Elected officials or “secret society”? School board’s private meetings raise concerns about state transparency laws, experts say.

In the past year that Jayne Buchwach has attended Harrisburg School Board meetings, she’s noticed that they follow a reliable pattern.

District residents like Buchwach file into the Lincoln School auditorium and wait, sometimes for up to half an hour, for the board directors to exit their executive session.

School board minutes show that the board has convened 11 executive sessions since July 2017, where they discussed district personnel, real estate transactions, and other business out of view of the public. These closed-door sessions, which are permissible in certain circumstances under state law, occurred before almost every public board meeting and sometimes in the weeks between them.

“It’s like a secret society,” Buchwach said. “I’m suspicious because it makes me wonder what they don’t want us to know.”

Board secretary Carol Kaufman confirmed that the most recent executive session occurred on Monday, May 14. The board publicly announced the other 10 sessions, often summarizing the content of their private talks with vague, one-word descriptions—they met to discuss “personnel,” “legal matters, “negotiations,” “real-estate,” or “business operations.”

Buchwach understands the board’s right to call executive sessions, but she said she’s doubtful that they are always discussing executive issues.

“Barring any violation of something like HIPPA or other privacy laws, everything should be put on the table as part of public discussion,” she said.

Experts in public access laws agree that the board’s use of executive session raises concerns about its compliance with the state Sunshine Act, which requires public bodies to hold all deliberations and votes in view of the public, with few exceptions.

Craig Staudenmaier, general counsel for the Pennsylvania Freedom of Information Coalition, said that there is no rule as to how often a board can meet privately. But, he said, “It’s interesting that the board would always have a reason to go into executive session.”

“It does seem like a lot in a short period of time,” he said.

Another expert said the board must offer the public more detailed explanations for its private meetings.

“They need to provide real, discrete reasons why the public is being excluded from their discussions,” said Melissa Melewsky, a media law counsel for the Pennsylvania NewsMedia Association. “Their one-word answers do not enable any kind of challenge from the public.”

Melewsky said the board could easily provide more details without betraying any confidential information.

Instead of announcing an executive session to discuss “personnel,” for example, “the board could say, ‘we are conducting performance reviews’ or ‘we are going to address a complaint against an employee,’” Melewsky said.

“There is nothing confidential about the fact that those things are taking place,” she added. “There’s a big difference between opening themselves up to liability and transparency, but they need to err on the side of transparency because that’s what the law requires.”

Exceptions exist, but they are limited.
Certain topics exempt from the Sunshine Act may be discussed privately. But those exemptions are limited, Melewsky said, and often exploited, wittingly or unwittingly, by elected officials.

For instance, board members can discuss real estate transactions in private, but only if they are purchasing or leasing a property. The real estate exemption does not apply to discussions about the sale of a property.

The board held an executive session in December to discuss “the sale of a property at 236 Cameron Street,” according to meeting minutes. Under the Sunshine Law, that discussion should have taken place publicly, Staudenmaier and Melewsky confirmed.

Staudenmaier and Melewsky both said that the board also must be more forthcoming about their discussions of litigation.

Sunshine Law allows the board to discuss legal strategy in private, but it requires them to publicly announce the name of the complainant, as well as the docket number and location of the court, for any case in litigation.

The board did not disclose any of those details on Aug. 21, when then-President Danielle Robinson announced an executive session that included “litigation updates.”

Those requirements also could apply to the board’s discussions of tax assessment appeals, which took place at four executive sessions between July and September 2017. If the board is considering an appeal that was filed in court, Melewsky said, it is discussing a litigation matter and must publicly announce the party names, docket number and the court location.

Other topics that the board discussed in a March executive session – “school safety” and “trash collection” – may not have fallen under any Sunshine Law exemption.

“There’s nothing that allows either one of those discussions to happen behind closed doors,” Melewksy said, adding that there might be “a little more flexibility” for a school safety discussion if it included information about security personnel.

Board president Judd Pittman said today that the discussion about trash collection consisted of an update from the district legal team about trash collection negotiations with the city. He could not recall the details of the school safety discussion.

