Deficits loom in East Holmes budgets

  • By Nick Sabo
  • September 20, 2011
  • 272
                        
The East Holmes School District could see annual deficits as high as $2.7 million by 2016 if no new revenue source becomes available. On Monday, Sept. 19, Marsha Clark, East Holmes treasurer, presented the East Holmes board of education with a five-year budget forecast that shows the district dipping into the red next year as expenditures outpace revenues. If the district passes a 3.82 mill levy this November, deficits can be held off until 2014, Clark said. When deficits do begin, the district will be better positioned to deal with them if the levy’s estimated $1.5 million in revenue is in place. “We’ll still have to make some cost-cutting measures, but they will not be as significant if the levy does pass,” Clark said. “(The levy) will allow us to continue pretty close to what we’ve been doing.” The five-year forecast shows the district running a deficit of $465,729 in 2012, an amount easily offset with the levy’s first, half year collection of $750,000. For the 2013-2014 school year, the deficit is projected to hit $1.58 million, $800,000 more than the levy generates; by 2016, the deficit will be approximately $2.7 million without the levy, or $1.2 million with the levy. The deficits are expected due to the phasing out of the tangible personal property tax and loss of stimulus dollars, Clark said. Over the next five years, the district general fund is expected to hover around $14.4 million, and general fund expenditures are projected to rise to $17.1 by 2016. Superintendent Joe Edinger, anticipating the deficits, proposed several debt-reduction options to the board Monday. The board approved a change to administrative guidelines allowing for busing of students at state law minimums. The policy keeps busing where it is currently, but allows the option of not transporting high school age students and students who live within two miles of school. The policy was adopted with other changes to the administrative code and policy guidelines. Edinger said having the policy in place will allow the board to act quickly, if need be. “The way I wrote it (leaves) you to continue as you are, but if you want to change it, you don’t have to go through two or more readings,” Edinger said. “I hope we can keep (busing) as it is.” Edinger further is looking at savings through contracted services and permanent improvement projects. The next meeting of the East Holmes school board will be held Oct. 17.


Loading next article...

End of content

No more pages to load