Interim treasurer Trevor Gummere said Tuesday it is “fantastic” that Mansfield City Schools has begun the process of moving out of fiscal emergency in less than 24 months.
Gummere commented during the board of education’s regular monthly meeting as the board adopted a resolution requesting that the auditor of state release the district from fiscal emergency. The action follows adoption of a similar resolution last month by the state-imposed Financial Planning and Supervision Commission.
"It’s not fun for those who went through the cuts. I understand that but the district is going to start the process of coming out,” Gummere said.
The average for school districts remaining in fiscal emergency is four years, according to Paul Marshall, who chaired the commission for 22 months before his retirement in October.
The four-member commission, which has overseen district fiscal matters since January 2014, worked with the district to develop a financial recovery plan to erase a deficit of about $3.6 million. That plan required cutting about 150 positions, closing Newman Elementary School and scaling back operations at Springmill Learning Center.
Tuesday’s resolution noted that the district has adopted a non-adverse five-year financial forecast. That forecast projects that the district will end the fiscal year on June 30 with a general fund balance of about $7.8 million.
Gummere has cautioned that the district’s continued financial health will depend on voter approval of two renewal levies by 2019. Without the renewals the district will face a deficit situation again.
Fiscal emergency can be traced to the defeat of the district’s renewal levy in November 2012 which would not have increased taxes. Loss of the levy cost the district $4 million annually.
When the auditor of state releases the district from fiscal emergency – expected by the end of the fiscal year – the oversight commission will be dissolved.
Board members Renda Cline, Dina Davis and Monica Hubbard voted in favor of Tuesday’s resolution. Chris Elswick and Cliff Crose were absent.