Warning. Finances Still A Disaster. Thank You Ohio.

Warning. You are about to enter the Twilight Zone of school finance. Do not read further without being seated. The road ahead is unpredictable.
You must sign a disclaimer stating you understand that schools are set up to go broke every three to five years. You must acknowledge that Ohio schools have been operating unconstitutionally for decades. You may now proceed through the door to the unknown. Fasten your seatbelt.
Last Monday’s board meeting saw the presentation of the new 5 year financial projection. Mr. Combs received the latest state funding formula a few days before and began assembling the numbers as directed by the state.
Gone was money for buses. We’re on our own. Changed was the state funding “guarantee” formula. We lost nearly $100,000. A “gifted identification” formula was changed. We lost another $10,000.
State personal property taxes were eliminated but the state was to make up our share. That solemn promise is reduced by 47% within this forecast period. A loss of $438,000. Property tax income will be reduced by $364,000. Thank you very much. Was that Elvis we just saw?
The current Permanent Improvement levy will expire. The current Operating levy will also expire during the period. The assumption is that voters will replace both. But who knows? Together they constitute several million dollars essential to our survival on this journey to the future.
On the expense side is a zero increase in wages for the coming year and a modest increase over the period. An 18% increase in health costs for this year followed by 12% increases the remaining years is in line with national statistics. Unless---well, who knows what’s behind the health care cost door?
Open enrollment is a $750,000 annual cost. Community School costs are $300,000. Alternative School costs $80,000. Add to that Washington County Juvenile Center tuition of $50,000. PSEO costs an additional $50,000. The total expense is over a million dollars to educate students out of our district. Oh, yes, then there is a reduction in federal reimbursement for special programming of $80,000.
The reduction in bus fuel expense is a result of lower costs from the previous projection, but that too could change dramatically as we have seen. There is an increase in staffing costs. Some federal funds completely disappear and those costs must be absorbed by the General Fund.
Federal dollars touted as gifts are as formless as the ghosts of Christmas past when they expire. Financial chicanery on a grand scale committed by experts. More Ponzi schemes anyone? Government plays them best. And it’s legal when they play. And they play with your money.
The point of previewing this journey you are taking is to tell you that in spite of the work done during the past two years attempting to bring new facilities to the district, the overall funding picture is still bleak. As it has been for decades in Ohio. Remember, you were warned that school funding is designed to go broke every 3 to 5 years. Which is why a constant stream of new funds from the voters is required just to keep operating.
New facilities will bring some operational savings but we are 3 years away from seeing those buildings and yet further away from realizing the savings. The only part of this journey you get to control is your votes next Tuesday and in coming years. Will we take this journey in new buildings or old? Will we pour more money into old facilities or leap into the future? Either way, the choice is yours. You get to decide. Enjoy the ride.