New forecast shows no need for levy in '08
 

Thursday, October 25, 2007

CANDY BROOKS
ThisWeek Staff Writer

Worthington schools will probably not need a school district operating levy until at least 2009, according to a five-year financial forecast presented at the Worthington Board of Education meeting on Monday night.

Treasurer Jeff McCuen's forecast shows the district operating in the black until 2011, when a $3.1-million shortfall is shown.

Worthington voters have not approved a levy since 2004.

In May 2006, voters turned down a 6.25-mill levy.

The only issue that has been approved since then is a bond issue okayed to pay for buses, computers and repairs. It was approved last November.

At the time the May operating levy was defeated, then-treasurer Jonathan Boyd said the district would face a $6-million deficit at the end of the 2007-08 school year.

Now, a $25.5-million surplus is projected.

According to McCuen and board member Marc Schare, the improved financial picture can be traced to the Ohio legislature, which chose to provide a state guarantee to districts like Worthington and which reimbursed the district for losses in the tangible property taxes, which were cut by the state two years ago.

Also, because taxpayers approved the bond issue last spring, district funds once spent on repairs can now go into the general fund.

Also, administrators have successfully cut expenditures. Between fiscal years 2006 and 2007, district spending actually decreased, from $104-million to $100.5-million.

"I'm guessing there are not a lot of school districts who could make that claim," Schare said.

Schare projected that the next levy would be needed in 2009 and would be between 6 and 7 mills. He predicted that taxpayers would pass that amount easily.

He was not as pleased with long-term expenditure projections, which show expenses increasing 6.7 percent in 2008-09, 4.9 percent in fiscal year 2010, 5.6 percent the following year, and 5.9 percent the following year.

Beginning in fiscal year 2009, expenditures will be higher than revenues every year through 2012, which would end with a $28.3-million deficit, without an operating levy

Schare said that even with a levy approved in 2009, a levy of 15 to 16 mills would be needed in 2012.

"I fear the path we are on, as documented by the forecast, will prove to be unsustainable and while we won't feel the pinch for a few years yet because the first eye-popping levy isn't until 2012, if we wait two or three years to alter our course, it may be too late," Schare said.