IRS places $315K lien on SBCISD payments to clinic admin

Managing Editor



School district officials confirmed this week that the Internal Revenue Service has placed a lien on San Benito CISD funds owed to the district’s on-site health clinic administrator, who owes the IRS more than $315,000.

SBCISD attorney Tony Torres sent an email to the Board of Trustees on Wednesday informing the board members that the district received levy notices from the IRS regarding Richard Garza, the owner of ISD Managed Care Services Inc. – the Port Isabel-based company that currently serves as the school district’s on-site health clinic provider.

“Said notices require the District to hold all funds and/or turn over all funds which are owed to the taxpayer by the District … to the IRS,” Torres said in the email. “Stated simply, the IRS is claiming a lien for the amount owed to Mr. Garza by the District.” The amount owed, according to Torres, is $315,603.43.

A search on the Texas Comptroller website also found that the “Right to Transact Business in Texas” for ISD Managed Care Services Inc., with its address listed as 5505 S. Expressway 77, Suite 205 in Harlingen, has been forfeited.

In addition, Garza’s recent tax troubles come nearly one year after a levy notice, dated May 2013, was issued to the school district regarding nearly $60,000 in delinquent taxes that he reportedly owed to the IRS. Specifically, the IRS reported that Garza owed $59,900.92 in unpaid taxes, which dated back to June 30, 2012. At that time, the IRS deducted the money from subsequent payments the SBCISD made to Garza, who contended then that the matter had already been “addressed” and argued that a corroborating letter from the IRS would be provided. When asked if Garza provided such a letter, several board members said at the time that they were not aware of the correspondence in question being provided to them or the district.

On Friday, board member Oscar Medrano, who has long been vocal regarding his criticisms of Garza’s IRS woes, addressed the current lien and what it means for the district.

“I’m very concerned, because he owes taxes to the IRS and now it’s going to be up to us to see how we’re going to deal with it,” Medrano said. “I think we should have a special board meeting to see what we’re going to do with Richard Garza and this mess, because it is a mess and we need to find a way to move forward.”

Although Board Secretary June Aguilera said she preferred to hear Garza’s “side of the story” and to speak to Interim Superintendent of Schools Dr. Ismael Cantu before commenting, she did acknowledge that the matter will be addressed by the board.

“It’s definitely something that will be looked into,” Aguilera said. “I know the board has a couple of meetings that will be coming up; maybe we’ll be talking about it very soon, but I know the last time he did pay it (taxes). It just was not told to the board that way.”

Last year, Medrano proposed closing the clinic to seek bids for another provider after learning of Garza’s previous tax delinquency. Fellow trustee Anna Cruz shared Medrano’s concerns then and stressed the need for the clinic to be “secure.” Defending Garza during this time, however, was Glenn Hillyer, the district’s insurance consultant, who argued that the clinic should not close. Garza also said at the time that because he is a third party vendor, the district would not be held responsible for his company’s involvement in tax delinquency claims.

Additionally, SBCISD Business Manager Emma McCall has also said that it’s not uncommon for the district to receive levy notices regarding vendors owing delinquent taxes.

Still, the board voted last summer to give Garza a 60-day termination notice. The notice was short-lived, however, when a 4-3 vote at an August 2013 board meeting again awarded Garza’s company the contract, in which he’s paid a $68,392 monthly base plus additional medical-related expenses, to serve as the district’s on-site health clinic provider – this during a bid selection process in which Medrano, Cruz and trustee Hector Leal represented the opposing votes while Board President Yliana González, Vice President Julian Huerta, Aguilera and trustee Fatima Huerta made up the majority.

After the August 2013 meeting, Medrano questioned the point of the bidding process, alleging a “set up” occurred in which Garza’s company was pre-selected.

Attempts to reach Cantu and Garza for comment were unsuccessful as of presstime Friday.

Permanent link to this article:


Skip to comment form

    • Bertha on May 7, 2014 at 12:59 pm
    • Reply

    And this community voted to re-elect her during the last election.
    What a shame. We deserved so much more.

