School treasurer predicts financial trouble in 2-3 years

May 18, 2010 at 12:00a.m.

By D.A. WILKINSON

SALEM

Salem Board of Education Treasurer Jill Rowe predicts that the district could be in financial trouble in the coming years.

Rowe’s long-term revenue picture shows the district in the red in two or three years.

Voters earlier this month approved the renewal of a 6.7-mill, five-year emergency levy that raises about $2.1 million a year for the schools.

Schools Superintendent Tom Bratton and the board of education members were pleased with the results.

But local support isn’t the problem.

Rowe’s analysis of the district’s general fund showed that in April 2009 the district had revenue of $1.6 million and expenditures of $1.5 million.

In April 2010, the district had revenue of $1.8 million and expenditures of $2 million.

She said she had looked at Columbiana County figures on foreclosures, a countywide reappraisal of property that is ending and other figures. She said she saw little growth and little revenue.

But she said the biggest question is whether the state will have to cut its funding to schools in the future. If so, the district could face sharp cuts.

Rowe’s projection was based on the state’s cutting most of its revenue to schools.

Board member Steve Bailey pointed out she was being conservative in her projections.

Bailey said, “It’s very difficult to project. It’s more of a guess than anything.”

But board member Nick Bush said, “We’re holding flat. We’re in good shape.”