McDonald district back on track

June 1, 2012 at 12:00a.m.

McDONALD

The McDonald school district’s new five-year forecast shows the district financially back on track, after having been removed from state fiscal emergency earlier this year.

“It’s looking good for the district, better than anticipated.,” said Bill Johnson, interim treasurer. “Right now, it looks good. The district is in a solid position.”

Board president Jack Dugan cautioned that one problem is: “You kind of never know what state funding is going to be.”

Dugan was referring to an unexpected drop in state foundation money from the previous forecast, but he noted that a detailed explanation from the interim treasurer made it clear that other factors would make up for that shortfall.

Year-end projections from 2012 to 2015 show cash balances much higher than projected in the September 2011 forecast, according to Johnson.

Forecast figures are: 2012 — $651,292, (September 2011 — $316,209); 2013 — $1.323 million; 2014 — $1.858 million; 2015 — $2.021 million; and 2016 — $2.096 million.

The 2011 forecast was prepared for the State Finance and Planning Commission in August because the district had asked the Ohio Department of Education to remove it from state fiscal emergency. The commission also was looking at whether it could reduce a 10.75 mill levy to generate $580,000 by $189,000.

The levy was reduced to 7.25 mills to generate $391,000 for five years as an emergency levy.

Although the treasurer noted that a projected increase of $669,899 in State Foundation money was expected last year, that figure was $216,000 too high, a change made by the state.

But that loss will be offset by lower expenditures, along with receipt of higher taxes, from an anticipated $1,488,183 to $1,523,960. Tax revenues are expected to go up by approximately $150,000 in fiscal 2013 to $1,663,960.

An increase in open-enrollment receipts from $1.028 million to $1.131 million is expected as are an annual savings of $100,000 or more on salaries each year.

Johnson said overall, the district will have a decrease in funds of about $36,000 or less.

He noted that he has yet to talk with the board about capital improvements that need to be made and allocated for.