OHIO SCHOOLS State auditor puts Sebring schools on fiscal watch

COLUMBUS -- State Auditor Betty D. Montgomery placed Sebring School District on fiscal watch status Thursday, forcing the district to file a plan with the state education department to deal with its budget problems.
& quot;It's all an effort to catch fiscal problems before they get out of control, & quot; Montgomery spokesman Joe Case said.
FIscal caution warning
The education department placed the 750-pupil, western Mahoning County school district in fiscal caution last year because its five-year forecast predicted a deficit of $246,531 by the end of this school year and an $874,668 deficit by the end of the next school year.
The state said the district had not submitted a written proposal on how to solve the deficit within a reasonable time, leading to the declaration of fiscal watch.
Must develop plan
Under fiscal watch, the school system must develop a financial recovery plan to the education department in 60 days to eliminate the projected deficit.
The state education department must evaluate the plan for approval within 30 days of it being submitted, the state said.
Superintendent Howard Friend said the school system will file a plan with the state and is awaiting the results of a pending performance audit by state auditors before proceeding.
Friend said the school system is cutting costs.
Over the last three years, the board has not replaced retiring teachers, saving the district $750,000 during that time, Friend said.
Last November, voters in the school system narrowly rejected a five-year, 6.8-mill emergency operating levy.