Liberty schools could see deficit soon

By robert Guttersohn

rguttersohn@vindy.com

Liberty

The school district is projected to fall into a deficit as soon as next month, according to the district’s spending plan presented Wednesday to the fiscal commission.

The plan projects the district to run a $32,389 deficit in November and more than a $1 million deficit in December.

Also Wednesday, the commission requested a $1.9 million advance from the state to keep the district financially afloat through June 30, 2012, the end of the fiscal year.

The figure requested represents the district’s official deficit announced Monday at the board of education’s meeting and must be paid back to the state in two years.

But the state controlling board, which authorizes the interest-free loans, requires at least 18 days to authorize the funding, said Sharon Hanrahan, the commission’s representative from the Ohio Office of Budget and Management,

“This may mean that [the district] will have to hold off on paying some bills in November,” Hanrahan said.

Treasurer James Wilson said the large jump between the two months’ deficits is caused in part by the three payrolls due in December, each costing up to $350,000.

He said despite next month’s deficit, the district should not be forced to turn to a private institution for a loan to bridge the gap between now and the advance’s approval.

Roger Nehls, chairman of the commission, which is charged with guiding Liberty schools out of fiscal emergency, said the Liberty request for funds is on the controlling board’s agenda, which he hopes will expedite the approval process.

“It’s greased as much as it can be greased,” Nehls said of the process.

He said normally, the first request for an advance is approved without a problem. But if the district were to go the board for a second advance beyond $1.9 million, it would be much tougher to convince the controlling board.

“If you go to them a third time, you better strap in,” he said.

The fiscal commission also requested the district provide $1 million in cuts by June 30, 2013. This is in addition to the $635,000 the district cut this year.

Superintendent Stan Watson said he plans to present the reduction plan in January. He predicts the bulk of the reduction will go into effect in fiscal year 2013 and will include personnel cuts beyond attrition.

“I wish it was all coming from attrition, but there’s not enough people retiring for that,” he said.

The fiscal commission’s next meetings will be at 11 a.m. Nov. 30 and Dec. 21 both in the commons library.