More districts expected to face financial trouble

CANTON (AP) — Ohio education officials are expecting a jump in the number of school districts statewide who can’t pay all their bills, partly because so many local school levies were voted down last November.

Of Ohio’s 613 school districts, 17 are classified as in “fiscal caution,” which means the districts are running a small budget deficit. Over the next year, 80 new districts are expected to move into that category.

School districts that have been placed in fiscal caution must outline to the state how they will prevent further financial difficulties.

Districts that fail to win approval for deficit-closing levies and have budget gaps greater than 15 percent are eventually put in “fiscal emergency,” the most serious designation in which the state takes control of the local budget process. Eight districts are now under that category.

“You basically do what the state tells you to do, whether you think it is best for students or not,” said Al Hennon, the superintendent of Massillon City Schools when it was placed under fiscal emergency from 1999 to 2002.

Across the state, 77 school issues seeking new operating money were on the Nov. 4 ballot. Of those, just 23 issues won approval.

“There are three stages,” said Roger Hardin, the Ohio Department of Education’s assistant director of school finance. “The first is denial. Nobody wants to admit there is a financial problem. Once they understand, then there is blame. Finally, we come to the realization there is a problem, and we have to do something.”

Under fiscal emergency, the state forms a five-person commission to develop a financial recovery plan, which districts must comply with.

Changes can include cuts to music classes for elementary school pupils, no foreign language classes in middle schools or fewer career and technical courses at high schools. Sports programs and libraries also typically see reductions. Teacher layoffs and school closures are other possibilities.

The state doesn’t take over the daily operations of districts in fiscal emergency, but it does control the money and can overrule decisions made by locally elected school boards.

“It’s really not good for anybody,” Hennon said. “I agree we are taxed to the limit, but to not fund schools you are affecting your future.”