Permanent Improvement and Operating Levy Money

Permanent Improvement and Operating dollars

You are about to pay your property taxes. Or at least we hope you are. They are due March 7. Again in August. Many folks choose to pay the full amount at this time and that actually helps the cash flow for schools. In fact, we budget for that flow based on previous years' experience. A change of 1 or 2 percent in the number of people making this choice is noticeable.
Last May voters approved to continue payments toward Permanent Improvements (PI) for the schools. The former levy expired December 2007. Serious problems for the upkeep of schools and purchases of items with life spans of five years or more would have followed if not for renewing that levy. Thank you.
We received the first dollars of those approved funds Feb. 15. We will be as cautious with that money as the folks who paid it. We will deploy it wisely with the long term in mind.
We committed $163,878 at December’s meeting to purchase two buses -- one handicap equipped. Of that commitment, $124,400 was from the new PI money you approved. Thank you.
Additional funds will be used to update some of our computer infrastructure which is woefully behind the times. Our computer folks have been doing so much with so little for so long they are now qualified to do almost anything with practically nothing. It's not a good strategy for the future to continue on such a path. It shortchanges students and handicaps the business side of school operations.
As it becomes clear what the long term vision for the district holds, it will become easier to make commitments of the long term funds. They cannot, by law, be used for any short term expenses and will be invested until needed for specific projects.
The other funds approved for continuation last spring were Operating Funds. Again, had the voters not chosen to continue the expiring monies your district would already have been in serious problems this year.
The entire school budget along with our five-year budget projection is available at the following web site. http://fyf.oecn.k12.oh.us/fyforecast/ViewForecast/district.asp?IRN=44321
Substantially no NEW money has been approved for Marietta schools since 1992. The funds coming from the state have been basically the same for over 10 years. The only increase in dollars received came from increases in property values over time. (Refinancing former debt saved over a quarter million dollars and we earned some interest in invested funds along the way. Each levy renewal yielded a small increase owing to the formula used to calculate the renewal.) That’s about it.
Based on long experience, this year’s income projections for our 5 year budget included an Agriculture/Residential property value increase of 12% and projected an increase in Commercial property value of 6%.
The reality is that the numbers gave less than 9% increase in the Agriculture/Residential value and 0% in Commercial property. Disappointing to say the least, and part of our challenge in the immediate future.
The actual bottom line is we projected an increase of $197,000 new dollars and actually experienced an increase of $45,000. That’s a difference of $152,000 LOSS to our budget projections.
The Board of Education is responsible for establishing policies that assure the district is operating effectively and not in debt. The board is held responsible when financial woes are encountered. This board takes that charge very seriously. Hence our current labors to seek savings in all areas.
This and other articles will appear on http://mariettacityschoolboardblogspotcom. Also included will be the above mentioned link where you may find our budget.

February 19 Work Session

February 19, 2008
Marietta City Schools Board of Education
Opening statement:

Ladies and gentlemen, our thanks again for your continued interest in the future and well being of your Marietta schools.
Permit me to point out that this meeting agenda does not contain an opportunity for general public discussion. Though we may call on some of you to provide information to assist us in our working with the issues at hand and understanding our options and their implications.
As members of the board we are learning, the hard way it seems, that life does not always present the best of options to solve problems. Sometimes one must make the best choice available taking into consideration first the law of the land. Then, any and all contractual obligations. And finally, the financial realities as they exist at the time the choice must be made.
We will be going in to executive session shortly to discuss our options and as those discussions involve the employment of individuals we choose to do that behind closed doors.
I believe I can safely assure you that no official action will be taken by the board as a result of those executive session discussions.
Again, our thanks for your continued interest and support. It is much appreciated

