Ohio school district placed in fiscal emergency

Failure to present an acceptable financial recovery plan by the Monroe Local School District (Butler County) has prompted Auditor of State Dave Yost to place the district in a state of fiscal emergency.

“The Monroe Local Schools will have some difficult decisions to make in the coming weeks and months,” Auditor Yost said. “My office stands ready to assist wherever we can to bring financial stability back to the district.”

On Oct. 1, 2011, the Ohio Department of Education declared the Monroe Local School District to be in a state of fiscal caution based on anticipated deficits for the 2012 and 2013 fiscal years.

The district was placed in fiscal watch by the Auditor of State’s office on Feb. 2, 2012 because the district failed to submit an acceptable written proposal to the Ohio Department of Education to eliminate the anticipated deficits.

The declaration of fiscal watch required that the board of education submit an initial financial plan to the State Superintendent of Public Instruction that will address the district’s current operating deficit and avoid future deficits.

The Monroe Local School District Board of Education failed to submit an acceptable recovery plan following the fiscal watch declaration, and anticipates a deficit of $2,204,000 for the fiscal year ending June 30, 2012.

A Financial Planning and Supervision Committee will now be created to assume all or part of the powers of the board of education.

Three members of this commission must be appointed within 15 days of this declaration of fiscal emergency.

A financial plan must be developed by the commission within 120 days of the first meeting of the commission to address the district’s financial crisis. The Auditor of State’s office takes an advisory role to the commission and may provide accounting training and assistance.