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5-year forecast shows district in red in 2014
Nov 05, 2009
The Dublin school board last week approved a new five-year forecast that outlines district revenue and expenditures through 2014. New state mandates such as staffing costs for all-day kindergarten were included in the five-year forecast for the district, which will be aided by the state's extension of the reimbursement for the tangible personal property tax.
District treasurer Stephen Osborne told school board members there weren't many changes from the previous five-year forecast, although "one of the big adjustments of this was tangible-personal property tax."
House Bill 66 began the phase out of the tax in 2005, with the state agreeing to reimburse school districts the funding that they had been receiving from the tax until 2011.
Gov. Ted Strickland has extended full reimbursements through the 2013 financial year, giving the district more funding than previously expected. The phase out of the tax will begin in 2014.
"We got to add $5-million to the forecast," Osborne said. "The full reimbursements bump us up by $5-million for the (2011-12 and 2012-13 school years)."
Osborne said the district had put the phasing out of the tangible personal property tax into the previous five-year forecast. Strickland's extension gives the district the full $10-million reimbursement for two years longer, giving the district $5-million more than expected.
The district is planning to receive less revenue from the state in other areas, though.
According to Osborne, state foundation money paid to the district has recently benefited from federal stimulus funds that will run out in 2011. The district factored in an 8-percent reduction in state foundation revenue beginning in 2012 to account for the loss of stimulus funds.
"We're trying to be conservative. Right now, we're looking at an 8-percent reduction for 2012 and (2013)," he said. "That's a loss of about $1.1-million."
When it comes to expenditures, Osborne said new state mandates were included in the five-year forecast.
"We spent a lot of time looking at staffing needs," he said. "All-day kindergarten staffing is included in the forecast."
According to the forecast, the district will need 21 new teachers, three special (such as art, music and physical education) teachers and two intervention specialists to cover all-day kindergarten for the 2011-12 school year.
Osborne said additional hours also will have to be added to the time of current classified staff members to provide lunch and other services for the all-day kindergarten classes.
Staff costs are the largest expenditure for the district; for the 2010 fiscal year, the district will spend 90 percent of its $156-million in expenditures on wages and benefits.
According to the forecast, the district will not end a fiscal year in the red until 2014, which is what was promised during the last levy campaign, Osborne said.
"The (2008) levy was supposed to sustain the district through 2013, which it will," he said.
The district is planning to spend $156-million in 2010 and bring in $150-million; with $44-million in carryover and $2.4-million in other costs, the district predicts it will end with a $35-million carryover in 2010.
In 2011, expenditures of $165-million are anticipated to eclipse revenues of $163-million. In fiscal year 2012, $165-million in revenues are expected, and expenditures are estimated at $175-million.
Expenditures of $185-million and $169-million in revenue will leave the district with a $6-million carryover in 2013.
With anticipated expenditures of $198-million and revenue of $171-million in 2014, a $21-million shortfall is expected at the end of the five-year forecast.
Copyright 2009
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