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Trimble Local Schools’ deficit projection nears $3 million as it prepares to enter fiscal emergency April 10
By: Theo Peck-Suzuki | Report for America
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GLOUSTER, Ohio (WOUB/Report for America) — Trimble Local Schools’ deficit will reach almost $3 million this fiscal year, according to a new report from the Ohio auditor.
The new numbers provide the clearest picture yet of the severe financial challenges Trimble faces as it prepares to enter fiscal emergency April 10.
The state’s estimated deficit for Trimble — roughly $2.9 million — is significantly higher than the $1.6 million the district projected in November. Trimble Treasurer Ashley Miller said the difference stems primarily from unpaid bills the district hadn’t yet discovered when it made its original projection.
Wears made a similar comment during her presentation.
“On the purchased services, that’s where you’ll see the most significant change between what was forecasted and what we came up with,” Wears said. “A large part of that are the outstanding bills. You know, when you’re running out of money, you just stop paying bills, and that’s understandable. When she (Miller) made the forecast (in November), it’s just an estimate of what they’re going to pay. We already know what is due and payable, so that’s way more accurate.”
The findings from the auditor’s office are the most precise illustration to date of Trimble’s financial woes. It’s a sharp change from where the district thought it was only a year ago, before Miller became treasurer.
“Our previous forecast had us in the black,” said board President Gary Arnold, referring to forecasts made by Miller’s predecessor. The district has since learned it was overcharging grants during that time, effectively spending money it didn’t have.
During the meeting, Superintendent John Hurd said he first realized something was amiss over the summer, when a member of the district’s Educational Service Center informed him Trimble owed about $160,000. That equates to over two months of unpaid bills.
From the moment Trimble announced its deficit in November, there was little doubt the district would enter fiscal emergency. On April 10, it will finally be official. After that, a financial planning and supervision commission will take the district over until its finances are stabilized.
According to the Ohio auditor’s website, the commission includes someone from the Office of Budget and Management, someone from the Office of Education and Workforce, a district parent with a child currently enrolled, and two district residents with financial expertise.
The commission will adopt a financial recovery plan to correct Trimble’s financial problems and make the district solvent. That will include loans from the state to pay off existing expenses, which Trimble will have to repay. It will also likely include further spending cuts.