MONROE — Finances, student achievement and improving communication with the community are all key factors as the district looks to dig itself out of its financial deficit, Monroe school board members say.

The school board tabled a resolution last Monday that asked the state auditor’s office to place the district in fiscal emergency, and Monroe officials are now looking at ways to potentially avoid that designation and instead submit an acceptable fiscal watch recovery plan.

The state auditor’s office placed the district in fiscal watch on Feb. 2. Monroe has a projected $4.5 million deficit by the end of this fiscal year, which ends June 30.

“We’re on the same page, and we need to stick with that and don’t lose focus,” board President Brett Guido said. “We know our place, we know what our responsibilities are and we need to listen to everybody. There’s a lot of good things that happen here every day. Not everything that’s happening in Monroe is bad.”

The next step will be Thursday’s community finance committee meeting during which officials will seek community input. That meeting is at 7 p.m. in the media center at Monroe High School, 220 Yankee Road.

Superintendent Elizabeth Lolli said the district is seeking ideas “to get out of the $1.4 million deficit (operating expenses).” The other $3.1 million of the deficit comes from money misspent out of the Bond Retirement Fund.

The district plans to show at Thursday’s meeting how much would be saved if busing was reduced, pay-to-participate fees were increased and how much open enrollment brings in. Monroe has already announced $2.2 million in cuts for next school year.

“We need to convey to everybody on Thursday that there are three clear-cut options — a levy, deeper cuts or let the state come in,” board member Amie Earls said. “And the state could do both of those things. ... A big part of the population would rather have the deeper cuts in order to not go into fiscal emergency.”

Treasurer Holly Cahall said the district did not receive a $600,000 loan from Fifth Third because it “didn’t satisfy the legal requirements in Ohio law,” she said.

Monroe did receive $250,000 on Friday from the state because of open enrollment, and another $500,000 will come on Tuesday from the county as an advance in order to meet the March 3 payroll, which is roughly $450,000. Cahall also said there are $700,000 in outstanding bills that still need to be paid.

The district has seen a decline in total operating revenue since it received $18.3 million in 2009. Cahall projects that figure to be $17.7 million this year and $17.3 million in 2013, bringing the total loss over the five-year span to $1.9 million.

“The money we’ve received has drastically dropped,” Guido said. “We’re experiencing, along with the other problems, the same funding issues that all surrounding districts are facing as well.”

Within 60 days of the fiscal watch declaration, Monroe must submit a plan to eliminate its current deficit and avoid future ones. Lolli said the district could request a 30-day extension. The state auditor’s report is expected to be filed by March 31.

If fiscal emergency is declared, the state will appoint a commission to oversee the district and adopt a financial recovery plan.

Contact this reporter at (513) 755-5113 or steven.matthews@coxinc.com.