A revised five-year financial forecast confirms that continued belt-tightening measures are allowing the Westerville City School District (WCSD) to remain cash-positive two years longer than originally projected when voters approved an emergency operating levy last March.
The forecast, presented to the Board of Education this evening by Treasurer/CFO Bart Griffith, shows WCSD maintaining an unreserved cash balance of $4.59 million through Fiscal Year 2017. Financial forecasts, which school districts must file by October 31 and May 31 of each fiscal year, rely heavily upon past fiscal trends and future assumptions.
Griffith’s latest update to the document reflects the actual financial impact of staffing and program reductions, as well as new data pertaining to Win-Win refunds, reductions to future Win-Win payments, salary freezes and reduced benefits for all employees, future staffing needs for enrollment growth, and the removal of Issue 52 from the November ballot.
“Stretching this levy, based upon current state funding levels, means that we will not need to appear on the ballot for at least four or five fiscal years,” said Superintendent Dr. Dan Good. “This is good news for the community as it will be the longest break for levy requests since a six-year span between successful levies in 1982 and 1988. And, we still deliver an Excellent with Distinction education at one of the lowest per-pupil costs around.”
The forecast also incorporates projected savings from the district switching to a self-funded health insurance program, a measure just approved by the Board this evening.
“Conservatively, this measure will save us approximately $1 million in premium payments,” Griffith explained. “We could see savings nearing $3 million, but that is contingent upon the number and types of claims we experience next calendar year. It’s too early to tell exactly how much we will save, so we’re being very conservative in our forecast right now.”
According to the forecast, district expenditures will decrease from $148.34 million in FY13 to $143.24 million in FY14. While expenditures are projected to increase to $152.23 million in FY15, the district is still projected to spend less than it receives in revenues for both FY14 and FY15. School districts typically operate on a deficit-spending model due to Ohio’s school funding formula, but it is not until FY16 that WCSD expects to experience the first decrease to its cash balance.
Griffith reminded Board members that while total revenue is projected to increase from approximately $147 million this fiscal year to $154 million in FY14, the district lost a cumulative $7.16 million in revenue over FY12 and FY13 with the state’s accelerated elimination of Tangible Personal Property tax payments. He also cautioned that more changes are on the way, and the district must be prepared to respond accordingly.
“Though legislators and state leadership have pledged a new school funding formula starting in FY14, this forecast assumes that WCSD will continue to receive the FY13 per pupil amount of $1,937 through the forecast period based upon projected changes in enrollment,” Griffith explained. “There is great uncertainty surrounding how Ohio plans to distribute its revenue to schools in 2014 and the impact this may have on our school district.”
The updated Five-Year Forecast will be available online through the district’s web site at www.wcsoh.org. Visitors can obtain the information by visiting the Treasurer/Fiscal Services page under “Our Department” or by navigating to BoardDocs via the Board of Education page.