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Deficit spending, but no debt
YOUNGSTOWN
Youngstown City Schools are predicted to be in deficit spending the next five years, but the district will not go into debt, according to the latest five-year financial forecast.
The finances were presented Friday by district Chief Financial Officer Greg Slemons during an Academic Distress Commission meeting.
Because the district has a beginning balance in fiscal year 2018, which began July 1 this year, of $24.1 million, it will not go into debt – despite Slemons’ prediction the district would spend more than it generates in revenue over the next five years.
The $24.1 million is a result of a cash balance that accrued at the end of each fiscal year for at least the last four years when the district brought in more revenue than it spent, district officials said.
The district is predicted to spend $122,620,588 in 2018; $121,573,977 in 2019; $124,402,464 in 2020; $127,569,678 in 2021; and $130,895,558 in 2022.
Revenue is predicted to be $119,165,995 in 2018; $120,337,615 in 2019; $122,303,579 in 2020; $122,497,556 in 2021; and $122,669,864 in 2022.
This will leave the school district in deficit spending amounts of $3,454,593 in 2018; $1,236,362 in 2019; and $2,098,884 in 2020.
For fiscal years 2021 and 2022, the forecast takes into account predictions for both a renewed and nonrenewed emergency levy.
The district’s 10.7-mill emergency levy, originally passed in 2008 and renewed in 2012 and 2016, generates $5.2 million annually for four years.
If the levy is renewed, deficit spending would be $2,374,064 in 2021 and $2,797,160 in 2022. With the renewal, the district will have to spend about $12 million of its $24.1 million balance by 2022.
If the levy is not renewed, deficit spending would be $5,072,122 in 2021 and $8,225,694 in 2022.
Without the renewal, the district will have to spend more than $20 million of its $24.1 million balance by 2022, officials said.
“There is only one other district in the state under academic distress, so we have to consider that we do have to spend money on instruction – specifically more money on teaching and instruction,” district CEO Krish Mohip told the state-appointed commission.
Slemons said the five-year forecast is merely predictive.
“It is used to be a management tool, not a political tool. ... Changes can be made along the way,” he said.
A change Mohip foresees is in professional-development spending.
He said he expects it to decrease as less spending will be needed to help the district progress in the years ahead.
Commission President Brian Benyo said he thinks Mohip is leading the district in the right direction.
“Positive steps are being made across all fronts to progress,” Benyo said.