School leaders: Levy must pass, cuts needed too

By BECKY BROOKS

Enterprise Editor

clydenews@bizwoh.rr.com

Local school administrators state funding of schools for the next five years is far from rosy and if an emergency operating levy on the ballot Tuesday fails, the picture will be bleak.

During the Monday night meeting for the Clyde-Green Springs Exempted School Board, treasurer Alan Binger presented his five-year financial forecast, which must be submitted annually in October.

The school district has a $1,265,000 emergency operating levy for five-years on the Nov. 3 ballot for renewal - and with the current forecast school officials said the levy is clearly needed.

"This is my 20th time to do a forecast, and this is the most challenging one I've ever had to do," Binger told school board members. Before reviewing the numbers - he pointed out that he had to make page after page of assumptions on how Ohio will fund schools over the next five years.

He commented that pinning down future financing was like throwing darts at a board this year.

Binger pointed out the State of Ohio is going from funding schools per pupil to performance based financing - but without assuring how funds will be delegated.

"We're seeing an unprecedented decrease in state funding," Binger added.

The district's funding increased for Fiscal Year 2010 because of Federal Stimulus Funds of $618,298, which the district would also receive in 2011. But those funds have specific uses which do not include general operating funds.

With the Federal government providing funds for two years - the state reduced its funding to the district by an equal amount for FY 2010 and FY 2011.

"We are going to put it back in 2012 in the form of state funding," he said about assuming that the school district will receive state funds when U.S. stimulus funds are done in 2012.

As for the FY 2010 budget, revenues are projected at $19,439,330 while expenses are $20,322,005 - a $882,675 deficit which is being covered by last year's carry over. At the end of this school year, the district is projected to have a cash balance of $1,202,220.

If the emergency levy on the ballot Nov. 3 is not renewed, the treasurer is projecting a deficit of nearly $600,000 by the end of FY 2011.

"If we are fortunate enough to pass that next Tuesday we can revise the five-year forecast," Binger told the board.

"As you can see this is not a very strong position for us to be in," the treasurer said.

School board president Todd Warner asked about the carry over balances listed in the report.

Binger pointed out that even with the levy approval this week, there will be almost no carryover by the end of FY 2011.

"We're talking about making changes in the expenditures and that's something we're going to be talking about for the next few months," Binger said.

Superintendent Gregg Elchert said there is a state proposal to postpone all day, everyday kindergarten for a year.

Binger said if that option is available the district may want to delay the cost a year.

Elchert added, "We have to pass this renewal levy, and we're going to have to look at some cuts and reduction in expenditures ...We are going to have to do both."

"Certainly not a rosy picture," Warner said.

Later in the meeting, Warner added, "I would like to remind everyone to pass our levy...The passage of the levy is vital as you can see in the five-year forecast."