Adena LocalSchool District

2006-2010

Overviewof the

District FinancesPast, Present, and Future

Past

• The 1% income tax was passed in November 2006

• We have added positions and programs to meet State and Federal requirements

• State funding has decreased each year since 2006

• Costs have steadily increased each year

Present

We are mandated to have a Continuous Improvement Plan (CIP). Our budget is shaped around what our CIP and District Report Card indicates as being our top priorities. As a result, we are bound to provide a variety of training in areas of academic education, vocational education, and in the area of special education. We must also provide the necessary training using technology if our students are going to be prepared to meet the demands of today's and tomorrow’s job markets.

Present

• In 2006 we were funded for 1173 students• In 2007 we were funded for 1194 students• In 2008 we were funded for 1154 students

• In 2009 we were funded for 1125 students• In 2010 we were funded for 1167 students

• Each year we are losing 25-40 students to community schools. At approximately $5000 per student, this amounts to $125,000 to $200,000.

Revenue2006-2010

• 2005-2006 $8,670,595

• 2006-2007 $9,250,428• 2007-2008 $10,340,980

• 2008-2009 $10,741,368

• 2009-2010 $11,263,931

RevenueRevenue has increased since 2007 due to the 1% income tax being collected. The funding from the State through the State Foundation Program has actually decreased each of the last three years and is projected to continue to decrease. Other revenues fluctuate due to property re-evaluations, and open enrollment students coming or leaving the district enrollment, etc.

Expenditures 2006-2010

• 2005-2006 $8,564,440

• 2006-2007 $9,164,069• 2007-2008 $9,795,577

• 2008-2009 $9,949,084

• 2009-2010 $10,266,393

Expenditures

Expenditures have continued to increase due to an increase in salaries and fringe benefits which have increased 1-3% over the past four years. The cost of purchased services such as; utilities, fuel for transportation, required expenditures for services provided by the ESC (Education Service Center) have increased dramatically each year just as we have seen in our own households.

Future Projections

Expenses Revenue Carryover

2010-2011 $10.8 $10.9 $4

2011-2012 $11.37 $9.76 $2.39

2012-2013 $11.5 $8.65 -$.46

2013-2014 $11.8 $8.63 -$3.63

This projection is based on the Federal stimulus money ($467,000) not being replaced in the State Foundation Program. It is also based on the 1% Income Tax not being renewed. The Income Tax will run out on December 31, 2011. We will lose $238,000 in the 2011-2012 school year and $1 million for the 2012-2013 school year and on.

Future Revenue

• State Budget – According to the Department of Education officials we are projected to see at least a 10% decrease in State funding for FY12

• Local Revenue – The county auditor is projecting us to receive no increase if the Renewal levy passes and a decrease of $300,00 for FY12 (2011-2012 school year) and $1,000,000 for FY13 (2012-2013 school year) if the Levy fails.

1% Income Tax Renewal

• The School Board did not rush into the decision to keep the 1% income tax renewal on the ballot

• The district’s finances have always been evaluated on a daily, weekly, monthly and yearly basis.

• In our operation we are always looking for cost saving measures and how to make our monies work for us.

• The School Board felt the Renewal of the 1% Income Tax Levy fits the district’s needs.

1% Income Tax Renewal

• The funds derived from this levy will continue for 5 more years beginning January 1, 2012. This is why we need to act now.

• What will the 1% Income Tax Renewal allow us to do ?– Continue with present educational programs– Continue to update curriculum– Continue to look at alternate education options for

students.

– Maintain our facilities– Look to improve facilities

Income that is not taxed

• Social Security benefits,• Disability and survivor benefits,• Railroad retirement benefits,• Welfare benefits,• Child support,

• Property received as a gift, bequest or inheritance,• And worker’s compensation

Income that is taxed

• Wages, salaries, tips,• Dividends, unemployment compensation,• Self employment, taxable scholarships and fellowships,• Pensions, annuities, IRA distributions,• Capital gains, state and local bond interest,

• Federal bond interest exempt from federal tax but subject to state tax,

• Alimony received,• And all other sources.

What have we done in the past 4 years?

• Purchased vans– Three vans were purchased. We are required to transport

special needs students to area schools. Many times there were only one or two students on these buses. We were using school buses that got 6 miles per gallon of fuel. By using the vans, we are getting as much as 24 miles per gallon and saving the wear and tear on the buses. In the cost of fuel and maintenance on the buses, we have paid for the vans and are continuing to save.

What have we done in the past 4 years?

• Purchased buses– We have purchased six buses in the past four years. Our bus

fleet had become old and the maintenance costs were growing as well as the cost of service. By purchasing these new buses, we have been able to keep our fleet in good working condition.

What have we done in the past 4 years?

• Purchased cameras for buses– We have purchased new digital cameras for each of our buses.

These cameras work better and have better quality than the VHS cameras used in the past. We have decreased the major discipline issues on the buses by as much as 20% over the past two years. With these cameras, it is easier to verify what has happened in any particular incident.

What have we done in the past 4 years?

• Purchased radios for buses– The radios that were in the buses have become outdated and

maintenance was not possible. By 2012 the FCC regulations are changing and the old radios do not have the capability to meet the new regulations. The new radios will meet these regulations and have the capacity to be upgraded when necessary.

What have we done in the past 4 years?

• Technology for classroom instruction– It is important for us to keep up with new technology to help our

students in the classroom as well as to give our students opportunities that other schools are able to offer. We are continuing to look at ways to improve instruction and offer education options that we would otherwise not be able to offer.

What have we done in the past 4 years?

• Professional Development for staff– We are required to provide teachers professional development

opportunities in order to meet the needs of our students in the 21st century. The way students were taught in the past is not adequate now and in the future. We must keep up with the demands of a global society if our students are going to be able to compete in today’s economy.

What have we done in the past 4 years?

• Increased carryover for future improvements– We have been diligent in watching our spending so that we

could put money aside to plan for future needs for the school. Some of our facilities are becoming old and in need of major repair. The football field bleachers need replaced, the locker-room needs expanded, etc. Without planning and setting aside some money, we will never be able to make the improvements necessary

What have we done in the past 4 years?

• Done away with charging class fees– This past year, the Board did not charge class

fees and does not intend to do so next year. These fees have ranged from $25 to $50 per student.

What have we done in the past 4 years?

• Transportation fees– We have had a “pay to participate” later changed to

“transportation fee” for those students participating in the athletic program. Beginning with the 2011-2012 school year, that fee has been dropped. Students will no longer be required to pay to participate.

In Conclusion

• We are constantly looking for ways to decrease spending while maintaining a high quality education for our students.

• We feel in order to maintain the quality education that we offer our students and community that we need to maintain our revenue.

• In the past, our carryover funds have normally fallen between 1.8-2.1 million. Our present carryover is now 3.9 million.

• The state began decreasing state revenue 2008-2009 and will continue decreasing through the foreseeable future.

In Conclusion cont.

•Without the renewal we will begin cutting into the carryover in 2011-12 and the carryover will be gone before the end of the 2012-2013 school year.

•Our district has consistently been one of the area’s best academically while also offering top-notch programs in music, athletics, clubs and other group and individual organizations.

•We want to continue to be progressive in whatever we do and this is why we must act now..

For More Information on Income Tax

www.adena.k12.oh.us

Click on District Office

Look for Guide to Ohio School Income Tax