Treasurer Shaun Bevan said state funding has remained relatively stagnant since the district last passed a levy in 2010, a trend he expects to continue over the next five years. Assuming that the district’s funding model remains the same, this new levy would last for three years.
“Overall, state funding is expected to increase by the minimal amount of less than one-half of one percent per year for Kings between 2010 and 2020, while many other districts around the state are realizing increases in funding,” he said. “Generally, the biggest issue here is the stagnant state funding and the loss of tangible personal property tax with rising expenses. The message the district has received from Columbus is that if additional funds are needed to operate our schools, they will have to come from the local community.”
Board member Kim Grant cast the dissenting vote.
“I voted no out of concern for our struggling families in this weak economy, given the district has $8.9 million in cash reserves and our current five year forecast shows projected expenses good through 2018,” she explained. “Now, with the board’s decision to place the levy on the ballot, it is in the community’s hands.”
According to the district’s five year forecast approved in May, the district shows a positive cash balance through 2018 and a negative cash balance for fiscal year 2019 – a decline from almost $9 million at the end of fiscal year 2016 to a projected $5.3 million at the close of fiscal year 2017 to $867,097 in 2018 and finally a deficit of $4.9 million in 2019.
“The new funds would be used to support the day-to-day operations of the district. We are anticipating increases in expenditures in multiple areas for the district, including personnel, transportation, special education and also increases due to additional enrollment. This increase in expenses, coupled with flat funding from the state, is causing the district to eat into the current cash balance,” explained district spokeswoman Dawn Gould. “Our projections show a positive cash balance for the current fiscal year 2017 and one more year (2018), and then the cash balance being used up and showing a negative cash balance for fiscal year 2019. By law, the district cannot operate with a negative cash balance, thus causing the need for the additional funds.”
The district held a series of community meetings last school year to address the financial needs of the district, as well as the impact of its growing enrollment. The district also conducted a survey.
“Data shows that 94 percent of those who responded to the survey indicated that they would support a levy,” Gould said. “Additionally, over 75 percent of survey respondents supported a higher millage to make a levy last longer.”
“Our goal is to protect the classroom and provide a world class education for each student in the Kings Local School District by adding money back into the classroom, keeping class sizes low, continuing to provide world class technology and providing the best curriculum and material to our staff and students,” she added.
“Regardless of the financial situation of the district, we will continue to be fiscally responsible. We will also continue to look for ways to make efficiencies outside of the classroom and run the district as efficiently as possible. Additionally, the Kings district implemented $500,000 of reductions in fiscal year 2016 and are implementing over $530,000 in the next school year to help offset the need for additional monies.”
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