School board approves revised financial forecast

Finances are good now, but the district could face a deficit in 2009.
By MARY R. SMITH
VINDICATOR CORRESPONDENT
MINERAL RIDGE -- The Weathersfield school board has approved a revised five-year financial forecast.
The district projects a $1.8 million balance at the end of the 2006 fiscal year, which ends June 30. However it will finish fiscal year 2009 with a deficit of $578,000 and 2010 with a deficit of $1,685,546, according to the forecast, which was approved Wednesday.
The forecast must be presented to the state by May 31. Treasurer Angel Lewis said.
Board President Fred McCandless said that unless the district gets some help from the state, and local voters pass renewal levies that will be on ballot in the coming four years, the district will certainly face a deficit.
Otherwise, McCandless was upbeat about the current status of school finances.
Approved in 2005
Voters approved a five-year renewal issue of 4.2 mills in May 2005 to generate $418,128 a year. They passed a new 5.5 mill emergency operating levy in November 2004. That levy raises $538,168 a year.
School superintendent Michael Hanshaw noted that the district was in state fiscal watch for three years and was just released from it last spring.
McCandless urged voters to contact their state representatives and urge that they stop approval of a proposed state amendment to the Ohio Constitution, called the Tel Amendment, which stands for Tax Expenditure Limitations.
The Tel Amendment would require that a majority of registered voters vote for a tax issue to pass it. Currently only 50 percent plus one of those who actually turn out to vote can pass levies.
Making allowances
Lewis said figures in the five-year forecast include an allowance for one 2 percent pay increase for the district's employees, and also assume there will be a 10 percent increase a year in health-insurance premiums.
Lewis also noted that Ohio House Bill 266 will reduce tangible personal property tax income to school districts.
Hanshaw said, "The $1.6 million deficit is caused by HB 266."