options. If you received one of the recent postcards, they sure look misleading!

So, what is the funding system?  According to a 2019 Texas Tribune article, “Texas guarantees every school district a certain amount of funding for each student. State lawmakers determine the base number per student, which is currently $5,140. Many educators argue that the state should regularly increase that base number, at least with inflation, to get all schools the money they need. But the amount has not changed in four years.”  What many Texans don’t realize is that Texas consistently ranks in the bottom 10 to 12 states for education spending per student.  According to an article by Texas Standard, Texas hasn’t increased school funding since 2019.  It goes on to say to keep up with inflation over the last four years, state lawmakers would need to add almost $1200 per student. Two North Texas districts, Carroll ISD and Keller ISD, led the way and if other districts followed it would force the legislature to look at more options.

Remember when we were told if we approved the Texas Lotto, it would support education, where is all the money from the profits of these scratch-offs and power ball drawings?  The truth is only 7% of the funding by the state for the state’s public school system comes from the Texas Lotto. However, the Texas Lottery is a better wordsmith to perfume the pig. The Texas Lotto website reads, “The Texas Lottery Supports Texas Education. Since 1997, the Texas Lottery has contributed $33.9 billion to the Foundation School Fund, which supports public education in Texas.”

While funding is an important part of the discussion so are the spending habits of some of these districts.  How did our school district choose to spend their money?  Are the funds being distributed properly?  Are they spending based on a well-thought-out budget?  We decided to investigate the spending habits via the Frisco ISD Check Registers on the district’s website. The district has 4 funds: The General Fund, Child Nutrition, Debt Service, and Capital Projects.   We started with the General Fund!

$$ Legal Services: In 2024, Frisco ISD paid Abernathy Law $40,851.93, in 2023 they paid $85,913.58.  We are curious, would it be a conflict of interest if the same law firm represented both the city and the School District?  Was the legal advice received around these “Public-Private Partnerships” that are sold to residents as success ventures. 

$$ Legal Services: In 2024, Frisco ISD paid Walsh Gallegos Kyle another law firm $411,336.57 and in 2023, $353,028.02.   Why does the district have two different law firms?  What kind of legal services is the district needing?

$$ Amazon: In 2024, the district spent $2,271,090.30 on “MISC SUPPLIES.”  That is slightly higher than the 2023 spend, which was $2,047,880.  That is a lot of Amazon!

$$ Dallas Physician Medical Services for Children:  In 2022, the district opened a medical clinic to provide FISD employees with free access to health and wellness.  As we know nothing is free!  In 2024 the district paid DPMSC $470,000 dollars, and in 2023 the district spent $472,000 dollars.   We are curious why they would partner with a medical service for children – when it is supposed to be for adult employees. 

$$ Blue Star Frisco EV:  In 2024, $457,915.28 for “Rentals”, in 2023 the district paid 359,028 dollars.  When the public-private partnership was announced for The Frisco Star residents were led to believe this was a good deal for the school district as they would have use of the facilities.  The city website reads “It houses Frisco ISD events such as football games, soccer games, marching band competitions, commencement exercises, and other similar events.”  Everyone failed to mention how much the district would pay for it each year on top of what the district paid for in the original agreement.

$$ City of Frisco (Contracted Services):  In 2024, the district paid the city $2,361,742.00 and back in 2023, they paid $2,135,134.56 dollars.  What contracted services cost that much?

$$ City of Frisco/Park (FISD Debt Payment): In 2024, the district paid $4,511,073.80 and back in 2023 they paid $5,678,818.38.   What is the district getting back from that? 

$$ Hilltop Holdings (Yearly Investment): In 2024, the district paid Hilltop Holdings $63,301 and in 2023 it was $81,017.98.  What is the yearly investment for? 

$$ GCS Trails of Frisco (Contracted Services):  Par for the course the city is paying for the use of the facilities for GOLF!  In 2024, the district paid $61,555.85 and then in 2023 they paid $54,893.94.  I thought the whole point of the PGA partnership was to have “USE OF THE FACILITIES” so why are we paying to rent facilities.

$$ Population & Survey (Demographics Survey): The most interesting expense was the 2024 payment for $115,700 for a survey.  Then we noticed in 2023 they paid $113,450.00 for another survey.  Why? For What?  We plan to file a PIR for the information.

