niles city schools Forecast indicates progress

By JORDAN COHEN

news@vindy.com

NILES

The latest five-year forecast for the financially troubled Niles City Schools indicates some progress toward eliminating the deficits that led to state-declared fiscal emergency last February.

The forecast shows positive balances instead of deficits for the current and next two fiscal years.

Deficits are projected for fiscal years 2022 and 2023, however, but they are considerably below earlier projections.

“I’m encouraged by the forecast,” said Bob Foss, chairman of the Financial Planning and Supervision Commission, which is responsible for overseeing the district’s recovery from fiscal emergency. The commission met in special session Monday.

The improved financial report comes as district voters today decide the fate of a 5.6-mill renewal levy that would generate $1.3 million annually if approved.

“If it fails, it will be resubmitted in November,” Superintendent Ann Marie Thigpen told the commission.

Nita Hendryx, one of two fiscal supervisors appointed by the state auditor, detailed the revised forecast, which includes savings of at least $500,000 from the district’s switch of health care providers and from the new contract with the Niles Education Association representing the district’s teachers.

Additional savings are expected to result from a contract now under negotiation with the school district’s nonteaching employees, but are not included in the current forecast.

Foss attributed some of the deficit reduction to a revised formula for state funding that appears to be working in the district’s favor.

The forecast, however, anticipates deficits of $253,000 in the 2022 fiscal year and $1.6 million the following year, both of which must be eliminated.

“Where we’re at right now, it means [Niles Schools] are not going to be released from fiscal emergency for the next three years,” said Barbara Mattei-Smith, commission member from the Office of Management and Budget.

Giovanne Merlo, Niles city auditor and a commission member, took exception to other statistics showing the district with a teacher-student ratio below state standards. The number of students in district classrooms per teacher, he said, is much higher than the figures indicate.

“My kids have been in classes where there are 20 to 25 students [per teacher],” he said, adding his concern the numbers could go as high as 35 children per teacher as the district works to comply with state requirements.

The commission voted to implement a financial-recovery plan that, in essence, orders the school board and superintendent to complete work on “revenue enhancements and deficit reduction” for the plan when it meets May 15.

The commission next meets May 22 when it is expected to vote on a number of pending issues, including acceptance of the contract with Niles teachers.