By Jennifer Mrozowski
Enquirer staff writer

Cincinnati Mayor Charlie Luken (left) and Cincinnati Public Schools Superintendent Alton Frailey announce the formation of a task force to examine the financial aspects of the school system as the vote for renewal of the existing school levy approaches. (Michael E. Keating photo)

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A task force led by retired University of Cincinnati President Joseph Steger will examine what city leaders Monday called a financial crisis in the city schools.

Cincinnati schools superintendent Alton Frailey and Mayor Charlie Luken said the commission is necessary to help the 38,800-student school district find ways to operate more efficiently and stay within budget while also improving academic achievement.

Luken said he agreed to help create the independent commission after receiving a letter Friday from Frailey asking for his assistance.

The mayor appointed Steger. Other members will be named, and the panel's scope will be developed in the next two weeks.

"There are legitimate questions about the finances of the district and how we can make the taxpayers certain Cincinnati Public Schools are spending their hard-earned money in the best interest of kids," Luken said.

He said he also got involved because the health of the city depends on the health of the school district and its students.

The appointment of the panel is an unprecedented use of the mayor's authority.

Luken noted that other mayors - including Cleveland's - have control of their school districts, but added: "I would never think that was a good idea here."

The announcement comes just two weeks after school officials acknowledged overspending the district's $436.4 million 2003-04 budget by almost $22 million. The district tapped into reserves to pay for the overruns.

Board members last week delayed passage of the 2004-05 budget, saying they had no time to review Frailey's written answers to their questions. Despite declining enrollment, Frailey's latest request called for a $469.4 million budget - $11.3 million more than the district spent last year.

The district also is seeking voter approval of a $65 million, five-year levy renewal in November. Two of the seven school board members, Melanie Bates and Rick Williams, have said they will campaign against the levy unless the district reforms itself.

Luken said it's unlikely that the commission would finish all of its work before the November levy.

Frailey recently said he would unveil a plan within 90 days to address the district's financial problems, including creating an employee buyout plan and consolidating more schools.

He said the task force would complement that plan by offering access to the best business and financial experts available.

"We will get this done," Frailey said. "This school system exists to serve the community. It's important the community has confidence in this school system - not only academically and operationally but also financially."

All seven school board members said they welcome the independent commission's input, but most were surprised to hear of its formation.

"I am all for taking that kind of action, but what I don't like is that the board was not included," said Catherine Ingram, chairwoman of the board's finance committee.

"How can we talk about improving communication when there was a deliberate effort not to communicate at all? My concern is that we don't really know what they're going to do."

But Williams was enthusiastic: "I just think it's great. It will bring clarity and transparency to the community about the financial state of the district." He said it will lead to quality recommendations on how to operate the district differently and smarter, so the community will invest in it.

Steger, who retired last year, was out of town and could not be reached.

Some people Monday likened the creation of this task force to the Buenger Commission - a blue-ribbon task force of business officials that released a bruising report on the district's operations in 1991.

But Frailey dismissed a direct comparison, saying the Buenger report covered much more ground.

Officials have said the district's financial health depends on the renewal levy. Without it, they've said, the district must cut $32.5 million from the 2005-06 budget.

In March, the Cincinnati Business Committee said it would not support the levy unless the district changed its operational structures.

"It's nice that outside financial experts are being called in to help with what is obviously an important issue," said Craig Maier, co-chairman of the committee's school task force.

Maier, while acknowledging that he has met with the mayor recently, said the business committee is not behind creation of the task force.

"This is an important job that needs to be done, but it cannot be done by us," he said.

Others who have criticized the school district's budgetary process also welcomed the commission.

"Sounds exciting," said Vanessa White, a North Avondale parent who served on the district's budget commission, an advisory group of parents, teachers and district staff. "There definitely needs to be some changes and tightening."

White said the task force should involve a broader group of people, including parents.

Greg Korte contributed. E-mail jmrozowski@enquirer.com