Granville schools won't fill all open positions as it projects $2 million deficit
Granville Exempted Village Schools will not fill certain open positions and will not make building improvements for the 2023-24 school year because of a projected $2 million deficit.
District Superintendent Jeff Brown shared ways the district will cut costs in the next fiscal year, which runs from July 1 to June 30, 2024, during the March 20 Granville Board of Education meeting.
Brown said the measures are needed in part because the district can't assume its 0.75% income tax renewal will pass in May after a previous attempt failed in November. The Ohio House also is considering legislation known as House Bill 1 that could impact property tax dollars received by local entities, such as schools.
"As fiscal stewards of taxpayer dollars, it's incumbent upon us to make these changes, so right now the delay is in place," Brown said. "We will not be doing that hiring except for the essential services until we have greater understanding of our fiscal stability, so that embargo is in place right now."
The district is projected to have a $2 million deficit, meaning the district will spend more money than it brings in.
"We still have cash on hand, but we're not necessarily matching our revenue that is coming in," Brown said.
When deficit spending is anticipated, he said the district looks for ways to reduce the gap between expenditures and revenue by adjusting staffing patterns.
A top district priority will be reducing spending on staffing
Brown said 80% of the district's budget goes toward staffing, so the district will reduce that spending to mitigate deficit spending. He said the first step is to take advantage of resignations, retirements and reallocations of full-time employees to reduce the overall staff member numbers.
Every year staff members leave the district for a variety of reasons, including taking positions in other districts and moving out of the area. Plus, there are always a handful of retirements.
Typically those positions can be filled by moving an existing employee into that open position or by hiring externally. But because of the deficit, Brown said the district will not fill positions externally once people leave the district, with certain exceptions.
Normally the district hires new staff members from February through June for the following school year to ensure the district gets the best candidates available, Brown said.
"There's going to be a different approach this year. We are only going to be hiring what we deem as essential or mandated services that will be considered for replacements," he said.
Some of those crucial positions include bus drivers, Brown said. The district currently is operating with five fewer people than it needs. Bus mechanics, the transportation supervisor and transportation secretary, who all have the appropriate licenses, are driving routes to meet the demands.
Among the positions not being filled are three new, budgeted teaching positions to deal with projected student enrollment growth, he said.
"The result of the eliminations will be increased class sizes, increased case loads and potential service reductions across our district," Brown said.
Typical class sizes for the district currently range up to 22 students for K-3, 25 students for grades 4-6, and 27 students for grades 7-12. Those numbers, Brown said, will likely increase.
Board Member Ceciel Shaw, who teaches middle schoolers in another local district, said those numbers are high. She said it's not ideal for Granville's exceptional school system.
Facility improvements for Granville schools will be impacted
Another step the district will take, Brown said, is to reduce the amount of money from its operating budget that supports facility improvement projects.
"Those capital projects will either not be done (or) deferred, but we will not be utilizing that operating supplement to the capital budget," he said.
Brown said the district also will not pursue any land acquisition for potential future building needs.
Board President Thomas Miller said members of the district's Intel Strategic Planning Taskforce advised that if the district was going to require additional land over the next decade, it might be wise to seek it now. But given the deficit spending, it's not possible in the next year, he said.
Brown said the combination of all the measures he shared should get the district close to covering the $2 million gap in expenses and revenue.
Even if the income tax renewal passes in May, Brown said that only gives the district about two months to hire because seasoned teachers have to be hired by July 10 or they might not be let out of their contracts at another district.
Board Member Fred Wolf said that so many aspects of the funding situation are out of the district's control because it depends on what happens with House Bill 1 at the state level.
"It's like the perfect storm of the way the district's funded that makes things so challenging," he said.
House Bill 1 would flatten Ohio's income tax down to a single rate. Everyone would pay nothing on the first $26,050 they earn and 2.75% on everything above that amount. That would be a significant cut in the amount of taxes the state takes in, so the legislation proposes eliminating more than $1.2 billion a year in payments (known as rollbacks) to schools and local governments.
In Franklin County, Columbus City Schools estimates it could could lose $5.5 million in property tax revenue the first year if the proposed legislation passes.
Brown said Granville's $2 million deficit could be larger depending on actions at the state level. It's difficult to plan appropriately when so much is in flux.
"You don't put a pool in your backyard if you don't know if your job is secure for the next year. You just don't," he said. "You think differently, and so we're trying to think differently and stay ahead of those things."
mdevito@gannett.com
740-607-2175
Twitter: @MariaDeVito13
This article originally appeared on Newark Advocate: Granville schools projects deficit, won't fill all open positions
