WV State Board of Education Reviews Webster's School Budget Deficit Reduction Plan

At its meeting Wednesday evening in Charleston, the West Virginia State Board of Education approved the Webster County Board's plan to address the county's school budget deficit now being discussed locally as one of the reasons in support of Superintendent Martha Dean's school consolidation plan.

Eight county Board of Education budgets were reviewed by the State Board. Five of those budgets were considered critical because of their large budget deficits. Three budgets were termed "casual," including Webster County. When a county board has more than a "casual" deficit and action is not taken to correct it, the State Board can take over the county school system. Since Webster does not have more than a casual deficit, a State take over is not allowed under the law. 

West Virginia law defines a "casual" deficit as one that is "not more than three percent of the approved levy estimate or a deficit that is nonrecurring from year to year." According to the figures presented to the State Board, Webster's most recent deficit is both less than three percent of the levy estimate and is nonrecurring (Webster County's Board of Education budget is in excess of $17.7 million in the last fiscal year). Here are the Webster County budget figures reviewed by the State Board: 

• June 30, 2008, budget deficit of $196,533.00
• June 30, 2009, budget surplus of $446.278.00
• June 30, 2010, budget surplus of $518.842.00
• June 30, 2011, budget surplus of $101,404.00
• June 30, 2012, budget deficit of $58,980.00

Of the eight county budgets reviewed by the State Board, Webster's $59,980.00 budget deficit was the second lowest deficit (Pendleton County had a $19,793.00 deficit).

Webster's deficit of $59,980.00 as presented to the State Board was corrected to be only $1,897.99, according to a letter presented at the State Board's meeting Wednesday. That letter, which Save Our School committee leader LaCosta Westfall read at Tuesday's Webster County Board meeting, was authored by Superintendent Dean on January 9, 2013.

In her letter, Dr. Dean states that "as per your request, I am submitting the following corrective action plan to address the deficit in unrestricted fund balances in Webster County School's General Current Expense fund as of June 30, 2012. Since that report came final, we received e-rate funds due us for FY'12 in the amount of $58,082.01. This receipt reduces the deficit for Webster County to $1,897.99."

Dr. Dean proposed four strategies in her letter to address the small deficit to ensure that the county does not have a deficit in the future:

1. Request funds due us in a more timely manner;
2. Address energy-saving strategies in all our schools;
3. Employ only those employees paid for through the State Funding formula; and
4. Postpone costly repair items until funds are readily available.

Dr. Dean concludes her letter by stating that "I trust these strategies employed by the Webster County Board of Education will be sufficient to resolve the deficit notes at the end of FY'12."

As Westfall noted at the Tuesday meeting, no where in her letter (that was approved by the State Board) does Dr. Dean mention school consolidation as a strategy necessary to address the $1,897.99 budget deficit. 

Before the Webster Board elected to take no action on Dr. Dean's consolidation plan at Tuesday's meeting, Westfall questioned why the Board would even consider closing the Diana Elementary School or any other school in the County given the very small budget deficit. Westfall even offered to cash in part of her retirement plan to come up with the "$2,000.00 to stop this [consolidation plan]."

Previously, the Commentator reported that the Webster Board's deficit to be significantly greater. The Commentator has in its possession the "Annual Financial Statements of the Webster County Board of Education as of and for the Fiscal Year Ended June 30, 2012." That Statement was signed under oath by Board President Paula Mae Tanner and Dr. Dean on September 25, 2012. That Statement lists revenues and expenditures, and concludes with a fund balance ending in a deficit of $288,608.00.

The Commentator along with the editor of the Webster Echo interviewed Dr. Dean in December, 2012, and Dr. Dean said in the interview that the county's school budget deficit was approximately $300,000.00, which is consistent with the sworn Financial Statement. Dr. Dean listed that larger budget deficit as one of the main reasons for the school consolidation plan.

Now, for whatever reason, the deficit stands at a paltry $1,897.99. Many are seriously questioning the need for a school consolidation plan in light of these revised figures, particularly considering that the State Board just approved Dr. Dean's plan which does not mention school consolidation as a strategy to address the now relatively insignificant budget deficit.

Link to West Virginia State Board of Education minutes discussing budget deficits of all eight counties (including, at very end, the letter from Dr. Dean to the Office of School Finance):

http://wvde.state.wv.us/minutes/current/gpenixExecSumFin.Deficit&Rpts.-Agenda.pdf

Link to the February 13, 2013 Charleston Gazette article mentioning Webster County's school budget:

http://www.wvgazette.com/News/201302130251

Link to law defining budget deficit as "casual":

http://www.legis.state.wv.us/WVCODE/Code.cfm?chap=18&art=1

Link to law stating when a State take over can occur if budget deficit is more than "casual":

http://www.legis.state.wv.us/legisdocs/code/18/WVC%2018%20%20-%20%202%20E-%20%20%205%20%20.htm

Link to our prior interview with Dr. Dean:

http://webstercommentator.blogspot.com/2012/12/superintendent-martha-dean-responds-to.html