As the board’s presiding officer, Pittman said he calls executive session at the advice of the board solicitor, Samuel Cooper.

Cooper did not respond to calls for comment on this story.

Pittman said he was not aware of any potential prior violations of the Sunshine Law. He said that the board does not ever deliberate in executive session, and often uses the time to receive information about legal issues and personnel.

Pittman added that he favors transparency and would be more forthcoming with details about executive sessions in the future.

“I am more than willing to provide as much information as we are legally capable of about our sessions,” Pittman said. “I’m not opposed to the public having as much information as they can.”

Violating the Sunshine Act is a summary offense that can carry a fine up to $1,000. However, a conviction requires proof of intent to violate the law, Staudenmaier said, which makes them very rare.

He and Melewsky agree that most Sunshine Law violations arise from misinformation and lack of education about the law, not a will to disobey it.

The Pennsylvania School Board Association offers free training for new school board directors that includes a two-hour legal seminar, according to PSBA counsel Stuart Knade. He estimated that fewer than 30 percent of new board members take advantage of the trainings.

Other state agencies, such as the Office of Open Records and the Township Supervisors Association, also offer trainings on the Sunshine Law and Right to Know Law.


Discussions in the Dark

The Harrisburg School Board met in executive session 11 times since July 2017, according to meeting minutes and the board secretary. Here are the dates and reasons provided for each private meeting. Experts say that one-word explanations are insufficient, and that some of the board’s discussion topics did not meet the criteria for private meetings.
···············
July 31: “to discuss tax assessment appeals and personnel matters.”
August 7:  “to receive information about a resolution regarding Walnut & Third tax assessment appeal, legal matters, and real estate matters.”
Sept. 18: “to receive information about personnel, legal, real estate, and tax assessment appeals.
Oct. 16: to receive information regarding the superintendent’s assessment report and legal matters and real estate matters.”
Nov. 20: “to receive information about agenda items, personnel issues, and legal matters.”
Nov. 29: “to consider a personnel matter and appoint counsel for labor negotiations.”
Dec. 18: “to receive information about personnel and legal matters and the sale of property at 236 S. Cameron Street.”
Jan. 16:  “to receive information about personnel and legal matters.”
March 19: “to receive information regarding legal and personnel matters, school safety, real estate matters, trash collection, and meeting with PDE.”
May 14: To be announced at May 21 meeting.

 

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No Rain Please: Artsfest returns to the Harrisburg waterfront with much to do, see, eat, drink.

Harrisburg Mayor Eric Papenfuse and of Jump Street introduced Arsfest at city hall today.With the continuous rain and cloudy weather, Harrisburg is in dire need of some color.

Enter the 51st annual Artsfest. From May 26 to May 28, the city’s riverfront will be home to colorful works by more than 200 artists from across the nation displaying art in 16 different categories, ranging from photography to ceramics. There will be two food courts within the festival featuring many types of cuisine.

“This event is going to be as large and successful as ever,” said Harrisburg Mayor Eric Papenfuse at a press conference (pictured above, with Jump Street Executive Director Melissa Snyder).

Some familiar faces are returning. HBG Fest, hosted by the HBG Flea, will bring in work from 45 local artists and craftsmen for a second straight year. This year, their tent, which will be located at the end of Front Street near Forster Street, will be larger to allow more air flow and room for people to shop.

Ever Grain Brewery Co. will host Beer Fest, also for the second year. Their handcrafted beer will be available for purchase outside of the Civic Club on N. Front Street.

Joining Beer Fest, for the first time, is Rubicon, a local French-influenced restaurant. Rubicon will provide a selection of oysters, a shrimp boil and its famous firefly cocktail.

Kids Fest returns with the help of Gamut Theater Groups’ Popcorn Hat Players, which will put on shows for children each day between noon and 5 p.m. In addition, vendors will sell a variety of kid-friendly items such as food, toys, art and more.

