A financial recovery plan for Mansfield City Schools won unanimous approval of the Financial Planning and Supervision Commission Tuesday afternoon.
But the appointed panel, created by law after the auditor of state declared MCS to be in fiscal emergency in November, emphasized the plan is fluid and can be revised periodically.
“This is a dynamic plan subject to change,” said Mark Brunn, one of two local citizens on the commission.
The commission has authority over district financial matters and is charged with developing a plan to restore the district to fiscal solvency. The plan approved Tuesday will be submitted to the Ohio Department of Education in advance of a May 2 deadline.
Joining Brunn in approving the plan were Jill Haring, the other Mansfield representative; Sharon Hanrahan of the Ohio Office of Budget Management, and Paul Marshall, the commission chair, who is a fiscal consultant with the Ohio Department of Education.
“The plan includes nearly $6 million in cuts to salaries and benefits, but the net savings will be offset by unemployment payments (estimated at $1.4 million) and the repayment (in 2014-15) of $1.84 million to the state’s School District Solvency Fund,” Marshall said.
In February the commission voted to request $3,685,000 from the solvency fund to allow the district to offset a deficit of that amount before the end of the current fiscal year on June 30. The no-interest loan must be repaid over the next two years.
The plan eliminates the full- and part-time positions of 148 district employees – 90 teachers, five administrators and 53 support staff. (See list in story below).
Also included in the plan approved Tuesday is the closing of Newman Elementary School after the current school year and the blending of special needs and typical preschool classes.
Marshall said he expects state approval of the recovery plan.
“The question the Ohio Department of Education will ask is ‘Does this plan have a reasonable chance of success?’ I believe this plan meets that standard,” he said.
Emphasizing again how the recovery plan likely will change over time, Marshall said more work needs to be done on support services so that savings could be used to put more teachers back into the classroom.
“By law, the commission must look outside the classroom first. We must protect, not eliminate, teaching positions,” he said.
Marshall, who said earlier the commission’s work probably will take three years or more, said the panel also must take a closer look at health care coverage.
“I am concerned about the way this district provides health care. The district is self-insured but I think it is difficult for a district this size to provide health care coverage,” he said. “We won’t have anything next month but I want to keep it on the table for discussion.”
The commission will meet again May 28.