MANSFIELD — Mansfield City Schools’ 2 ½-year odyssey through fiscal emergency – a process triggered by the defeat of a renewal levy in November 2012 – is nearing its conclusion.
Still, district treasurer Robert Kuehnle emphasizes that voter support next year will be key to maintaining financial stability.
The four-member Financial Planning and Supervision Commission, appointed by the state to oversee district finances, and Kuehnle expect Auditor of State Dave Yost to release the district before Dec. 31.
Commission secretary Barb Bechtel, an Ohio Department of Education fiscal consultant, shared that optimism at the commission’s May 25 meeting.
“At this point, we’re not looking at being here another year,” Bechtel said. “Their costs have come down and their revenue is within forecasts.
“Early in July, after the district ends its fiscal year on June 30, the auditor of state’s office should be able to start the process for release. My personal goal is for the district to be out of fiscal emergency by the end of the year, if not sooner.”
Commission chair Jack Pierson, retired treasurer of Akron City Schools, and local members Mark Brunn and Jill Haring agreed, voting 3-0 to formally request that Yost release the district. The fourth member of the commission, Quentin Potter, representing the state budget commissioner, was absent.
Bechtel’s assessment reinforced Pierson’s comments at the commission’s April 7 meeting.
“I believe it (release) could happen before Dec. 31. It certainly looks that way,” he said.
In February the commission voted to delay asking Yost for release, deciding that Kuehnle, who was newly hired, should be given time to fully assess the district’s fiscal posture.
Kuehnle told the commission last week the district ended April 30 with a general fund balance of $13 million, compared to $9.6 million on the same date a year ago. He also said expenditures are in line with the five-year forecast.
“Our numbers are good,” Kuehnle said after the meeting. “I believe we will be out of fiscal emergency this calendar year.
“A lot of hard work has gone into getting us to this point. But release from fiscal emergency is not the final piece of the road to recovery. The final piece will be voter approval of two renewal levies next year. These levies will not increase taxes; they will only maintain what we have.”
The district entered fiscal emergency in November 2013 when it was facing a $3.6 million deficit. Former commission chair Paul Marshall, who retired in October, said the deficit could be traced directly to failure of the levy renewal in November 2012. That levy – which would not have increased taxes – generated $4 million annually. It lost by 359 votes out of more than 13,500 cast.
The commission first met on Jan. 2, 2014, and immediately began working with the board of education and Superintendent Brian Garverick to develop a financial recovery plan. Ultimately, that plan included the layoffs of more than 100 teachers and support staff and the closing of Newman Elementary School.
Because state law prohibits a school district from ending its fiscal year in the red, the commission secured $3,685,000 from the state’s School District Solvency Assistance Fund – essentially a no-interest loan — to offset the deficit that would have remained on June 30, 2014.
In July 2014 Mansfield City Schools began a two-year payback of the loan when the state initiated a monthly deduction of $153,541 from the district’s per-pupil foundation money. The last of those 24 deductions will be made this month.
At his final meeting in October Marshall reflected on the previous 22 months.
“This was a difficult process in Mansfield because of the size of the cuts we had to make. Balancing the budget solely with cuts is very difficult,” he said. “It was a painful process for all concerned. I hate to see anyone lose their job. But, given the circumstances, there was no choice.”
Under Pierson’s leadership the commission has allowed the district to restore some positions, including two guidance counselors, because they are needed and are supported by a solid fiscal posture. This summer the district will hire a director of personnel and a director of curriculum, key central office positions that have been vacant since 2010.
In April the commission – again citing the district’s improved financial strength – approved the board of education’s new three-year negotiated agreements with its employee unions.
Agreements with the Mansfield School Employees Association certified personnel and support staff call for an increase of 1 percent on base salary for the 2016-17 school year and an increase of 1.5 percent for 2017-18. The contract with Teamsters Local 40, including bus drivers and mechanics, provides for a 15-cent hourly increase for 2016-17 and a 20-cent hourly increase in 2017-18.
The commission also approved a signing bonus of $450 for all union employees who work 25 hours or more per week and $225 for those who work less than 25 hours. The same bonus structure was applied to all administrative and central office staff not covered by a negotiated agreement.
Larry Gibbs is a spokesman for Mansfield City Schools.
