Expenses, income meshing in East Holmes

The financial future is looking somewhat brighter for the district, where diligently efforts to cut general fund expenses are showing up in the budget.

With cautious optimism and acknowledgement there is work yet to be done, members of the East Holmes Local Board of Education in late 2013 accepted a new five-year forecast.

The forecast shows the actual income and expenses of the district for three historical years and the forecast for the next five years, considering the current year balance and the projected impact of the cash balance on the future, according to Treasurer Kellie Lester.

The audit of the past years verified the district reduced expenses by $1.1 million during the last fiscal year in comparison to the year prior. Total expenses were reduced from $15.35 million to $14.26 million, according to the forecast data.

This was accomplished through a reduction of staff (mostly by attrition) and through increased efficiency of services and savings from health insurance and transportation, according to Superintendent Joe Edinger, noting the reductions of state funding and elimination of tangible personal property taxes created a significant stress on the budget and triggered deficit spending.

Even after approving the plan, changes to the transportation program -- largely staffing -- were approved and are expected to save an additional $29,000 annually.

The board created the position of and hired a transportation director, one of the last major steps in an effort to restructure the department in the wake of a series of levy failures.

David Carrick was hired to take on the duties of part-time Director Erik Beun and retiring supervisor Ed Whitman, and he also will assist with maintenance, helping to reduce the number of full- time mechanics.

It will allow Beun to focus fully on his job as assistant principal, handling student discipline and providing support to teachers, now subject to a new system of evaluation.

The shift was also the last of four implemented by the district, which moved from employing administrators to classified personnel heading transportation, athletics, food services and Internet technologies.

"It didn't lessen the quality of service, but reduced a lot of costs because it doesn't require state licensure," said Edinger.

Despite all the cuts, Edinger notes, the district actually improved state test scores.

"This is a strong tribute to the dedicated professionals and district for addressing a difficult situation and finding a positive solution," he said.

District funding comes through a combination of local (60 percent) and state (40 percent) funding, said Lester.

Despite past cuts, Lester said, the "state economy is coming back now," and she used conservative flat-lined appropriations from the state to project into the future. In estimating revenues, she said she also projected "fairly safe" 3 percent increases in property values, to come with reappraisals scheduled to be implemented in 2014 and 2017.

"The largest risk is state budget," she said, noting while the district may not be in great threat, there are provisions in the state budget that could increase costs to districts.

"With this forecast, it should be possible to avoid additional reductions, provided there are no additional changes in the state budgets or drastic increases in health care costs," according to Edinger.

While revenues and expenses appear to be largely in alignment through fiscal year 2015, the forecast projects them growing farther apart, to the extreme of $1.6 million for fiscal year 2018.

However, Lester said, deficit spending in the future can be avoided through careful planning and budgeting.

Edinger and Lester said they plan to work with buildings to prioritize their needs and hope to have a budget completed in the spring that will keep expenses in line with projected income.

"We're looking more deeply into where the expenditures are, beyond salaries, benefits and supplies, and how can we do better," Lester said.

Reporter Christine L. Pratt can be reached at 330-674-5676 or [email protected].