FCMAT

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Will the state take control of the district if the county advisor does not get an adequate solution to the fiscal problems?

Question:  Will the state take control of the district if the county advisor does not get an adequate solution to the fiscal problems?

Response:  The state takes control of a district when the district has a severe cash flow crisis and requests a loan, to be paid back over a period of years. Reasons for the cash flow problem can vary, including long-term deficit spending, generous ongoing commitments or one-time large expenditures. If the cash flow issue cannot be abated locally or through the county office of education because of the severity of the district’s negative fiscal position, the state may approve a loan to the district. The SPI assumes responsibility for the district and appoints a state administrator to take charge of all superintendent and board duties. The governing board becomes advisory only when the SPI assumes responsibility.

2/02/04

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