For music lovers, the Kunkel stage, located at Kunkel Plaza at State Street, will have performances by regional scholastic, local and emerging bands. Jazz Fest, sponsored by the Central Pennsylvania Friends of Jazz, will play near the Walnut Street Bridge.

The award-winning London a cappella group, the Kingsmen, will make its first-ever Artsfest appearance, performing at noon on Saturday, May 26, on the Kunkel stage. The group will be joined by Vocal Harmonics, formally known as the Rose Red Chorus, an all-female a cappella group.

Film buffs can enjoy the 20th anniversary of FilmFest, a two-day screening of short films produced by local filmmakers and hosted by Moviate.

Van Gogh, the Susquehanna Art Museum’s mobile arts center, will feature “Behind the Scenes,” an all-ages exhibit that explores the art, jobs and tools located inside the museum.

For security purposes, no pets or bikes will be allowed in the festival. However, Recycle Bicycle will have an area for cyclists to place their bikes near Forster Street. The group will even provide free brake and tire tests.

With the help of Donegal Insurance Group and Park Harrisburg, parking in the Market Square Parking Garage will be free between 7 a.m. and 9 p.m. all three days.

“It’s going to be a wonderful time,” said Papenfuse. “I hope everyone will come down to the riverfront and enjoy Artsfest this year.”

Artsfest takes place May 26 to 28 in Riverfront Park, Harrisburg. It is produced by Jump Street, a community-based, nonprofit organization that creates arts based program development and helps bring art and artists into Harrisburg. Click here for more information about Artsfest.

Photo by Mhelaney Noel

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Weekend Roundup with Sara Bozich

Happy Weekend!

My calendar is decidedly blank this weekend, and if somehow weather permits, I’ll be planting my garden (Sunday?), which leaves lots of time to explore elsewhere until then.

Note: Friday is National Pizza Party Day. Have one.

What are you doing this weekend?

(more…)

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HBG school board to consider motion to rehire superintendent on Monday.

The Harrisburg School Board will meet next week to elect a superintendent for a minimum three-year term, a letter sent to board directors announced today.

Members of the school board received notice by email late this afternoon that the vote will take place at their monthly meeting, scheduled for Monday at 6:30 p.m. in the district offices at 1601 State St. State school code requires board directors to receive at least five-days notice for such a vote.

The notification letter signed by board secretary Carol Kaufman, as well as an accompanying memo from board President Judd Pittman, were shared with TheBurg this afternoon.

The vote offers the board a final opportunity to re-hire Superintendent Sybil Knight-Burney for a period of three to five years.

Before the board votes to offer Knight-Burney a contract, though, it will consider a motion to appoint a search firm to find a new superintendent.

Knight-Burney’s contract with the district expires on June 30. The board voted in March to consider new candidates for her position, then tried to rescind that vote in April in an action that was found invalid under state law.

The debate over the district’s top administrator has fiercely divided the board and its leadership since December. Pittman has consistently voted to consider new applicants for the position, while Vice President Danielle Robinson has pushed for Knight-Burney to be rehired.

The issue has drawn dozens of district residents to board meetings, where they spoke out in near equal numbers to support and oppose Knight-Burney’s contract being renewed.

A memo Pittman sent to board directors today explained that placing the two divergent motions on Monday’s agenda would “honor the diversity of public comment over the last five months,” as well as “the actions and legal obligation of the board as a result of the March 19 meeting” and “Madam Vice President [Danielle Robinson’s] request to hire Dr. Knight-Burney for an additional 3-5 years.”

The resolution that the board passed in March allowed it to consider new superintendent candidates, but it did not preclude board directors from offering Knight-Burney a new contract before her current one expires.

Robinson told TheBurg this week that she hoped the board would offer Knight-Burney another term.

Knowing that Robinson wanted to consider a motion to re-hire Knight-Burney, Pittman decided to place it on Monday’s agenda rather than allow it to rise from the floor, he said.

The two motions the board will consider on Monday carry mutually exclusive outcomes. Since only one director, Tyrell Spradley, has voted inconsistently on the superintendent issue, his vote could decide which one comes to fruition.

