Manatee County School District continues strong progress in key areas

The Manatee County School District has come a long, long way from the deep financial and management pit dug during the disastrous Tim McGonegal reign. He resigned not just under a dark cloud but a torrential hailstorm of budget deficits and state policy violations. Three years ago, the state auditor general uncovered more than 42 deficiencies in district procedures, policies and spending. Today, only a single concern remains -- indeed, a small one.

This month, the auditor general's exit conference lasted all of three minutes or so. The lone lingering concern involves which employees have access to some of the district's information technology, primarily nonessential to their job responsibilities. That's an ongoing problem due to the limitations of the district's current software, the system's chief financial officer, Rebecca Roberts, told the Manatee County school board's volunteer Audit Committee earlier this month.

Every auditor has cited the issue over the past few years, though none found any abuse or misuse by employees with improper access to information, Herald education reporter Meghin Delaney noted in her coverage of the public meeting. "I am very, very pleased about that," Roberts stated.

A brief look at the history of this recovery bears repeating for its remarkably swift rebound, initiated under former Superintendent Rick Mills.

That 2013 state audit found the district's deficit doubled from $4.1 million to $8.6 million in 2012-2013, this part of a total of five years of deficit spending. Questionable spending amounting to $7.2 million over the previous five years also came to light.

The lowest of the low points -- depending on your perspective -- came in January 2014 when a panel of aghast legislators hammered the district, calling the audit of school system finances "radioactive" and "appalling." One lawmaker said this: "I'm embarrassed as a Floridian that such conduct took place."

Moving forward

But the humbled district righted the ship, corrected the findings save one and not only balanced the budget but built a significant surplus beyond state requirements. Public consternation and anger dwindled amid wholesale reforms and changes in district practices. The citizens Audit Committee was created amid the crisis to ensure public oversight and input into the expenditure of taxpayer funds.

Under Superintendent Diana Greene's leadership and community outreach, stakeholders and the general public now look more favorably on the district. This new audit finding of one concern should boost that.

The turnaround has been so complete that in January the Audit Committee suggested the district tout its accomplishments in the management and analysis portion of the school system's comprehensive annual financial statement. The district's external auditors found no big issues with that financial report, but did issue a host of recommendations for improvements.

Around the same time in January, the school district's credit rating from Fitch Ratings rose again, from "positive" to "stable." That vital increase puts the system in a stronger position to borrow money, important in securing financing to build new schools -- which are on the horizon.

Tentative plans call for a $75 million high school to be built over the next five years with the site yet to be determined. At least one middle school and one elementary school are also on the drawing board as the county's population continues to grow.

High hurdles will challenge the district administration and school board, with such capital projects as renovation, maintenance and repair to existing schools also competing for money. A funding source for new schools has not been specified.

But this year the district reinstituted impact fees on new construction with a caveat that some residents find objectionable. The fees will be implemented over three years, first at 50 percent of the consultant's recommended amount, then 75 percent and finally 100 percent thereafter.

But the school board linked that gradual increase to voter approval in a referendum to extend the half-cent sales tax. Should voters pass the extension, the impact fee would remain at 50 percent -- a puzzling coupling at best and possibly a stumbling block to referendum success.

Today, though, the district can celebrate another good audit, a stronger credit rating and greater public confidence. That is additional impressive progress from just a few years ago.

This story was originally published March 30, 2016 at 12:00 AM with the headline "Manatee County School District continues strong progress in key areas ."