GILROY
– Facing a two-week deadline, supporters of Gilroy’s $69 million
school facilities bond are $11,500 short on what they owe the
political consulting company who helped them pass the measure last
Election Day.
GILROY – Facing a two-week deadline, supporters of Gilroy’s $69 million school facilities bond are $11,500 short on what they owe the political consulting company who helped them pass the measure last Election Day.
If Better Schools for Gilroy Children – the formal name of the Yes on Measure I campaign – cannot pay its consultant by Dec. 15, School Board President Jim Rogers, Trustee Bob Kraemer and Superintendent Edwin Diaz will get stuck with the bill.
The three men are responsible for the tab because they signed the contract with Oakland-based Tramutola Public Mobilization, a renowned political consulting firm.
“$11,500 is steeper than the three of us would like to be looking at, but this is not something we’re going to jump off a bridge for,” Kraemer said.
The gap would have been worse were it not for the company that will underwrite the bonds. On Nov. 23, George K. Baum & Company gave $32,500 to the Yes on Measure I campaign, dwarfing a $5,000 donation the company made before the Nov. 5 election.
The gift represents roughly 32 percent of the campaign’s $116,800 fund-raising total.
Better Schools for Gilroy Children has spent $100,000 on the Measure I campaign. The largest part of the expense covered Tramutola’s $65,000 contract and five bulk mailings that cost a total of $27,000.
George K. Baum will profit by roughly $690,000 when it underwrites the bonds, opening the door to criticism from some Measure I opponents during the campaign.
George K. Baum and Better Schools for Gilroy Children say their relationship does not amount to a “pay to play” scheme because the company was hired to underwrite the bonds before it made campaign contributions.
“We make our living in education. We’re very supportive of educational projects. This is a pretty sound business investment for us. It’s not unusual,” said Charles Youtz, senior vice president for George K. Baum.
Youtz said potential campaign donations did not play into the school district’s decision to hire his company. However, the Denver-based banking firm, which has offices in Sacramento, has given money to Gilroy school campaigns in the past. It donated money toward a similar bond measure that failed by 146 votes in the March election. Youtz did not recall the amount of that gift.
“It’s hard to say ‘no’ to your friends and your clients,” Youtz said, explaining why his company followed through with its promise to contribute if the measure was successful.
Diaz asserts there is no conflict of interest by accepting the gifts from George K. Baum. The superintendent said at no time during the interview process, which took place in 2001, were contributions discussed. He also noted that other companies could have contributed to the campaign as well, had they been hired.
“The fact that they made a significant contribution after the election speaks highly of them as a company because (for George K. Baum) there was no need for them to do that,” Diaz said.
As for the $11,500 shortfall, it is making Better Schools for Gilroy Children get back into fundraising mode now, less than a month after the group ended its successful school bond campaign.
Measure I passed Nov. 5 with 62.4 percent of the vote. It needed 55 percent voter approval.
Better Schools for Gilroy Children is supposed to make a final $25,000 payment to Tramutola by Dec. 15. Although Better Schools has all but $11,500 of it in its coffers, it’s a bill the group’s head of fund-raising, local Realtor Gene Wells, is not confident can be raised in time.
“I’d be shocked, honestly, if we could raise the remaining $11,500. I think all of us have exhausted about every opportunity we see. I don’t think we have any great hopes to make up the difference,” Wells said. “We’re going to need to depend on the generosity of people to come on board and help out.”
Kraemer said the group may have to ask Tramutola for a grace period, but that discussion has not happened yet. Another option would be for Kraemer, or other Better Schools members, to pay the bill with their personal money and get reimbursed later by the group if it can raise the funds.
“Frankly, we don’t expect to have this solved by mid-December, but we’re not overly concerned,” said Kraemer, a Better Schools for Gilroy Children co-chair.
Better Schools has already re-approached many of the individuals and businesses who donated before Nov. 5. Kraemer said the group believes $5,000 to $7,000 of the shortfall will get picked up by individuals and businesses who said they would contribute, or contribute more, to the campaign if the measure had passed.
