FISCAL EMERGENCY STATUS Lordstown school district seeks state release

The schools may still be monitored for about a year.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
LORDSTOWN -- After cutting costs and pinching pennies for more than three years, local school officials hope to find out as early as next week if it was worth it.
Auditor Betty Montgomery's office is reviewing financial information and five-year forecasts for the Lordstown Local Schools to determine if the district can be released from fiscal emergency status, explained Lordstown schools Treasurer Mark Ferrara.
"We could hear something possibly next week," he said.
School officials got the ball rolling back in December, when board of education members requested the state auditor's office review the latest five-year financial forecast. The review was completed earlier this month.
Local officials worked with state auditors to draft a letter last week, projecting that the district will end the next few years in the black. Ferrara said board of education members were required to sign off on the letter, which was sent to Montgomery for review.
"That lets everyone see that everything appears OK," he said.
Monitoring would continue
If the schools are released from financial crisis status, they will still be checked by the auditor's office for a period of time, Ferrara added.
"We would still get monitored for the next year or so, but we would not have the designation of being in fiscal crisis or fiscal watch," he said.
Lordstown Local Schools were placed in fiscal emergency in December 2000 when the district was facing a more than $1 million debt.
Under fiscal emergency status, the district was forced to institute a recovery plan that included budget cuts, staff layoffs, state-approved loans and new contracts with the teaching and support staffs.
A five-person oversight commission also was created by the Ohio Department of Education to meet regularly with local officials in monitoring all financial decisions.
The commission worked with school leaders to improve finances by eliminating staff and faculty positions. Increased collections in personal property taxes and the passage of an emergency levy in 2001 also helped reduce the deficit.
In February, members of the commission approved a resolution asking Montgomery to release the district from fiscal emergency and allow the commission to disband.
If Montgomery approves the request, the commission will meet one final time to formally disband.
slshaulis@vindy.com