DISTRICT FINANCES Despite fiscal watch status, schools chief is optimistic

Personnel cuts will save the district about $700,000 in the 2005 budget.
By NANCY TULLIS
VINDICATOR SALEM BUREAU
COLUMBIANA -- Although state auditors are keeping an eye on the district's finances, Columbiana schools Superintendent Ron Iarussi is optimistic about the district's financial future.
"We're still on fiscal watch, but we can balance the books through this fiscal year," Iarussi said. "We just have to continue to be responsible in our spending and operate efficiently."
Iarussi, former Columbiana High School principal, became superintendent July 1.
State Auditor Betty Montgomery placed the school district on fiscal watch in June. She said the district's five-year forecast at the time showed a $482,000 shortfall for the end of fiscal 2005.
Montgomery said the district failed to submit a "reasonable" plan to the Ohio Department of Education to address its faltering financial condition.
Since then, school officials have negotiated with the unions of both the certificated staff (teachers) and classified staff (nonteachers) and made personnel cuts that will save the district about $700,000.
Treasurer Lori Posey said that the 2005 budget will balance but that to get out of fiscal watch, school officials must project financial stability for "more than a year or two," and will "have to look at 2006 again."
Cuts
Reductions made for the 2004-05 school year include 10 teaching positions, one full-time administrator and four nonteaching positions, Posey said.
Five of the teachers and two nonteaching staff members retired and were not replaced. The full-time administrator was the technology coordinator who took another position and was not replaced, she said. The other positions, including five teachers and two nonteaching staff members, were the only ones cut through reduction in force, she said.
"I am confident we are going to get back on our feet again financially," Iarussi concluded.
Voters approved a 1 percent income tax in 2002 expected to generate about $1.2 million per year. Posey has said, however, that it takes about two full years of collecting the tax before the full anticipated amount of the revenue is received.
Posey said part of the shortfall also occurred because state officials overestimated the tax revenue to be generated, and the school board repealed some property tax collection since voters approved the income tax.
The board repealed a 6-mill emergency operating levy that otherwise would have been in place through 2003 and reduced the 2003 property tax collections by 7.6 mills.
tullis@vindy.com