12-19-12 —   The Monticello Independent Board of Education has voted to formally  

request that the district become state managed and preliminary  

discussion was held about merging the Monticello School District with  

Wayne County. These decisions came after a lengthy meeting and much  

discussion during the regular monthly meeting of the board on Monday  

evening, December 17.

    The decision to request state management came after board members  

heard an update from Gail Binder, with the Kentucky Department of  

Education (KDE). Binder noted that the district does not have enough  

revenue to cover its expenses.

    Binder provided the board with a working budget status and recapped  

the district's expenditures. She noted that the biggest expense is  

salaries, which accounts for almost 93 percent of this year's budget.  

This expense, combined with the two percent contingency, accounts for  

95 percent of the budget. That leaves the remaining five percent to  

cover the operating expenses, such as fleet expenses, insurance  

costs, expenses associated with maintenance and special education,   

utilities and technology costs, according to Binder.

    Binder added that the balance in the budget is going to continue to  

decline each month.

    She also pointed out that the district has a bond payment of  

$178,000 due on February 1. The last thing the district wanted to do,  

noted Binder, was put themselves in a position where they cannot make  

that payment.

    The effect that would have on the February payroll, at the latest,  

is that the district would not be able to cover it. Board members  

were informed that the district would need to be state managed in  

order for the March payroll to be covered.

    Binder said that team members have already made overtures to the  

state regarding this matter and that one alternative is state  

management.

    Kay Kennedy, with the KDE, addressed the board and referenced  

Breathitt County, a school district that is currently state managed.  

She stated that under state management, officials with the KDE make  

all decisions and operational procedures formerly handled by the  

superintendent and board of education.

    Kennedy emphasized to board members that the district did not have  

the revenue to meet its expenditures and, by law, they cannot do  

that. She added that state management would allow the state to infuse  

cash into the situation that would allow them to meet the obligations  

for the school district for the current year.

    In addition, Kennedy addressed the staffing issue. She stated that  

the district has lost over 80 students but still has the same number  

of teachers as when they had those additional students.

    When asked how many teachers would need to be let go in order to  

address the over-staffing issue, she stated that around 15 teachers  

would need to be let go. However, she added, when that number of  

teachers are cut, it starts depleting programs and all that is  

offered to the students.

    According to Jim Hamm, an education recovery specialist assigned to  

the Monticello School District by KDE, it would come to the point  

where the district cannot meet the kids' educational needs and  

requirements.

    When Kennedy was asked how the board could balance the budget so the  

district could get caught up, her response was that she did not see  

how it could get caught up.

    She added that the state can help in the short term, and reiterated  

that the bottom line is that the district cannot continue to operate  

in a deficit.

    There was discussion about selling the soccer field, but Binder  

noted that is would only help temporarily and that it would just be a  

short term fix.

    Kennedy then addressed the issue of Monticello School District  

merging with Wayne County at a future point. Although discussion of a  

merger of the two school districts is preliminary at this point,  

Kennedy said that one of the first things that would need to take  

place is teams of representatives from both schools would need to  

meet and discuss how they could take their combined resources and do  

what is best for the students. Those teams would need to work  

together and put a plan in place, she added.

    Kennedy then stated that the merger of the two school districts  

would provide them with enough resources to give the students what  

they need to be college and career ready and to be 21st Century  

learners.

    According to Kennedy, the discussion of a merger is preliminary  

right now. She said that right now they must get through this school  

year and fiscal year, which ends on June 30.

    At this point, there have been no formal discussion of a merger  

between Monticello School District and Wayne County School District  

or the KDE and Wayne County. Kennedy said that sometime early next  

year discussions will start the collaborative effort between the two  

districts.

    Following the lengthy discussions, three board members voted to  

request state management. Nancy Duncan, Shelia Stephenson and Jerry  

Lair voted in favor, while Bill Denney and Chris Dobbs abstained.

    The request for state management has to be approved by the Kentucky  

Board of Education, which will meet again in February. According to  

Kennedy, she anticipates that start date for the state management  

designation to go into effect by March 1.

    In other news, board members met in executive session to discuss  

hiring an interim superintendent. Upon returning to open session, it  

was announced that the board had offered the interim superintendent  

position to John Hurt, a retired superintendent from Cumberland  

County. Hurt told board members that since circumstances had changed  

since he was interviewed, he wanted to think about it and said he  

would give them a decision by December 21.

    More details from Monday's meeting will be included in next week's  

Outlook.