The Legislature signed off on giving $8 million to Hancock County Schools, a district in the middle of a financial catastrophe.
However, a separate measure to set up a crisis-level emergency fund for public schools, spurred by the Hancock County situation, didn’t make it to the finish line by Saturday’s legislative deadline.
House Majority Leader Pat McGeehan, R-Hancock, sponsored legislation appropriating $8 million to the State Board of Education for Hancock County to make sure the county can pay its employees and bills for the remainder of the fiscal year.
The governor is expected to sign the measure.
“We just need to honor obligations and make sure that they keep these schools open,” McGeehan said. “(They) have run up such a deficit. There was nothing at the local level they could do to reduce costs.”
The county has been operating with 143 more positions than what the county school aid formula called for, according to the state education department. State officials have said the county used federal COVID-19 relief dollars to cover expenses.Along with a $5 million cash shortfall, there are numerous ongoing construction projects, including a $1 million turf project.
While cash flow problems mounted, Hancock County Schools misused the West Virginia Education Information System, a database used to track school finances, for 15 years. Additionally, State Auditor Mark Hunt told lawmakers that the school system is audited annually and his office found no red flags in the last three audits.
The state school board intervened in Hancock County, terminating the superintendent and appointing a replacement. State School Board President Paul Hardesty called the situation “inexcusable.” The county is in the process of reducing the number of employees to fix its finances.
McGeehan called the situation “an anomaly.”
“Two and a half years ago, Hancock County Schools was prosperous — $2 million in the black. Two and a half years later, suddenly, you know, it’s insolvent,” he said.
Sen. Laura Chapman, R-Ohio, pushed for the Senate to sign off on the funding for the school district.
“Our innocent teachers, cooks, bus drivers and staff deserve to be paid. This loan will truly help the families who were put in an impossible situation,” Chapman said. “I have faith that the new superintendent and school board will do the right thing moving forward to ensure something like this never happens again.”
Senate sidelines a new fund for schools in financial crisis
McGeehan also sponsored a bill to create a condition-based emergency fund for financially distressed counties.
The House passed the bill, but the Senate didn’t move the bill out of its Education Committee for a full vote on the floor.
Senators cited concerts with it becoming a “bail out fund” for counties that didn’t reduce staff as many are reporting financial strain due to West Virginia’s declining student population.
McGeehan said that it was an “important piece” of legislation, but not everything that was needed to address schools’ financial troubles.
“If school systems get in trouble, we make a distinction between forces beyond your control. The other part is, you have local administrators that could run your school system into the ground,” McGeehan said.
“I think there are definitely improvements that the state school board can make as far as oversight,” he added.
There are numerous other counties under the state board of education’s control due to finances as federal pandemic funds waned, which had been used to cover budget shortfalls. Lawmakers didn’t make any adjustments to the school funding formula this session despite requests from county superintendents.
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