West Virginia School District Under State of Emergency Due to $2.5M Deficit
Roane County is facing a big budget deficit after overspending, failing to cut positions as student enrollment declines.
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Roane County Schools is facing a projected $2.5 million budget deficit due to overspending, according to the state education department.
District employees have gone over budget on the construction of a and used federal dollars to buy furniture. Some purchases appear to be made without the county board approval, which is required under state code.聽
鈥淲as everybody asleep at the wheel in Roane County?鈥 asked Paul Hardesty, a state school board member. 鈥淵ou guys are hemorrhaging cash.鈥
Earlier this year, the county received a $402,225 advance on their June allocation of the state aid formula to make payroll.
Roane school leaders this week requested another financial advance of more than $300,000 to cover expenses.聽
鈥淵ou guys are bankrupt. You鈥檙e absolutely bankrupt,鈥 board member Gregory Wooten said.
The West Virginia Board of Education declared a state of emergency for Roane County Schools on Wednesday, adding to the growing list of counties now under board control or in a state of emergency.
Declining student enrollment was also cited as a reason that the district should be under a state emergency and develop a plan to correct the problems.
Michelle Stallato is the new county superintendent, just five days on the job. She stood before board members, pledging to fix the problems and do what鈥檚 best for children.
鈥淲e are going in with eyes wide open. I have an amazing staff that are willing to do the work,鈥 she said. 鈥淲e understand it鈥檚 going to be very unpopular. We understand we鈥檙e going to have to make very difficult decisions.鈥
County didn鈥檛 cut positions while student enrollment declined
A report from the West Virginia Department of Education showed that in October 2024, Roane County Schools employed more than 16 teaching and service positions over the funding formula.
鈥淚t鈥檚 projected we didn鈥檛 make enough cuts into this year and that deficit will grow,鈥 Stallato said.
The county overspent $600,000 on special education in the current fiscal year due to improper budgeting, the report said, linking the problem to 鈥渋naccuracies in data certified by Roane County Schools.鈥
The state education department also found that Roane County Schools initially purchased furniture with dollars from multiple federal programs, which were unaccounted for in the budgets for those programs.
Roane County serves a little more than 1,600 students. Like , the county is dealing with a declining student population due to the state鈥檚 overall population loss and students opting to use the 鈥 the Hope Scholarship 鈥 for private schooling or other options.
The district operates on a yearly budget of $27 million. The school system had close to a $2 million budget surplus in 2021; now there鈥檚 a projected $2.5 million deficit.
Jeff Mace, president of the Roane County School Board, said they鈥檙e pushing for more transparency in budgeting and forecasting.
鈥淲e were not completely aware of the magnitude of where we鈥檙e at, even as recent as this current budget preparation,鈥 he said. 鈥淭he board understands 鈥 the current position now.鈥
Last month, the state school board because of multiple issues in the system, including potential conflict of interest and potentially using board of education resources to maintain property.
The board also in Randolph County Schools for six months due to financial concerns, tasking the county with creating a balanced budget. The district is grappling with declining enrollment and aging facilities, which contributed to the financial issues.
On Wednesday, board members selected Hardesty to serve as president, replacing current President Nancy White who said she wasn鈥檛 going to seek reelection. Hardesty is a former state lawmaker and Logan County school board member. He has previously served as board president.
鈥淚 am humbled by the support and confidence that my fellow board members have placed in me,鈥 Hardesty said. 鈥淭his board faces many challenges this upcoming year. We will face those challenges head on, with the purposes of doing what is in the best interests of our 241,000 students across the state.鈥
is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: [email protected].
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