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Alder board reviews five-year financial forecast
(by Sandi Latimer, staff writer - March 09, 2010)
On March 8, Jonathan Alder school board members reviewed the district’s five-year financial forecast. Projections show a balance of $1.6 million at the end of this budget year, June 2010. The estimated balance for June 2011 is $663,416.
“By next spring, we will have to be on the ballot to renew the three-quarters of one percent income tax,” said Superintendent Doug Carpenter. The income tax expires at the end of calendar year 2011.
Without renewal of the tax, the district would start to feel the negative impact in school year 2011-12 and really be hurting in 2012-13, said Treasurer Janis Thom.
The income tax is on track to produce an estimated $1.79 million this fiscal year.
The district faces added costs in the coming years, including teacher and transportation expenses for state-mandated all-day every-day kindergarten that starts in 2011-12.
Carpenter said added costs also could come with construction of the new Plain City Elementary school and renovations at Canaan Middle School.
“We don’t know what the operating costs will be. We do know some costs rose when the new high school was built. This building is air conditioned and the old one wasn’t. This building is also bigger and it costs more to heat it,” he said.
Plans at the new elementary and Canaan include installation of geothermal heating and solar panels, which increase utility efficiency.
The district has tightened its belt over the last few years as state funding has decreased. One move was creation of a health resource account (HRA) that helps to hold the line on teacher benefit expenses.
“Instead of a 13 to 15 percent increase in health insurance, we are looking at only a 10 percent increase,” Carpenter said.
Starting next school year, the district will save money by providing instruction to its students who have special needs, rather than sending them to county programs.
Without a clear picture of future state funding resources, the district will continue to look for ways to trim costs, Carpenter said, “but we don’t want to make cuts that are going to impact the students.”
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