Athens County school district placed in fiscal emergency after $3M deficit

GLOUSTER, Ohio (WCMH) -- Facing a deficit of nearly $3 million, the state has placed Trimble Local School District in Athens County in a state of fiscal emergency.

Trimble's financial problems have been underway for a few years, but the district did not realize until it hired a new treasurer in the fall of 2024. In January, Ohio Auditor Keith Faber placed Trimble on fiscal watch, requiring them to submit a plan to eliminate the financial crisis. The district had asked to be put in a state of fiscal emergency in December, which Faber finally did on Thursday.

Trimble schools hired Ashely Miller as its new treasurer and CFO in September 2024, replacing Kevin Simons. In her first few months, Miller discovered the significant cash flow issue. Despite months of work, Faber said Trimble's deficit is projected to be $2,994,000 with no clear fix.

Public school districts must keep their finances balanced and submit them to the state, including financial forecasts for upcoming years. Often when districts are faced with a deficit, or more expenses then they can afford with their revenue, schools will request levy money or make budget cuts to adjust to avoid being placed on various fiscal watch levels.

A fiscal emergency is the final and most severe stage of a school district's financial problems. Faber said this occurs when a district's budget has a deficit of at least 15% of its revenue and has not passed a levy to fix it. Faber said Trimble schools' deficit equals 24% of its revenue and the district has not passed a levy.

Under a fiscal emergency, school districts are subject to oversight by a state financial planning and supervision commission, which can assume some or all of the power of the school board. Within 120 days, the district and commission must develop a plan to fix the fiscal emergency. Trimble has been pushing for oversight for months, fearing delayed state support could limit their ability to make payroll at the end of the school year.

According to emails between Miller and the Department of Education and Workforce, Miller found grants were overcharged by more than $1.5 million during fiscal year 2023 and 2024. She also realized funds were never transferred from the district's general fund to cover those expenses, making their financial status seem much more optimistic then it was.

Miller and the district spoke with the state and worked to make cuts wherever possible to continue making payroll and utilities. In December, Miller told the district that even if they made all cuts mid-year, the district would still have a deficit over $1 million. 

In March, the district announced it would have to lay off 13 full-time employees and eight part-time employees to address funding concerns. In total, Trimble employs 50 teachers, eight arts or gym teachers and 13 special education teachers.

Trimble will now work with the financial planning and supervision commission, which will likely be finalized next week. The state requires each commission to include women and at least one Black or Hispanic representative if 20% of the student population is Black or Hispanic. According to Faber's office, these commissions will include five members, with all appointees to be announced within 15 days:

• Director or representative from the Ohio Office of Budget and Management
• Director of Education and Workforce
• A state-appointed district parents whose child is enrolled at Trimble
• A governor-appointed district resident with financial expertise
• A mayor-appointed district resident with financial expertise

NBC4 reached out to Trimble's Board of Education, superintendent and treasurer but did not receive a response by publication. Trimble's Board of Education will next meet on April 17 at 6 p.m.