School Budget OK through Next Year -- If Renewal Levy Passes

The Strongsville School District will end this year with a small carryover of about $200,000, and may squeak by next year with $100,000 left, according to a five-year forecast by Treasurer Bill Parkinson -- if voters approve a , that is.

But if the levy is not passed by next August, the district will have to make $4 million in cuts next school year, he said.

And even if it is approved, declining revenue and increasing expenses will mean about $1.5 to $2 million in cuts the following year.

Parkinson, presenting his five-year forecast at Thursday night's School Board meeting, said the district's fiscal picture is brighter than it was a few months ago, but the schools are not out of the woods.

State auditors are currently reviewing the district's books.

"I still don't completely rule out we'll be thrown into some kind of 'fiscal caution' or 'fiscal watch' sometime down he road, especially if the levy fails," Parkinson said.

Revenue is down for several reasons, he said. Among them:

• Declining enrollment: A 3.9 percent loss since last year and, in general, about 2 percent a year. "That's going to have an impact on the dollars coming from Columbus."

• Interest rates: The district once realize almost $600,000 a year in interest at 5 percent rates; now, it's getting .03 percent. "I don't see this turning around any time soon," Parkinson said. "That whole revenue stream is basically wiped out."

• Property taxes: Schools will lose tangible personal property taxes; property values in Strongville are down 19 percent since 2006; and new homes aren't being built. "New residential construction has taken a nosedive," he said.

Meanwhile, fuel and other expenses continue to rise. Parkinson's projection includes no raises in base salary for any employees over the next five years, but pointed out the teachers' contract expires next June. 

Regardless of the renewal levy, made this school year will not be restored. 

Parkinson said the district is saving money by reducing staff -- the schools had 947 employees four years ago and now have 771 -- and switching health care providers from Anthem to Medical Mutual, for a savings of $1.3 million.

The forecast also shows the district will not have to return to its pattern of borrowing against future revenue to meet payroll, which is "huge," Parkinsaon said.