Currently, the board is also contending with an $8 million budget deficit, which may require the district to cut more than 30 teachers, administrators and support staff for the 2018-19 school year.

Spradley declined to comment on the vote by phone on Wednesday evening. Robinson could not immediately be reached for comment.

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Scott captures Democratic nomination for Congress, will face Perry in November.

Candidate signs adorn the State Street median in Harrisburg.

It was a tight race, but a Lutheran pastor narrowly bested a four-person field of political newcomers to capture the Democratic nomination in the Harrisburg area’s new congressional district.

With almost all precincts reported, George Scott tallied 13,924 votes compared to 13,376 for Savonnia Corbin-Johnson, 6,912 for Eric Ding and 4,157 for Alan Howe.

“I want to thank Eric, Shavonnia, and Alan for running a positive race focused on the issues and the people of this district,” Scott said in a statement. “I am honored by this victory tonight thanks in large part to the incredible volunteers this campaign has assembled.”

Corbin-Johnson led the field for much of the night, with Scott closing a sizeable early gap to eventually pull ahead. Corbin-Johnson performed especially well in Harrisburg and in Dauphin County, where she beat Scott by 1,540 votes. Scott, however, performed considerably better in Cumberland and York counties.

In the November general election, Scott will face off against incumbent Republican Scott Perry for the 10th -district congressional seat. Perry was unopposed in his race.

“Our Congress is broken,” Scott said after declaring victory. “It has stopped working for working people. We have the most expensive health care in the world, but far from the best outcomes. We are paying more for prescription drugs than any of our allies. The talking heads blame unions and workers for our challenges, but the blame falls squarely on Congress for doing nothing at all to help families during this wageless recovery.”

Scott, 56, was raised on a cattle farm southwest of Harrisburg and served for 20 years in the U.S. Army before becoming an ordained Lutheran minister. He is on leave from Trinity Lutheran Church in East Berlin.

In the Harrisburg-area race for General Assembly, incumbent Democrat Patty Kim will face Republican challenger Anthony Harrell in the general election for the 103rd legislative district. Both ran unopposed in the primary.

In the 104th district, both Democrat Patricia Ann Smith and Republican incumbent Sue Helm ran unopposed in their primaries and will face off against one another in November.

In the 105th district, Democrat Eric Epstein will run against Republican Andrew Lewis for an open seat. Epstein was unopposed, while Lewis beat challenger Adam Klein.

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MVP in HBG: Nick Foles slated to sign books at Midtown Scholar.

Local Philadelphia Eagles fans may have thought that it got no better than this year’s Super Bowl win.

But it may have just gotten better.

Quarterback Nick Foles is slated to visit Harrisburg’s Midtown Scholar Bookstore late next month to sign copies of his book, “Believe It: My Journey of Success, Failure and Overcoming the Odds.”

According to the book jacket, “Believe It” chronicles Foles’ unlikely journey from second-string quarterback to Super Bowl MVP, “and the faith that grounded him through it all.”

“We couldn’t be more thrilled to welcome Nick Foles to Harrisburg,” said Alex Brubaker, Midtown Scholar’s manager. “There’s tons of Eagles fans throughout central Pennsylvania that often don’t get the opportunity to meet players or go to games. Once we heard Nick Foles was coming out with a memoir, we knew we had to get him to Harrisburg.”

Foles’ appearance will be a ticketed event. The cost of the ticket, plus one copy of the book, is $30.

“Foles will go down in franchise history as the first-ever quarterback to bring home a championship to Philly–and to do it over Tom Brady and the Patriots? That’s special,” Brubaker said. “He’ll always hold an iconic place in the memories of Eagles fans for what he was able to accomplish during that playoff run. As a long-time Eagles fan, I’m kind of freaking out. It’s going to be a really cool experience.”

Nick Foles will appear on Friday, June 29, at Midtown Scholar Bookstore, 1302 N. 3rd St., Harrisburg. Doors open at 2:15 p.m. The book-signing begins at 2:30 p.m. and will run until 4:30 p.m. For more information and tickets, click here.

