By Karen Gutierrez
Enquirer staff writer

COVINGTON - The Covington Independent School District has erased its budget deficit one year ahead of the deadline set by state officials, Superintendent Jack Moreland said Thursday.

The fiscal year ended Wednesday, and the school system had about $750,000 in the bank. That's enough to start the current year with the 2 percent emergency reserve required by the state.

"They're to be commended for the excellent job they've done in getting their house back in order," said Bob Spillman, the state contractor assigned to monitor the district's financial situation.

Covington was the only school district in the state to run a deficit over the last three school years. At its peak, the district's negative balance reached about $2 million.

Moreland became superintendent in 2000. Two years ago, he cut 109 staff positions and tightened up the district's purchasing procedures to get the deficit down.

He said the budget crisis occurred for several reasons. Key among them: The district's enrollment has been steadily declining, but there had been a reluctance to cut staff accordingly, Moreland said.

At the same time, the state has cut funding to schools, he said.

Critics have suggested the superintendent contributed to the deficit by creating central-office positions for friends.

Moreland acknowledged hiring two people for top positions - Jeff Volter and Ken Ellis - with whom he had worked before.

"I'm not really apologetic about that," he said. "When you get a job, you say, 'What's it going to take to get in there and do the job right?' "

Since he became superintendent, most Covington schools also have made progress in improving test scores.

In 2000, Glenn O. Swing Elementary had the 13th-lowest test scores in the state; three years later, its ranking had jumped 122 places, records show.

The district's lowest-performing school, Thomas Edison Elementary, was ranked last in the state in 2000. Last year, it was fourth from the bottom.

E-mail kgutierrez@enquirer.com