Saturday, November 1, 2014


As we continue to investigate where the district gets coverage for all the fees and other expenses from litigation it boils down to a FUND.  You may ask what fund and why are we not hearing about this from the very people who do know what it is.

If you recall in previous posts we mentioned that some board members had indicated that the district had coverage for the appeal of the Palazzolo case and frankly made it seem for any suit.  We didn't think anything more because it seemed logical that insurance or a liability coverage seems normal to have in any business, etc.  So our citizens requested information on payouts from this fund or "thing" and we thought we had posted this but we will the response from the district.

It so happens that the district is Self-Insured, it is paying for everything in any litigation.  You can read what it has paid out in fees to the same attorneys who have been running the show and how there is no malpractice coverage of anything.  The agreement made with TASB is an inter-local agreement that just says they would use them as the agency to provide the services.

The other information we have been able to get is that the district at some point setup this self-insured fund because it is a way to save money when you can put money aside and invest the money for it to grow.  We have, correct us if we are wrong, not heard of this money ever being reported in the budget.  How much is this fund worth?  Who is taking care of it and what audits have been done to account for every penny spent?  Either the board knew, at least the long serving ones do, or they were not told as well.  So almost 5 years of Palazzolo and you do the math on the cost of just keeping it going and now the damages awarded.  We can't see even if there was coverage how it would keep paying and paying or would they say each time they appealed within the same case they would get another liability pay off.  As you can see it is very confusing and that is just the tactic used to keep the public from ever asking or even knowing what is going on.

This then brings us to the 40 million question or even the bond issue.  Why are the numbers suddenly not adding up?  Is there money flowing from one account to cover the FUND that we don't know about?  Hank Johnson resigns, central admin is a crazed ant pile that is panicking because they don't know who will be the new boss and what that person will do.

All we want to know is where is the money?  The district needs to fess up and tell the truth.  Too many lies and unknowns that do make us wonder what unethical things they are doing and getting away with.  Let's stop the traveling and get to work on what truly is impacting the district and our kids future.  So far all we see is selfishness on people using the district as ground for future endeavors.
More to come


  1. How much money has been spent in needless, senseless litigation and settlements over the past five years? Why is every member of this Board following the lead of Needham and Robbins, endlessly throwing good $$ after bad in a crazy attempt to save face? They can't. So another case was just settled? Why are the Palzzola cases dragging on and on? Someone needs to ask the Attorney General to step in and audit FWISD - all accounts. This is insane! The Board members who told us this appeal was being covered by insurance LIED! Again!

  2. This is what we were told by staff.

  3. concernedcitizensfortworthisdNovember 19, 2014 at 11:09 PM

    The same staff that keeps telling you things are ok and then we find out differently. We were almost taken by Sorum and the curriculum and then we find out that it was a sham. We are told this is what we will spend and then the budget comes out different, the bond, the legal issues, etc. etc. Please make motions to deny them anything until they fess up to everything.

  4. I am voting against many things. Like many of you I have sat in meetings with staff, tried to talk things over, and then, after hanging up, realize that they were just talking endlessly in a circle while denying any meaningful response. Tonight I tried to talk with the interim Superintendent about our differences over allowing the high schools to spend their $1 million as they wish. She want to do "due diligence" to make sure we are spending the money wisely. This is a very disrespectful way of refusing to face the issue raised by several board members. Due diligence, my foot! I had the same experience with the bond staff. They want to spend the South Hills $1 million on the CAFETERIA (pardon my yelling). Then they said they would draw up a proposal. That was weeks and weeks ago. Guess what. No plans for the $2.4 million for the cafeteria yet. Voting against this with 7-2 or 8-1 results is hopeless. I am thinking the state should be taking over this district. And I am a board member! No wonder teachers and parents can't get a straight answer.

  5. I sat on a medical malpractice insurance company appointed by the Texas Department of Insurance Commissioner under Gov. George Bush serving as vice chairman of the board of directors as a public member. The set aside "self insurance" fund is intended as an investment tool for the agency in the event all litigation against the agency came due. In insurance parlance this is called a "stabilization reserve fund" in the event the agency is hit with a huge medical malpractice claim. Insurance statutes are written for the sole purpose to be invested in safe investments and administered by one of the most conservative investment houses in Austin, The Hosington Group. Investments of premiums with a percentage of premiums collected going into the Stabilization Reserve Fund. The board has a lawyer at every board meeting to advise us on legal issues, corporate governance and many matters. The Hosington Group invests in Treausury notes which are layered and rolled over to grow revenue. A small percentage of investments are made in municipal AAA bonds which again grow and are layered. These are dollars in the Stabilization Review fund grow to assure the agency's oversight is to safe guard the agency which is 30+ years in existence. Our Mayor's husband I have read works in the insurance industry. I'm sure there are many insurance agencies and executives are members of the Chamber. Where are our council members who should be invested in a well educated population from our pubic schools in FWISD and surrounding counties? Where is our DA oversight committee dealing with ethics in local government? I am being told none of our board members are being educated about this so called "self funded" matter nor given an accounting on "self insured' fund. Where is the committee of annual reports on good self governance of the school board? Unless and/or until Fort Worth taxpayers start delving into to these questions and long time employees start responding to these and many other difficult questions,FWISD will be placed into receivership by the state. But meantime our children in FWISD public school district are losing precious learning time as this FWISD administration and school board will continue to operate a business as usual stance. If our Mayor, Chamber, the Bass family and all of the business leaders in our community fail to step up to become involved in oversight to our public school system more damage will be done to OUR Community. Please Fort Worth let's do what is in the best interests of our children. As for TASB give carte blance by FWISD administration and current school board members, the legal defense bills will continue to mount. TASB has no interest in resolving these matters because they are being given advice to fight/litigate no matter what the costs to FWISD. They have no investment in our children or our community. Please feel free to share this knowledge to anyone. We must work as a community to invest in our children first. Lawsuits only serve the lawyers. Didn't we vote for TORT REFORM. According to my friends in the med mal community Tort Reform has done nothing to lower premiums for our doctors, lowered med mal claims or done anything to assist patient's injured by unintentional medical mistakes.