Tuesday, May 21, 2019
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.