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Knight-Burney’s tenure “up in the air” as board dawdles over search for new superintendent.

The job board for the Harrisburg School District currently lists 76 open positions, but you won’t find superintendent among them.

Two months after the board voted to consider new candidates for its top administrative post, its leadership remains divided on whether to retain or replace Sybil Knight-Burney, who has served as superintendent since 2011.

Board members confirmed this week that the nationwide search to replace Knight-Burney has yet to begin. Before it can, the board must vote to hire a search firm.

Board President Judd Pittman hopes that vote will take place at the board’s next session on Monday, May 21. But the board’s vice president, Danielle Robinson, hopes the board will vote to retain Knight-Burney for another term of three to five years.

Whichever action the board takes will likely be the final referendum on Knight-Burney’s contract, which expires on June 30.

“It’s still up in the air,” Robinson said after a budget and finance committee meeting on Monday, where board directors and administrators fielded questions about the district’s $8 million deficit.

Robinson said that the district would have to consider the cost of a nationwide search for a new superintendent. The Pennsylvania School Board Association offers recruiting services for about $5,000, but an outside headhunting firm could cost at least twice as much.

What’s more, Robinson isn’t confident that the board can conduct a thorough search for a new superintendent in just six weeks. If Knight-Burney’s contract expires before a replacement is found, the district will have to retain an interim superintendent while the search continues.

“We’d get a big game of musical chairs, and that’s not what we need right now,” Robinson said.

Pittman is hopeful that the board will come to a consensus at next week’s meeting and retain the services of a search firm.

He favors hiring the PSBA and was not concerned about the $5,000 rate for its services.

Pittman previously said that he received inquiries about Knight-Burney’s job from interested prospective applicants, even though the job has not been publically advertised. He said that he asked the district’s human resources manager on Monday to post the job listing to the district’s website.

The board has vacillated on Knight-Burney’s tenure since December, when the resolution to consider new applicants for her job first appeared on a meeting agenda. The board tabled that item every month until March, when it passed by a 5-4 vote.

The board attempted to rescind that action in April, and a change of heart from board newcomer Tyrell Spradley allowed it to pass a rescission vote 5-4.

Board Solicitor Samuel Cooper ultimately found the rescission attempt invalid under state law.

Given the presence of at least one swing vote on the board, Pittman can’t say for certain what will happen at Monday’s meeting.

“It’s going to take some serious political pressure to line up votes,” he said.

The board’s next meeting will take place at 5:30 p.m. on Monday, May 21, in the district offices at 1601 State St.

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“People they love will go away:” Teachers plead with board to preserve school staff for students’ sake.

Teachers from Foose Elementary School attended the school board budget and finance committee meeting tonight in support of their vice principal, William Hicks, who may be transferred under proposed budget cuts.

Harrisburg teachers worried about impending budget cuts brought their concerns to the school board tonight, where they asked board directors to trim fat from the district’s administration before eliminating educational and support staff.

At least 30 teachers were joined by members of the public and district parents at a budget and finance committee meeting, where public comment ran for more than an hour.

Teachers said that the proposed cuts to classroom staff and school administration offices would hurt students and disrupt school operations. They also questioned the salary expenditures in the district’s central administrative office.

The most recent budget proposal from the district business office calls for the elimination of 31 employees across the district, including assistant principals, counselors, security personnel, teachers and district administrators.

The cuts would narrow the district’s projected deficit from $8 million to $5 million for the 2018-19 school year, assuming the board authorizes maximum tax hikes.

Tonight, teachers implored the board to prioritize salary cuts in the district’s central administrative office rather than in school buildings.

Suzanne Williams, a veteran teacher at Downey Elementary School, said that the teachers, security guards, school counselors and food service personnel who interact with students every day should not have their jobs in jeopardy.

“Each year, we’re faced with more problems than the last, and everything is cut from the bottom, nothing ever from the top,” Williams said.

Another teacher said that the cuts would unfairly strain administrative and educational staff in schools. She contended that central administrative offices are fully staffed, pointing as an example to the six employees in the district’s human resources office.

