Thursday, August 10, 2006

By CANDY BROOKS
ThisWeek Staff Writer

Instead of an operating levy, voters of the Worthington school district can expect to face a no-new-taxes bond issue in November.

Superintendent Melissa Conrath announced at Monday's school board meeting that by combining about $3-million in spending cuts with unanticipated revenues, the district can avoid the $6-million deficit that had been projected for the end of the 2007-08 school year.

That will allow the district to stay afloat for an additional year before more operating funds are needed.

"Our budget will be extremely tight," she said. "It will be absolutely critical an issue be passed no later than 2007."

Voters rejected by a 60- to 40-percent margin a 6.25-mill levy in May. Five mills would have been targeted for operating expenses, 1.25 mills for capital improvements.

Conrath recommended that the board place on the November ballot a bond issue to raise approximately $38-million over the next five years.

If approved, taxes would not increase, but the scheduled decline of taxes as old bond millage expires would not occur.

Currently, residents pay 3.8 mills toward capital improvements. That is scheduled to expire in 2015.

If the issue is approved, the millage would expire in 2026.

The rate would never exceed 3.8 mills, and state law puts a five-year limit on the amount of time the district could issue new bonds.

The money would be used to pay for new buses, computers, facility repairs and equipment and furniture.

The board is expected to vote on the proposal at its meeting next Monday. A public forum to collect input from the public is set for this Thursday at 7:30 p.m. at the Worthington Education Center.

Conrath, board members and the treasurer's advisory committee decided to take a new look at spending, budgets and levies after the May levy failed.

Conrath said residents repeatedly told her they want the district to get off the two-year levy cycle and that expenses need to be decreased.

Last month, Conrath announced $1.1-million in cuts that go into effect immediately.

On Monday, she is expected to unveil an additional $1.8-million in reductions to go into effect in the following year.

Twelve certified and 13 classified positions are expected to be eliminated, most due to declining enrollment.

"Some (of the cuts) have minimal impact, some have more impact that we like," Conrath said.

Beside the reductions, which will total $4-million by the end of 2008, administrators were able to balance the 2008 budget with about $480,000 a year in savings in health care; an additional $2.3-million over three years in unexpected tangible taxes; and an additional $1.3-million over three years of unexpected interest, according to treasurer Jonathan Boyd.

From a $5.96-million deficit at the end of 2008, the bottom line has been changed to a nearly $2.86-million surplus, he said.

Resident Abramo Ottolenghi told the board he hopes the budget reductions will not affect the quality of the schools.

"I'm concerned we will end up no longer being what we used to be," he said.

Conrath said the reductions should not result in changes in class sizes or loss of opportunities for students.