Educators’ forecasts call for either new tax levies or spending cut
Two-thirds of Miami Valley school districts are projected to have deficits by the end of the 2012-13 school year without new levies or spending cuts, according to forecasts the districts filed with the state last month.
The problem is local and statewide. Only two of the 25 local districts reviewed by the Dayton Daily News secured extra funding by passing new money levies Nov. 2, and the Ohio Department of Education says most of them should plan for state funding cuts next fall.
Although variables affecting a district’s bottom line are constantly changing, the numbers signal that area schools could face their toughest financial challenge in years.
“Should (citizens) be concerned? Yes, because without additional operating dollars, you either eliminate programs or raise class size,” Beavercreek schools Treasurer Stephen Maag said.
Just as area school districts vary in financial strength, they also have different philosophies on whether to save money now for what may be a rocky financial patch ahead.
Oakwood schools allowed their general fund balance to fall below $750,000, or less than 4 percent of a year’s spending, in June. Treasurer Kevin Philo said he does not like the balance to get that low, but Oakwood had leeway to cut it close because its voters have approved levies on the first try, as they did again Nov. 2.
West Carrollton, on the other hand, had a $16 million general fund balance in June, or 45 percent of a year’s expenses. Despite having a cushion to work with, Superintendent Rusty Clifford said the district has eliminated jobs three of the past four years, and will do so again next year. He said those moves will allow the district to wait until November 2011 or even 2012 before asking for another levy.
“Each district has to know what their comfort level is,” Philo said. “When the next treasurer or next board comes in here, they might not be happy with cash balances of 4 percent. It’s sort of an art.”
