Sumter school board votes down motion, 6-3, to continue its appeal

Sumter School District's Board of Trustees will not appeal its denied appeal of being declared into a fiscal emergency.

After coming out of executive session behind closed doors about 9 p.m. Monday, the school board voted down a motion made by Area 7 Representative Barbara Jackson 6-3 to continue its appeal into administrative law court the state Board of Education's April 9 decision upholding the state superintendent's declaration.

Those voting in favor of the failed motion included Jackson, Area 1 Representative Brian Alston and Area 5 Representative the Rev. Daryl McGhaney.

Board Chairman the Rev. Ralph Canty, Frank Baker, Johnny Hilton, Matthew "Mac" McLeod, Shawn Ragin and Sherril Ray voted against the motion. With that, the board and district will now wait on financial recommendations from the state Department of Education's finance department regarding finalizing next year's budget.

After the school board voted to reopen Mayewood Middle School for next school year in February, diverting from its own fiscal caution financial recovery plan from May 2018, state Superintendent Molly Spearman declared a fiscal emergency in the district.

In its appeal, the district/trustees presented a new plan that showed the district how it would reopen Mayewood and still achieve a new state mandate of one month's operating expenses in its general fund balance by June 2020. With the assistance of legal counsel, the district/trustees asked the state board in its hearing in Columbia to approve the new plan and lift the fiscal emergency declaration, placing the district back on fiscal caution.

The fiscal caution was in place as the district emerged from fiscal 2016, when it was revealed in the official audit there was $6.2 million in overspending. The financial crisis drained the district's fund balance to $106,449 as of June 30, 2016.

Mayewood and F.J. DeLaine Elementary School, two low-enrollment campuses, were closed starting this school year to save money.

The 10-member state board voted unanimously to uphold Spearman's decision and not remove the emergency declaration.

In the appeal process, the district spent about $26,000 alone in attorney fees.

WHAT'S NEXT?

Likely, many elements of the district's new budget recovery plan for next year presented April 9 to the state board will move forward. Spearman did say that day that reopening Mayewood will not likely be part of the state department's recommendations. The district budgeted annual operating expenditures for Mayewood at $295,000 in its plan.

The plan included $6.6 million in budget cuts. According to district Chief Financial Officer Jennifer Miller, the cuts largely reflected increases in expenditures - mostly because of state mandates - and basically flat revenue levels that also account for declining enrollment.

On April 15, the state department submitted questions to district administration requesting additional information on parts of the recovery plan, Miller said. On Monday, the district sent its responses back to the state department, she said.

More guidance, what is being called "technical assistance" under the emergency declaration, is expected.

Canty, the board's chairman, said Monday that the trustees and district are willing to have dialogue and partner with the state department in making the district stronger financially.

The earliest the district can be lifted from fiscal emergency under the 2-year-old state law is likely late 2020. That's when the district would release its official audit for fiscal year 2020, through June 30, 2020. With the legislation, the district must have one month's operating expenditures in its fund balance by that point. Miller estimates that threshold to be $10.7 million. She also projects the district will have about $9.4 million in its fund balance on June 30 of this year.