The state Board of Education voted unanimously today to add the Helena-West Helena School District to the state's list of fiscally distressed districts.
The board took the action because of declining fund balances and internal control problems that were identified in an audit. Declining enrollment has reduced the state funding the district receives, but expenditures have not been reduced accordingly, state education officials said.
"From 2007 to 2010 they've lost about 564 students," said Bill Goff, the state Education Department's assistant commissioner fiscal and administrative services. "A $6,000 per student, that's about $3.4 million."
The state Department of Education notified the district in July that it would be recommended for fiscal distress status. The district did not appeal.
Superintendent Willie Williams told the board the district is working with a financial consultant to reorganize personnel and make other changes to reduce expenditures. He said the district also is addressing the audit findings, which included reimbursement to school board members for non-business-related travel, restaurant bills and alcoholic beverages.
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