SCHOOLS Extension granted for money plan

The deadline was extended because of ongoing contract negotiations.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- The city's schools have avoided -- at least for another month -- being placed under state-imposed fiscal emergency status.
School officials were supposed to submit a financial recovery plan to state Auditor Betty Montgomery's office as well as the Ohio Department of Education by Wednesday, but that deadline was extended by 30 days.
"We did receive a request to extend the deadline, and we approved that extension to April 30," said J.C. Benton, a spokesman for the ODE office in Columbus. The deadline was extended because administrators and the board of education are in continued negotiations with the union representing nonteaching staff.
Niles Superintendent Patrick N. Guliano said the outcome of negotiations with the Ohio Association of Public School Employees Local 365 will have an impact on the financial future of the schools. That impact would need to be included in any financial plan submitted to the state.
The two sides are to meet with a federal mediator this afternoon.
Montgomery placed Niles City Schools in fiscal watch status last March after financial forecasts at the time showed the district would be in debt by more than $2 million by the end of the 2002-03 school year.
School administrators have taken several steps in the past year to reduce the debt, including closing Garfield Elementary, reducing staffing levels through attrition, offering a retirement incentive bonus to eligible members of the teaching union and considering using open enrollment in the district to increase revenue.
If the district's financial recovery plan is rejected by the ODE, Niles City Schools could be placed in fiscal emergency status. Under that designation, the state would create a financial planning and supervision commission, which would oversee all fiscal decisions in the schools.
slshaulis@vindy.com