School board warns of ’12 deficit

By Mary Smith

Weathersfield’s revenue will be cut because of the loss of personal tangible property taxes.

MINERAL RIDGE — The Weathersfield Board of Education has learned the district faces a deficit by the end of 2012.

Treasurer Laurena Rouhan said projections are subject to change, for example, if a boiler breaks, or something else affects the budget. The district’s expenditures, however, will exceed its income by a little more than $200,000 starting in fiscal year 2009, which begins July 1, she said.

In 2010, expenditures will exceed revenue by $809,510. Both those deficits will be covered by a cash reserve the district has accumulated over the years.

An actual deficit of $516,212 is anticipated for 2012, however.

The projected deficit Rouhan and Superintendent Michael Hanshaw explained is a result of the loss of $1.3 million in revenue from personal tangible property taxes. The phase-out of the tax will be in 2011.

Personal tangible property is everything other than real estate that has value.

“The state has eliminated personal tangible property tax from districts,” Mrs. Rouhan said, noting that Weathersfield schools are 13th on the list statewide of districts most affected by the elimination of the tax source.

RMI is the district’s largest business to pay the tax.

Rouhan also noted that 50 percent of local revenues come from local taxes, and that is being affected by the current economic situation. She noted the Trumbull County auditor lists 15 percent of homes in the county as being in foreclosure.

She said the district has to look for different sources of revenue while trying to “maintain the standard of education which we think is high.”

The board also approved at its meeting earlier this week the hiring Robert W. Baird & Co., Youngstown, as its underwriter to purchase and resale bonds on behalf of the board for a fee not to exceed 1 percent. Baird is a financial adviser and underwriter.

Hanshaw explained the district is in negotiations with the Ohio School Facilities Commission for possible funding, and meetings are under way on negotiating a districtwide master building plan.

Baird was hired in case the district does intend to pursue options with OSFC, Rouhan added.