SCHOOL BOARD Chief: Put levy back on ballot
The board is seeking a legal opinion about switching insurance providers.
By IAN HILL
VINDICATOR STAFF WRITER
AUSTINTOWN -- Schools Superintendent Stan Watson has recommended that the school board ask voters to approve a levy for the second consecutive year.
A five-year, 5.9-mill tax levy that would have raised $3 million annually for the district was rejected by about 2,800 votes in November 2003.
"It's the only method we have to keep the schools operating," Watson said when asked if a levy will appear on this November's ballot. He discussed the levy after a school board meeting Tuesday.
School officials have yet to discuss the size or length of a levy for this November.
The board has until Aug. 19 to pass two resolutions needed to put a levy on the November ballot.
Watson said that while he understands that some township residents will say they can't afford more taxes, the district doesn't have any choice but to seek the levy because it's the only way to raise additional revenue under the school funding system in Ohio.
Board President Ray Slivochka added that for a levy to pass in November, the board will have to show voters that it has effectively spent their tax dollars.
It's been seven years since Austintown voters approved a new school levy.
Looming deficit
Treasurer Barbara Kliner said without additional revenue, the district is slated to have a $1.6 million deficit at the end of next fiscal year because of increases in costs and decreases in state funding and some tax revenue. She noted that while the district also was slated to have a deficit at the end of this fiscal year, it will now have an $825,000 carry-over because school officials made budget cuts during the year and received some unexpected revenue.
Kliner also stressed, however, that the carry-over doesn't seem that large when compared with the $900,000 the district spends on wages each pay period. She added that state funding for the district decreased $235,000 compared with last year, while the cost of utilities increased $125,000.
School officials were able to save money this year by cutting supply purchases by $258,000 compared with last year, Kliner said. She added that school officials also found money outside of the general fund to pay about $325,000 in salaries and that the district's revenue from inventory taxes increased $200,000.
Kliner also said she saved the district $56,000 in workers' compensation premiums this year by meeting state-set goals for reductions in claims. That announcement was met with applause from the audience at Tuesday's meeting.
Insurance
During the meeting, Todd Conduff, an account executive with Employers Select Plan of Independence, told the board he believes it could have saved an additional $600,000 if it had switched insurance providers. Employers Select Plan represents four insurance companies.
Conduff said he offered to save the board money last year by switching the district to Medical Mutual of Ohio, but he received no response.
The Austintown schools are a member of a self-funded insurance consortium that includes many Mahoning County school districts. Watson noted that the district is required to give the consortium a one-year notice before it leaves the consortium.
The board is seeking a legal opinion to determine if it could leave the consortium without giving a one-year notice.
hill@vindy.com.