Ohio State Auditor Keith Faber announced Friday that Mt. Healthy City Schools has been placed in a state of fiscal emergency due to its projected budget deficit of $10.8 million.
The auditor's office describes a fiscal emergency as "the last and most severe stage of a school district's financial solvency problems." The designation means the state will now create a commission to take control of part or all of the powers of the current school board and develop a financial plan to eliminate its budget deficit.
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A spokesperson for Mt. Healthy Schools says the district was put in "fiscal caution" in late 2023 and started to work with the state to remove the deficit, but could not recover enough funds to meet its budget. In February, the district's school board approved a resolution requesting the state put it in a state of fiscal emergency.
Less than a month after that request, Mt. Healthy School announced plans to cut 80 jobs, which included letting go of 67 teachers for the next school year.
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The state commission will be comprised of state officials, a parent with a student in the district selected by the state, and two Mt. Healthy residents with financial expertise appointed by the governor and mayor. Faber will serve as an advisor to the commission and will provide accounting assistance to ensure compliance with the recovery plan.
The district's budget deficit must be eliminated and an effective financial accounting and reporting system has to be implemented before Mt. Healthy can have the fiscal emergency designation removed.
