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Essex school board asks to reclaim centralized HR and finance functions; county to negotiate transition
Summary
The Essex County School Board asked the county to terminate the centralized services agreement and return HR and finance functions to the school division by July 1, 2026; the county board debated fiscal risk, safeguards and transition details and deferred a final decision to a special meeting next week.
On March 24, the Essex County Board of Supervisors took up a school‑initiated request to terminate the centralized services agreement the county has been providing since August 2025. A board member explained the school board — by a unanimous vote — asked the county to return finance and human resources responsibilities to the school division with a target transition date of July 1, 2026.
Superintendent Dr. Jones told the county board the school board believes it is ready to resume those functions and will hire staff and adopt procedures to avoid past problems. "We believe that we can be successful the way that it should work," Dr. Jones said, adding that the school division plans to recruit qualified staff and use transition overlap and shadowing to maintain continuity.
Several supervisors urged caution, citing the prior fiscal crisis. One supervisor said the county spent about $1.5 million to stabilize the school division in the earlier crisis period and asked what safeguards will prevent a return to that state. Board members pressed for a clear transition plan, policies and procedures, a separate account for school funds, and concrete assurances about coding and reporting so county staff do not need to rework thousands of journal entries.
County counsel and administration were authorized to engage with school representatives to negotiate the terms of termination and a transition plan with a target completion no later than June 30, 2026; board members agreed to continue discussion and deferred any final vote until a special session on Tuesday the 31st to allow time to review proposed safeguards and options.
Why it matters: returning centralized finance and HR functions shifts operational responsibility and financial risk back to the school division; the board emphasized the need for clear safeguards, separate accounts and reporting to preserve fiscal transparency and to protect county taxpayers.
Next steps: the county administrator and county attorney will work with school representatives on a termination and transition agreement; the board will revisit the matter at the March 31 special meeting.