“None of the people at 1601 are expected to work alone, without assistance, but our principals, secretaries, security personnel are,” the teacher said, referring to the district’s central administrative offices at 1601 State St. “These cuts directly affect the academic climate of our schools.”

Business Manager Bilal Hasan said that the proposed budget would cut some central administrative positions. He said that every department in the district’s administrative building was asked to identify one position to eliminate.

The budget proposal also calls for eliminating assistant principals at buildings with fewer than 500 students, which includes both Downey and Foose elementary schools.

More than a dozen teachers from Foose appeared at the board meeting in support of the school’s vice principal, William Hicks, who may be transferred to another building due to the cuts. Teachers said that Hicks has formed a formidable duo with Principal Alexis Wertz, and they urged the board not to separate the administrators.

“Breaking up the team will reinforce the trauma our students already know, which is that people they love will go away,” said Kayla Mini, a music teacher at Foose.

Teachers also called out specific salaries and spending choices by the district. Angela Holmes, an elementary school librarian, wanted to know why $7,100 had been taken from the district’s library funds to pay for a high school excursion to an amusement park.

Many teachers questioned the district’s $280,000 grant-funded budget for consultants, and more than one commenter remarked on the $100,000 in annual salary and incentives for Hasan, the business administrator.

The final comment of the night came from district parent Kia Hansard, who asked why Superintendent Sybil Knight-Burney was not at the meeting.

“She needs to be here. It’s her responsibility to help figure this out,” Hansard said about Knight-Burney, who was notified in March that her contract will not be automatically renewed when it expires on June 30.

The school board will hold its monthly meeting on Monday, May 21 at 5:30 p.m. in the district administration building at 1601 State St. The budget and finance committee will next meet on Monday, June 5.

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Snyder named new executive director for Theatre Harrisburg

Theatre Harrisburg has named a local theater veteran and central PA native as its new executive director.

Effective today, Stosh Snyder took the helm of the 92-year-old organization, replacing Allison Hays, who served in the position for about a year.

“Theatre Harrisburg holds a special place in my heart,” Snyder said in a statement. “I am truly honored and excited to take the reins of something that has brought me great joy ever since I was a young kid.”

In his new position, Snyder will be responsible for the overall operations of the theater, which frequently stages productions both at Whitaker Center in downtown Harrisburg and at Theatre Harrisburg’s own Krevsky Production Center.

Snyder is a graduate of Central Dauphin High School and, as a child, took acting classes at Harrisburg Community Theatre, the original name of Theatre Harrisburg, according to the organization.

He’s also a graduate of Shenandoah University in Virginia, returning to the Harrisburg area in 2004. He has performed frequently at Theatre Harrisburg and at Hershey Area Playhouse.

Snyder’s many roles have included Harold Hill in “The Music Man,” George Gibbs in “Our Town,” Phil Davis in “White Christmas” and Lt. Cioffi in “Curtains.”

“We are thrilled to bring Stosh aboard,” said Solomon Krevsky, chairman of the board of directors of Theatre Harrisburg. “He is greatly respected in the capital region arts community for his talents and dedication to theater, and his keen business acumen will serve us well.”

For more information about Theatre Harrisburg, visit www.theatreharrisburg.com.

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Deja Vu? City residents once again protest penalty tax assessments.

For the second year in a row, Harrisburg residents claim that a local collections agency is improperly slapping them with delinquency charges.

And, for the second year in a row, that agency denies any wrongdoing.

Keystone Collections, the firm that assesses Harrisburg City School District’s annual occupation tax, has come under fire from taxpayers who say they received penalty charges for their 2017 tax bills, despite never receiving initial invoices.

The district’s $120 occupation tax is levied annually on any city resident who holds a job. It’s separate from the city’s Local Services Tax, which takes $3 a week from any employee in Harrisburg, including commuters.

Fulton Street resident Lynn Schaufelberger received a $180 invoice from Keystone Collections on April 25, charging her $60 for fees and services on top of the $120 flat tax rate. She’s certain she never received any first notice of the tax bill, which Keystone claims was issued to her in July.