Five Year Forecast

You may view the Five Year Forecast for Marietta City Schools at:

http://fyf.oecn.k12.oh.us/fyforecast/ViewForecast/district.asp?IRN=44321

Forbidden Topics of Discussion

Sex, religion, politics, money. Conventional wisdom tells us that some topics are considered impolite. Not fit for public conversation. School finance falls in the money category, but here goes...
Let’s talk about your money in your schools. YOUR money. The money you send to the state in the form of taxes. The money that supposedly the state will do a better job of allocating to schools than you will.
First you need to know about Mr. Combs. Not a state employee, he is your Marietta City Schools Treasurer. He is hired to watch over the money you entrust to schools. Very good at his job. He has a hard time speaking in generalities less accurate than two decimal points.
Each new school board member is given a finance briefing by Mr. Combs. We refer to that briefing as a trip to Uncle Dave’s Woodshed. It’s intense, lengthy and, but for Dave’s very pleasant personality, not enjoyable.
Much of the woody issue of school financing is split by Mr. Combs’ sharp axe. Many truths revealed. The myth about the amount of money the state actually sends to your school district is one of the first to fall.
Your legislators speak of the per pupil support from the state as being $5,565. You will hear them say it is quite a lot of money, and surely local districts should be able to provide a top quality education for that many dollars. The legislators are doing a good job with your money. Ha!
There is a formula the state uses to calculate the actual dollar figure districts receive per student. The short version which Mr. Combs walked us through again just a couple weeks ago is nearly two single spaced pages out of over 23 actual pages of formula that makes doing your income tax seem like child’s play.
It begins with the amount they say we get, $5,565, and ends with the amount we actually receive, $1894. Quite a difference, eh? That’s what we think. (The amount varies by district quite complexly.)
But it gets worse. If a new student comes to our district from outside the state, we receive the $1,894. But if that student comes from a neighboring district, known as an “open enrollment” student, we receive the full $5,565. Not bad.
Here’s the bad part. If we have a student leave our district and go to a neighboring district as an open enrollment student, we must send the full $5,565 to the new district. Sort of like religion, it is impolite to ask why. It’s just the way it is. Part of the state formula.
Oh, and guess where the difference between the $1894 the state sends us and the $5,565 we must send to the other district comes from. Uh huh. You. Your local tax dollars follow that student to his new district. All $3,754 of YOUR money, every year he is an open enrollment student.
Last year we were net exporters of dollars to other districts. We sent out $592,000 and we took in $373,000. A drain of $219,000.
There are many reasons why students choose to attend other districts which we will discuss in future articles. Perceived quality of education is only one of those reasons, but it is one over which we have some control. It is our intent to provide a top quality education that will attract open enrollment students.
After local print media publication, you may view this and other information on our blog at:
http://mariettacityschoolboard.blogspot.com

Work Session February 8. Statement.

Marietta City Schools Work Session February 8, 2008.
Opening remarks, Jack Moberg

