West Virginia School District Under State of Emergency Due to $2.5M Deficit

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Roane County Schools is facing a projected $2.5 million budget deficit due to overspending, according to the state education department.

District employees have gone over budget on the construction of a new middle school and used federal dollars to buy furniture. Some purchases appear to be made without the county board approval, which is required under state code. 

“Was everybody asleep at the wheel in Roane County?” asked Paul Hardesty, a state school board member. “You guys are hemorrhaging cash.”

Earlier this year, the county received a $402,225 advance on their June allocation of the state aid formula to make payroll.

Roane school leaders this week requested another financial advance of more than $300,000 to cover expenses. 

“You guys are bankrupt. You’re absolutely bankrupt,” board member Gregory Wooten said.

The West Virginia Board of Education declared a state of emergency for Roane County Schools on Wednesday, adding to the growing list of counties now under board control or in a state of emergency.

Declining student enrollment was also cited as a reason that the district should be under a state emergency and develop a plan to correct the problems.

Michelle Stallato is the new county superintendent, just five days on the job. She stood before board members, pledging to fix the problems and do what’s best for children.

“We are going in with eyes wide open. I have an amazing staff that are willing to do the work,” she said. “We understand it’s going to be very unpopular. We understand we’re going to have to make very difficult decisions.”

County didn’t cut positions while student enrollment declined

A report from the West Virginia Department of Education showed that in October 2024, Roane County Schools employed more than 16 teaching and service positions over the funding formula.

“It’s projected we didn’t make enough cuts into this year and that deficit will grow,” Stallato said.

The county overspent $600,000 on special education in the current fiscal year due to improper budgeting, the report said, linking the problem to “inaccuracies in data certified by Roane County Schools.”

The state education department also found that Roane County Schools initially purchased furniture with dollars from multiple federal programs, which were unaccounted for in the budgets for those programs.

Roane County serves a little more than 1,600 students. Like many West Virginia school districts, the county is dealing with a declining student population due to the state’s overall population loss and students opting to use the state’s voucher program — the Hope Scholarship — for private schooling or other options.

The district operates on a yearly budget of $27 million. The school system had close to a $2 million budget surplus in 2021; now there’s a projected $2.5 million deficit.

Jeff Mace, president of the Roane County School Board, said they’re pushing for more transparency in budgeting and forecasting.

“We were not completely aware of the magnitude of where we’re at, even as recent as this current budget preparation,” he said. “The board understands … the current position now.”

Last month, the state school board took over Boone County Schools because of multiple issues in the system, including potential conflict of interest and potentially using board of education resources to maintain property.

The board also declared a state of emergency in Randolph County Schools for six months due to financial concerns, tasking the county with creating a balanced budget. The district is grappling with declining enrollment and aging facilities, which contributed to the financial issues.

On Wednesday, board members selected Hardesty to serve as president, replacing current President Nancy White who said she wasn’t going to seek reelection. Hardesty is a former state lawmaker and Logan County school board member. He has previously served as board president.

“I am humbled by the support and confidence that my fellow board members have placed in me,” Hardesty said. “This board faces many challenges this upcoming year. We will face those challenges head on, with the purposes of doing what is in the best interests of our 241,000 students across the state.”

West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: [email protected].

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