Ohio Auditor Mary Taylor declared this once-thriving Warren County suburban district in Fiscal Emergency - joining eight others across the state - following six consecutive defeats at the polls since fall 2008.

"There are a lot of unknowns with this," Superintendent Dan Bennett said. "We will still continue to function in the same manner until directed to do otherwise."

A five-member commission will be created to develop a financial recovery plan for the district by mid-November. It is expected to review actions taken by the Little Miami Board of Education and would have the authority to make fiscal, curricular, personnel or legal decisions it deemed necessary, according to the auditor's office.

"My office will continue to work with the district to help identify potential cost-saving opportunities they can use to prevent future deficits," Taylor said.

Duties of the commission include reviewing revenue sources and determining whether further cuts should be made. Spending reductions could include cutting academic programs, reducing busing and eliminating or reducing after-school activities.

Exactly what happens next will be explained during a 2 p.m. meeting Tuesday at Little Miami High School, when the commission will be introduced and conduct its first meeting.

"We've been expecting this for months," said Little Miami Treasurer Shaun Bevan. "It's unfortunate but not surprising."

In the last three years the district has cut expenses by $7 million, reducing many operations to state minimums.

But the district is still projecting a $5.9 million deficit in its $30 million general fund by June . The district plans to take out a tax anticipation note just to meet this month's payroll, Bevan said.

The district is likely to take out a loan from the state before year's end to end the school year in the black, Bevan said. It would have to be paid back.

The district has put a five-year, 10.95-mill incremental levy on the Nov. 2 ballot. The levy would increase 1.5 mills in the second through fifth years.

Money raised by the levy would start at $8.3 million the first year, increasing to $12.9 million by the fifth year, Bevan said. The cost for the owner of a $100,000 home would begin at $335 the first year, gradually increasing to $519.

No other Southwest Ohio district is in Fiscal Watch, but Warren County's Carlisle Schools are in Fiscal Caution, one level below emergency.