Letter to the Editor: Former NR-S board member addresses relationship with East Central

Dear citizens of the New Rockford-Sheyenne School District,

As many of you may know, I have recently resigned from my position on the New Rockford-Sheyenne School Board. With this change, I feel it is important to address a significant concern regarding the district's relationship with East Central (EC). My intention is to clarify the situation for our community.

The core issue with East Central is not related to the quality or dedication of its staff, past or present. On the contrary, I believe that East Central has consistently provided our district with highly professional and capable staff members. The true concern lies within the business aspect of our relationship with East Central, which has become increasingly strained.

East Central, based here in New Rockford, provides special education services to multiple communities, including New Rockford-Sheyenne (NR-S), Carrington, Fessenden, Pingree-Buchanan, Oberon and Kensal. Carrington is the largest partner in this consortium, with NR-S being the second largest. The reality is that if either Carrington or NR-S were to withdraw from the consortium, it is unlikely that East Central could continue to operate in its current form.

I want to be clear that my goal with this letter is not to advocate for NR-S to withdraw from the consortium, nor do I wish to see New Rockford lose another business. However, it is important for our community to be aware that in the past, Carrington has openly discussed the possibility of establishing its own in-house Special Education Unit during their school board meetings.

To provide context, here are the payments NR-S has made to East Central over the past five years:

• 2019-2020: The budget assessment was $440,305, paid quarterly. However, the total paid amounted to $471,701.92, including a bill at the end of the fiscal year for $27,269.64.

• 2020-2021: The budget assessment was $468,278.89, but NR-S received $13,928.22 back in over-assessment, resulting in additional service fees along the way.

• 2021-2022: $509,005.68

• 2022-2023: The budget assessment was $499,518.20, and NR-S received $23,301.25 back in over-assessment, bringing the true assessment down to $476,216.95.

• 2023-2024: The budget assessment was $540,332.85. At the end of June, NR-S received an invoice for $39,957.36, along with some other minor additional fees, bringing the total to $581,123.04.

• 2024-2025 (Estimated): $610,000

These escalating costs are concerning. While special education services are diverse and often confidential, covering needs that range from extra reading support to intensive care for students with significant challenges, the steep increase in costs raises questions.

East Central’s carry over fund balance, per their 2023 audit, sat at $642,338 – a $144,532 increase from the end of the fiscal year 2022. For what purpose? While it is normal for school districts to maintain a financial reserve for emergencies – such as a roof collapse or boiler replacement – the situation with East Central is different. Their only asset is a building in New Rockford, valued at perhaps $40,000 to $50,000. Why, then, do they require a carryover of $642,338? It seems prudent that the districts in the consortium, including NR-S, could benefit from some of these funds being returned.

It is important to emphasize that I do not believe anything illegal is occurring. I also recognize that the business managers at both East Central and NR-S are in a difficult position. Their role is to ensure everything is handled properly; they are not responsible for determining assessments to the school districts. This responsibility lies with the EC Director and the EC Board.

I cannot help but believe that what I perceive as over-assessing by the Director and Board is a result of strained relationships with the past NR-S Superintendent and board members. This, I believe, is a consequence of asking critical questions.

The business arrangement between NR-S and East Central is unusual. Whatever amount East Central determines NR-S owes, NR-S is obliged to pay. When NR-S administrators request justification for the amounts assessed or objective reasoning for the number of staff necessary, they are often met with resistance and a lack of transparency. A review of East Central’s 2024-2025 assessment to NR-S reveals many gaps and unanswered questions.

If this were a typical business relationship, unconnected to a school district, this partnership would likely have ended long ago.

East Central, as a non-profit providing services to our district, should be held to a high standard of transparency. The citizens of the NR-S district rightfully demand transparency from their school administration; it is only fair that we expect the same from East Central.

Sincerely,

Mike Jacobson

Concerned citizen of the New Rockford-Sheyenne School District