Greenland, Decatur To Make Updated Financial Reports To State
Both districts intend to show improved fiscal health
Last updated Tuesday, January 6, 2009 7:40 PM CST in News
By Rose Ann Pearce
THE MORNING NEWS
SPRINGDALE -- Greenland and Decatur school superintendents plan to tell the Arkansas State Board of Education their districts should end the school year in the black after a year of austere spending.
The state education board will hear the quarterly financial reports from Roland Smith of Greenland and LeRoy Ortman of Decatur at a meeting Monday in Little Rock. The two were named interim superintendents by Education Commissioner Ken James after the state assumed control last summer, ousted local school boards and began running the districts because of plaguing financial problems.
Ortman, who came out of retirement as Gravette's superintendent to take the reins in Decatur, believes Decatur has turned the corner on its finances.
"It looks like we're headed in the right direction," Ortman said this week. The district has received 55 percent of its anticipated revenue and has spent 42 percent of its planned expenditures.
Decatur faces some unknowns, Ortman said, such as a lawsuit filed by former Superintendent Dave Smith seeking his $90,000 a year salary through the end of his contract in 2011. He was suspended with pay last July.
If Smith prevails in his lawsuit, the district could have to pay as much as $300,000 or more. Ortman said there is no rainy day fund to cover that amount.
Another factor is loss of about 60 students which could result in a drop of more than $346,200 in state per pupil funding.
An end-of-year balance for Decatur is projected at $243,559, according to state education documents prepared for Monday's meeting.
Smith, former superintendent in Rogers, plans to share details of his cost-cutting measures in Greenland. An end-of-year balance of $137,520 is projected in Greenland, according to state education documents.
The district repaid a $621,000 bank loan, has no declining balance and improved its cash balance to carry the district forward for the next several years.
The state staff report to the board includes a process to either remove both districts from fiscal distress or complete annexation into a contiguous district in mid-2010.
The state education board would need to act by June 2010 to remove either district from fiscal distress by the start of the next school year. The local school board would be reinstated after the September 2010 school elections.
The state dissolved the school boards in both districts last summer. New boards would have to be elected and seated.
If the state board decides to annex either district, that decision must be made by January 2010 if the intent is to have the annexation take effect in August 2010. A timeline of steps to occur in the following months is outlined in the procedure.
Smith said he thinks the annexation plan is included in the report to give the state board an idea on what the procedure would be.
At A Glance
Districts' Actions
The Decatur and Greenland school districts have taken numerous steps to control spending since being placed under state control over a year ago.
Decatur
• Reduced 2.5 certified positions and 1.75 classified positions.
• Renegotiated lease agreements for copiers and trash bins.
• Implemented purchase order system.
• Centralized bus stops.
• Segregated financial duties among employees in central administration office.
• Monitors utility usage.
• Repaid cash flow loan of $171,000 on Nov. 14.
Greenland
• Reduced 13 certified positions and 8.5 classified positions.
• Sold used buses and vehicles.
• Eliminated employee benefits above the state required minimum amount.
• Eliminated the track program, employee cell phones, iBook payment and dues.
• Monitors utility usage.
• Consolidated two bus routes.
• Monitors operational spending.
Source: Arkansas Department Of Education
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