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More school levies lie ahead for West Geauga
(by Sue Hoffman - November 18, 2009)
More school levies lie ahead for West Geauga
By SUE HOFFMAN
This month's renewal of a 3.53-mill, five-year emergency levy will help the West Geauga School District avoid a deficit in fiscal 2011 and 2012. However, flat revenues and state mandates are projected to cause the need for additional levies, according to district Treasurer Michele Tullai's five-year forecast.
The renewal levy was passed Nov. 3 by a vote of 3,781, or 56 percent, in favor of the levy, and 2,943, or 44 percent, against in unofficial election results. The levy generates $2.35 million annually.
School Superintendent Anthony Podojil said the school board's next funding decision will be in 2012, when the district's 5.6-mill levy will be up for renewal. The levy, adopted in 2007, generates $3.7 million annually.
"In 2012, it will be a whole different dialogue than 2009," Dr. Podojil said. Additional state mandates such as all-day kindergarten are scheduled to take effect in 2012, he said. The school board will have a window of time after the state budget is passed to make a decision about a levy, he said.
"All districts are going to be in the same boat and will be looking at the next state budget," he said.
In 2012, the district will have been at approximately the same funding level for nine years, Dr. Podojil said. "Hopefully, by then, the economy will pick up. and we'll all be in a better position. There are a lot of ifs."
According to the five-year forecast, the district's June 30 cash balance will be $3.97 million in fiscal 2010, $2.91 million in fiscal 2011 and less than $800,000 in fiscal 2012.
Even with the renewal of the 2012 levy, Mrs. Tullai projects a year-end deficit of $2.1 million in fiscal 2013 and $5.99 million in fiscal 2014.
The deficits are due to "mandates and flat revenues," she said.
State-imposed changes will result in additional costs and reduced revenue for the district over the five-year period, Mrs. Tullai said. The changes include: the elimination of bus-purchase reimbursement, totaling $130,000 over the five years; $344,000 in total reductions in state foundation funding; $150,000 in total cuts for catastrophic special education costs; $330,000 from the elimination of tuition for all-day kindergarten starting in fiscal 2012; and over $303,000 in salaries and benefits for two additional kindergarten teachers.
The district currently collects $110,000 a year in tuition for students attending full-day kindergarten, school officials said.
Tangible personal property taxes are being phased out by the state. In the forecast, state reimbursement for lost tangible personal property taxes are projected to decline from nearly $319,000 in fiscal 2010 through 2013 to $158,000 in fiscal 2014.
Federal stimulus funds of $268,000 for fiscal 2010 and 2011 are projected to drop off in fiscal 2012.
According to the forecast, expenditures are projected to rise from $25.4 million in fiscal 2010 to $25.93 million in fiscal 2011, $27.09 million in fiscal 2012, $28.02 million in fiscal 2013 and $29.09 million in fiscal 2014.
Revenues, including levy renewals, are expected to rise from $24.75 million in fiscal 2010 to $24.87 million in fiscal 2011, $24.96 million in fiscal 2012, $25.13 million in fiscal 2013 and $25.20 million in fiscal 2014.
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