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Commissioners sue county controller

Jack McMillin
Spat erupts over payment to BC3

The Butler County commissioners are suing the county controller to force him to release $1.2 million to Butler County Community College.

The commissioners Wednesday unanimously approved seeking a court order directing Controller Jack McMillin to turn over the money.

County solicitor Julie Graham said McMillin exceeded the 30-day limit to release a check for a voucher.

After the commissioners subsequently requested the check's release, McMillin again declined to turn over the funding, which is part of the total $4.9 million allotted to the college in the 2010 county budget.

"The next step in the process is to obtain an order of court," Graham said. "Unfortunately, it's come to this."

McMillin defended his stance, saying the college has not yet provided adequate documentation in the form of an auditable indirect cost plan.

He said this plan would list all costs associated with the college's satellite campuses in Lawrence and Mercer counties.

"I did not receive a response or even any acknowledgment from the college's business office," McMillin said.

He said the college must definitively show that Butler taxpayers and students will not be subsidizing activities in other counties.

Bill O'Donnell, chief county clerk, countered the college has provided sufficient information indicating the satellite campuses will more than pay for themselves.

He also said the cost plan is unnecessary for the money to be released.

"It's not a lawful requirement," O'Donnell said.

McMillin said the lack of such a plan would be a problem when seeking federal grant funding.

With the absence of specific documentation, McMillin doesn't plan on turning over the money without a court order.

"That's my full intention," he said.

Graham plans to file action this week.

Tom Holman, deputy court administrator, said there's no way to know how soon a judge could hear the case as nothing has been filed yet.

County Commissioner Dale Pinkerton, board chairman, said college representatives will detail the costs of the satellite campuses in a presentation set for this morning.

While not available for interviews Wednesday, college officials issued statements in response to McMillin withholding the money.

"By the end of May, BC3 will not be able to meet payroll," stated James Hrabosky, vice president for administration and finance.

Nick Neupauer, college president, agreed the funding is critical.

"Obviously, this impacts our entire college community," he stated. "My biggest concern is the impact on students."

McMillin further explained his rationale in an e-mail sent to county and college officials.

According to McMillin, "If the community college is not accurately allocating its administrative overhead to the Mercer and Lawrence county satellite campuses, one could possibly argue that such an event constitutes negligence on the part of the college and thereby causes Butler County taxpayers to unknowingly subsidize BC3's expansion into other counties.

"A simple example will illustrate the point I have been trying to make for some while now: If the college president receives a total annual compensation of $180,000 and devotes 25 percent of his time to non-Butler County matters, then $45,000 of indirect administrative expense should be charged to the satellite programs."

During the commissioners meeting Wednesday, McMillin asked for Pinkerton to step down from his seat on the college board.

"That is a clear conflict of interest," McMillin said.

Pinkerton pointed out he is only a liaison for the county.

"I don't have a vote," he said.

McMillin said that distinction doesn't negate the conflict.

"You can't serve two masters," he said.

Commissioner James Kennedy said Pinkerton should be at board meetings for the college as well as other groups affiliated with the county.

"I duly support that," Kennedy said. "We do have to be there as representatives."

Commissioner Jim Lokhaiser agreed, saying if he or his colleagues did not attend such meetings "then shame on us."

McMillin also criticized the overall composition of the college's board for having former elected officials and associates of officials occupying seats.

He said other community colleges do not have boards with similar makeups.

All three commissioners said they were content with the board's membership.

McMillin stressed he has no political agenda for withholding the money from the college.

"I don't have a vendetta against the community college," he said.

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