Funds OK’d for school district


By Marc Kovac | May 22, 2007 at 12:00a.m.

The district will have to pay back the loan throughout the next two fiscal years.

By MARC KOVAC

VINDICATOR CORRESPONDENT

COLUMBUS — The State Controlling Board OK’d up to $15 million for the troubled Youngstown city schools.

The board, without comment, approved the advance to enable the district to remain solvent. The funds will have to be paid back during the next two fiscal years, and the total equals the deficit that was certified earlier by the state auditor.

Youngstown’s schools were placed on fiscal watch a year ago, after its five-year financial forecast projected deficits of $4.4 million and $10.8 million for fiscal years 2006 and ‘07, respectively, according to state records. Fiscal year 2007 ends June 30. The district subsequently failed to submit an acceptable plan to avoid further operating deficits and last year was declared to be in a state of fiscal emergency.

Earlier this year, state Auditor Mary Taylor’s office reviewed the district’s financials and predicted an operating deficit for the current fiscal year of $15 million, The local school board adopted a resolution seeking that amount through the state’s Solvency Assistance Fund to meet its financial obligations through June 30.

Recovery plan

Sen. John Carey, a Republican from Wellston and member of the Controlling Board, asked whether the district would be able to avoid future operating deficits yet maintain operations during coming fiscal years, since its state-level funding would be tapped to pay back the emergency funding.

Kelly Weir, from the Ohio Department of Education, said the district has suffered from declining enrollment and contract constraints in recent years. But it has assembled a financial recovery plan that includes personnel cuts, building closings and other restructuring and plans to place a tax levy before voters in November.

“The hope is that we can get them out [of financial emergency] as soon as possible,” she said, adding that the average Ohio district takes three years to work through such issues.