Columbus –Auditor of State Dave Yost today released the McDonald Local School District (Trumbull County) from its fiscal emergency status, which it held since 2009.
“Coming back after fiscal emergency is an uphill battle for any entity, and each community must make the difficult choices that work best for them,” Auditor Yost said. “I congratulate the McDonald Schools and community for facing their challenges and bringing fiscal health back to their school district.”
The McDonald Local School District was placed in fiscal emergency on October 15, 2009 due to a general fund deficit of $2,001,000. This amount equated to 32% of the district’s general fund revenues for the fiscal year ended June 30, 2009. According to the Ohio Revised Code, a school district may be declared in fiscal emergency by the Auditor of State if the district has a forecasted operating deficit that exceeds 15% of the district’s general fund revenue for the preceding fiscal year.
The district took numerous actions to eliminate the conditions that prompted the fiscal emergency declaration, including staff reductions which added up to annual savings of more than $700,000. By renegotiating contracts with outside vendors, the district saves more than $53,000 annually. Employee contract concessions save the district almost $230,000 each year. The voters of the district passed a 4.9-mill emergency levy in 2010 to generate an additional $260,000 annually and another 7.25-mill emergency levy in 2011 to generate additional revenues of $391,000 annually.
The district received $2,001,000 in state solvency assistance advances in fiscal year 2010 and the funds will be fully repaid during fiscal year 2012.
To be terminated from fiscal emergency, the McDonald Local School District met the following criteria:
- An effective financial accounting and reporting system is in the process of being implemented
- All of the fiscal emergency conditions have been corrected or eliminated, and no new conditions have occurred, and it appears that the district will remain out of fiscal emergency during the forecast period
- The objectives of the financial recovery plan are being met
- The school has prepared a five-year forecast in accordance with standards issued by the Auditor of State.
A full copy of this termination is available online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,600 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.