County owes $3.2 million to State for Disposing of School Land!

In 2003, a Maryland State Legislative Audit showed that the Interagency Committee on School Construction was still owed at least $3.2 million from "one" county for the lease and sale of former school properties. A plan for dealing with the debt was to have been submitted by 2001!

Who was that "one" county? Montgomery County!
The outstanding debt was incurred over time, as Montgomery County got rid of 17 "surplus" school parcels and properties.

The debt was never paid, and now the State is looking to settle this debt.

Today's MarylandReporter.com article on this overdue bill is here.

A MarylandReporter.com from December 22, 2009 article on the debt is here.

From the 2003 Interagency Committee Audit:

IAC had not pursued recovery of at least $3.2 million owed to the State relating to former school properties that were subsequently sold or leased. Furthermore, as of February 7, 2003, IAC had not submitted a plan required in November 2001 to address the timeframe for seeking recovery of the funds. Specifically, IAC conducted a review of former school properties in all jurisdictions and identified one county that owed the State approximately $3.2 million for a portion of the proceeds received by the county for the lease or sale of 17 former school properties in which the State had a financial interest (that is, the State contributed to the construction or renovation of the school). In addition, IAC management personnel advised us that the review identified former school properties in other jurisdictions that the State may have a financial interest in, but the amounts potentially owed to the State had not been determined and IAC was unable to locate the review results to substantiate the extent of the problem.