Voters could bridge school funding gap, official says

By JoANNE VIVIANO
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- A Youngstown city school official has recommended that the school board return to voters to raise the $3.6 million needed to expand the district's construction project to include six additional new schools.
Treasurer Carolyn Funk told board members Tuesday that passage of an additional 0.5- to 0.75-mill bond issue would not increase the tax burden to school district residents.
The proposed bond issue would combine with the 3.9-mill bond issue voters approved in 2000 to raise a $33.2 million local share for the building project.
Lower interest
Since the passage of the original bond issue, the interest rate the district must pay on the bonds has been lower than expected, Funk explained.
As such, soon the county auditor will not have to collect the entire 3.9 mills to meet the $33.2 million requirement.
Voter approval of an additional bond issue will allow the district to collect the extra $3.6 million without pushing the millage rate above 3.9, Funk said.
The recommendation comes after the Ohio School Facilities Commission reassessed district buildings, allowing for the building of six additional schools. Previously, the OSFC had said the six schools would be renovated.
In 2000, estimates for the entire project had been about $163 million. With the reassessment, the total climbs to around $206.5 million, factoring in the anticipated inflation of construction costs.
The reassessment means the district will have 12 new schools, two renovated buildings and one school receiving renovations and an addition.
District's share
Although the OSFC pays 80 percent of total project costs, the school district is responsible for 20 percent, roughly $41 million.
In addition to the previously approved bond issue, portions of the local share have come from interest earnings on bonds, a portion of county millage funds and a portion of money earned after the 2001 sale of Anthem Blue Cross and Blue Shield stock.
Last week, Funk estimated that the unfunded "gap" would be $4 million to $5 million. The amount was modified to $3.6 million based on cost estimates from Heery International, which manages the construction project.
Other options
She said other options for generating the $3.6 million would affect the general fund and require the district to reduce educational programs to balance the budget in the coming five years.
"I believe the investment in Youngstown itself is worthwhile," she said. "I still think that new schools will make a difference in this community."