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Leonard Merrell living larger than Katy ISD in Spring Creek Ranch
When Katy ISD in suburban Houston first advertised for a new superintendent in 1995, one of the conditions of employment was "Must reside in district." The “Announcement of Vacancy” brochure says so. It was prepared by superintendent search specialist Bob Thompson of Lamar University in Beaumont who was very clear on this point in his recruiting for the district.
Katy ISD supe Leonard Merrell's10-acre equine estate in Waller ISD
Back then, Katy ISD was and still is a developer's dream--miles and miles of prairie ripe for miles and miles of new homes as part of Houston's westward expansion. Local property taxes, which is how public schools are primarily funded in Texas, were $1.67 per $100 valuation then, and the board settled on candidate Leonard E. Merrell to become Katy ISD's new superintendent.
Just because you can doesn't mean you should
Fast forward to 2006, and while Merrell is still supe at Katy ISD, three things have changed. The district now charges the max property tax rate allowed by the state of Texas ($2.00 per $100 valuation), Leonard Merrell no longer lives in the district where he works, and it's no longer in his contract that he's required to live in the district. The Merrells purchased a 10-acre tract in nearby Hockley and built what is by all accounts their dream house, according to those who have been there, with their taxes going not to Katy ISD from which he draws a hefty annual salary ($250,000) but Waller ISD--where the tax rate is a much lower $1.78 per $100. According to Katy ISD insiders, his new home is likely worth anywhere from $650,000 to $800,000. Assuming the lower estimated valuation, annual property taxes on this house in Katy ISD would run $13,000 versus only $11,700 at the lower Waller ISD tax rate. Spread over the life of a 30-year mortgage, Merrell has saved himself $39,000 by moving out of district. But where did he move to? Merrell's new subdivision Spring Creek Ranch features such amenities as a "beautiful stone gated entry, private road, twin lakes, nature trails and deed restrictions to protect your property." It's an equine community in which, according to the developer, "every resident enjoys free access to the community's full-size covered horse riding arena. Centrally located in the heart of the property, the arena has been architecturally designed to create a cool riding environment any time of the year."
'It just doesn't look good'
"In business, government and society there are rules of compliance that are required. There are also ethical rules over and above that which may be just as important to the community. This situation with the
superintendent you mention seems to fall into that latter category," commented award-winning ethics professor Diane Swanson, von Waaden Business Administration Professor, Chair of the Ethics Initiative at Kansas State University, when interviewed earlier this week. "It just doesn't look good. It's not best face forward."
"Most people would agree that where they live and where they pay their taxes, that's the community of priority to them, and that's the community they're going to pay more attention to. So the ideal thing is for superintendents to live in the community where they work so their vested interests are more closely aligned," says Swanson. "In the private sector where we talk about stock options for executives, the point is to try to align the executives' interests with those of the shareholders. This is a very similar concern in that the board would want to see the interests of the superintendent as carefully aligned with the interests of the education community as possible. Besides, it looks bad."
The fallout
In Strongsville, Ohio the fallout's big especially for both families because Christine Scarlett and Steve Bradigan are now duking it out in court over custody of their toddler son. As Steve's mom says of Scarlett, "She will be my grandson's mother all of his life." The Bradigans have filed a lawsuit and signed for Oprah and Scarlett is selling furniture weekends.
In New York, in a display of stunning irony just weeks after forcing McCaskill out for living out of district and sending his child to New York public schools without paying, the DOE announced a 30-day amnesty for teachers and principals who were living out of district and sending their children to New York public schools without paying, offering them the opportunity to fess up and cough up.
And in Waller ISD in Hockley, Texas, Katy ISD supe Leonard Merrell "has places to explore, and places to linger" in his new subdivision with the lower taxes than he's charging the taxpayers paying his salary. "From our tree-lined home sites, to the gentle rolling of the land to our twin lakes, the natural beauty of the land at Spring Creek Ranch is evident and breathtaking," reads the Spring Creek Ranch brochure. This must be a real inspiration to Katy ISD taxpayers, knowing their supe has places to explore and places to linger, including that air-conditioned horse corral.
