SCHOOL DISTRICTS Exercise gear deal hits snag

The National School Fitness Foundation is facing legal problems in Minnesota.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
FARRELL, Pa. -- School officials were enthusiastic about getting new exercise equipment through a nonprofit foundation, especially since the foundation was going to reimburse the district for the cost.
Superintendent Richard Rubano said that ardor hasn't faded, even though the foundation has indicated it won't be making any more payments, at least not in the immediate future.
The Farrell Area School District signed a deal in January with the National School Fitness Foundation, located in Utah, to lease the equipment for high school and elementary fitness centers at a cost of $334,000. At the end of that period, the district can buy the equipment for $1.
The district arranged financing through Key Government Finance Inc. in Colorado, agreeing to be responsible for monthly payments of just more than $10,000 for a 36-month period.
Reimbursement agreement
NSFF agreed to reimburse the district for that cost, but warned that, should NSFF be unable to pay, the school district was ultimately responsible for the bill.
The only requirement is that the district send results of pupil and faculty use of the equipment and related exercise program to NSFF, which uses that information to seek private donations to fund the reimburements.
NSFF made one reimbursement payment to Farrell in April but hasn't made its May payment and isn't likely to.
Michael Stabile, Farrell's business manager, said the foundation notified the district that it is fighting a legal battle with the state of Minnesota, which has accused it of defrauding school districts.
The publicity generated by the Minnesota case resulted the drying up of donations to NSFF, making it impossible to reimburse some 600 school districts across the country involved in the program, Stabile said.
Further, NSFF said it is dedicating its resources to fighting that legal battle, he said.
A spokesman for NSFF couldn't be reached to comment.
Other area districts
The Greenville Area School District signed up with NSFF more than a year ago, leasing $186,000 worth of equipment, and has received $100,000 in reimbursements so far, said Linda Holm, district business manager.
NSFF hasn't missed any of the $6,000 monthly reimbursement payments and has indicated it will try to keep funding schools already in the program, she said.
The Sharon City School Board voted in April to join the program to secure $221,940 worth of equipment.
James Wolf, Sharon business manager, said the school district hadn't signed a lease agreement before the Minnesota case became known and has now adopted a "wait-and-see" attitude before it proceeds.
Stabile said Farrell arranged its lease so that, should the district stop paying on the equipment, it will be repossessed. Key Government Finance already has offered to reduce the monthly payments by extending the lease to 60 months at the same interest rate, he added.
Impressive results
Rubano said the school board, however, is impressed with the early program results and doesn't want to give it up.
The board's overall interest was in the health and nutrition of the pupils and that interest hasn't diminished, he said.
Farrell is looking for other ways to fund the lease, Rubano said, including going after private donations. The district could also sell health-care passes to the public to help meet the cost, he said.
Farrell's results have been "astounding," he said, noting that 120 pupils in grades seven through 12 lost a total of 571 pounds in just 10 weeks. The blood pressure of every pupil also went down, he said.
Two dozen sixth-graders using the program for just three weeks dropped a total of 64 pounds and the 19 fourth- graders using it over the same period lost a total of 30 pounds, he said. The body fat of all age groups also dropped significantly, Rubano said.
Holm said Greenville is pleased with its program as well.
"It's been a wonderful system for our kids," she said, noting that the faculty has made good use of the facility as well.
Greenville isn't interested in ending the program, even if the reimbursements stop, she said.