Pasco school district will create a committee of experts to help with investment decisions

LAND O'LAKES — On any given day, the Pasco County school district has tens of millions of dollars invested.

Mostly, it's about $40 million. During property tax payment time, the amount jumps to more than $100 million.

That's a lot of money for the district's slimmed down finance department to oversee itself — especially now that it no longer uses the State Board of Administration to manage the money. The School Board, like many other local governments, pulled its cash from that venture after learning the agency held shaky securities tied to the subprime market.

But could it have avoided the associated losses and the worries? The Palm Beach school district did, in large part because it had an advisory committee of investment experts who saw the writing on the wall and counseled the district away from the SBA before the roof caved in.

Now the Pasco School Board intends to set up a similar committee.

"It's important to have experienced oversight on how this money gets invested," said board member Kathryn Starkey, who suggested the idea several months ago. "We need people who are willing to serve in an advisory capacity and help us be sure our investments are well placed, well watched and well guarded."

The committee also can help the district get a better return on its investments when they're not needed to pay the bills, chairman Allen Altman said. Checks clear each Friday.

"Our people do a great job," Altman said of the district staff. "This provides another layer of guidance."

Chief Finance Officer Olga Swinson welcomed the creation of a committee of experts.

"I think it is a benefit, something that I have wanted to do," Swinson said. "I don't have someone to monitor the investments daily. I need someone from the outside looking in."

That doesn't mean the committee would track every investment, or buy and sell for the district. Rather, it would review major investment policy, help evaluate big decisions like bonding, and offer advice on trends, with the hope that it would keep the district ahead of the curve.

"Every one of the committees we have at the district is better served when we have representatives from the community making recommendations," vice chairwoman Joanne Hurley said. "It's another way to have checks and balances on everything we do."

Board members have recommended five people to serve on the investment advisory committee. They are former American Bankers Association president Hjalma Johnson of Dade City, retired senior vice president of JPMorganChase Gene Marshall of Pinellas County, lawyer Al Torrence of Port Richey, accountant Marianne Grabowski of Port Richey and Wells Fargo financial adviser Nancy Cook of Zephyrhills.

Non-voting members would be Swinson, board member Frank Parker, a certified public accountant, and district finance director John Simon.

The School Board is scheduled to approve the committee members Tuesday.

Jeffrey S. Solochek can be reached at solochek@sptimes.com or (813) 909-4614. For more education news, visit the Gradebook at blogs.tampabay.com/schools.