AUSTINTOWN Cuts will aid schools budget

The district is facing debt next fiscal year, the treasurer says.
By IAN HILL
VINDICATOR STAFF WRITER
AUSTINTOWN -- The school district most likely will end this fiscal year in the black after cutting about $1.5 million, Treasurer Barbara Kliner said.
Kliner said district officials probably will have spent about $35.3 million by the time this fiscal year ends Monday. When the year began, she had expected the district to spend $36.8 million.
The district collected $33.3 million this fiscal year and had a carry-over of $4.4 million from last year, allowing it to end this year without a deficit.
Deficit worries
School officials had been worried that they would end the year with a deficit because of decreases in tax revenue and a $1.2 million tax rebate the district paid to Phar-Mor in November.
The school board is expected to review its financial information for this fiscal year at its meeting at 7:30 tonight in the board office.
Kliner said she isn't sure how much the district will have in carry-over for next year until after Monday, when district officials have paid the final bills of the year.
She stressed, however, that the carry-over from this year won't be enough to allow the district to end next fiscal year without a deficit. School officials also are concerned that proposed state budget cuts may put them deeper in a financial hole.
Cutbacks
In an effort to save money this year, the district cut purchases of supplies and equipment and laid off eight teachers. The board is expected to re-hire five tonight to replace teachers who have retired and to fill a need in special education.
State law does not allow school districts to go into debt. If a district is facing debt and is not able to collect additional revenue, the state will place it into fiscal emergency status.
A state official will then work with the board to make budget cuts until it can raise more revenue.
The school board is expected to ask voters to approve a levy in November so it can collect additional revenue. The amount or length of a levy has yet to be set.
The board should receive its next payment of tax revenue in late August or early September. Until then, Kliner said she's going to try to "squeeze through" with what the district will carry over from this year.
If the district runs out of money this summer, it may have to take out a loan to pay bills. The school board is expected to vote tonight to allow Kliner to take out a loan of up to $1 million this summer.
The loan would be re-paid using taxes the board collects in the future. It would be the first loan the board has taken out to pay expenses since 1995, Kliner said.
hill@vindy.com