Schools predict big losses
Most Trumbull County districts say they’ll be in the red by 2013By RAYMOND L. SMITH / Tribune Chronicle
School districts across the valley are finding themselves struggling to stop their fiscal bleeding, as five-year forecasts released last month reflect significant losses.
According to the forecasts required by the Ohio Department of Education, 16 of 21 Trumbull school districts predict they will be operating in deficit by 2013, with Warren City Schools predicting the largest shortfall at more than $28 million by 2013 and Niles City Schools predicting a shortfall of $12.7 million by 2013. Liberty Local Schools is predicting a $11.3 million shortfall by then.
In fact, Niles School District, along with Lakeview in the Bazetta-Cortland area, are projecting that they will be operating at financial losses by the end of the 2010 school year, based on their current financial picture.
Four other districts - Austintown, Howland, Newton Falls and Southington - say they are facing similar situations in 2012. Mathews and Weathersfield school districts are forecasting possible losses starting in 2012.
Seven other nearby school districts - LaBrae, Jackson-Milton, Girard, Bristol, Bloomfield-Mespo, Lordstown and Maplewood - are not projecting possible deficits until the 2013 school years.
Meanwhile, Champion, McDonald, Hubbard and Brookfield schools each expect to get through the 2013 school year without any deficit.
Liberty's five-year forecast indicates it will have a projected budget of $443,356 at this fiscal year. However, the district is projected to have a June 30, 2010, end-of-year balance of $1.4 million budget. By the end of the June 30, 2013, the district is projected to have a negative balance of more than $11 million.
The district failed to convince voters to pass a 9.9-mill levy in May that would have eliminated the projected debt, but school officials say they will wait before trying again at a levy.
''We are not going to put on another levy attempt in August, so the earliest we could put it on the ballot is in November,'' Superintendent Mark Lucas said.
Lakeview's five-year forecast projects it will end this year with an operating balance of just $23,400. And in each of the next four years, the district estimates it will have negative balances each June 30.
Lakeview Superintendent Robert Wilson said the district has been actively looking at ways to trim its budget while maintaining quality programs.
''We cut $1 million from our budget in the last two years, reduced our teaching staff by 12 positions and there is no busing at the high school level,'' Wilson said. ''We are one of a few districts that have pay to participate.''
That district is hoping to save $500,000 next year by the closing of Cortland Elementary school, he said. "Many of our fourth grade students will being going into modular units next year.
"We've reduced our staff by 12 teachers, did not replace our curriculum director and reduced busing by eliminating busing to the high school,'' he continued.
Now Lakeview is talking with Mathews School District about collaborating various activities.
''We are still in the discussion phase,'' Wilson said. ''I'm sure we will be able to do something.''
Because schools cannot end the year with deficits, district officials must look for ways to reduce their projected losses.
Voters in Cortland and Bazetta in February approved a 3.15-mill renewal levy, which saves about $840,000 a year.
Warren schools is projected to have a $10 million deficit in 2012 and more than a $28 million deficit by the end of the 2013 school year, unless financial conditions change.
LaBrae Superintendent Pat Guliano says the district will have a wage freeze and has five senior employees retiring this year. District officials do not expect to replace all of those positions.
According to its forecast, the district will not face a possible deficit until 2013.
It also has an incentive program for qualifying employees that may be thinking of retiring.
''We are trying to slow the rate of losses,'' Guliano said. ''Realistically, it will be very, very difficult for anyone to pass local revenue levy. Yet, school districts have costs that they cannot eliminate''
Bristol Superintendent Marty Santillo says it has always been difficult for school districts to project their budget five years out as they are required to do by May 30 every year. It was especially difficult this year because of the uncertainty of the funding methods being discussed by state legislators.
''Generally, we are pretty good looking two years down the road, because that's how the state figures its budget," Santillo said. "When you get to years three, four and five, it is a lot more difficult."
Bristol is among the seven not projecting the possibility of a deficit until 2013. Still, by then, it is projecting a shortfall of $157,411.
Earlier this year, Ohio Gov. Ted Strickland announced a plan to overhaul the state's funding mechanism for its schools. However, since that time, state officials have found its overall budget is in worse financial shape than anyone expected.
While the Ohio House generally has been supportive of the governor's education plans, the Senate has been looking at ways to cut spending in order to balance Ohio's overall budget.
"We probably will not know how to plan our budgets until sometime in July,'' Santillo said.
Budget projections are based on current funding formulas.
Bristol is expecting to have more expenditures than revenues it takes in beginning at the end of the 2010 school year. However, its cash balances will prevent the district from falling into the red.
Santillo said the district is asking voters to support a 4.7-mill levy renewal in August.
William Daugherty, treasurer of the Bloomfield-Mespo School District, says in spite of the fact the district is not facing a possible financial problem until 2013, school leaders have been active in trying to keep costs down.
