NILES, Ohio - Niles City School District is now in a state of fiscal watch.  Auditor of State, Dave Yost, made the announcement Thursday.

This comes after Niles Board of Education failed to put forth a financial recovery plan.

The district was placed in a state of fiscal caution back in September.

They're facing a  $7.4 million deficit by the fiscal year 2021.

The board of education was given 60 days to provide the department of education with a financial recovery plan.

They didn't follow through.

Now they have another 60 days to submit a recovery plan to the Department of Education.

21 News spoke with the superintendent. She told us they didn't have enough time and they will continue working on a plan.

They have made some cuts already.  At the last board meeting, they implemented a "Pay to Play" ordinance.  This means there will be a fee for student-athletes if they want to be a part of the team.

If Niles doesn't address the deficit they're facing, they could end up in a situation like Youngstown City School District.

Youngstown School District was placed in a state-mandated academic emergency in 2010.

Academic emergency means the state takes control of the school district.