Ladies and gentlemen, welcome to this work session and thank you for your attendance and interest in the future of your Marietta City Schools. Permit me to clarify that this is a work session, and as such we have no formal item on our agenda for public input. We may, however, call on some of you for information where we find ourselves in need of such. I would not discourage you from letting us know if you have vital information. We are not here to engage in debate, but to make the best decisions possible in light of the financial situation in which we find ourselves. Trust me, none of us wants to be in this situation. We have been entrusted by the public to be responsible with the funds they have voted to us to operate the schools - and we intend to honor that trust.
Let me begin by clarifying what may be a misperception concerning some of our local issues. While tax abatements and tax exemptions are a component in the financial challenges facing any tax funded organization, Marietta Memorial Hospital is in no way responsible for our current shortcomings. I feel I need to make this clear up front because the million dollar shortfall we are dealing with was in our projections last spring, long before Memorial even began to process the paperwork on their new facility. We in no way blame them or hold them responsible for the decisions we must make here today. The process that exempts their property is by statute and not done locally.
Further, let me assure you that neither Marietta Memorial nor any specific board member here is responsible for the hour of this meeting. We recognize the urgency needed by the schools in making plans and schedules for next year and this hour, this day, was the first time that fit everyone’s schedule. I will do my best to make sure that any future meetings needed on this subject are held at a time more convenient to me, if no one else.
Going back just a moment to issues driving the shortfall, they include abatements and exemptions, of course. And those have been ongoing for some time and are likely to continue. Other issues are the ever rising costs of virtually everything needed to run the schools. From utilities to supplies to insurance to wages and benefits, they all play a debilitating role when combined with decreasing enrollment and state funding that has 4 times been declared unconstitutional while our legislature refuses to change it.
Some of you may have read the information piece we submitted to the local print media dealing with the specifics of our situation. If not, you will shortly be able to read it on a blog we intend to create for just such communication purposes. There are a host of other items we wish to explain and we intend to share with you, perhaps more than you care to know. Or ever knew existed. We believe in communication. The more the better. And the more you know, the better able you will be to help your schools thrive and prosper into the future while offering a world class education. But first, we need to take two steps back, regroup and insure our survival in the short term.
Next, we need a plan. A vision. And a plan to make that vision an attainable reality. We need input and support from our entire community, especially our educational leaders. Only a shared vision will insure our success.
We have watched with great expectation the creation and operation of the Professional Learning Community process and seek to communicate through those PLCs and obtain input from every staff member who has something to offer. The PLCs can move us ahead in a way that parallels the efficiency of well run businesses and brings new ideas and processes to our system.
That said, I offer the second apology before we begin. It would have been far better to arrive at the needed savings to overcome our budget deficit as a group process some time ago. That did not happen. The PLCs were not ready, we were not ready, and time marched on without that happening. At this juncture it is too late for a drawn out process. We must act promptly and wisely. We must be prepared to admit that what we craft may not be perfect, but it will permit us some breathing room where we can make choices that will lead us to the vision we have yet to create. Job one is survival. Job next is creating the vision, and that can come through the PLCs. And our community.
One more acknowledgement must be made and that is to the voters who approved the levies last spring. By a resounding margin. Thank you! Your faith and trust did not go unnoticed.
Why, you may ask, with those levies approved, are we in financial difficulties so soon? And it’s a fair question.
We asked for approval of the same amount of money we had been getting. That money was due to expire and we asked you to continue to trust us to use the money wisely. And we intend to.
You might well imagine our plight had you not agreed to the same funds continuing. You have only to look at other districts to see what happens when funds come up short.
We chose not to ask for additional funds beyond those expiring. No new taxes basically. And you approved. It is now up to us to find savings in our system, operate within those savings and see how we do. After that, you get to decide how well we did and what needs to happen next.
We hope you will agree that seeking savings was a better move than asking for more money and perhaps losing what we already had. Operating with less. You did your part. Now comes our part.
We will, as promised, Preserve the Progress. We’re proud of the academic advances made the past two plus years. Highest ratings ever achieved by this district. Thank you teachers and staff . And thanks to our support staff as well. A team effort.
We will maintain your buildings and make needed repairs. And we will continue to offer a top quality education of which you can be proud. One that prepares your students to meet life head on. And yes, we will challenge your students to achieve more because life will continue to ask more of them.
The clarion call at the national level is for change. And it is change that will lead us forward. Students, finances, life and the world all demand of us change. We will answer the call.

