Youngstown schools freed from fiscal emergency

Ohio lifts fiscal emergency from district

By Denise Dick

denise_dick@vindy.com

YOUNGSTOWN

After nearly five years and about $32 million in cuts, the city school district is freed from fiscal emergency.

State Auditor Dave Yost officially released the district from fiscal emergency at a meeting Tuesday. The financial planning and supervision commission, in place since shortly after the district was placed in fiscal emergency in 2006, adopted a resolution disbanding itself.

“This is very good news,” Yost said. “The five-year forecast looks strong. My staff is very confident that we won’t be back here any time soon.”

He credited William Johnson, district treasurer, for his “cooperation and leadership” in the process.

“Youngstown City Schools are leaner today than when they came into fiscal emergency in 2006,” Yost said in a news release. “My office is proud to play a role in helping the school district skinny down and become financially healthy — and even prouder of what the district has done to accomplish it. This is a great day for Youngstown students.”

Lock P. Beachum Sr., school board president, agreed.

“It’s a good day,” he said.

He told commission members that he appreciates their being in the district, “but I’m also glad to see you leave.”

The district had been in fiscal emergency in the 1990s and emerged from it — only to slip back in five years ago.

Beachum said the district will be careful with its finances. He said that Wendy Webb, former superintendent, shares in the credit for the emergency ending.

“Now our goal is to get the district out of academic emergency,” Beachum said

To be terminated from fiscal emergency, the district met a list of criteria:

Adopted and implemented an effective financial accounting and reporting system.

Corrected or eliminated all of the fiscal emergency conditions; no new conditions have occurred, and it appears that, based on the district’s five-year forecast, the district will remain out of fiscal emergency.

Met the major objectives of the district’s financial recovery plan.

Prepared a five-year forecast in accordance with the standards issued by the state auditor, and the opinion expressed by the state auditor is not adverse.

“All five fiscal years are ending in the black,” said Tisha Turner, a representative of Yost’s office.

The auditor’s office documented 34 conditions within the district that had to be addressed.

“I’m happy to say that all 34 conditions have been corrected, which is quite an accomplishment,” Turner said.

Paul Marshall, commission member, said many people made a lot of sacrifices. He also credited Webb’s work.

“She had to do some things I know that she hated,” he said.