N. Merrick weighs taking risks with funds

North Merrick Board of Education Trustee John Pinto called on board members to rescind money from the district's accrued liability reserve fund for employee benefits at a Jan. 12 public meeting, a move that the district's legal counsel warned could land board members in jail.

The accrued liability reserve fund for employee benefits is used to pay out accrued but unused sick, personal and vacation days to employees upon retirement and, by law, must be kept separate from other district funds.

Pinto called on the board to authorize the district to take funds from the accrued liability fund, which currently contains more than $1.5 million, and flow some of that money into the district's general fund, which contains around $940,000, according to Stephen Draper, North Merrick's assistant superintendent for business and operations.

At the Board of Education meeting, North Merrick's attorney, Albert D'Agostino, told the board that authorizing the transfer could potentially lead to prosecution and jail time, unless the state comptroller first deemed the accrued liability funds excessive.

District Superintendent David Feller said in separate interview that the district has had enough money in some recent years to pay accrued employee benefits without tapping into the accrued liability fund.

Pinto argued that the money is needed immediately, and the district should not wait to use it. The proposal was voted down 4-3, but the board discussed putting the decision to a vote in school elections this May.

"I agree with everything John has said," Trustee Jonathan Butler said, "but for the record, I don't do well in jail." Butler voted against the motion.

Trustee Linda Fuller added that she was concerned that the district would have to use taxpayer dollars for legal fees if the motion were accepted and it were later determined the district acted improperly.

Pinto pointed to a decision to use accrued liability funds made in Valley Stream School District 13 to pump funds into the general fund. The district was sent a sanctioning letter by the state, but trustees were not prosecuted.

Draper said there is no indication of how much money would be taken from the accrued liability fund. Feller said he was uncertain what the funds would be used for.

The board is set to revisit the topic at its February meeting.

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