State: Decatur finances worse than expected
Posted on Wednesday, July 2, 2008
URL: http://www.nwanews.com/bcdr/News/63362/
DECATUR — A current deficit of more than $ 60, 000 is the most immediate problem facing the Decatur School District, according to the Arkansas Department of Education.
On Monday, the Department of Education announced intentions to force the school district’s annexation by another district. On June 4, the Department of Education identified Decatur as being in fiscal distress. Since then, Department of Education officials have been at the school on and off to help the school with accounting after the resignation of district treasurer Tina Murray, Department of Education spokeswoman Julie Johnson Thompson said.
“ Our people were asked to help settle the books. While we were up there, all these other things came to light, ” she said. “ Checks and expenditures were not entered into ABSCAN, the state computer network, ” giving the state a faulty impression of the district’s finances. In fact, the situation is worse than the department believed.
Questions about why the Department of Education is moving so quickly to annex Decatur schools, when other districts were allowed two years to recover from fiscal distress, were asked during Monday’s special school board meeting.
School board members also questioned the validity of the 2008-2009 school year’s projected negative balance of $ 634, 140. 57. Teachers and community members discussed ways to come up with a part of the money.
“ The (current ) negative balance now is definitely the most dire situation, ” Thompson said Tuesday. “ A negative balance is against the law; there is not even a little wiggle room. ”
A Department of Education report shows that — after the payroll of $ 583, 268. 54 is paid, and bills totaling $ 103, 351. 88 are paid — the school will be left with $ 162, 834. 43 in the bank; however, the projected general operating fund balance for June 30 shows a projected deficit of $ 63, 828. 37 because that balance reflects the school’s dip into $ 226, 662. 80 of earmarked federal money.
“ These are estimates. This thing is not very accurate. None of the accounts balance. This is the biggest mess I’ve ever seen, ” Decatur Superintendent Dave Smith said of the Department of Education report after Monday’s meeting.
Thompson said Decatur officials will have a chance to present their own figures on July 14, during an Arkansas Board of Education meeting.
While Thompson said she can’t give an answer as to why the ADE is moving to annex Decatur in only 30 days because those decisions are strictly up to the Arkansas Board of Education — the nine-member governing body of the ADE — she did say that most schools are annexed because of declining student enrollment.
A school might be annexed because of fiscal distress if it cannot product a viable plan to turn the situation around or if it’s in a negative balance, Thompson said. Although it’s generally the process to allow the school two years to return to a state where it can manage its own finances, the state has the authority to step in quickly for the benefit of the students.
“ Even though it may not seem like it to the community, it really is for the benefit of the students, ” Thompson said. “ It is of utmost concern that the school district can provide education for students on par with Arkansas standards, ” she said.