Takeover spares Greenland from annexation
Posted on Thursday, July 17, 2008
URL: http://www.nwanews.com/wrvn/News/4088/
LITTLE ROCK - The Arkansas State Board of Education spared the Greenland School District from annexation and instead opted to place the district under state control for the foreseeable future Monday.
Education Commissioner Ken James said he would formally notify the Greenland Board of Education of the decision by letter, which is standard procedure in a takeover. He will give the board reports on district progress with improving its financial situation every three months, he said.
He will appoint his own superintendent and dismiss the school board as part of the change, he said. The board voted 5-0 to defer annexation and assume control of the district. Six state board members were present, but under board rules, Chairman Randy Lawson generally does not vote.
Greenland board President Bill Groom and district-contracted attorney Kelly Carithers welcomed a takeover instead of the district’s annexation into another system.
“ We appreciate the second chance, ” Groom said.
Carithers argued the district was already on track to improve its situation because of a millage increase the public passed June 10. She and Groom said the Greenland board would step aside to let the state manage the district’s affairs. With state guidance and some time, the district could improve its finances, they said. This spring, the state district returned the Helena-West Helena and Midland school districts to local control after more than two years of being under state control and on fiscal distress. The state is also continuing to work with the Bald Knob School District to improve its financial situation. James wasn’t immediately sure how soon he could appoint an administrator to take over Greenland, telling the board that it might take a few weeks.
Financial woes
The Greenland School District was placed on the Education Department’s fiscal distress list due to a projected budget shortfall at the end of the 2007-08 fiscal year.
James had scheduled the Monday annexation hearing because of the projections. He commented after the meeting that it was the first time he could recall a school board asking that it be taken over at a state board meeting.
Carithers largely blamed Ron Brawner, superintendent from 2005 until last month, for not providing proper leadership and financial information to the Greenland school board. She noted at one point he publicly predicted the district would finish the 2007-08 fiscal year with a balance of $ 4, 000. Brawner was relieved of his duties at a June 24 meeting, when the Greenland board asked for his resignation while he was out of town. The board asked that he resign or be fired.
He has not yet submitted his resignation, but the district named J. J. Gardenhire as interim superintendent. The district finished the year about $ 140, 000 in the red, which was covered by a short-term loan for which the district received approval from the Department of Education.
Carithers noted it was still much better than the state’s one-time estimate that the district would finish with a $ 300, 000 deficit. Department Finance Administrator Bill Goff predicted the district would have a shortfall of $ 427, 000, an amount Gardenhire had predicted Education Department officials would give to the state board. Gardenhire, who didn’t address the state board Monday, had predicted the district could finish in the black if allowed to defer a loan payment and calculate some payments received from a pending bond sale. Department administrators expressed skepticism about the plan and whether delaying certain payments was allowable, while later offering to take over the district as an alternative to annexation. State board member Jim Cooper questioned why Greenland officials calculated the potential sale of the former Winslow schools campus in one document, then took it off in another budget form submitted to the state. Groom said it is difficult to market an old school building and Greenland officials could not guarantee they could sell it for fair market value within the year.
Case specifics State board member Diane Tatum asked James why the district was not taken over first instead of being recommended for annexation. James said if he initiates a takeover without proposing annexation first, then it forfeits future incentive funding, which is financial aid available to the school district being forced to annex another district.
The previous four districts taken over during his tenure did not have “ logical partners ” for annexation, he said. “ In this case, we felt like there were logical partners, ” he said. “ That was the rhyme and reason. ”
The salary for whomever he appoints to take over as superintendent will be paid for from school district funds. James added the district may also have the burden of buying out Brawner’s contract on top of the other financial issues.
Neighborly support All six districts that border Greenland - West Fork, Fayetteville, Elkins, Prairie Grove, Farmington and Mountainburg - had a representative at the meeting. Fayetteville and West Fork, considered the two most likely for annexation because of their proximity to the city of Greenland, gave the lengthiest presentations. Fayetteville administrators argued that Greenland should be given more time to work through its financial difficulties.