    • Employee on May 7, 2014 at 8:36 am
    • Reply

    If you were at the meeting you would have heard that this IRS lean is for another company. San Benito has lost no money and no issues with our clinic. The employees use and benefit from the great service. We have never had such good care and now they want to take it away. The board work for us and we want to keep the clinic and doctors. It is not fair that the board takes away the good that we have. he did nothing to impact the district and he is being used again for political BS.

      • IF THEN on May 7, 2014 at 11:29 am
      • Reply

      If the lean is for another company, then why address it at the SBCISD board meeting?
      If the employees use and benefit from the great service, then why vote to terminate him?
      If there is such work getting done and the board is working for us, then why all the fuss from Yliana?
      If we base all this off of your statements, then something doesn’t add up.

      Political BS? Sounds like it. But to what extent. Something that definitely needs to be looked into and investigated deeper. Sounds like Yliana cutting her ties before SH– hits the fan. She brought him in. She wanted him. She got pissed when the SBN raised issues, concerns, and published a story about him. Can’t fight it, so pretended to go with it and cut ties. She is on the school board not for the students, not the employees (well only the ones she benefits from). Chuy is the same way except he got his daughter to get on the school board instead of him and do all his dirty work.

    • dora on April 29, 2014 at 2:58 pm
    • Reply

    Well said TAXPAYER! While it is also the fault of the school board members Richard Garza has a history of not paying his bills on time. Last year it was $60,000 and now its $315,000??!! We don’t need a crook businessman running our clinic. Why not focus on education instead of trying to figure out how this Richard Garza ran up a bill for $315,000 to the IRS and thought he could get away with it? Seriously, who does that? Richard Garza that’s who!! Two years in a row! Let’s not lose focus here. Richard Garza owes the IRS so now he must pay just like everybody else. What is his excuse this time?

      • NunyaBusiness on May 5, 2014 at 9:59 pm
      • Reply

      The Board rehired this guy at almost double what the legitimate bidders were asking for. This isn’t about the clinic. This is about a corrupt board. This isnt the only deal… Take a look at all the insurance and you’ll find some common links

        • Belinda on May 6, 2014 at 10:47 am
        • Reply

        The majority of the board decided to rehire Richard Garza while the others voted against it. To some board members stop with the pity songs and really take responsiblity as to why your there instead of making a change to benefit yourselves. Student education should be your first priority. Secondly, look at budgeting instead wasting money that could be used to better th338e school district.

        • Link on May 6, 2014 at 11:25 am
        • Reply

        The common link is Yliana, the SBCISD School Board President. Why do you think she made a big fuss about the SBN releasing an article concerning the issue at hand? Because of elections and the possible negative effect it will have on her and her friends running for re-election and election.

          • Belinda on May 6, 2014 at 9:01 pm
          • Reply

          Very true! She can’t handle the truth even with the SBN news having all their facts together. People deserve to know why this happened. If her and June are so worried about keeping up with everything. What happened! Were’nt they the ones that were so adement about keeping this guy. Really! and then we have the IRS come in too. Like seriously!! But that’s what happens when they’re more concerned about getting back at people and spending money that they forget about helping the district progress.

    • Taxpayer on April 25, 2014 at 8:41 pm
    • Reply

    Lets not get off the subject, what is the board gonna do on the clinic adminstrator? If it’s what June says, let’s hear what Richard Garza has to say, we’ll Miss June it is all in black and white from the real people the IRS, he owes them over $300,000. I say terminate him and consider an actual clinic administrator not some wanna be that is never at the clinic to oversee his staff that’s too busy ordering tacos and coming in after 8:00 while patients are there for their 8:00 appointments. The employees of the district should not pay with their time due to the poor administrator. I was told that the risk manager is no longer allowed to oversee or ask questions on the going ons because Richard doesn’t want the district to get involved and whats worse the district administrators allowed this. This has to change, the clinic belongs to the district not Richard. Enough said!

    • Bad Dog on April 24, 2014 at 4:00 pm
    • Reply

    SB needs new people on the board. I say vote against ALL four. Especially the Huerta/Aquilera clan so we can get the eighth school board member out (EL PAPI).

