GREENLAND PUBLIC SCHOOLS : District prepares for transition to state control
Posted on Monday, July 21, 2008
URL: http://www.nwanews.com/nwat/News/67344/
Their school was spared from annexation July 14 by the Arkansas State Board of Education, but much work remains to be done by the Greenland School District if it is to remain independent in the long term.
The state board voted to place the district under state control for the foreseeable future in lieu of annexing it to another system due to ongoing financial problems. School board members received letters Thursday formally dismissing them and declaring the takeover by the state.
Arkansas Education Commissioner Ken James is expected to name a stateappointed administrator soon to run the district. No announcement had been made as of Friday.
Now former Board President Bill Groom said he thinks the main thing that needs to be done in the near future is fundraising so the district can retire as much of its $ 621, 000 loan as possible without using operating funds. The loan is due in December.
Groom said he does not expect the department will allow them to defer half of the payment on the loan for a year, which had been proposed in one of the state’s recent fiscal distress improvement plans. Interim Superintendent J. J. Gardenhire had predicted the district could finish this year with a balance of more than $ 100, 000 if half of the loan payment was deferred and certain bond sale proceeds come through in December.
Groom said the bond sale, part of the 2. 6-mill tax increase that was approved by voters in June, is a sure thing, but the department has been reluctant to count it as a revenue source until the proceeds actually arrive. Assuming the bond sale goes through, the district is expected to have a shortfall of in the $ 200, 000 range without the loan payment deferment.
Groom and former board member Dennis Caudle said they and other community members want to help the new state-appointed superintendent by raising revenue to cover the district’s financial shortcomings.
“ We’re going to cooperate, communicate, raise funds to where they will succeed, ” Groom said. “ We’re not in that big of a hole. We can dig out of this thing. ”
“ Whoever it is, when he gets here, support him, support his efforts, make sure he doesn’t fail, ” Caudle said. “ The numbers are not that ridiculously bad. ”
Greenland finished 2007-08 with a budget deficit of about $ 120, 000, which was covered by a short-term loan from a line of credit the district has at a local bank. The district received education department approval for the loan, which is one of the reasons it must repay $ 621, 000 in December instead of $ 500, 000.
In retrospect, Caudle noted, the district was overstaffed based on its enrollment, and two personnel cuts or changes could have been enough to divert the shortfall of $ 120, 000.
The new superintendent will have exclusive control over district decisions under supervision from the department. The administrator will not be able to void current district contracts, and any future contracts will require state approval.
There will no longer be “ school board ” meetings, but Greenland Police Chief Gary Ricker said he hopes the new superintendent will do what he can to keep patrons informed about the district issues. “ The community needs to continue to work to keep the school going. I’m not sure yet how much we need to raise to make sure we save our school, ” Ricker said. “ I’m anxious to see who is going to be appointed. I’m hoping they’ll keep the public informed. If they let us know what’s going on, I think we’ll have a real chance... They don’t have to take any input from us, but it’d be nice if they’d ask for it. ” Groom said he would like to be available to answer questions about the community and the district for the new superintendent. “ It’s up to them. My attitude is I’m just going to try to be positive, ” Groom said. At the state board meeting Monday, James indicated he would report back to the board every three months on the financial status of the Greenland system. At least two of four past takeovers, Midland and Helena-West Helena, have been successful in that new stateappointed superintendents were able to rectify financial problems and eventually return them to local control. The Midland district notably raised $ 400, 000 in February 2006 to cover a shortfall and divert annexation. The state is still working with the Bald Knob school district, which is under state control, and patrons have raised more than $ 1. 5 million to help cover a shortfall. Bald Knob residents also passed a two-year sales tax to provide additional funds for the district. Greenland supporters have already organized another yard sale at the Greenland Middle School safe room on Saturday from 7 a. m. to 4 p. m. Supporters raised about $ 22, 000 at an all-day fundraiser July 12, coupled with nearly $ 44, 000 in pledges from individuals who had said they would support the district if it wasn’t annexed on Monday. “ When folks fully understand what’s going on, we hope they stand by that pledge, ” Groom said. “ Everybody’s kind of catching their breath right now. ”