The district’s website reads “OUR MISSION is to know every student by name and need.”  At Frisco Whistleblower our mission is to understand how the district spends its money and the need to ask us for more Bonds = More Taxes!  There were many more payments in the 2024 and 2023 General Fund Report that some may question.  While we wanted to highlight a few, we are still left with the question of what the point of the Tax Increment Reinvestment Zone (TIRZ). If all we are doing is paying out on them then how are they beneficial? What are we getting back from these TIRZ if we now have to go and ask residents for another $1 Billion dollars?  Next up we will look at the 22/23/24 Capital Fund spending.  Until then, you can review the Financial Reports on the district’s website.  Lastly, look over the check registers as you might find some interesting things like we did.

Fort Collins Adventure

Are you ready for another adventure, well let’s visit Fort Collins, Colorado.  Every few years the Frisco Chamber hosts a “Leadership Event” and according to the website it’s an opportunity to build new – and strengthen existing – connections among the Frisco business and community leaders that you otherwise may not have the opportunity or time to engage with.  In English they mean it is a chance for the “commoners” to spend three glorious days collaborating and partnership building with the “important people.” 

The event was held September 12 to 15, 2023 in Fort Collins, Colorado.  According to the Chambers website the destination “offers a blend of outdoor adventure, cultural attractions, and a thriving business community. In September, when we will be visiting, the city is particularly beautiful with its golden aspens and crisp autumn air. The downtown area is full of art galleries, independent shops, and restaurants. The city is also known for its commitment to sustainability and its collaborative spirit.”

What is the goal of these fun trips on taxpayer dollars?  To help shape the “Future of Frisco.”  You can be an INVESTOR at different levels.  The “Innovator Investor” costs $4000 and the description reads, “Lead community enrichment as the Innovator Investor. Your investment drives program growth, offers brand exposure, and shapes our community’s future. Benefit from positive community association, visibility, and impactful connections.  The “Visionary Investor” is $3000, and the description reads, “Propel community progress as a Visionary Investor. Your investment aids program growth, aligns your brand with community investment, and supports valuable experiences for community development. Enhance your brand’s image while contributing to community success.  Blah, Blah, Blah…

Lastly you can just be an “Attendee” which is $3250, and it includes airfare, hotel, transportation, and most meals.  A few city insiders told us in the past maybe one to 3 people from the city attended these trips.   However, in recent years Mayor Cheney turned it into the “Popular Club” trip on taxpayer dollars and felt that everyone in the city should go.   We were curious of course over the last few years, who went?

In 2019, Council Member Will Sowell and John Lettellier, Director of Development Services were the only 2 from the city to attend the trip.  Then in 2022, that number jumped to six which included four council members and two city officials.  Last year in 2023, it jumped to 12 people which included five city council members and eight city officials.   It is important to note that 1 to 2 months after the 2023 trip one attendee Paul Knipple, City of Frisco – Director of Engineering, left the city and took a position at the City of Westminster, Colorado.  Do the math: 12 people x $3250 = $39,000 of taxpayer dollars.   

Next we have Visit Frisco, the official destination marketing organization for the City of Frisco.  According to the website it is their mission to generate a positive awareness of Frisco as a premier destination for meetings, sporting events, conventions, trade shows, leisure travel, and to positively impact the economic base of the City of Frisco.  In 2019, zero reps from Visit Frisco attended the Leadership Trip.  In 2022, one Visit Frisco rep attended the trip.  Last year in 2023, Marla Roe the Executive Director attended the trip which cost taxpayers $3250.

What about the Frisco Economic Development Corporation?  Well in 2019, two EDC reps attended and in 2022, one EDC rep attended the trip.  Last year in 2023, two Frisco EDC reps attended the trip which is $6500 in taxpayer dollars.

Then we have the Frisco Independent School District, wait what?  In 2019, two trustees attended, and zero attend in 2022.  Last year in 2023, three Board of Trustee representatives attended which include Dynette Davis – Board President, Gopal Ponangi – Vice President, and Rene Archambault – Board Secretary.   First, why did any member from the ISD Board of Trustee’s need to attend these trips?  Secondly, when did Financial Hot Mess Express better known as Dynette Davis become the President?  That means 3 x $3250 = $9750 of taxpayer dollars – but whose counting…oh wait we are!

Now it is a Chamber Leadership event, so we would expect several representatives of the Chamber to attend.  In 2019 and 2022, the same four chamber representatives went.  Last year, five chamber representatives went.  Two representatives from the Frisco Economic Development Corporation include Stephanie Wagoner – Director of Business Retention & Expansion, Gloria Salinas – Vice President also attended. That means 7 x $3250 = $22,750 dollars.  

