Editor’s Note: An early version of this commentary identified Wood County Schools as having not submitted financials to the State Department of Education. The Department this morning re-issued a report noting that Wood had indeed submitted financials in October of 2025.
Data that crossed my desk this week stopped me cold… the kind of information that could stop a team of oxen in its tracks.
Some of West Virginia’s county school systems are well run and financially sound. Others? It’s not unfair to say they’re driving straight toward a cliff, the danger plainly visible, foot pressed firmly on the accelerator instead of the brake.
Two county systems – Boone and Hancock – have failed to submit financial reports to the State Department of Education. As a result, the Office of School Operations and Finance has no idea how much cash these systems actually have on hand — the unencumbered funds needed to meet payroll, pay bills, and keep the lights on. Why haven’t they submitted this most basic financial data? That remains unknown and is deeply alarming.
Hancock County Schools’ problems have been documented since December. The bottom line appears simple: no one was paying close enough attention to see mismanagement. Financial statements were produced, but bank reconciliations were never completed. And without reconciliations, financials are meaningless — they don’t confirm whether reported assets are real or available. In recent days, even the question of how the system passed prior audits has been met with blank stares. That situation demands investigation.
While some county systems show solid footing and spending decisions aligned with their revenue streams, others are teetering on the brink.
Wayne County Schools, serving nearly 5,700 students, has an excess levy — yet its ratio of available cash on hand to its approved levy balance sits at just 2.11 percent. The lower the percentage – let’s call it the (unencumbered) cash to levy ratio for simplicity – the closer to deficit a system is. Two percent leaves no room for error.
Note: Unencumbered balances are those not already promised, reserved or legally committed for something else.
The picture worsens when you consider staffing. Wayne County is operating at 62 teachers and 78 service personnel above what the state funding formula provides. All of this while having only $1.63 million (unencumbered) in the bank to cover payroll and routine expenses.
If an individual has $1.63 million in the bank, you’re doing quite well. A school system with that amount of money given Wayne’s obligations is flirting with disaster. One payroll could wipe that entire sum out and it has to cover more than just payroll. Never mind any unforeseen maintenance problems, bus breakdowns or higher than anticipated utility bills from the next polar vortex.
Building utilization in Wayne County? 44.4 percent. What’s that mean? Basically, the system is using only 44 percent of the building space it has available. Wayne operates 18 schools across 506 square miles.
Taylor County Schools faces similar pressure. With just over 2,000 students, the county has $622,000 in available (unencumbered) cash. Staffing exceeds formula allocations by 30 teachers and 43 service personnel. Its cash-to-levy ratio? 1.94 percent – the lowest ratio in the state other than Roane which is at negative 7 percent operating in deficit having utilized state loans to make payroll in the past.
A representative for Taylor County Schools said the $622,000 (unencumbered) fund balance reported does not reflect current balances.
“The dollar figures that were reported were that of September 2025 and a representation of funds available after all of our obligations had been met at that time,” said Superintendent Dr. John Stallings. “In no way are those figures an accurate representation of actual current ‘Cash on Hand’ nor the financial status of the county school system.”
Greenbrier County is a combined 124 positions over formula with $2.6 million cash on hand. The system’s cash to levy ratio is better at about 4.5 percent but far from healthy.
Yet even among counties with limited revenue and obstacles, some have demonstrated discipline and foresight avoiding these looming pitfalls.
Hardy County Schools, serving more than 2,100 students and operating without an excess levy, has a building utilization rate of 60 percent. Its available cash-to-levy ratio stands at 12 percent, with nearly $3 million on hand. Staffing is close to formula: two teachers and nine service personnel above allocation — and notably, under the allocated number of aides.
Barbour County recently made the difficult decision to undertake consolidation, no doubt an effort to keep the system financially stable. It currently has $6.7 million in the bank and is operating at nearly 27 percent cash to levy. The system does not have an excess levy. While not as severe as other systems, Barbour is over total formula allocation by 29 positions.
Despite challenging economic headwinds, Clay County Schools has an excess levy and stands at $5.17 million cash on hand – 28 percent cash to levy. The system is under formula by two teachers and two aides, but does run 7 positions over on service personnel.
The contrast is telling.
Some counties enjoy abundant resources. Marshall County, buoyed by shale gas development, has $122 million cash on hand. 78 percent cash to levy, the highest in the state. Good for them.
Larger more economically diversified counties like Kanawha, Monongalia and Berkeley are all operating over formula for total positions, but enjoy excess levies standing at 19, 16 and 15 percent cash to levy respectively.
Putnam County reported $42 million cash on hand – 33 percent cash to levy serving almost 8,400 students. Putnam has an excess levy and is 120 positions over formula.
Twelve counties – Calhoun, Doddridge, Gilmer, Pendleton, Pleasants, Pocahontas, Ritchie, Summers, Tucker, Tyler, Webster and Wirt – receive an additional cumulative $25 million in state funding over formula allocation based on student enrollment and population density metrics as prescribed in code. Implemented in another time, is that practice sustainable in today’s fiscal environment? Is it equitable when other counties just as stressed have figured out how to make it work?
For counties with fewer advantages, the difference often comes down to choices. Some made hard decisions to control operating costs. Others did not. Many within the State Department of Education say local boards splurged during the COVID era — using one-time federal dollars for ongoing expenses, particularly salaries, and expanding full-time staffing levels. When that money dried up — and workforce reduction failed to materialize — financial stress set in.
Yes, the Legislature should revisit the school-aid formula.
That said, no amount of tweaking — or even a full rewrite — can fix poor local financial management and poor operational decisions. It can’t reconcile books that don’t tie to bank balances. It can’t compensate for weak internal controls that could prevent employee fraud costing millions as has happened in at least one system.
School Financial Operations Officer Uriah Cummings said this week on Talkline that if he were responsible for some of these systems, he’d be losing sleep at night. I haven’t lost sleep yet, but this issue has weighed heavily on my mind all week.
It should weigh on every legislator. Every school board member. Every administrator. The governor. The State Education Department. Everyone. In fairness, some get it, but many – especially it appears at local levels – do not.
Left uncorrected… well, I don’t even care to say what could come next.