FISCAL EMERGENCY

FISCAL EMERGENCY
Youngstown schools
Milestones in the Youngstown City School District's 41/2-year struggle through fiscal emergency:
September 1996 -- Youngstown is the first school district in the state to be declared in fiscal emergency under a new state law. State Auditor Jim Petro says the school system's deficit is nearly $13 million, and the debt is tagged at $43 million.
October 1996 -- A seven-member commission that will oversee the school district's finances meets for the first time.
Jeff Hundt, head of the Ohio Department of Education's fiscal oversight division, represents State Superintendent John Goff as commission chairman. Other commission members include Greg Browning, Ohio budget director; Mayor Patrick J. Ungaro; schools Superintendent Joseph Conley; Douglas McKay, president of Home Savings & amp; Loan Co..
December 1996 -- The commission approves a plan to cut as many as 175 jobs, close an unspecified number of schools and freeze pay for all employees.
January 1997 -- Superintendent Joseph Conley retires and the commission appoints Ben McGee to be his interim replacement. McGee later is given the permanent post.
February 1997 -- An audit shows district Treasurer Ralph Logozzo diverted nearly $90,000 in school district funds for personal use. He's fired.
April 1997 -- Commission votes to close Adams Junior High School and Harrison Elementary School.
August 1997 -- Commission hires Carolyn Funk, treasurer of Salem schools, as the district's new treasurer.
January 1998 -- Commission votes to convert East High School into a middle school and close Lincoln and John White elementary schools.
June 1998 -- The school board files a lawsuit in Mahoning County Common Pleas Court asking that the state's takeover be declared unconstitutional. Six months later, the challenge is dismissed.
September 1998 -- The commission keeps schools open during a three-day teachers strike; teachers agree to a three-year pact that the commission says could save $10.6 million.
June 1999 -- State auditors certify the district's deficit at $2.6 million, the lowest shortfall in seven years.
November 1999 -- A report from Petro shows the district, through staff cuts and building closures, has saved about $17.5 million in the three years of fiscal emergency.
May 2000 -- The district and teachers union agree to a new three-year contract, the earliest the two sides have settled a contract in at least 30 years.
June 2000 -- The school system ends the fiscal year with a balanced budget and without borrowing from the state, the first time that has happened since 1993. A financial forecast shows the district will finish each of the next five years several million dollars in the black.
July 2000 -- The commission asks Petro to lift the fiscal emergency.
November 2000 -- City school voters approve a $4.4 mill tax issue that pays the city's $33.2 million share of a $163.5 million project to build a new high school and three elementary schools and make improvements to 11 other schools.