State blames high expenses for school deficit

by Stephenie Steitzer

In 1995-96 school year, officials in Trimble Local School District - one of the poorest public school systems in Ohio - increased administrators' and teachers' salaries despite warning signs that a deficit was lurking in the future.

Now, six years later, the district is one of three in the state in a fiscal emergency, declared by the state Office of the Auditor. The deficit, which started at $332,000 last year, is projected to reach $1.8 million by the 2004-05 school year, according to a 2001 report by the state Office of the Auditor.

A report from the auditor's office concludes that salary increases, combined with high expenditures and inadequate financial forecasting are the primary causes of the district's financial dilemma.

"Since (fiscal year) 1995-96, (Trimble's) certificated and classified staff have enjoyed high salaries and generous benefits when compared to the peers and other districts within Athens County," according to the report. "Furthermore, (Trimble's) per pupil expenditures exceed those of like-sized districts by approximately 13 percent."

The district's average teacher salary is about $38,000 - the highest among similar districts in Athens and Perry counties, which is $33,000.

While they say all those reasons might have contributed to the problem, district officials say the high poverty level in the district and their inability to generate local revenues are the primary reasons for the deficit. "You have school districts like Trimble that generate $27,000 per mill," said Dave Owen, Athens County deputy auditor and Trimble parent. "If you want to tax the people of the district to try to raise that figure, you are going to tax them to death."

A mill will raise $1 of tax revenue for every $1,000 of taxable property value.

The auditor's office report shows that the district's median income -- $20,734 -- is about $9,000 lower than the state average. It is also lower than the other districts in the Athens County region.

The district's poverty level is the reason it receives 79.4 percent of its funding from the state and 10.1 percent locally. The remaining 10.5 percent comes from the federal government. The average school in Ohio receives 43 percent of its funding from state sources.

While department of education officials admit high poverty levels are a problem for district, they say poor districts still can remain financially stable as long as management does not overspend.

And, overspending, state officials say, is the exact reason Trimble is in a deficit.

The auditor's report cites 55 recommendations the district should implement to dissolve its deficit. Most of the recommendations are cost-cutting measures, such as reducing its faculty and staff, adopting future teacher contracts within the district's estimated resources and using fewer school buses.

Other smaller measures include competitively bidding the district's health-insurance contracts, developing a plan to maintain its facilities and entering into agreements to purchase its utilities at a discount.

Owen said many of the recommendations in the report have already been implemented.  The commission, for example, just completed a 23-year, preventative -maintenance program for the facilities.

District treasurer Cindy Rhonemus said the district also has had a reduction in faculty because of retirements. The five positions the retirees held have not been filled, but this does not mean any programs are understaffed now.

"We're working on the (recommendations) we can do in the short term," Rhonemus said. "Some of those recommendations will require contractual changes, and that can only happen during negotiations."

Contract negotiations are slated to begin this spring, she said.

To compound the district's financial problems, it is also suffering academically, according to the auditor.

Trimble was placed in academic emergency because it failed to meet 21 statewide performance standards. Its state report card scores have been lower than similar districts in the region since the late 1990s.

The report shows that Trimble's ninth-grade proficiency test passage rate was almost 20 points below the state average. And its student absentee rate was the highest among similar districts in the region.

State Department of Education officials said the district's financial troubles do not directly correspond with its academic problems.

"Studies have also shown you can have all the money in the world and not provide a great education," said Scott Bennington, assistant director of finance and management services at the state Department of Education.

The district not only lacks all the money in the world to steer it out of its mess, but also a superintendent to take charge. The school board accepted Superintendent William White's resignation last month.

White, who couldn't be reached for comment, told the board his resignation was not because of the fiscal emergency.

John Costanzo, superintendent of Athens-Meigs Educational Service Center, has been appointed interim superintendent, but he said he probably won't be at the district long enough to help the commission.

District officials said they still are optimistic they can dig the district out of its deficit in the next few years, and state officials said they believe it can be done if they follow at least some of their recommendations.

"There are many districts that have been potentially in worse situations that have been able to turn it around," said Kim Norris, spokeswoman for the state auditor's office. "The key to all of it is having that plan in place and following the plan."