Financial forecast brightens for Poland schools

Staff report

POLAND

Two years after projecting worrisome deficit spending, Poland Local Schools are expected to end fiscal year 2019 in the black.

In the five-year financial forecast approved Monday, fiscal 2019’s revenue is projected to exceed expenditures by $585,045.

This number is expected to grow slightly once finances for May and June are taken into account.

Two years ago, the district projected a deficit of nearly $7.5 million by fiscal 2021.

On the five-year forecast for May 2019, that number, while still a deficit, is expected to shrink to $265,829.

Improvements can be attributed to the implementation of cost-saving measures and the consolidation of facilities.

The district reduced its spending on personnel services, which account for about half of the district’s general-fund expenditures, from $11,407,875 in fiscal year 2016 to $10,093,086 this year.

In addition, the district closed Dobbins Elementary at the end of the 2017-18 school year, upon the recommendation of a performance audit conducted by the state auditor.

But per the forecast, the deficit will grow to $3.7 million by 2023. The amount doesn’t reflect revenue from levy renewals.

“Without those, we’d be in bad shape,” said school district Treasurer Janet Muntean.

The five-year forecasts school districts must submit to the state twice per year project expected general-fund revenues, expenditures and fund balances.

A notable change in spending from fiscal 2018 is in the area of capital outlay. The district projects expenditures of $448,364 for capital outlay for fiscal 2019, an increase from 2018’s amount of $97,124.

A plan to replace vehicles and make technological purchases accounts for this increase.

“I think we’re taking baby steps, but we’re moving in a right direction,” said board member Gregg Riddle.