Schaufelberger receives Social Security disability payments because chronic illness prevents her from working. She knew she couldn’t afford the hefty fine on her fixed income and was also adamant that she shouldn’t be taxed for a job she doesn’t have.

“I got nowhere trying to argue the fine,” Schaufelberger said, after calling Keystone’s offices to explain her circumstances.

In neighborhood social media groups, almost a dozen residents have leveled the same charge as Schaufelberger—Keystone billed them a late penalty without sending an initial tax notice, they claimed.

The pattern is consistent with complaints from last year, when dozens of taxpayers said that they received delinquent charges from Keystone without ever seeing their first bills.

Following the Money

Keystone representatives stand by the agency’s system for recovering delinquent taxes. They insist that everyone who was fined a penalty in April was on a mailing list for tax bills they sent out in July 2017.

“Beginning in January, Keystone cross-checked the tax year 2017 payment data against the original mailing list,” Keystone said in a written statement. “Those on the original mailing list who did not pay the tax on time were sent a delinquent notice in April 2018.”

The company offered a nearly identical explanation last summer, when a Burg reporter inquired about missing notices in Harrisburg.

In April 2017, Harrisburg residents Annie Hughes and Timi Lesperance appeared at a Harrisburg School Board meeting to request an investigation into Keystone’s billing practices. They presented the board with a list of almost 30 taxpayers who believed they’d been unfairly assessed a penalty.

Bilal Hasan, the district’s business administrator, said that the district investigated the charges against Keystone last year and found no evidence of wrongdoing by the collections firm. He said the district is looking into the matter again after receiving a fresh round of complaints from residents.

Financial statements that the school district provided in response to a Right-to-Know request show that Keystone did collect 71 percent of its occupation tax revenue between July and September of last year. All told, the tax generated $554,866 for the district between July 2017 and January 2018, after Keystone withheld $50,000 for it mailing costs and commission fees.

According to the district’s contract with Keystone, the company is compensated $1 for each tax bill it mails, plus reimbursement for postage. Since the statements do not itemize Keystone’s costs, however, it’s impossible to isolate the commission payment to determine how many bills the agency mailed each month.

Under state tax law, the district does not have to compensate Keystone or reimburse postage for delinquent tax bills. Rather, both entities split proceeds from fees. A $12 “statutory penalty” goes to the district, and a $13.20 “cost of collection” goes to Keystone. The contract does not say who gets the $25 late filing fee.

Delinquent occupation taxes netted the district $216,369 in 2016 and 2017, and $178,683 in the ongoing 2017-18 billing period, according to financial statements.

Stalemate

Despite Keystone’s reassurances, some taxpayers remain adamant that their delinquent notice was the first communication they received from Keystone during the 2017 tax cycle.

Ed Nielsen said he didn’t pay his occupation tax in July 2017 because he never received a bill from Keystone. He got the penalty notice in April and paid it shortly thereafter to avoid a fight.

“If they are sure they sent it, and I am sure that I didn’t receive it, it’s kind of a stalemate in terms of who has the responsibility,” Nielsen said.

Like Neilsen, Hughes and Lesperance begrudgingly paid their penalty fees last year, even after contesting them with Keystone.

Hughes said she’s disappointed, but not surprised, to see the collections agency zealously assessing penalties again. She stands by her assertion from last year that the school board ought to commission a third-party audit of the collections firm.

“I feel like they’re failing the community,” Hughes said. “An audit is a reasonable request, and it would really assure us that our taxes are being collected fairly.”

School board members could not immediately be reached for comment.

Hughes filed a complaint against Keystone last year and urged other residents to do the same if they felt they’d been unfairly penalized.

State Attorney General spokesperson Joe Grace said that the state’s consumer complaint bureau has received 58 complaints against Keystone Collections since 2010. The AG’s office cannot comment on the existence of any investigations.

The district’s contract with Keystone expires in June 2019.

Keystone Contract by Lizzy Hardison on Scribd

Keystone Financial Statements by Lizzy Hardison on Scribd

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