Barberton City Schools is planning to cut almost 90 staff positions in the coming year after the state declared the school district is under a state of "fiscal caution."
The district, near Akron, is one of four under fiscal oversight by the state currently, but more could be on the way as districts say insufficient state funding and rising costs are leading to big deficits they must get under control.
Barberton was placed in the first level of oversight earlier this month. But how does the state fiscal oversight work?
In Barberton's case, the district's latest budget forecast submitted in late February predicts it will be out of cash completely by the end of the next fiscal year in June 2027, almost $4 million in the hole.
The Ohio Department of Education and Workforce bases its decisions on those forecasts. If a district is predicting a large enough deficit in the coming year like Barberton, the state requires them to submit a plan to avert that deficit and address the broader conditions that led to the fiscal problems. The state may also monitor the district on a monthly basis for progress on its finances.
In Barberton's case, its initial plan, which must be finalized by the end of April, calls for almost $6.5 million in cuts and passage of a levy in May. The lion's share of districts' expenses relate to staffing, and superintendent Jason Ondrus said that means the district is looking to cut 87 positions, almost 50 of which are teaching positions. It's not clear yet how many will be layoffs versus open positions being cut. Those measures alone might be enough, Ondrus said.
"Through all these financial challenges, we are doing our very best to preserve the academic experience for our students to the best of our ability," Ondrus said. "That is our number one priority in trying to maintain a high quality education here in Barberton."
He said it's a challenging time for the district and for others across the state.
"There's been some decisions that have made on property taxes, the property tax reform initiative, as well as the fair school funding formula that was not fully implemented the final two years of the bipartisan plan," Ondrus said. "So those things are factoring in."
What about a district that's been under oversight for longer?
Springfield Local School District, also in Summit County, has been under fiscal watch, the second most serious level of oversight, since 2020.
Superintendent Shelley Monachino said the district was making progress on getting out of that oversight until the legislature approved two bills last year aimed at providing property tax relief. Now, she's not sure if they ever will.
"Unless something miraculously happens with the state, with these house bills, you're going to see more and more districts going to be struggling with it," Monachino said, noting recent budget cuts instituted at area schools like Cuyahoga Falls and Lorain.
Even before recent record property value increases, she said the district's voters hadn't voted in favor of a tax increase for schools in more than two decades.
Still, Monachino said state oversight has actually been helpful for the district in managing its finances. It's meant the district must present a balanced budget each year.
"If we were ever let out of fiscal oversight, that really is a great way of making sure that you are staying in within your budget," she said. "Because what a lot of happens with schools is when they do get that influx of money. Sometimes they think, 'oh, look at all this money that we have,' and then they just keep spending."
Some critics have highlighted districts' spending of pandemic-relief funds, calling decisions to use that money on staff irresponsible because they would not be able to continue to pay those salaries.
In Barberton, Ondrus defended the district's spending priorities during the pandemic, noting its impact on students.
"It was spent well on resources for students, you know, whether that was academic resources, mental health resources, behavioral health resources, those things, it was spent well and went towards those items," he said.
If fiscal emergency, the final level of fiscal oversight, is declared by the state, the Ohio Department of Education and Workforce forms a commission to monitor the district closely. State statute even allows the commission to decide on layoffs.
Mt. Healthy City School District in Hamilton County and Trimble Local School District in Athens County are currently listed in fiscal emergency.
