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Schools get 2-year cuts of $695,000
(by Sali McSherry - July 15, 2011)
Schools get 2-year cuts of $695,000
By SALI McSHERRY
Chagrin Falls schools will lose approximately $695,000 in the next two years due to cuts included in Ohio Gov. John Kasich's budget approved two weeks ago by Ohio legislators, school Treasurer Anne Spano said Monday.
During the recent state budget process, it looked like the district could see a loss of $1.3 million over the same time period in the governor's initial proposal. Still, it's a substantial loss to Chagrin Falls, Ms. Spano said, and will impact the district's budget planning.
The district is receiving about $224,000 in tangible personal property tax loss reimbursement from the state this year, a loss of about $471,000 to the district, she said. And in fiscal year 2013, Chagrin Falls will receive no tangible personal property tax.
With an annual budget of $23.3 million, Chagrin has a projected $6.8 million cash balance for fiscal year 2011. By 2014, though, there could be a deficit of $1.4 million and nearly $6 million in 2015 if a levy isn't approved next spring, Ms. Spano said.
While plans had been to place a levy on the ballot this year per the typical four-year levy cycle, according to Superintendent Stephen Thompson, the district stretched its levy cycle by a year.
An operating levy is expected to be on the ballot in March, according to Ms. Spano. The ability to extend it for a year has been made possible due to budget changes, Mr. Thompson had said.
Previous plans had been to place a levy on the ballot this year.
In 2011, Chagrin received about 7 percent of its general fund revenues from state foundation money and 14 percent from state property tax rollback.
The district expects an estimated $1,664,711 in basic state aid in fiscal years 2012 and 2013, the same level of funding as fiscal year 2011, Ms. Spano said. The state is accelerating the elimination of the tangible personal property tax loss reimbursement, she said.
According to the new state budget, Chagrin will likely lose 17.8 percent of its budget in 2012. In the governor's initial proposal, it was estimated that Chagrin Falls would lose 47.7 percent or $1.26 million of its state revenue in 2012, Ms. Spano said.
Staffing reductions in 2007 that included eight teachers and four classified staff members saved Chagrin Falls schools approximately $812,000 annually. Those savings were kept in the general fund and some of the money was reallocated to technology and critical facility infrastructure repairs, Mr. Thompson had said.
Salary increases for teachers, negotiated in May of 2010 are 1.25 percent this year, 1.5 percent in 2012 and 1.5 percent in 2013. Teachers also have a higher health insurance deductible -- $250 per person in the household.
The Ohio Association of Public School employees, which represents non-certified staff, agreed to the same amount for their health insurance deductible.
Also, the district will save approximately $116,000 annually due to capital improvements to facilities that will improve energy efficiency.
In November 2007, a 7.9-mill operating levy passed 2,483-1,794, generating $3.9 million. It costs homeowners approximately $242 per $100 market valuation.
In May of 2007, an operating levy failed by about 60 votes with a count of 1,323-1,263.
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