Then we had a few people attend that held a place on local boards or committees.  For example, Donna Schmittler of the Heritage Association and Danny Mehta with the Downtown Advisory Board.  We also know Jake Petras attended who at the time was on the Planning & Zoning Board, but according to the registration it shows him under a business name.  We don’t know if the city paid for Schmittler or Petras, but we did receive a registration confirmation for Danny Mehta. Add another $3250 dollars

It really was a “Who’s Who of Frisco” aka “Developer Friends” of the mayor and council that attended from the business community.   A few stood out on the list like Lori Medina, owner of MedinaUSA, also the Mayors Chief of Staff for several years, and his campaign manager.  She is also currently helping Angelia Pelahm in her re-election bid this year.  The other person to stand out is Jake Petras who went under his real estate business name but was a current member of the Planning and Zoning Board.  Correction, shortly after the trip was over he was quietly removed from the P&Z board for an ”incident” that happened in Fort Collins.  You probably recognize other big names like Hillwood, PGA, Hall Group, Wilks Development FireFly Park, Rollertown Beerworks, Tumbleweed TexStyles and Dallas Cowboys.

It makes sense of course because obviously there was a heavy focus on the downtown area of Fort Collins as the City of Frisco is in the middle of a multi-pronged project to redesign and improve the infrastructure of Frisco’s downtown.   The trip was well documented by another attendee Audrey Henvey for Star Local Media and Frisco Enterprise.  “On Sept. 13, Frisco’s city leaders, city staff, school district representatives and business community members soaked up the kaleidoscope of components that make up downtown Fort Collins, Colorado. They took in the color explosion of flower beds nestled throughout the area — a product of the city’s downtown flower project. They took note of the outdoor painted piano, the murals on transformer cabinets and the activated alleyways featuring strung lights.“   Cheney is quoted in the article as saying, ““So we need to make some very strategic decisions, truly, over the next couple of months, adding that work will also continue with Velocity Group, a consultant hired by the city to help forge a vision for the Rail District.”  Wonder how much that is costing taxpayers?  Lastly, Cheney is quoted as saying, “Just seeing the horticulture they do and all the flowers is just so beautiful, and it helps them create that civic pride,”   

The only question we have is, why didn’t the council and city officials who have been very vocal to the Frisco Animal Advocate community, that they would only consider a public/private partnership for an animal shelter stop by NOCO Humane?  Who are they?  Well, they are the PUBLIC/PRIVATE PARTNER TO THE CITY OF FORT COLLINS to provide animal protection and control services. If they were out there on taxpayer dollars they probably should have stopped by NOCO since that has been a hot topic lately. We would love to hear from an animal advocate on how the city has progressed since they took the Animal Shelter off the CITIZENS BOND last year because they wanted to “ look into public/private partnerships” possibilities. Simple answer, they don’t give two shxts about what the very vocal animal advocates have been asking for, it simply does not fit their agenda of FRISCO.  Goes to show the “citizens” at the top of the org chart are not as important as Cheney’s idea of downtown and the flowers he wants that create civic pride.

It sounds like an amazing VACATION taking in all the sights, just look at the trip agenda.  Did we mention it cost TAXPAYERS OVER $65,000 and that is for one trip, and it could be more if they paid for others to go.  If the goal was how to help “Shape Frisco” did we really need that many people to go look at streets, painted pianos, murals, flower projects, alleyway strung lights?  Could 2 or 3 people go and bring back video and pictures to share at a work session? 

Before our leaders can shape Frisco they need to figure out what Frisco is famous for.  For example, Fort Collins is referred to as the Craft Beer Capital of Colorado as it has 21 breweries, and it is near one of the most beautiful reservoirs in Colorado.   Colorado is naturally an outdoor enthusiast dream, from food exchange outposts, gardens and parks.  That makes sense as it generally does not go over 90 in the summer.  What is Frisco?  What are we already known for that we can build our downtown around?  Build, create and design Frisco around the history of our city instead of trying to create a history.  Instead, we are creating “Cheney’s Frisco” and believe me, he could care less with what residents want as he has already proven that over and over again.

Mayor & City Council Officials: 5 x $16,250

City Officials: 8 x $3250 = $26,000

Visit Frisco: 1 x $3250 = $3250

Frisco EDC: 2 x $3250 = $6500

Frisco Downtown Advisory Board: 1 x $3250

Frisco ISD Board of Trustee’s:  3 x $3250 = $9750

GRAND TOTAL CONFIRMED TAXPAYER DOLLARS: $65,000

Chamber: 5 x $3250 = $16,250

Below just a few of the expense reports