Taylor Releases Cleveland Metropolitan School District from Fiscal Watch

Friday, March 21, 2008

Cuyahoga County -

Auditor of State Mary Taylor today released the Cleveland Metropolitan School District from fiscal watch.  Today’s release ends more than eleven years of elevated financial concern for the district.

The Cleveland Metropolitan School District was placed in fiscal emergency on October 15, 1996 and was downgraded to fiscal watch on September 9, 1999.  The district remained in fiscal watch pending repayment of a $139 million emergency loan that was issued in fiscal year 1997.  In early 2008, the Ohio Department of Education informed the Auditor of State that an analysis of the district’s five-year forecast was complete and that the loan was completely repaid.

The Cleveland Municipal School District was released from fiscal watch due to the following factors:

• The Financial Planning and Supervision Commission, created during the district’s fiscal emergency period, was terminated on September 9, 1999.
• The school district made the final payment on its restructured debt on June 1, 2007.
• An analysis of the five-year financial forecast by ODE has determined that it is reasonable to expect that the school district will avoid a deficit in the current and ensuing fiscal year.
• The Auditor of State has received notification from ODE that an examination of the district’s five-year forecast is not necessary.