Niles schools deficit forecast

October 23, 2010 at 12:00a.m.

NILES

A five-year plan for the Niles City Schools forecasts a $6 million deficit by the 2015 fiscal year, and the superintendent says planning at this point is nearly impossible because of the uncertainty of help from the state.

“You just can’t tell what the state is going to do this far out,” said Superintendent Rocco Adduci. “We just don’t know about state funding at this point.”

The outlook, prepared by Treasurer Linda Molinaro, shows a deficit of $239,000 at the end of the current fiscal year next June. Adduci described that shortfall as “manageable.”

The projections show the gap between revenues and expenditures expanding by more than $2 million in 2012 and climbing to $6 million by the fifth fiscal year. Those figures do not take into account revenue from replacement, renewal or new levies.

Adduci said Molinaro factored 8 percent in state budget cuts into her projections. “That’s significantly higher than other schools are projecting, which is generally 5 percent,” the superintendent said.

Adduci said another factor that will impact the schools is property-tax collection, particularly if the number of foreclosures increases.

The superintendent said he is confident the school system will be able to handle potential long-range financial issues because of Molinaro’s higher-than- average estimate of state funding reductions.

“I think we’re better off than many other districts in the area,” Aducci said.

The forecast came as the school board prepared to break ground Friday for the new high school, part of a $56 million project that also includes construction of two elementary schools. Voters approved a bond issue to cover the local share of $16 million.