"We have done some RIFs (reduction in forces) and have been looking at other ways to reduce out costs,'' Daugherty said. "We are watching what will happen with the governor's proposals. We are very optimistic about them"
Hubbard treasurer Rhonda Baldwin says the community has been very supportive of the district and has financially supported it whenever there has been a need for levy renewals. The school district is not projecting a deficit in its five-year forecast.
"Right now, we're in pretty good shape," Baldwin said.
Even with schools that are not projecting a financial deficit, the five-year forecast still shows everything is not perfect. At the end of this school year, Hubbard schools, for example, will be having more expenditures than revenues.
The school district is expecting to spend $315,607 more this year than it is earning in revenues. However it will end the year on June 30 with a unreserved fund balance of $6.4 million.
By 2013, the district will have expenditures of nearly $3.7 million greater than revenues it is earning for the year. The district still projects a June 30, 2013, fund balance of nearly $3.3 million.
"We, like many others, are seeing a significant drop in our investment earnings," Baldwin said. "In future years, we will see an elimination of money from the tangible personal property tax and a decrease in the valuation of properties in the area.
"Simultaneously, we will see our expenses rises, including salary increases that we are contractually obligated to pay, a rise in health care costs, and purchasing of new equipment."
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victorson
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06-10-09 12:26 AM
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As for the idea of "raising the kids". I partially agree. For example, Warren City and Youngstown City...is a much harder teaching environment. However most schools in our area are in the country and have a farm type living culture. Lots of corn fields, and farm living, lol.
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victorson
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06-10-09 12:17 AM
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Some teachers could be considered underpaid. Maybe even some around here. Ohio is the 14th highest paid in the entire country when it comes to teacher pay. I would suggest down south, in the Alabama area one could say they are underpaid. Trumbull county's teachers however are paid very well in my opinion. Although the starting salary pay is rather low, the ladder tends to go upward fairly fast in that regard, topping out somewhere around $60,000 if I'm not mitaken. Also teachers can retire early in their 50's with nearly all of their normal pay (almost full retirement)...with survivor beneifts, and full health care...(if i'm not mistaken)...so that is not underpaid in my mind.
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always4kids
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06-09-09 11:58 PM
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UnEducated- actually, if you do the math, teachers are ridiculously UNDERPAID, if you are going to call them babysitters. Let's see, an average of 20 kids/class, 6 hours a day, times even a low paid babysitter (2.50/hour) = That would be roughly 300/day. 300 times 180- 54,000, that would be double most districts starting salaries for teachers. Overpaid?????, right. Not to mention, not only do they have to TEACH, but they also have to RAISE kids these days, because we all see what great jobs most parents are doing. Can't Take It- The Stimulas check @ Southington is for the Southington Little Wildcats, which is a COMPLETELY separate entity from the school, get your facts straight, it's people like you that just spout off your so called facts that is ruining that community.
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UneducatedDrone
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06-08-09 8:48 PM
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Smaller uniforms. (-:
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CANTTAKEIT
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06-08-09 4:39 PM
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just heard that southington was able to lower the cost for cheerleaders for the very young grade schoolers almost by half due to receiving a stimulus ck. but just days ago it's voted by the stupid board that the junior high and hs will pay 350 each for every sport. how does that happen? would love to see a break down on each dollar and where or who it goes to. where does the $5 that you pay to watch junior high volley ball go, or the rest of the games for that matter? someones pocket i'm sure. buid a new school it will be run into the ground just like this one. consolidate before it's to late
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UneducatedDrone
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06-08-09 1:13 AM
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Who cares, all just a babysitting facility anyway, lol. (-:
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victorson
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06-07-09 11:44 PM
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infamous, I dissagree. Of course most septic tanks would fail an officail inspection from the EPA, but that does not mean that you tear down a perfectly good school for no good reason. Mathews looks like it is in good condition too, why is it that people want to tear down perfectly good buildings for no good reason? This sounds to me like a political thing with the septic thing what your talking about in my opinion.
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infamous
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06-07-09 11:14 PM
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reader...it was 65% PASSED...from both the trib and vindy. Victor...you apprently have never stepped foot into Mathews High School. Literally falling apart. In fact they are closing the middle school within the year because of septic violations. Could they just renovate? Dunno, maybe. But something definately needs done there.
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UneducatedDrone
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06-07-09 10:36 PM
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Nothin' but overpaid babysitters. You could literally close every school in this country, and the only thing people would scream about is having to pay a babysitter...because the economy is down, y'know, lol. (-:
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reader
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06-07-09 9:45 PM
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No revelations Viking. I don't think I spoke specifically about any school district except those who got new schools in the county. I made one comment about Southington and they being caught in the crosshairs.
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JoeCool
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06-07-09 9:07 PM
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Reader - we may find out soon. I thought I saw something where each Congressman & Senator must make their expense reports public soon.
