Financial Update
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- Category: District
- Published on Tuesday, 01 November 2011 13:35
- Written by Travis Bigam
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Financial Update
The District’s most recent five-year forecast revealed deficit spending during the current year and continuing throughout the forecast. In an effort to fully investigate the cause of the current deficit spending, the Board and Administration, during the Board Planning Session on November 3rd, reviewed historical financial data and comparisons with our neighboring districts in the areas of per pupil rankings, salaries, tax rates and total revenues and expenditures. The comparisons with neighboring school districts revealed the following:
1. We have the lowest per pupil expenditures in Fairfield County (FY 2010)
2. Our property and income tax rates together are 5th among the nine schools in Fairfield County.
3. Salaries for the majority of our positions are either close to the average or below average when compared to surrounding Districts.
Total revenues have grown by an average of 1.02% over the past 3 years, while total expenditures have grown by an average of 4.17%. I believe the data presented above reveals the reason why Bloom-Carroll is currently in deficit spending and that reason is stagnant tax revenues. It is no secret that all school districts in Ohio are experiencing significant reductions in State funding. With that being said, the key to sustainable education funding becomes tax revenues. Until the tax revenues return to pre-recession levels, all school districts, including Bloom-Carroll, will struggle to maintain a balanced budget.
The second part of the discussion during the November 3rd planning session centered on options going forward in an effort to build a foundation for financial stability.
These options include: 1.) reducing current expenditures 2.) capping future expenditure growth 3.) generating additional revenue through increased fees 4.) generating additional revenue with an operating levy.
The Administration will be looking at all current expenditures in an effort to reduce expenditures by $ 300,000 by fiscal year 2013. We believe this can be achieved with reductions to supply budgets, capital improvements, contracted services and staff attrition. We will always attempt to first make budget reductions which do not affect current programming. The real question becomes what financial decisions will be made going into fiscal year 2014. If we do not pass an operating levy within the next 12 - 18 months, the District will not be able to sustain current programming beyond the 2012-2013 school year. An additional $ 700,000 - $ 900,000 would need to be reduced from the budget, which would entail staff reductions.
At this time, we are just entering the discussion phase relating to the reductions and potential operating levy request shown above. The main decision will be whether to ask for an operating levy in order to maintain our excellent educational programming or make additional reductions, thus eliminating some of the current programs we are able to offer.
Please contact me at 614-834-6707 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it. if you would like to discuss the District’s finances in greater detail.
Travis Bigam, Treasurer
