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State Board of Education Resolution Birmingham City Schools
WHEREAS, the Alabama State Board of Education and the State Super¬intendent of Education are vested by the Alabama Constitution and the laws of the state of Alabama with authority to exercise general control and supervision over the public schools of the State; and

WHEREAS, Alabama law further authorizes the State Superintendent of Education to review actions and orders of boards and superintendents of education in matters relating to finance and other matters seriously affecting the education interest, to enforce the education laws and regulations of the Alabama State Board of Education, and to implement the educational policy of the Alabama State Board of Education; and

WHEREAS, local boards of education perform a state function at a local level and function as an arm of the state, subject to the general supervision of the Alabama State Board of Education; and

WHEREAS, the Code of Alabama, including the Education Accountability provisions thereof, empowers the Alabama State Board of Education to assume the primary responsibility for execution of the state function of providing public education when a city or county board of education fails in its responsibility to satisfactorily provide it and to assume responsibility for the daily operations and management of a local board of education when the Board is either academically or financially deficient; and

WHEREAS, more particularly, Alabama law specifically provides for intervention by the State Superintendent of Education of local boards of education failing to meet state financial standards and requirements; and

WHEREAS, pursuant to Alabama law, the State Department of Education analyzed the financial integrity of the Birmingham City Board of Education and determined, among other things, that the Birmingham City Board of Education was the only school system in the state of Alabama that failed to meet the deadline of May 27, 2012, for submitting a financial accountability plan; that the Birmingham City Board of Education had failed to maintain or develop a plan for maintaining the reserve fund required by Alabama law; and that the Birmingham City Board of Education had insufficient funds available to make up for the drop in state funding resulting from a decrease in student enrollment; and

WHEREAS, the Birmingham City Board of Education has failed to meet its fiscal responsibility as established through the Education Accountability laws and has allowed an unsound financial condition to be created and perpetuated in said system; and

WHEREAS, pursuant to Alabama law, the State Department of Education has provided direct, on-site assistance and advice to the Birmingham City Board of Education in the area of financial and fiscal management over the past several years and most recently due to the Birmingham City Board of Education’s failure to develop the required financial plan; and

WHEREAS, as part of that assistance and advice, the State Department of Education collaboratively developed and proposed a Financial Recovery Plan, which was discussed with the Birmingham Board of Education on no less than three occasions, and requested input from the members of the Birmingham City Board of Education; and

WHEREAS, at its meeting on June 5, 2012, the Birmingham City Board of Education summarily rejected said plan, without articulating an alternative for achieving financial recovery at that time; and

WHEREAS, the Birmingham City Board of Education, at its meeting on June 12, 2012, did in fact adopt a modified Financial Recovery Plan; and

WHEREAS, the Alabama State Board of Education finds and determines that immediate implementation of the adopted plan is necessary, both to the restoration of fiscal stability to the Board and to prepare for the beginning of the 2012-2013 school year, and that continuous assistance by a person or persons appointed by the State Superintendent is essential to that end; and

WHEREAS, due to the lack of a plan for implementation of the approved Financial Recovery Plan, exigent circumstances now exist affecting the education and educational interests of the Birmingham City Board of Education:

NOW, THEREFORE, BE IT RESOLVED, That the Alabama State Board of Education does authorize the State Superintendent of Education to appoint a person or persons to provide on-site oversight of the day-to-day operations of the Birmingham City Board of Education, specifically to advise and assist with the Birmingham City Board of Education’s implementation of the approved Financial Recovery Plan, with all direct and indirect personnel actions associated with the Plan to be presented for state review no later than Friday, June 22, 2012, and to be approved by the Birmingham City Board of Education at its regularly scheduled meeting on Tuesday, June 26, 2012; and

BE IT FURTHER RESOLVED, That in the event that the approved Plan is not implemented in accordance herewith, the Alabama State Board of Education does hereby approve the request of the State Superintendent of Education to intervene into and assume direct control of the fiscal operation of the Birmingham City Board of Education; and

BE IT FURTHER RESOLVED, That within this intervention process, the State Superintendent of Education shall present this Board with a proposal for the implementation of management controls necessary to restore the Birmingham City Board of Education to a sound financial condition, and shall further appoint a Chief Financial Officer to manage the financial operations of the Birmingham City Board of Education and make associated recommendations to the State Superintendent of Education as necessary to restore the Birmingham City Board of Education to a sound financial condition.

Done this 14th day of June 2012.