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mrfunk
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06-07-09 8:29 PM
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The Educational Service Center has a surplus of $9,000,000 yet the schools pay for their services? Seems like with a surplus like that they could share the wealth with all the county districts. It's ridiculous.
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viking1995
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06-07-09 8:15 PM
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Reader: Seems to me that in prior post regarding LaBrae you were pretty quick to support those rubber stamp people who didn't think for themselve. So have you had a revelation or what?
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reader
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06-07-09 7:39 PM
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And also, I believe I heard on the radio the other day that Mr. Ryan gets $2.4 million to run his office for the year. I wonder if that is standard for all Congress members? Anyone know if that is true?
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reader
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06-07-09 7:36 PM
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Flash, you are absolutely correct. You would be surprised, really surprised what is not public.
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reader
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06-07-09 7:35 PM
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vic, usually special elections are better for levies than regular ones. That's because usually the people who support it will come out to vote. Those who don't care, won't. Presidential elections, everyone is out there voting anyway. So the vote may be up in the air. Some of this elelction stuff is common sense. If you have to have the money to operate and you might be going into the red, you almost have to keep putting the levy on the ballot. Most people do not want the state coming in running the schools for financial reasons. Look at Youngstown schools. There is no mercy. Everything is cut to the bone. YCS are even talking about a 4-day school week. Now I know some people get a little sarcastic in these posts about all of that, but there are financial issues I would think twice before cutting that the state would do in a heartbeat. Be careful for what you wish.
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FlashGordon
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06-07-09 6:56 PM
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Then it's time to reopen and renegotiate all administrators contracts too, Hellweg's six figure salary and the rest of Admin hao go. No getting rich off of public money. What's Hellweg do with her money anyways, she always looks like her dog licked her head and sent her to work. There are plenty of beauty shops in the area and they sell brushes.
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JoeCool
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06-07-09 6:19 PM
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We need Timmy Ryan's $150,000/year Regional Development Director job filled now to help us through this mess!
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UneducatedDrone
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06-07-09 3:10 PM
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Cut services, raise taxes, impose levys. That's the only way, lol. (-:
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victorson
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06-07-09 2:27 PM
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reader, take for example this quote by Superintendent Mark Lucas: 'We are not going to put on another levy attempt in August, so the earliest we could put it on the ballot is in November,' Superintendent Mark Lucas said. So in other words, ok it failed, but we will put it back on again. I would like to see a study to find out what percentage of school levies fail 4 times in a row? I would also like to see a study to find out what percentage of school levies do not pass in a special election. It seems to me there is no such thing as a levy failing because it will pass eventually anyway. This is where school board members should be doing there job, and not overturning the levies by putting it back on.
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reader
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06-07-09 2:00 PM
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On school board, I don't know if they have to be conservatives. They should be independent thinkers. People who can think outside the box. People without hidden agendas who really have the school district and its students welfare as a priority. And people who don't rubberstamp the papers put in front of them. Now I want you all to think about the members of your local school boards. How are they doing? Retorical question, of course. Don't have to answer my question here.
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reader
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06-07-09 1:56 PM
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Teacher contracts eventually will reopen and negotiations will be done. As far as the chamber's proposal, in all fairness, tell us what web site we can go to so that we can read how the chamber's proposes the schools are to consolidate. I have seen snippets of it in the paper in articles discussing the issue, but I have never seen how the chamber proposes to actually consolidate schools. Or even to consolidate management. All that has to coinside with the Ohio Revised Code and I would like to check it out. You got to have a plan to allay people's fears. Could we see it?
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reader
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06-07-09 1:50 PM
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victorson, you are correct. If consolidation was an issue, the time was when the state gave matching money to do so. Add to that Warren, Badger, and LaBrae. Now Southington is caught in the crosshairs. They are going to get a new building but don't have the money to operate it.
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victorson
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06-07-09 1:30 PM
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If I were a school board member, I would be conservative...not an extreme conservative, but conservative. No need to rebuild schools, like in howland or vienna when they are not needed. and maybe it is time to reopen some of these teacher contracts and renegociate them as needed. Our area is not like it was before...GM is gone, Packard is gone, Steel Mills are almost all gone. Putting levies back on the ballot and trying to sneak it though is unethical in my opinion and they need to do away with special elections.
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BethMacUSA
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06-07-09 1:15 PM
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This is why we need true conservatives on our school boards. It is relativly inexpensive to run. You must attend all the meetings and then walk door -to- door in your community. When your neighbors hear that you will not tolerate all the excessive spending and that you will not stoop to scare tactics to get levi's past that are not used for what they were intended for, then you will win! And our children win, our Valley wins and we can claim our country back slowly and surely. But remember, the National Education Association is brutal! They will start to attach you when you try to shut them down! But it is the ONLY way to get control of our own money. Remember this is YOUR MONEY! Not Theirs!!
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