ARMOREL -- The Armorel School District has cleared another hurdle toward being removed from the state's fiscal distress list, and that decision could come as early as next week.
Arkansas Department of Education Coordinator Hazel Burnett met with Armorel School Board members and Superintendent Bruce Young Monday night to discuss the district's fiscal distress situation. Burnett said the meeting was a state requirement for school districts before the state can release them from fiscal distress.
Last month, Burnett sent a letter to Young stating that she will recommend to the state that the district be removed from fiscal distress. She said the meeting is used to help districts recognize possible fiscal issues in the future before the state is forced to get involved.
"Before they're released, we (state) have to provide board training," said Burnett, who has been working with the district since it was identified for fiscal distress in early 2010. "We try to explain some of the financial pieces. I'll provide them with enough documentation tonight that they'll have a better understanding when reading their financial reports."
Burnett said districts recommended for fiscal distress have up to two full fiscal years to show improvement and be removed, but the state can intervene at any time during those two years.
"If we do not see progress, the law says at any point we can step in," she said. "We can annex, consolidate or reconstitute the district."
Burnett said the two most common reasons districts are identified for fiscal distress are a loss of students and building projects.
"A lot of times, a district will have the money for the initial building project but then they didn't set aside the money for furnishing the building or the maintenance," she said. "It might be a newer, more energy-efficient building, but it's three times the size of the one it's replacing."
While there tend to be common elements in fiscal distress situations, Burnett said every situation is different and calls for different solutions.
"Each district is so unique because of their needs," she said. "As my former boss used to say, 'There's not a cookie cutter stamp for any fiscal distress district.' We have to review each piece and determine what is best for the students. Bottom line: We have to stop and step back and say what is best plan for the children of the district to get the best education possible."
Armorel had a unique situation in that the district technically had three superintendents in three months. Mike Hunter left the district in June of 2010 just after the district was recommended for fiscal distress. He was followed by Tom Bennett in July of 2010, who left just one month later and was replaced by Young. Despite the rapid change, Burnett said the district handled the situation as well as possible.
"Any time you have a change in leadership, it presents challenges because they are trying to learn the district," Burnett said. "It's easy for a new superintendent to come in when every thing is right and a perfect world. But when you come in with the financial issues, you have tough decisions to make that usually aren't popular ones. When salaries and benefits are the bulk of the budget, that's usually what they have to look to first. That doesn't make you a popular person when you have to make those decisions. The people at Armorel have been great to work with. They've been very receptive to the changes we've offered."
Young said that despite the amount of information given at the meeting, he felt it was a benefit to him and the rest of the board.
"I thought it went well," he said. "I think some of the board members may have been overwhelmed by just how much is involved in school finances. I've been working with this stuff for years, and I'm still amazed at how much I don't know."
Because of the recommendation from Burnett to be removed from fiscal distress, Young will meet before the state school board Monday in Little Rock to make the district's case for removal. Young is still cautiously optimistic.
"Nothing's official," he said. "Right now were doing what the procedures require of us."
afitzpatrick@blythevillecourier.com