MT. HEALTHY, Ohio — The state auditor has placed Mt. Healthy City School District in a state of fiscal emergency Friday 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 release said the school district has not passed a levy to fix the deficit.
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 will now oversee the district. The commission, board of education and the community have 120 days from its first meeting to make a plan to "eliminate the fiscal emergency conditions," the press release said.
The release said Faber will serve as the panel's "financial supervisor." He will give accounting training and ensure 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
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."
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