MT. HEALTHY, Ohio — Mt. Healthy School District has been approved to receive an $11 million loan, which will keep schools open for the 2023-2024 school year, the Mt. Healthy public information officer said Tuesday.
This loan approval comes after the state auditor placed Mt. Healthy City School District in a state of fiscal emergency on April 5 due to a "projected operating fund deficit approaching $10.8 million," Auditor of the State Keith Faber said in a press release.
An analysis revealed that the deficit is $10,758,000 — 26% of the "district's general revenue fund" for the fiscal year ending on June 30, the press release said.
The PIO said the $11 million loan "means that we will be able to honor our financial obligations."
Mt. Healthy City School District was placed in "fiscal caution" twice in 2023, the district said in a press release. According to the release, in May 2023, the district was placed in "fiscal caution" for the first time but was removed in August 2023 after working with the state to reduce spending.
However, in November 2023, the district was placed back in "fiscal caution" and despite working with the state once again, it was unable to remove the deficit, the release said.
At the Special Board of Education Meeting on Feb. 24, the school board asked the state to move the district into fiscal emergency to ensure the staff received payment and the district would get help with its financial state, the district said in a press release.
According to state law, a school district can only be placed in a state of fiscal emergency by the Auditor of State's Office when the following occurs:
- The Auditor of State has certified an operating deficit for the current fiscal year that is over 15% of the "district's general fund revenue for the preceding fiscal year."
- Voting electors have not passed a levy to raise enough money in the upcoming fiscal year, which will eliminate the deficit for the following fiscal year.
Mt. Healthy City School District said the money in the general fund was used to pay for the staff's salary and benefits in addition to the following:
- Transportation
- Cleaning services
- Special education expenses
- Facility repairs
- The Early Learning Center construction
- Utilities
A financial planning and supervision commission now oversees the district. The commission, board of education and the community had 120 days from its first meeting to make a plan to "eliminate the fiscal emergency conditions," the press release said.
Faber serves as the panel's "financial supervisor." He gives accounting training and ensures people comply with the recovery plan as well as the accounting rules and reports.
The district will also be indefinitely suspending personnel throughout the year due to its finances and the restructuring of administrative positions:
- Four exempt personnel effective June 30, 2024
- Nine administrators effective July 31, 2024
- 67 others effective August 31, 2024
The PIO did not detail how the $11 million loan would be used, if it would affect the layoffs, or if it "eliminates the fiscal emergency conditions."
Mt. Healthy City Schools said in a statement to WCPO, "We are committed to addressing the challenges outlined in the report in a proactive and responsible manner."
For more information, click here.
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