MORROW, OH (FOX19) - Ohio Auditor Mary Taylor announced Tuesday that the Little Miami Local School District is under fiscal emergency.
Taylor says the determination was based on the failure of the district to submit an acceptable recovery plan to the Ohio Department of Education while under fiscal watch.
"My office will continue to work with the district to help identify potential cost-saving opportunities they can use to prevent future deficits," Taylor said. "I encourage Little Miami officials to strengthen their efforts to implement those strategies and restore the district to fiscal stability."
When a school district is declared to be in fiscal watch, the district's board of education is required to prepare and submit an acceptable financial plan to the State Superintendent of Public Instruction that outlines how the district intends to eliminate the current operating deficit and avoid future deficits.
Because Little Miami Local School District's financial plan anticipated a deficit of $5,844,000 for the fiscal year ending June 30, 2011, the Ohio Department of Education deemed it unacceptable and, in accordance with state law, the Auditor declared the district to be in fiscal emergency.
When a district is placed in fiscal emergency, a five-member commission is appointed by the state to help the district regain financial stability. The commission is responsible for approving a plan that details solutions for eliminating the fiscal emergency conditions. The plan should also balance the budget and present strategies to avoid future deficits.
The plan must be approved by the district and submitted to the commission within 120 days of the commission's first meeting.
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