Subsidy cutback likely will bring year-end deficit

A state report shows that Youngstown has too many classroom teachers.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- Youngstown city schools will be getting $6.7 million less than expected in state subsidy funds this school year, likely causing a significant year-end deficit, school officials said.
Carolyn Funk, district treasurer, said a state update on subsidy support for January showed that Youngstown will get $54,237,250 for the year.
However, the district's general fund budget is based on the state's October funding estimates, which showed Youngstown would be getting $60,938,787 this year, slightly more than last year. The October numbers are based on last year's enrollment.
The latest figures reflect a loss of 380 pupils from Youngstown, children who have moved out of the school district, Funk said.
The result is that Youngstown's subsidy will be cut, she told the school board's finance committee last week.
Not anticipated
It's an unanticipated loss of funding that will cause a significant problem with the district's financial picture, Funk warned, saying the loss could force the district into a state "fiscal caution" designation.
A five-year projection that Funk presented to the board October had estimated the district would end this fiscal year (2006) in the black. New numbers aren't final yet, but Funk said a revised five-year projection based on the new figures from the state will likely show a substantial year-end deficit.
Fiscal caution occurs when a district experiences a deficit equal to 2 percent to 8 percent of its general fund revenues, Funk said.
Youngstown's general fund stands at $117 million.
Lock Beachum Sr., chairman of the board's finance committee, has been warning of impending financial difficulties for months, saying the district must be prepared to take steps to remain solvent.
"This is very serious," he said after hearing Funk's report. The district needs to make reductions to avoid state "fiscal oversight" and "fiscal emergency" rankings, he said.
Both Funk and Tony DeNiro, assistant superintendent for school business affairs, said staff cuts can't be made before the end of the school year in June.
Employees are under contract and layoffs aren't possible before that time, DeNiro said.
Contract talks
The district is wrapping up negotiations now on a new agreement with its American Federation of State, County & amp; Municipal Employees union and talks will begin soon on a new teacher contract to replace their agreement that expires June 30.
Both DeNiro and Funk pointed out that all employee groups are involved in talks aimed at getting employees to begin picking up a portion of their health-care premium costs as a way to reduce district expenses, but no agreements are in place yet on that issue.
Funk also presented the board with a state report showing that, based on state calculations, Youngstown is overstaffed in the classroom teacher department.
The report shows that, for its size, Youngstown should have 240 classroom teachers -- those who actually have a regular classroom of pupils. However, the district has 374 in that category, according to the report.
The number excludes remedial program teachers, guidance counselors and art, music and physical education teachers, among others.
The administration is aware of the state reports on funding and staffing and has already begun a teacher-by-teacher job and program review, looking for ways to cut expenses and bring staffing in line with enrollment, DeNiro said.
However, Youngstown, which is rated in "academic emergency" in the state's academic Report Card program, has brought additional teachers on board to help staff new programs designed to improve pupil academic performance on achievement tests, he said.
Beachum has cited the need for those programs in the past but has also been asking since the start of classes last fall if Youngstown can continue to afford them.
The district needs to show the public both an improvement in education and that the school board is doing all it can to contain costs, he said.
gwin@vindy.com