State School Superintendent Richard Woods is calling for “sweeping statewide reforms” that would give the Georgia Department of Education more power when it comes to managing school district finances.
The request was spurred on by the deteriorating financial situation in Dublin City Schools. Woods said last month the small school system was on “a direct path to insolvency and financial crisis.”
Dublin subsequently asked the state for a $1.45 million cash advance to cover employee pay and benefits in “an absolutely unprecedented request,” Woods said in a Sept. 22 letter to the school system. The state granted the advance, said DOE spokesperson Meghan Frick.
The small school system owed close to $7 million in unpaid state health benefits, according to an earlier letter from Woods, and was on track to have a budget deficit of more than $13 million by June.
There will be no more cash advances until the school district submits a plan to reduce its deficit, Woods said in an Oct. 3 letter.
In addition to the advance from the state, the school system asked the Laurens County Commission last week to help it secure a bond in what the county attorney said may be an illegal proposal, the Courier Herald reported. But without it, school officials warn the only option may be consolidation with the Laurens County School District. The Dublin district has already begun making cuts, WMAZ reported this week.
The situation has “never been this dire or this severe” in Dublin, state Sen. Larry Walker, R-Perry, told WGXA.
Dublin’s financial crisis is why Woods is asking state lawmakers to consider passing more “safeguards” for school districts. The state is going “beyond its fiscal and statutory obligations” to support the charter school system between Macon and Savannah, according to a Wednesday news release.
“It’s essential that students, teachers, staff and families do not bear the costs of financial mismanagement — anywhere in the state, now or in the future,” Woods said in the news release.
State law currently requires regular audits of Georgia school systems. Districts who have irregularities or deficits can be labeled “moderate risk” or “high risk,” and state law increases reporting requirements for them. But there are few consequences if they don’t follow through. Woods’ proposal would change that.
He suggests state lawmakers require financial training for district staff and school boards and extra training for those in moderate- or high-risk districts; require more state oversight if audits or payments are late; add state staff to help oversee at-risk districts; limit superintendent contracts to two-year terms in high-risk districts; increase reporting requirements for all school systems; and require high-risk districts to hold annual public hearings.
Dublin City Schools was designated as “high risk” after its audit in fiscal year 2020. It did not submit audit reports for fiscal years 2022, 2023 or 2024. The state board renewed its charter in 2023 for five years. The charter application did not delve into the district’s finances.
Woods recently appointed one of his top officials, Stephanie Johnson, to Dublin to implement a financial improvement plan. Johnson is a former principal in the Atlanta and Clayton school districts.
Fred Williams, the district’s superintendent, announced his retirement earlier this month. He and the school board have said they didn’t know about the financial issues. The district’s finance director also resigned in August.
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