CHARLESTON — Work is continuing to address the financial issues that have been facing the Hancock County school system, Superintendent Walter Saunders told members of the West Virginia Board of Education Wednesday.

Saunders focused on the areas of finance, transportation and personnel while providing a status report on efforts to work through a multi-million-dollar budget shortfall that led the state to take control of the district in January.

“Over the past several weeks, our team has continued to make significant progress in several key operational areas,” said Saunders, who had been serving as director of federal programs and assessments for Ohio County Schools before he was named Hancock County superintendent on Jan. 16, replacing Dan Enich in that position.

Among the reasons cited in the state’s decision to take control of the district was overstaffing it said was related to use of Elementary and Secondary School Emergency Relief Funds that has been provided through COVID-related programs to support personnel costs and other projects. It helped to contribute to overstaffing by about 140 more employees than state formulas allow for.

Saunders said that issue is being addressed.

“Employees who have been identified for reduction in force or transfers have been formally notified, ensuring clarity and transparency for staff as we move forward,” he explained.

He added that his team had completed an analysis of 261-day contracts that has resulted in a decrease of more than 400 contract days across the district, and that the schedule for upcoming personnel hearings is being finalized. The recruiting process for the district’s director of personnel position is continuing, he said, adding interviews had taken place Tuesday.

The depths of the financial issues the district has been facing came to a head during a Nov. 16 board meeting, when the board voted 4-0 to terminate Joe Campinelli, who had served as the director of finance. At the time, Enich said the district was working with state officials to address budget concerns, the decline of student population and the loss of state funding that accompanies that.

Saunders said Wednesday improving financial practices across the system was key. He said Uriah Cummings, the school financial operations officer for the state board of education, has been focused on that aspect.

“He has delivered comprehensive financial training for school-based administrators, secretaries and staff responsible for handling funds, as well as purchasing training for central office personnel. The work is essential in ensuring consistent, accurate and responsible financial management at every level,” Saunders said.

Saunders told board members work continues to improve issues in the transportation department, including the standardization of work hours and alignment of pay scales across the department.

“During this review, several concerns, especially related to overtime practices, timekeeping and contract structures, were identified. We’re actively addressing those issues to ensure compliance and fairness,” Saunders said.

The goal, he added, is to assess efficiency and better serve district students and families.

“Across the departments, these efforts reflect our continued commitment to strong operations, transparency, communication and responsible stewardship of district resources,” Saunders said.

After the presentation, state school Superintendent Michele Blatt thanked Saunders for taking on the issues in Hancock County.

“It was an emergency situation. We knew going in there was going to have to be a lot of reductions in force in order to get their budget where it needed to be,” she said. “It’s hard to step in as a leader and as someone who wants to build a culture and move a system forward and make those hard decisions up front.”

In response to a question from Victor Gabriel, vice president of the state school board, Saunders said morale through the district was improving.

“We’re getting there,” Saunders said. “It wasn’t really a secret that there were financial issues. I think a lot of people were prepared. When I met face-to-face with people, the overwhelming majority was understanding, so I think people saw this coming.”

The next meeting of the Hancock County Board of Education is scheduled for 5:30 p.m. March 23 at the John D. Rockefeller IV Career Center in New Cumberland.