CHARLESTON – The West Virginia House of Delegates swiftly passed two bills Monday aimed at providing financial relief to Hancock County Schools, which is currently under state intervention due to significant financial discrepancies. The action comes after the West Virginia Department of Education took control of the county’s school system, removing its superintendent and assistant superintendent.
Emergency Funding Approved
House Bill 4574 establishes a “Temporary Shortfall Supplement Fund for County Boards of Education” to offer loans to financially distressed school systems. House Bill 4575 allocates $8 million in surplus tax revenue to seed this fund. Both bills passed with overwhelming support – 91-2 and 92-2 respectively – after lawmakers suspended rules to expedite the process.
The legislation requires counties receiving funds to adhere to strict fiscal discipline and transparency measures, including loan repayment, increased financial reporting, and compliance with state auditing standards. The state Board of Education will also be required to report to the Legislative Oversight Commission on Education Accountability (LOCEA) if a county’s reserve fund falls below 5% for an extended period.
Root of the Problem
State Superintendent of Schools Michele Blatt indicated that much of Hancock County’s financial trouble stemmed from relying on temporary COVID-era federal funding to cover ongoing personnel costs. The county increased staffing from 97 positions to 143 without a plan for when those funds expired, ultimately shifting those costs to the county’s general fund.
According to the Department of Education, Pocahontas, Randolph, and Roane counties are currently under states of emergency, while Hancock County and six other counties – Logan, Upshur, Mingo, Nicholas, Tyler, and Boone – are under immediate intervention. Statewide student enrollment has decreased by 15.32% since 2015, falling from 277,452 to 234,957 students this year.
Bipartisan Support, Lingering Concerns
While the bills received bipartisan support, House Minority Leader Sean Hornbuckle cautioned that lawmakers must also examine the broader financial pressures facing all 55 county school systems in West Virginia. He expressed concern about repeating this emergency intervention in the future if systemic issues are not addressed.
House Majority Leader Pat McGeehan anticipates a swift passage of the bills in the state Senate, citing positive conversations with his Republican colleagues.
Frequently Asked Questions
What prompted the state’s intervention in Hancock County Schools?
The West Virginia Department of Education intervened due to severe financial discrepancies and mismanagement, including a $5 million cash shortfall and questionable spending decisions, potentially involving misleading financial statements to state watchdogs.
What are the key requirements for counties receiving funds from the Temporary Shortfall Supplement Fund?
Counties must demonstrate financial distress, adhere to strict fiscal discipline, increase financial transparency, comply with state reporting requirements, and potentially face the removal of school board members or financial officials for maladministration.
How much funding is being allocated to address the immediate crisis in Hancock County?
House Bill 4575 designates $8 million from the state’s surplus tax revenue to seed the Temporary Shortfall Supplement Fund, with Hancock County Schools expected to be the first recipient to address its $5 million shortfall.
As these bills move to the Senate, will the proposed funding and oversight measures be enough to stabilize Hancock County Schools and prevent similar crises in other West Virginia counties?
