West Virginia Lawmakers Approve Emergency Funding for Distressed Hancock County Schools
Amid allegations of financial mismanagement and a state takeover, the West Virginia House of Delegates swiftly passed legislation Monday to provide emergency financial aid to Hancock County Schools and establish a fund for other financially distressed school systems across the state.
Charleston — Following the West Virginia Department of Education’s intervention in Hancock County Schools due to significant financial discrepancies, the House of Delegates acted quickly to address the crisis. Lawmakers originated and passed House Bill 4574, which creates a pathway for condition-based emergency funding for financially struggling county school systems, with an overwhelming 91-2 vote. Complementing this, House Bill 4575 secured a $8 million supplemental appropriation to the state Board of Education to seed the proposed fund, passing 92-2.
Both bills were expedited through the House Finance Committee Monday morning, with standard committee procedures bypassed to allow for immediate consideration on the House floor. Constitutional rules requiring bills to be read on three separate days were also suspended, enabling passage within a single day. The legislation now moves to the state Senate for consideration.
House Majority Leader Pat McGeehan, representing Hancock County, emphasized the urgency of the situation following Monday’s floor session. “It’s good to get this out early. There’s a lot of uncertainty in Hancock County right now,” McGeehan stated. “There are a lot of people that are innocent, that are caught up in this, and we really just need to honor our obligations, keep those folks paid, make sure schools are open for the rest of the year.”
HB 4574 establishes the “Temporary Shortfall Supplement Fund for County Boards of Education,” designed to offer loans to counties facing temporary financial shortfalls. Eligibility requires a county school system to be either operating with a deficit or be on the Department of Education’s watch list for counties at risk of financial instability. Furthermore, counties demonstrating “maladministration” – defined as failing to maintain reserve balances, missing financial reporting deadlines, or submitting inaccurate reports – would also qualify.
Counties accessing the fund will be subject to stringent conditions to ensure fiscal responsibility. These include loan repayment, increased financial transparency, compliance with the West Virginia Education Information System (WVEIS), participation in the State Auditor’s West Virginia Checkbook portal, and further reviews by the state Board of Education. The bill also mandates a report to the Legislative Oversight Commission on Education Accountability (LOCEA) if a county’s reserve fund falls below 5% for more than 60 consecutive days, and outlines potential penalties, including the removal of school board members or financial officials, for maladministration.
HB 4575 allocates $8 million from the state’s surplus tax revenue to capitalize the relief fund. Hancock County Schools is poised to be the first beneficiary, currently facing a $5 million cash shortfall compounded by $1 million spent on football turf and $2 million in overspending on HVAC projects.
The crisis in Hancock County stems from concerns over past financial practices. State Superintendent of Schools Michele Blatt revealed during Monday’s House Finance Committee meeting that former Hancock County Schools officials allegedly misrepresented the district’s financial condition to state accountability watchdogs. The state board voted Friday to assume control of Hancock County Schools, removing Superintendent Dan Enich and Assistant Superintendent Dave Smith, and curtailing the authority of the Hancock County Board of Education. Walter Saunders, previously the director of federal programs and assessment for Ohio County Schools, has been appointed as the new Hancock County superintendent.
Blatt explained that the issues in Hancock County were largely a result of relying on temporary COVID-era federal funding to cover ongoing personnel costs. The district expanded from 97 positions to 143, exceeding the state’s school aid formula by a significant margin. “The problem was that they did not do any reductions in force when all of the COVID and ESSER funds expired, which should have been last personnel season,” Blatt said. “And so as opposed to making those cuts, they moved all of those individuals to county funds.”
State Board of Education President Paul Hardesty underscored the severity of the situation, stating, “You can’t be 143 positions over formula. That’s $10 million a year you’re spending that you don’t have. That’s simple math.” Hardesty also criticized the lack of oversight, noting that Hancock County officials had effectively obscured their financial situation from state watchdogs by limiting data shared through WVEIS.
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, often due to similar financial challenges.
Despite the immediate focus on Hancock County, lawmakers acknowledge the broader financial pressures facing West Virginia’s 55 county school systems. Student enrollment across the state has declined, with 234,957 students enrolled this fall, a 2.52% decrease from last year’s 241,024 and a 15.32% drop from the 277,452 students enrolled in 2015. Hardesty warned that more counties may require assistance from the Temporary Shortfall Supplement Fund in the coming years. “If these counties don’t start making the tough cuts, and now that we’ve got this lifeline possibly coming into play, there’ll be others within two, three years heading your way,” he said. “You cannot continue to spend money that you do not have. It does not work.”
House Minority Leader Sean Hornbuckle, while supporting the bills, cautioned a broader review of the financial pressures on county schools is needed. “I’m going to urge passage of this but I’m also going to do so with caution,” Hornbuckle said. “The reason for urging passage is there are kids involved, simply put, and we have to do everything we can to help them. But then there’s also jobs that are at stake in a part of our state that we love and hold very dearly… we need to reevaluate also what we have done and what we will do to make sure we are not putting financial hardships on counties so that we are not sitting here yet again having to make emergency action.”
McGeehan expressed optimism that the bills will receive swift approval in the state Senate, citing positive conversations with Republican colleagues. “I’ve spoken with a number of them, and a number of my other colleagues have too, so I believe we have an agreement worked out,” McGeehan said. “They understand the same sort of dire circumstances over there, and I’m optimistic they’ll be taking it up… once they get the bill, maybe tomorrow or the next day.”
