Saturday, June 24, 2006
Youngstown city school officials knew that a fiscal recovery plan that didn't take the district all the way out of deficit spending would not pass muster with the state and would trigger a "fiscal watch" designation. And yet, they submitted a proposal that fell short. Residents have reason to wonder what's going on.
It isn't as if Superintendent Wendy Webb, Treasurer Carolyn Funk and the elected members of the Youngstown Board of Education didn't have ample warning about the consequences of not meeting the budgetary standards established by the state. After all, the district has been in "fiscal caution" since March -- when officials announced that the district was facing a $4 million deficit this year and an even larger one next year.
Nonetheless, the plan that was submitted showed an $11.9 million projected deficit by the end of the 2006-07 fiscal year, while proposing $8.5 million in cuts. The cuts would be achieved through the elimination of nearly 100 jobs.
So now, the school district has less than two months to submit a revised version of the budget balancing act or it faces state mandated "fiscal emergency." If that should occur, a five-member Financial Planning and Supervision Commission would be appointed to take over some or all of the local board of education's powers to revamp the district's finances and eliminate the deficit.
Inevitable?
Indeed, Funk is of the opinion that "fiscal emergency" is inevitable. There is only one way to interpret her position: that the administration and school board do not have the ability to deal with the fiscal crisis. That's not reassuring.
As we pointed out in an editorial in March when we urged the board to abandon any thoughts about placing two levies on the November ballot, residents have a cynical view of the school system. Past decisions by the board, including approval of a contract that gave teachers generous raises and the absence of any cost-sharing of health-care premiums, have largely contributed to the district's fiscal problems. Then there is the exodus of students to charter schools, indicating parental dissatisfaction with the continuing poor academic performance of the system. That exodus has proved to be financially costly.
What should be done? The school board should instruct the superintendent and treasurer to develop a deficit elimination plan for submission to the state auditor's office, which has legal authority to declare the system to be in "fiscal emergency."
There is no doubt that such action will require sacrifice on the part of everyone involved in public education in Youngstown. For instance, the teacher contract mandates a minimum staffing level of 740 teachers and the American Federation of State, County and Municipal Employees contract mandates a minimum of 57 bus drivers. Funk says those types of constraints make further cuts in payroll difficult.
If the teachers and other employee unions aren't willing to do whatever is necessary to help the administration and school board develop a budgetary roadmap that will be acceptable to the state, then fiscal emergency might be the answer.
A state commission running the district won't be as accommodating as the school board. Just look at what's happening in the city of Girard.
The board must also know that the state is unlikely to approve any plan that depends on the passage of levies for increased revenue because there is no guarantee of voter approval.
It's time for tough decision-making -- and the clock is ticking.