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Panel passes McDonald schools’ plea to end emergency
By Mary Smith
McDONALD
The McDonald State Finance and Planning Commission has approved a resolution to request that the state auditor release the school district from state fiscal emergency.
The district has been in state fiscal emergency since October 2009 when it found itself with a deficit of $2.001 million.
Since then, the school district has made cuts totaling $875,000, passed two emergency operating levies and learned it would maintain $500,000 in State Foundation money instead of having it cut under the new state biennium budget.
Voters approved a 4.9-mill, five-year emergency levy to generate $260,000 in November 2009, and also approved a May 3 levy this year to generate $580,000 for five years in a 10.75-mill emergency operating levy.
Since the district’s financial picture improved, the commission has asked the county auditor to reduce the amount that levy will generate down to $389,000, for approximately 7.25 mills.
The exact millage still has to be certified by the county auditor, schools Treasurer Brian Stidham said. Rates and millage usually are done in December.
The local school board has requested of the state auditor that it be released from fiscal emergency in September.
With the commission’s request, the auditor’s Local Government Services office will re-evaluate the district’s finances, based largely on the most recent five-year forecast.