Feb 26, 2008 9:49 am US/Eastern
Salem School Budget $1 Million Worse Than Thought
SALEM (WBZ) ―
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Salem Mayor Kim Driscoll has blamed former business manager Bruce Guy for intentionally mismanaging the finances and covering it up.
CBS
An audit has determined that the Salem school department's budget deficit is nearly $1 million more than they thought.
The shortfall, now projected at $5.7 million dollars, had already forced the city to lay off more than 30 school workers last month. But state officials intervened to save the jobs of two dozen teachers and library aides.
State politicians passed a measure allowing the city to borrow up to 1 million dollars to close its budget gap or spread the deficit over seven years.
City officials had closed about $3.5 million of the gap through cuts, layoffs and new revenues. The city had already raised enough money to save at least 10 teaching positions, through contributions from private donors.
Mayor Kim Driscoll said officials expected the deficit to grow and had already factored the bigger number into their planning.
"There's definitely an additional $996,000 of questionable costs," Driscoll told the Boston Globe. "We plan on ending [fiscal 2008] with a zero, with a balanced budget," Driscoll said. "We are going to be very aggressive."
The audit blamed the crisis on manipulation of financial reports by former school business manager Bruce Guy. It also said former Superintendent Larry Callahan failed to act on concerns expressed by other school employees.
Callahan denied that, saying if he'd been aware of any concerns, he would have done something.
Guy has not commented publicly.
District officials have said in the past that they don't believe Guy stole money but that it was a case of an accountant only giving the district good news and hiding or deceiving the council and board about the bad news.
Police are also investigating whether Guy should be charged with a crime.
Salem faced similar problems because of a budget deficit just two years ago.
In 2006, nearly 40 teachers, counselors, aides and custodians were laid off and the hours of several other staff members were cut in order save $1 million. They were facing a $3.5 million budget deficit at the time.
If you'd like to donate, you can make out a check to the Salem Education Foundation and mail it or drop it off at Salem City Hall, 93 Washington Street, Salem, MA, 01970.
You can also donate on-line by clicking here.
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