Despite cuts, city school district facing more red ink

Despite cuts, city school district facing more red ink

YOUNGSTOWN — A fiscal year 2008 forecast shows the city school district will be back in the red as early as January.

Carolyn Funk, district treasurer, handed the city school board a general fund cash-flow projection tonight that shows total revenue for the year at $109.5 million and spending at $119.4 million.

That’s a deficit of $9.8 million for the year, but Youngstown started this fiscal year with $3.8 million in cash, the last of a $15 million state solvency loan to help cover a fiscal year 2007 budget deficit.

That borrowed money reduces the estimated 2008 year-end deficit to just more than $6 million, Funk said.

Her cash-flow projection shows the district will begin spending in the red in January, estimating the deficit at $1.7 million at that point. It will gradually grow to $6 million by the end of the year in June unless additional spending cuts are made or more revenue is found, Funk said.

For the complete story, see Wednesday’s Vindicator and Vindy.com.