Mikki -
Our district does the same thing. Over the years we've witnessed the PTOs used as a way to deliver "yes" votes, and anyone that questions aspects of the budget is demonized and if the person is a parent, ostracized. There's a thread on this board that I started a few weeks ago:
www.ptotoday.com/boards/involvement-idea...to-2.html#post141407
There are so many issues raised by this - oversight, democracy, the voices of the majority, breaking up of community, etc. One of the most insidious is by having perpetual "happy talk" about our district, we never address major issues or improve the quality of education. Everything is a band-aid. And a very expensive band-aid I might add! We are going to lose our senior citizens.
All of the PTOs in our district have funs designated to print up bumper stickers and posters and full page ads in the paper that say "Vote Yes!" These funds are supplemented by individuals, including school board members.
We are encouraging our local paper to do an article on this phenomenon. I will let you know how that works out. Meanwhile, any more information you can share would be very helpful.