‘Cash-back’ account seen as way to save money for Wallingford School system

As published in the Record Journal Sunday May 26, 2013

By Eric Vo
Record-Journal staff
evo@record-journal.com
(203) 317-2235
Twitter:@ericvoRJ

WALLINGFORD — School Superintendent Salvatore Menzo hopes to secure a credit line for the town’s school system, which could yield thousands of dollars in cash back annually.

Menzo told the Board of Education recently that a credit line is one way to generate new revenue for the school system.

“Two months ago, myself and Linda Winters met with a representative with one of the credit card companies to talk about cashback advantages,” he said.

The school system would have a credit account with a credit card company, which would be used to pay vendors. The advantage to this method of payment, he said, is “depending on the credit card company, you can receive 1.5 to 2 percent cash back.” The school system would only have a credit account; actual credit cards would not be issued.

“The whole idea is to get another way of bringing more money back into the school district,” Menzo said. “We’re already going to be spending the money anyway you look at it. We should bring it back into the district to subsidize improvements ... and offset expenditures that are anticipated for the future.”

The company Menzo and Winters met with conducted a survey that showed the school system could receive $60,000 to $70,000 a year. The money could be used for long-term projects, Menzo said.

If the board decides to pursue a line of credit, Wallingford schools would join the public school systems in Meriden and Cheshire in having a similar payment method for its purchases. Cheshire uses a credit card from Chase to purchase items such as books from Amazon, according to Vincent Masciana, director of management services at Cheshire schools.

Meriden schools use a “purchase card” provided by the city, according to Michael Grove, assistant superintendent for finance and administration. The purchase cards act like credit cards and are used to buy supplies and equipment.

Paying with a credit card or through a credit account not only provides an opportunity for cash-back rewards, but it’s also convenient and “instantaneous,” Menzo said.

Although some companies and businesses may charge a higher fee for credit purchases, Menzo said the vendors won’t be able to do that.

“They have to accept whatever payment we give them,” he said. “As long as they accept the credit card, they can’t increase the prices if they’re on the state bid list.”

Menzo is hoping to have the bid openings during the first two weeks of June.

“I applaud the initiative because it’s one more example of creative alternatives to running a school system,” said Wallingford Board of Education Chairwoman Roxane McKay. “Our best interest is to look for alternative sources for funding, and Sal is doing that.”