A state panel is calling on officials from one of the state’s largest public school districts to return in October for more testimony about its budget issues.
Susan Battani, a retired CPA who used to work in the state auditor’s office, is a member of the School Budget Review Committee that met yesterday. She said audits of the Iowa City Community School District have uncovered significant errors and the district has little in reserve if budget projections are wrong. “But to be clear, this problem has been going on, you know, for quite some time — many years,” she said. “…The board has to keep a handle on that because this is razor thin.”
An annual audit from six years ago began to reveal fiscal warning signs about the Iowa City district and audits for the past three school years are not yet completed. Iowa City Superintendent Matt Degner said administrators are working to deal with cash flow issues that may require moving money from different accounts to cover payroll in late August. The district had a hiring freeze during the spring semester, sold some properties and made 7.5 million dollars’ worth of cuts in the budget for the next school year. “I feel like we’ve made a tremendous amount of progress the last several months and have been puttig plans together that keep the district moving in the right direction and also setting it on a better financial path,”Degner said.
David Noerper, who ran unsuccessfully for a seat on the Iowa City school board last November, spoke during the public comment period in yesterday’s hearing. “We have a board that has shown themselves to not be fiscally responsible. They need oversight,” Noerper said. “They need state oversight.”
Iowa Department of Management Director Kraig Paulsen, a member of the School Budget Review Committee, appeared willing to consider having the Iowa Department of Education take over management of the district. “There’s a lot of moving parts here that would give one pause,” Paulsen said.
Superintendent Degner said district officials and school board members have worked “urgently” over the past four months to identify “the root causes” of the disrict’s financial problems and come up with solutions. Degner is stepping down as superintendent at the end of the month and will become executive director of secondary schools in Iowa City.
A state-level decision to take over management of any Iowa public school district is made by the Iowa Board of Education.