CHANGE

CHANGE! Seems every politician running for office is promising CHANGE. The buzzword of the day. What everybody wants.
A year ago your Marietta City Schools weren't asking for CHANGE. They sought to keep things the same. "Preserve the Progress." Keep a good thing going. And they did. They earned the highest academic ratings ever for the district. And the voters approved by a large margin to continue
to provide needed funds just as before. No new funds. No CHANGE in funding.
CHANGE may, in fact, be what was needed rather than just staying the same. There is no
doubt that CHANGES have taken place that directly affect schools and their finances.
While it may appear from the outside that not much CHANGES in schools, an inside
look reveals this is not the case. An even closer look at finances and how things operate
gives an even greater confirmation that, indeed, CHANGE has happened.
A look at neighboring Frontier School District shows CHANGE. Owing to financial difficulties,
the state may soon control every action of their schools. Telling them what they may and may
not do; must and must not do.
We are not far behind this fate. Marietta City Schools' current 5 year forecast
shows that income for the 2008-2009 school year will be $21.4 million. Our projected
spending will be $22.6 million. Already you see the problem. We are spending $1.2 million more than we are receiving.
The state is not yet knocking at our door because we have $2.5 million dollars in the bank. We can
spend down our savings to cover current expenses.
But the following year, 2009-2010, with that money in the bank spent, we will be $200,000 dollars short. And the following year we project to be $2.5 million in debt.
Overdrawn. In the hole.
At that point our problems begin. We will have Frontier size issues.
From having the state come in and mandate what changes we must make, to forcing us to seek
approval for every expenditure and other rather unpleasant requirements. Not fun. Not what we
want for Marietta City Schools.
One alternative to this scenario is to move ahead cautiously and hope for any number
of minor miracles to bail us out. And seek a levy along the way. Again, not what we want for
Marietta City Schools.
A more responsible alternative is to understand our problems. Make tough choices.
Make CHANGES now. Before being forced by the state.
Let’s examine just a few of the CHANGES that happened to cause the current financial situation.
First is an ever rising major expense that many readers never experienced during their
school years. Accommodating special needs students.
From those with physical and mental challenges and needs requiring extra help to those
with far above average learning abilities, the special needs programming in your schools constitutes
over $4.5 million of expenditures. That segment has grown over the past 30 years. It is a major
portion of our expenses and one which deserves a full explanation in another presentation.
“Unfunded mandates”. The special needs cited above are among them. Add to that
state mandated testing and information systems and the costs have skyrocketed.
Then there is school funding in Ohio. We all know the Supreme Court has told
the legislature the funding formula is unconstitutional. Yet the legislature has done nothing to
address it. Again, a fuller explanation awaits another day. Suffice to say the legislature is not going
to solve funding inequities soon enough to save your Marietta City Schools from bankruptcy on
our current course.
Two significant components of the funding formula are tax abatement and tax exemption. From churches to schools
to hospitals to Wal*Mart, there is much property removed from paying taxes. Those dollars disappear.
That leaves the remaining taxpayers (YOU) to pay the bills.
It is virtually impossible to get an accurate number on how much money schools would receive
if all untaxed property were to suddenly begin to yield taxes. Just this year we learned
of an exemption that will cost our budget over a quarter million dollars per year. It is far from the
only recent abatement/exemption.
Those dollars would go a long way toward keeping our
doors open with no CHANGES. Again, a subject that deserves a much more detailed explanation.
Yet another CHANGE working against your school funding is declining population. We are aging.
There are fewer students. This translates to fewer dollars from funding sources. Sadly, we cannot
eliminate large expenses when just one less student shows up for school. Classes still have to be taught,
but the funding that came with that missing student disappears.
If providing quality education to the students of the Marietta area is our top priority, then keeping
the doors open and paying the bills is the first order of business. And to do that in light of current
finances, CHANGES need to be made. Savings must be realized. Efficiencies must be gained.
And yes; perhaps some CHANGES that are uncomfortable must happen.
We can no longer attempt to be all things to all people. We wish to avoid the dramatic
changes of recent years that were so painful because less dramatic changes were not made
earlier.
The future lies with those strong enough to survive. Those willing to make tough choices will be
among the survivors. Your Marietta City Schools Board of Education chooses to be among the survivors.
Survivors capable of offering a program of education excellence to its students. We choose to be
known for excellence that will attract open enrollment students. Schools that will attract new
residents and families with children.
Further discussion on these and other topics vital to your school’s health are forthcoming.
We seek your input, assistance and understanding as we move forward to adapt to the CHANGES at hand.
A blog will be created to provide further information. Our 5 year forecast and other
information will be available there.
To achieve excellence we are embarking on CHANGE. That CHANGE comes with an appropriate caution.
“CHANGE is wonderful! You go first.”