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Youngstown school district sees sunny 5-year forecast
Board, interim superintendent credited for recent savings
By Denise Dick
YOUNGSTOWN
The city school district’s budget is in the black through fiscal year 2020, just a few years after officials projected a $48 million deficit.
The school board this week approved the FY 2016 budget. General fund expenditures total $116,871,667, but when payments to other schools including charters, debt service and transfers, are taken out, the amount is reduced to $78,013,667. It’s a 3 percent increase from last year.
The budget document presented by Treasurer James Reinhard includes a five-year forecast for the district.
“I am happy to report that for the first time in many years the district should enjoy some financial stability through the entire forecast period,” he wrote in a memorandum to board members.
Reinhard started as a fiscal monitor for the district, appointed by the academic distress commission, in early 2013. At that time, a $48 million deficit was projected for the schools by FY 2017 without cuts.
Even last February, district officials talked about a need to trim $2 million from the budget to stave off a future deficit.
The biggest contribution to the projected deficit’s elimination in the five-year forecast is a change in employee health insurance.
Both the teachers’ and the classified employees’ unions agreed to the health insurance change, joining the Stark County Schools Council of Governments.
By both the classified employees’ and teachers’ unions moving to the consortium for health insurance, the district expects to save about $4 million annually.
The district’s health insurance had been self-funded, meaning money was set aside to fund health-insurance claims.
“We also reduced 30 positions this year,” Reinhard said.
State funding also increased more than 2 percent this year compared to last.
The district also reduced its staffing by about 30 positions in 2013 too.
Reinhard credited the school board and Stephen Stohla, interim superintendent, for the recent savings.
He points out though, that he must continue to monitor finances.
“Plenty of things can still go wrong,” the treasurer said.
The biggest hit would be failure of a 10.4-mill renewal levy. That levy, originally passed in 2008, generates about $5 million for the district annually. It will be on the November ballot.
State funding could decrease, district enrollment could plummet or the city could lose a major taxpayer.
“Things can get better too,” Reinhard said. “The economy could get better and a new taxpayer could move into the city. It goes both ways.”
Still, he sees reason for optimism.
“The stars are aligning for what could be a very positive era for the Youngstown City Schools,” Reinhard said.