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THE IOLA REGISTER Tuesday, April 8, 2014
SCHOOL FINANCE
Breaking even a relief for USD 258 By BOB JOHNSON The Iola Register
HUMBOLDT — USD 258 Superintendent B.K. Criss is relieved with the way state aid to education shook out over the weekend. It could have worse — much worse. “I can’t put any numbers on it, but we came out much better than it appeared we would last week,” said Criss, when the district faced losses of more than $500,000. As is, the district may break even. Criss spent several days in Topeka last week lobbying legislators. The Legislature made available $126.2 million for local option budget and capital outlay funds. The bulk of those funds are to come from the state’s general fund, and about $12 million from cuts to current education programs and services. That satisfies a Supreme Court ruling that said state aid for LOB and capital outlay
funds was not being distributed fairly, and that poorer districts were suffering. The bill also increased base state aid per pupil by $14. At the insistence of the Senate, legislators agreed to strike down teacher tenure as a concession to pass a school finance bill. All indications are Gov. Sam Brownback will sign the bill into law. Even with new money, Criss figures his district’s LOB finances at best will be a wash between this year and next, when the new funding takes effect. The reason is a little complicated. LOBs are a combination of local and state funds to help supplement a district’s general fund. The state uses a formula to dictate how much it will match locally raised funds. Humboldt can expect to receive a 50-50 match from the state. See USD 258 | Page A6
A night to remember
Marmaton Valley High School and Humboldt High School students put on their best attire for their 2014 proms on Saturday. Above, Marmaton Valley students, from left, Courtney Smith, Garrett Booth, Lauren Korte, Gage Adams, Grace Broyles, Chance Stevenson, Kaitlin Ensminger, Tristan Dickerson, Emily Meiwes and Jake Kale pose for a group photo before heading to the big dance. PHOTO COURTESY OF PAULA DICKERSON
Brook Turner and Hunter Murrow, right, make an entrance at Humboldt’s Prom. PHOTO COURTESY OF MIKE MYERS
MORAN COUNCIL
Storms will trigger opening of shelters By BOB JOHNSON The Iola Register
Gates located in Iola. REGISTER/BOB JOHNSON
Gates sells for $5.4 billion By HOWARD PANKRATZ The Denver Post
The parent company of Gates Manufacturing, Pinafore Holdings B.V., started proceedings over the weekend to sell to Blackstone. The $5.4 billion transaction is expected to close later this year. Gates employs more than 14,000 people in 30 countries and reported $2.95 billion in sales last year, according to its website. In Iola, Gates employs in the neighborhood of 700. The company’s headquarters will not leave Denver and no Gates employees will be laid off as a result of the sale. In early March, Onex, a Toronto-based private equity owner of the maker of automotive and industrial components, was rumored to be either looking to sell Gates or take it public. Onex, together with the
Canada Pension Plan Investment Board, purchased Tomkins PLC, the London-based parent of Gates, back in 2010 for $4.5 billion. Since that time, Onex has sold several Tomkins and Gates units, reaping more than $2.5 billion. Those lucrative sales combined with strong cash flows have allowed Onex to recoup most of its initial equity investment and pay off much of the debt used in the leveraged buyout. Gates is a top maker of power transmission belts and fluid power products used in diverse industrial and automotive applications. Most of its sales revenues come from replacement markets around the world. In a statement, Seth Mersky, a senior managing director of Onex, said that “it was a tough decision to sell Gates. “We don’t see many industrial businesses with its glob-
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al brand recognition,” said Mersky. “Nonetheless, Onex shareholders and our limited partners have done very well. We have thoroughly enjoyed partnering with the Tomkins management team and wish them continued success.” The Gates family sold the Denver company in 1996 to Tomkins, which added its belts and hoses to a grab bag of holdings that included everything from “buns to guns.” All that remains of the original conglomerate are the core Gates Corp., which manufactures power transmissions and fluid transfer systems, and the much smaller Aquatic, a maker of tub and shower enclosures. Management control has shifted from London to Denver. In November, Gates began demolition of the old Gates Rubber plant at Interstate 25 and Broadway. See GATES | Page A2
MORAN — After lengthy discussion of whether to lock the city’s storm shelters — one south of City Hall and the other at the city park — Moran council members voted to follow policy, which says the shelters will be unlocked only when a tornado watch is issued. But, Mayor Philip Merkel, who with other city staff has a key, allowed he would open the shelters anytime severe weather threatened.
Together, the two shelters are designed to hold 82 people, at the rate of one per five square feet. Moran has a population of about 550. The city will spend about $100 a year to maintain a website, morancity.org, which council members hope with make citizens better informed. Lori Evans, city clerk, said only 24 citizens voted at the April 1 election. Incumbents Bill Bigelow and Jerry Wallace were elected as was See MORAN| Page A6
Health care compact sent to governor By JIM MCLEAN KHI News Service
TOPEKA — A bill authorizing Kansas to join other states in an attempt to gain control of federal health care dollars was among several health-related measures approved by the Legislature before it adjourned Sunday. House Bill 2553 would allow Kansas and several other states led by officials opposed to the Affordable Care Act to petition Congress for the right to decide how health care programs are structured and funded within their borders. Shortly after the Senate
“The greatest trap in our life is not success, popularity or power, but self-rejection.” — Henri Nouwen, Catholic priest 75 Cents
sent the so-called “health care compact” bill to Gov. Sam Brownback on a vote of 29-11, Lt. Gov. Jeff Colyer signaled the administration’s support. “Kansans do not support Obamacare,” Colyer said. “So things that allow states to come up with their own health care solutions, we’re very supportive of that.” Kansas Insurance Commissioner Sandy Praeger joined with the state chapter of AARP to oppose the measure, citing its potential to transfer oversight of the federal Medicare program to state officials. See COMPACT | Page A2
Hi: 62 Lo: 35 Iola, KS