|
Deficit could loom for school |
|
|
|
Friday, 13 June 2008 |
By KAY LOUTH
Staff Writer
St. Marys — As school officials prepare the St. Marys School District’s five-year forecast, the district coffer’s could take a hit in coming years.
St. Marys School District Treasurer Tom Sommer presented a five-year financial forecast to the board of education earlier this week. The document included a look at deficit numbers when the five-year emergency operating levy comes to an end Dec. 31, 2009. Sommer said the forecasts are projections and that district officials have been conservative in their approach.
“To project five years out is purely speculation,” Sommer said. “It is a guessing game what the state of Ohio is going to do with the budget — they are facing a budget crisis.”
Sommer said state officials continue to tell school officials they will not be cutting funds to schools. However officials admitted they might have to cut funding in other areas of education.
“They’ve said all along they wouldn’t cut per pupil funding, but the amount of money we get for bus transportation has decreased dramatically,” Sommer said. “There could be other areas we got to find ways to finance.”
By the end of the current fiscal year — June 30 — the district’s cash balance will be $7.2 million. However in each year after, that balance steadily declines to the point that by the end of the five-year forecast the district will show a projected budget deficit of $6.38 million.
“We are looking at for significant deficits if the levy isn’t replaced,” Sommer said.
While the loss of the emergency levy is the significant factor in the deficit projections, there are other factors — such as increased costs for supplies — that could put a crimp on the district’s coffers.
“I built in a 10 percent increase in supplies and materials and when you factor in 10 percent each year, it adds up quick,” Sommer said. “But if you go back a few years and look forward we normally don’t spend as much as we project.”
The emergency levy generates $1.8 million annually for the district.
Due to the language in the levy, the district cannot collect more than the figure for the duration of it.
“Right around that time (five years ago) the school district also put in a budget reduction plan and they went to the people and said we need this much money and they voted in that levy,” Sommer said.
Originally the levy carried 7.9 mills, but Summer said as property values rise, the county auditor adjusts the rate so that it only generates $1.8 million. Currently the levy collects at a rate of 6.8 mills.
The levy cannot be renewed since it was emergency funding. If board of education members decide to ask the voters for continued support, the levy has to be placed on the ballot as a replacement.
At this point, board members have yet to reach a decision on if they will place a replacement levy on the November ballot. The deadline to appear on the ballot is August.
|
|
Last Updated ( Wednesday, 18 June 2008 )
|
