SCHOOL FINANCES Board approves five-year forecast

The board president wants analysis of school district revenue.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- Reassessing the numbers resulted in staving off a projected school district deficit for another year, but the financial forecast still looks gloomy.
The school board met earlier this week and approved a five-year financial forecast that included a projected $76,000 deficit in 2007 that would compound in 2008 and 2009.
That forecast included step pay increases for employees of about 3.4 percent. Treasurer Phillip D. Butto IV reassessed the numbers and found that because many district employees have been with the district several years, they're at the top of the pay scale and don't realize step increases.
When he blended those getting no-step increase with those getting the 3 percent, it averaged to a 1.6 percent increase in general fund salaries for 2006.
"That made a big difference in our long-term financial outlook," Butto said. That combined with some other changes resulted in a projected $1.5 million ending balance in 2007. The deficit would be $7.4 million in 2008 and balloon to $18.4 million in 2009.
Butto stressed that the financial forecast changes daily, adding that he has some other ideas for budget trimming but wants to analyze them before bringing them to the board.
The forecast doesn't include negotiated employee raises beyond 2007.
Losing students
Part of the district's financial woes stems from the loss of 350 students this year due to community schools and open enrollment in other districts. The district gets about $5,100 per pupil from the state.
Because the money follows the student, losing students means losing state dollars too.
Lynn Gibson, board member, said the forecast looks worse than before because it doesn't include raises.
Linda Metzendorf, board president, asked Butto to distribute to board members an analysis of every dollar of income that comes into the school district.
"We've got to quit spending more than we have coming in," she said.
Cuts have to be made.
"It has to end here," Metzendorf said. "We can't deal with an $18 million deficit in 2009."
Edward Bolino, board member, suggested conducting a board retreat where members discuss ways to market the district in an era where school districts have begun competing for students and for state dollars.
Gibson said the district needs to focus on getting out of academic watch, a classification from the Ohio Department of Education based of student test scores.
denise_dick@vindy.com