5-year levy size to hinge on cuts

School officials want an outside committee to review the finances.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- Youngstown city schools could be seeking a double-digit tax levy in November unless the district can make additional cuts to reduce a projected 2006-07 deficit.
Carolyn Funk, district treasurer, told the board of education's finance committee Thursday that the size of an emergency five-year levy will be determined by how frugal the district can be.
Trimming spending more than has already been proposed will result in cutting programs, Funk warned. It comes down to what kind of programs the district wants to keep in place, she said.
The district administration presented the board with a proposal earlier this month to cut 2006-07 spending by $8.5 million by eliminating nearly 100 jobs, trimming spending in various summer and after-school programs, saving on utility costs by closing two buildings and reducing spending on materials and supplies.
However, that won't be enough to offset a projected $11.7 million 2006-07 deficit, Funk said.
How bad it is
The district could be facing a double-digit millage levy, she said. One mill generates about $600,000 in revenue, and, at that rate, 6 mills would seem to be sufficient to cover the remaining debt.
But Youngstown has been hit with declining state reimbursements in recent years and that trend is likely to continue, Funk said.
For example, the district just learned in January that it will be getting $6.7 million less than it had expected in state educational subsidy for this year, primarily because enrollment dropped, she said. That created the current year's deficit, she said.
The district has to make sure it has the revenue needed to cover expenses, and, therefore, a levy larger than 6 mills may be required, she said, noting that she expects to have a final number for the board in early April.
Board member Lock P. Beachum Sr. said he wants the board to set up a community-based committee to review the district's finances to determine if there are other cuts that can be made before the board goes to the public with a levy request.
Finance Committee members Jamael Brown and Jacqueline Taylor agreed.
The community committee should include bankers and other financial people as well as someone from Youngstown State University, Beachum said, adding that he will ask the full board to approve the plan at its meeting Tuesday.
Getting word out
It also may be time for the board to hold a series of town meetings around the city to explain the district's financial situation, he said.
Dr. Wendy Webb, superintendent, said she is creating a speakers bureau to have people available to go out and speak to groups and organizations.
In February, Funk projected a $4.9 million deficit for fiscal year 2005-06, which ends June 30, but she told the committee Thursday she refined the budget numbers and now puts the deficit at $4 million.
Funk said she cut $500,000 from supplies and materials, $200,000 from capital outlays and another $200,000 from a variety of categories.
The $4 million deficit is still enough to have the state put Youngstown under "fiscal watch," she said.
That means the state could come in and make suggestions for further cuts, she said.
The school district needs to do all it can on its own before that happens, Beachum said.
gwin@vindy.com