Dublin schools report $7 million deficit in October

The Dublin City Schools finished the month of October with a $7 million deficit, according to a monthly financial report approved by the school board Monday night.

“This is mainly because none of the property taxes have come in,” financial consultant Laura Jenkins told the board. “Once that starts flowing in, that should wipe away some of that deficit.”

The report shows the system began the fiscal year in a huge hole, with a $5.6 million general fund deficit as of July 1, 2025. However, the monthly report indicates some progress toward reducing what state officials have projected to be a $13 million deficit by the end of the current fiscal year.

The district finished the month of October with $381,544.73 in revenue over expenditures. It received $3 million in revenue – almost entirely state QBE funding – and spent $2.6 million.

The report reflects some of the cuts – including more than 50 positions – made by the board as part of its deficit reduction plan filed with the state.

“It does not show all of the cuts because some of the cuts are coming in December,” Jenkins said.

Dublin City’s most recent financial troubles came to light in late August after the Department of Community Health, which administers the State Health Benefit Plan, alerted state School Superintendent Richard Woods and his office that the district had not paid its employer contributions for the entire fiscal year 2025 and owed more than $6 million. State officials looking into those overdue payments found other “operational deficiencies” that included the system not having completed an audit since 2021.

Dublin interim School Superintendent Marcee Pool told the board that the state has agreed to its repayment plan with the Department of Community Health and the schools will begin paying on the overdue amount in February.

In the meantime, she said, the system is up to date on employee and employer payments to the state health plan since August.

“I think we should ask that every month,” said board member Regina McRae, who leaves office at the end of this year. “I won’t be here, but it needs to be asked.”

“I believe I did, but got the wrong answer,” added board member James Lanier.

Board members have said they were unaware the state benefit contributions were not being made and were misled into believing the system’s finances were in better shape. However, financial reports for fiscal year 2024, approved by the board, showed the system in a deficit every month that year.

The school’s finance director, Chad McDaniel, who replaced Christy Thublin in 2024, resigned in late August. He was followed by Superintendent Fred Williams, who stepped down in October to take an early retirement.

The school system has borrowed at least $3 million of next year’s state funding to make ends meet, so board members are concerned about this year’s late property tax collections. The property tax digest was finalized several months late, then the school board did not roll back its millage rate enough to offset a tax increase, which delayed the process further while required public hearings could be held.

Pool said she spoke with city officials and was told tax bills should be sent out next week, if not Friday, with taxes due 60 days after. McRae asked if $400,000 owed to the city of Dublin for property tax appeals would be due before the system can start collecting revenue.

Pool said she was not sure, but added, “We have started paying them back for those appeals.”

Also Monday, the school board approved a request by the Dublin High class of 2026 to hold its graduation outside in the Shamrock Bowl, rather than in the gym.