    Yes you guys have 8 not 7 school board members. EL PAPI has influence on the board and a vote. He supports the majoirty 4.

    Aye PAPI…ponte a trabajar.

    You know that white thing on top of chicken S@#&….well that’s a piece of S@#& too….LOL

    • Bad Dog on April 23, 2014 at 2:37 pm
    • Reply

    @walk through
    She should NOT be doing walk throughs….she is not an employee or and admistrator. That is NOT her job.
    So don’t be asking why she is not doing it when she never should be doing it…..don’t sound like your disappointed that she isn’t.

      • walk through on April 23, 2014 at 2:48 pm
      • Reply

      just pointing out that she doesn’t keep her word. and no, not disappointed at all. not a fan of her or her father. especially parents calling chuy to go complain and bark at school admin on their behalf yet won’t run for school board on their behalf. idiots! all of them!

    • Bad Dog on April 23, 2014 at 8:24 am
    • Reply

    @Standanddeliver… is what it is suppose to be. Whoever gets elected must attend a conference in June. At the conference they tell them right off the bat that you cannot make promises to no one and that you cannot be telling citizens of the community that YOU will be making changes. All you are suppose to be in charge of is 1.
    Hire and Fire a Superintendent. 2. Budgets and 3. Policy making. Hold the Super responsible. Also I heard that Ms Aquilera goes to schools and does WALK THROUGHS…..she has NO right or authority to be doing that. That is NOT her position to be doing that. That is the pricipals job. What your board does in SB is NOT the right way of doing things….to much compadre system going on.

    Your right ALL FOUR need to be replaced.

      • walk through on April 23, 2014 at 11:36 am
      • Reply

      every year since she became a board member, she told admin at a jr high that she would be doing walk throughs. never once did she show up.

    • Triple P on April 22, 2014 at 2:28 pm
    • Reply

    as much as i don’t want to vote for Mr. Potato Head, in my opinion all current board members need to be voted out. it doesn’t mean that their opposition is necessarily better. but in order for the school district to have a chance, new members need to come in because the old/current members aren’t getting it done. period.

    Medrano out.
    Leal out.
    Aguilera out.
    Huerta out.

    I wonder who will run against Yliana next year? Now that should be interesting.

    • StandandDeliver on April 21, 2014 at 10:52 pm
    • Reply

    It looks like Bad Dog is the only one with some common sense or at least knowledge of administration. The board is not supposed to do anything except hold the superintendent accountable and demand transparency for its constituents. Both board sides are guilty of trying to do favors for friends and relatives. STOP: Let the superintendent hire the best qualified and hold him accountable for the outcome. If the board is tell the superintendent who to hire, then they have no right to evaluate him. WAKE UP PEOPLE; The wasting of tax dollars is your money. It means less for your children, it means less for you community and it means less for the future. Vote sensibly. HOLD THEM ACCOUNTABLE. IF THEY DON’T ACT LIKE A BOARD; FIRE THEM ELECT SOMEONE NEW. LET US CONTINUE TO ELECT PEOPLE WITH PRIVATE AGENDAS. Election Day where are you?

      • the board on April 22, 2014 at 12:21 pm
      • Reply

      the board took away power from the superintendent a while back. they have the power to hire/fire employees. they also are in charge of the majority of the district budget (expenses, contracts, raises, etc.)

      • The Negotiator on April 22, 2014 at 1:46 pm
      • Reply


    • Bad Dog on April 21, 2014 at 1:47 pm
    • Reply

    No surprise to me about this. I have a question. What is the job of the school board? To hire and fire the superintendent!!!!!!! Make him accountable. you guys in SB have two on the payroll yet the school board members think that they have the power to make changes….rearranging or putting people at certain positions. I hear that one board member if he or she wins has an agenda to make changes. That’s what the problem is. Everyone has their own agenda. Get off your high horse and stop thinking about yourself and what YOU can do for the district. It’s NOT about you. Let the super make the decisions and hold him or her accountable. Stop trying to get to much involved in the everyday business of the district…….Is it time to vote yet? Dam voting day needs to come quick.

