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Amy Galey
The Alamance-Burlington School System may have violated some state-mandated budgeting procedures as well as its own policies in its awarding of a contract to deal with toxic mold in a number of school buildings last summer, a state legislative committee says.
State Sen. Amy Galey, R-Alamance, released late Wednesday a letter sent to her by the Joint Legislative Commission on Governmental Operations questioning the school system's management of mold remediation efforts.
ABSS officials said in 2023 that the mold problem was an emergency that justified awarding no-bid contracts. The commission's letter notes that while there is a provision in state law allowing no-bid contracts in a health emergency, ABSS may have violated its own purchasing policies.
"No rationale was given for selecting those companies that performed the work other than they agreed to complete the work expeditiously," the letter said. "There was no evidence presented that shows services were purchased 'in a manner consistent with the board's purchasing goals' nor 'after careful pricing.'"
ABSS also "likely failed to abide by" some procedural requirements of a state law government school system budgets, the letter said.
Galey announced in February that she had requested the commission investigate ABSS’s capital and operations decisions after months of financial trouble and tense relations between the school system and the Alamance County Board of Commissioners. In early May she announced that she agreed with ABSS Interim Superintendent Bill Harrison’s request to pause the review at least while the school system and the Alamance-Burlington Board of Education were working on their 2024-25 budget request.
Members of the Alamance County Board of Commissioners had been openly critical of how then-Superintendent Dain Butler had managed the mold problem as well as other issues confronting the school district.
During a meeting in December, Commissioner John Paisley explicitly named contract that had no cap on the expenses that the company could claim. Butler replied, "They were the only company big enough to pull it all off and get students back in classes quickly and safely."
ABSS spent about $29.3 million on the mold remediation efforts, according to the commission's letter.
Most of that, $22.6 million, went to Sasser Companies LLC. Another company, Builder Services Inc., received more than $5.1 million. Four other companies also were involved in either air-quality testing, HVAC repair or airflow evaluation.
The commissioner's letter also said that an independent auditor's report after the 2022-23 fiscal year found that ABSS overspent its budget by more than $4.2 million and had drained its fund balance below a recommended level.
Butler resigned March 4 after a series of crises for the school district, and the Alamance-Burlington Board of Education hired Harrison, a former ABSS superintendent, as interim superintendent as it searches for a permanent replacement.
Galey noted the change in administration in her announcement.
"ABSS has new administrative leadership and an interim superintendent," Galey said. "It is important that we reflect on the events and lessons of the last few years and build relationships, improve practice and resist the impulse to attack or assign blame."
