Thegatewaynews.com - Levy on ballot as schools keep cutting costs

by Bob Gaetjens

Editor

Streetsboro -- Since voters rejected a 9.5-mill school levy earlier this month, the School Board has taken some measures to reduce costs, but it also will ask voters to approve a levy in May.

According to the Portage County Board of Elections, a 5-year, 7.4-mill school operating levy will appear on the May 4 ballot.

The proposed levy would replace an expiring 3.5-mill levy in its last year of collection, said Treasurer Neil Barnes.

The levy would raise $1.8 million in new revenue for the district and cost the owner of a $100,000 home $129 annually, he added.

The money would pay for materials and supplies, salaries and benefits, purchased services and other general operating expenses.

According to the district's February 2010 five-year plan, the budget for the 2011 fiscal year would be about $20.8 million.

Cutting costs

Since the failure of the 9.5-mill levy Feb. 2, the district has reduced its expenses for the upcoming school year further.

According to Barnes, freezing the salaries of district administrators, which was announced at a Feb. 11 School Board meeting, will save $47,800 during the 2011 fiscal year.

The School Board also has created an "Employee Severance Plan" aimed at Streetsboro Education Association members with more than 10 years experience with the district.

The savings from each employee who takes the severance plan would be about $75,000, Barnes said.

He said he expects about six employees to take the plan, creating a expense reduction of $450,000.

Prior to the Feb. 2 levy failure, the district also had cut expenses through staff and service reductions, totaling a savings of $400,000 during the current school year and an estimated $800,000 during the 2010-11 school year, stated Barnes in a letter to the Ohio Department of Education.

The letter was sent in response to a request from the ODE to explain how the district plans to balance its budget during the 2011 fiscal year, said Barnes.

The October 2009 5-year plan, created before recent budget cuts were enacted, projected a deficit of $445,184 at the end of fiscal year 2011.

"Should the levy and severance plan be successful, the district would be in a position to resume appropriate service levels with respect to busing and building usage, which would increase fiscal year 2011 costs by approximately $525,000," he wrote in the letter.

The letter outlines several possible scenarios which could play out in the coming months.

Barnes stated the scenarios "make no assumption as to the outcome of other possible variables. For example, should the state happen to reduce funding in the future, additional cost savings measures may need to be considered."

As long as the district's plan reflects a positive balance at the end of the 2011 fiscal year, "that will be sufficient at this point" to prevent the district from being placed in "fiscal caution" or any other fiscal designation, said ODE Spokesperson Scott Blake.

E-mail: bgaetjens@recordpub.com

Phone: 330-686-3941