MINERAL RIDGE Schools plan for chance of levy defeat

The district has lost a total of $1.53 million over the past year.
MINERAL RIDGE -- The Weathersfield Board of Education will decide at its November meeting whether it will have to start implementing a list of planned cuts if an emergency operating levy fails Nov. 4.
During discussion at Wednesday's meeting, board members debated whether to wait until January when a new board will be seated to vote on the potential cuts.
The five-year levy would raise $919,360 annually.
Board president Debbie Maust and member Lori Garland are opposed in the November election by candidates Fred McCandless and Marilyn Besoiu.
Superintendent Rocco Adduci noted the board must also decide if it wants to place another issue on the March ballot, since 2004 is a presidential election year and there will be a March primary.
While board member Bruce Bacak noted the board has to first cut programs not required by the state, including some busing, Garland agreed that programs in progress cannot be eliminated until they are finished.
Personnel
Adduci also said that the administration is hoping that rather than having to lay off teachers, there will be enough retirements to eliminate positions by attrition.
He has told community residents that there will be raises for the nonteaching and teaching staff, whether the levy passes or fails, because that is a normal part of business operation. Employees took a one-year wage freeze last year because of the district's financial problems.
Treasurer Angela Lewis explained the five-year forecast to the board, saying that estimates for fiscal year 2004 are for total revenues of $7.651 million and expenditures of $7.953 million.
She said deficit spending was significantly decreased with the cost-cutting measures the board took this month, giving the district an end-of-the year balance. She said, however, that if the levy does not pass, the district will have a $40,000 deficit by the end of 2004.
"The cost-cutting has helped," she said, "but it is not a permanent fix."
She added that even with the cuts, the district was still $567,983 short in 2003.
Changing financial picture
She also presented the board with two typed pages of cost increases and reductions in income the district has received over the past year. Dr. Douglas Darnall added that up to an estimated $1.53 million total loss, combining tax cuts and increased expenses. The Ohio Department of Education is now conducting a performance audit on the district, which was placed under fiscal watch last March. A report on the audit is due in November. The state also monitors all of the financial activities of the district under a fiscal watch, Lewis said.
If the levy doesn't pass, the district will end up with a bigger deficit. She added that the county auditor will be advancing the district its personal property tax payment of $265,000 due from RMI this month, because the company paid the bill late.
She explained that without a fund balance, which was usually $1.077 million to $1.055 million in 2001 and 2002, the district would be unable to meet payroll or get a loan to make payroll, which is $350,000 for a two-pay month. "That's why they recommend having a reserve," both in personal finances and in business, Lewis explained. She said the district needs at least six months of reserve in case something happens.
She said if the levy passes, the district will have a $1.1 million cash reserve at the end of the fiscal year.