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3/25/2009 11:02:00 AM
Vestaburg wins millage lawsuit
Ryan Jeltema
News Editor
LANSING - A Lansing judge cleared the way for Vestaburg Community Schools to place a bond millage request before voters on May 5.
Judge Joyce Draganchuk of Ingham County's 30th Circuit Court issued a ruling Tuesday ordering the Michigan Department of Treasury to prequalify the district's bonds, which is required of all school millage requests before they are allowed on the ballot.
In her decision, Draganchuk ruled that the state's refusal to grant Vestaburg schools access to a state guaranteed low-interest loan program was unconstitutional, denied "equal opportunity" to the program for the school district and violated state law.
"The judge ordered (the state) to prequalify the election," said the district's attorney, George Brookover of Brookover, Carr and Schaberg PC in Lansing. "Whether they do that or not is up to them, I guess."
Brookover argued that the Treasury Department unfairly withheld the prequalification when the district already met all of the required criteria. He was happy that Draganchuk agreed the department wrongly changed how it applies the prequalification statute.
"The judge heard all the evidence and decided that the Treasury Department was wrong," Brookover said. "The state admitted they changed the rules midstream last fall without a change in the statute or laws."
Vestaburg Board of Education President David Freeman said the 740-student district had hoped to reach a solution without going to court.
"It is unfortunate that Vestaburg had to go to court against the state of Michigan to protect our constitutional right of equal access under the law," he said. "Treasury left us no other option than to go to court to get an injunction to require the state to act appropriately."
Treasury Department spokesman Terry Stanton could not be reached for comment.
The district plans to ask voters to extend its building and site millage by 18 years, allowing it to issue about $9 million in bonds to pay for safety and energy efficiency upgrades to its two buildings on B Avenue.
If approved, the millage, which currently is set to expire in 17 years, would expire in 2044. The tax rate would remain the same.
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