Schools end year on better footing

The district is expected to ask voters to approve new tax levies in November.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN --The city school district has ended fiscal year 2006 better off than anticipated.
Early projections had estimated a $4 million deficit, but that number has been cut in half, Treasurer Carolyn Funk told the board of education Tuesday.
The final numbers show a deficit of $1,975,699, she said.
State funding
Funk attributed the improved financial picture primarily to nearly $1.5 million in additional state subsidy funds, bringing total state participation for the year to just over $78 million.
Total spending for the year reached nearly $121 million.
Funk said the reduced size of the deficit will also improve the district's financial outlook for fiscal year 2007, which began July 1.
Earlier projections had estimated a $12 million deficit for 2007, which would have pushed the district into state "fiscal emergency."
Funk said the deficit now will be closer to $8 million.
That's low enough to keep Youngstown in "fiscal watch," a designation the state has already assigned, based on district finances.
Being in fiscal watch means the state will closely monitor district finances, but Youngstown won't get a fiscal oversight committee that would be created under a fiscal emergency designation, Funk said. Such a committee could take over all board of education powers and implement its own financial recovery plan.
Youngstown could still be forced into fiscal emergency in fiscal year 2008, unless voters approve a five-year emergency operating tax levy to offset the red ink, she said.
The board has been talking about a 12-mill emergency levy that would generate about $6 million in new revenue annually, along with a 2.5-mill permanent improvement levy that would produce about $1.25 million a year.
The board will meet Aug. 7 to finalize the size of the millage increase needed.
Other business
In other matters, the board:
Learned that the district has been awarded a $437,416 federal grant to implement character education programs this school year. Dr. Wendy Webb, superintendent, said Youngstown had received a much smaller federal grant to launch the effort in the elementary schools several years ago but those funds have run out.
The new grant will cover a four-year period, she said, noting that U.S. Rep. Tim Ryan of Niles, D-17th, was instrumental in helping to secure the funding.
The program will be expanded into the middle schools to help children develop behaviors and attitudes that emphasize caring, civic virtue and citizenship, justice and fairness and respect and responsibility.
Heard a promise from a plumbing contractor that he will hire an additional minority employee, if necessary, to be in compliance with the district's diversity objectives for companies working on the district's school building program.
John Wilha, president of Conti Corp. of Lowellville, has about $3.4 million worth of contracts to do work at the P. Ross Berry Elementary and Chaney High School and was called before the board to explain why he had no minorities, no women and no residents of Youngstown working on those projects.
Wilha told the board that he does have a minority plumber now working at Berry and that he will hire an additional minority employee if that is deemed necessary by the district. He said he has a total of about eight or nine people working on the two projects.
Wilha admitted he was out of compliance with the diversity issue in March when he transferred the minority plumber working at Berry to another job temporarily.
School officials said they were satisfied with Wilha's explanation and willingness to work with the district.
gwin@vindy.com