| By Bob Weaver
Calhoun Schools critical financial problems made front-page headlines in the Charleston Gazette-Mail Sunday, in a story with Joe Panetta, WVs school chief financial officer.
Panetta, in the article, appears to be blaming teachers and service personnel for the
failure to reduce a current $1.8 million deficit with their filing of grievances related to the elimination of a $600 supplement given them during better economic times in 1999.
Panetta said of the state's 55 county school systems, Calhoun is one that is far into the red, embroiled in "employee grievance filings that are hindering its recovery."
The deficit problem is significantly linked to a declining school enrollment, with the county getting fewer dollars through the school funding formula. Calhoun Schools have lost enrollment from 1,700 students in 1990 to likely less than 1,066.
Reports also indicate part of the deficit problem is an over-run in the construction of Arnoldsburg Elementary School, but that could not be confirmed.
The original 45 grievances by service personnel, which were restored for one year only, appears to represent about $27,000.
Teachers initially did not file grievances over losing the supplement, but according to the school systems law firm Bowles-Rice, about 60 teachers and 55 service employees have now filed new grievances over the $600 reduction.
If an administrative judge restores those supplements, it appears the total amount would be $66,300.
Teachers and service employees are upset that Superintendent Tim Woodward and the school board approved supplements, some up to $9,100, for central office administrators, with the superintendent saying the central office reorganization was part of his deficit reduction plan.
The central office reorganization, where several positions were eliminated, has also resulted in numerous grievances being filed over claims of illegal loss of jobs, which could result in costly reversals and civil suits. Those grievance cases are pending.
Panetta says the state had reviewed audits and issued reports to Calhoun Schools annually starting in 2010-11 regarding the growing deficit, with the superintendent issuing deficit reduction plans.
It appears that the deficits were publicly made known when it reached about $400,000, but then in 2014 a deficit amount jumped from $800,000 by a million dollars to $1.8 million.
Earlier, in other cases around the state, the WV Board of Education went public in media about county schools in financial distress, and in many cases took over the operation of the distressed systems.
The state board announced last year that it was not going to take-over county school systems related to performance, finances or failure to consolidate schools.
Calhoun Schools critical money problems were clearly defined by financial director Dan Minney in a recent school board meeting.
The meeting, reported in the Calhoun Chronicle, verified earlier reports in the Herald that the $1,800,000 deficit had been cut by about $100,000 during the first year of attacking the problem, although that amount is in question.
According to the Chronicle report, Minney told school board members, "Unless something changes in funding, whether it be the (school funding) formula or some other way of additional revenue, we're looking at 18-20 years to get out of this mess."
Calhoun voters failed to pass an operating levy in 2014.
Minney further indicated the deficit may be growing.
Some rural, small enrollment schools in WV have been funded by the state at a 1,400 student enrollment level, but Calhoun Schools have not, while it appears that the local system has maintained a mandated student-teacher ratio.
Panetta, in responding to a Herald request about a solution said,
"The same financial principles apply for all parties that receive and expend funds, including individual households, governmental entities, and private companies."
"Expenditures cannot exceed revenues, including any carryover balances. To resolve the situation, revenues must be increased or expenditures reduced. And of course, in situations where revenues cannot be increased, the only recourse is to reduce expenditures. This is the situation faced by the Calhoun County Board of Education," Panetta said.
Calhoun Schools are pleading with state officials to implement the 1,400 pupil policy to increase the school funding formula.
School administrators and school board members are majorly challenged to find solutions, with the impact of the school system deficit raising questions about how long Calhoun Schools can keep the doors open.
See
Calhoun County Schools faces hard road back from deficit By Ryan Quinn for Charleston Gazette-Mail
Calhoun schools trying to slash deficit, but employees protest By Ryan Quinn for Charleston Gazette-Mail
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