    • WeThePeople on April 21, 2014 at 9:49 am
    • Reply

    Did anyone see this coming?? There was something fishy about the dealings with the health clinic administrator contracts all along. Just another example of the compadrismo, incompetence and corruption for the SBCISD administrators.

    • huevos rancheros on April 21, 2014 at 8:11 am
    • Reply

    Truth, Truth 2, Truth 439…

    Say what you really mean to say. None of this “this person” and “that person” stuff. Have the huevos rancheros to say who you are talking about. Have the huevos rancheros to say who you support and don’t support. Have the huevos rancheros to say who you will vote for and who you won’t vote for. Enough with the BS. You gonna say something, say it!

    • Garza on April 21, 2014 at 7:00 am
    • Reply

    They chanted, “Out with the old. In with the New!” They trashed the incumbents, shouting, “We need BETTER for the children!” And this is what the voters came up with?? This board is RIDICULOUS! Election Day, where are you????

    • Larry on April 20, 2014 at 9:59 pm
    • Reply

    The MAJORITY are To Blame!
    Vote smart SB!

    • De San Bene on April 20, 2014 at 4:34 pm
    • Reply

    wow–so sorry to hear about this situation

  1. Lets not forget the ” truth” about the previous clinic operators( Valley Regonial -Brownsville) they still OWE the district money.. How quickly you “TRUTH” forgets. Or pretend too.. Typical minority supporters never want to take credit or anything.. But, the people don’t forget and trust me!!!! MAY 10th can’t come fast enough and their better be no SAD FACES of the lossing party’s because you know it’s coming…. Vote smart!!!’

    • Trustees let this happen on April 19, 2014 at 12:53 pm
    • Reply

    The SBCISD BOARD let this problem continue to happen. It’s all of them as a whole because they just can’t seem to find common ground for the betterment of the district and it’s children. Where in the world are the top administrators, the Superintendent and CPA/Accountant?
    The board that we have now are both non-and some so called educated and non certified accountants. I’m not surprised that the neglected IRS bill grew to this substantial amount fast. No one can just threw it to the back burner and hope it disappears.
    I am not exactly sure about this but, this also was under the past superintendent A. Limon and maybe this is another reason he was placed on suspension.
    The truth matter needs to come out, as a tax payer and citizen of San Benito we need answers and you can’t cover the sun up with one finger.
    We the voters must demand to get answers!
    The flood waters are open and too many disagreements need to stop and work together to make a better place for all of San Benito.
    Get to work and put agendas aside.
    The superintendent needs to pull his weight and get his fingers out of his nose including the board.
    I’m certainly sick of all the dirty political tactics and do your jobs.

      • truth be told 2 on April 20, 2014 at 9:57 pm
      • Reply

      The three minority board members tried to stop this. They wanted Valley Baptist Health Systems to run the clinic. It was recommended by the Consultant Rusteberg that Valley Baptist Health Systems was the best, however the other four had a different agenda and voted against his recommendation. So you are correct the four trustees let this happen.

    • truth be told 2 on April 19, 2014 at 12:18 pm
    • Reply

    June and Pappi your chickens are coming home to roost. You were the deciding vote for the blind mice. You argued how you didn’t want all the business going to Valley Baptist Health System. The consultant recommended Valley Baptist Health System. They would have cost the same or less. No, but you knew better. Well, guess what? What a dangerous situation when a semi-educated principal leads three blind mice and listens to June’s Pappi.

    • ReformSanBenito2 on April 19, 2014 at 10:00 am
    • Reply

    All this negative publicity about SBCISD is a bit much. It overshadows the daily accomplishments and success of our students at all grade levels at all the campuses. I will definitely be voting!

    • TRUTH on April 19, 2014 at 9:12 am
    • Reply

    AGAIN!!!!! OMG!! Wow! The four board member majority sure have made the best decisions for our school district!! Way to go guys, you’re the best!!

Leave a Reply

Your email address will not be published.