Lake Local school board discusses financial situation after levy defeat

The Repository
·2 min read

Lake Local Schools Board of Education

Monday meeting

ACTION: Authorized the submission of the required five-year forecast update. The Ohio Department of Education requires a five-year forecast in the fall of every year and an updated forecast every May.

DISCUSSION: Heard from Superintendent Kevin Tobin and the district’s treasurer Nicole Nichols about what the forecast entails.

Nichols said, “The first year of the five-year forecast is accurate, but the last four years are projected because of the failure of the 13-mill levy."

She reported that the $1.7 million deficit will hit the hardest starting in the 2024-25 school year.

Nichols relayed some of the items affecting the district finances including the following:

  • Property taxes within the district are projected to go up over $100 million in the next few years. The projected uptick in real estate values will not affect the amount of money the district receives. The rise in property taxes may hurt the district because it will receive less state funds, she said.

  • The district has received 38% of the anticipated funds through the Nexus pipeline. While the district is fighting it in court, Nexus continues to appeal, and it could go on for a couple of years.

  • Enrollment is down from four years ago. The kindergarten enrollment for next year is also down, and enrollment is projected to be flat for the next few years.

  • Rising costs for electricity, bus fuel and other operating costs are continuing to affect the finances. One example is the cost of electricity is projected to increase by $100,000 in the school year 2024-25.

Tobin said 80 percent of the district’s costs come from labor. There are currently 450 people employed by the district. He told the board they are starting to cut labor costs by accepting the retirement of seven teachers; one person in the accounts payable department; two full-time aides and one permanent substitute.

The board has scheduled a special meeting at 4:30 p.m. May 25 in the administration office. The board will be discussing the possibility of putting another levy on the November ballot.

OTHER ACTION:

  • Accepted the retirement of Assistant Superintendent Pat Carroll, effective July 31, 2023. It also set a date for a public hearing to rehire Pat Carroll as assistant superintendent. The hearing is set for 6 p.m. July 17.

  • Heard graduation is 3 p.m. May 27 at the stadium with a rain date of 3 p.m. May 28.

  • Approved extending the athletic activity fees to the following:

    • Grade 7-8 athletics, $150

    • Grade 9-12 athletics, $250

UP NEXT: Will hold a special meeting to further discuss the district’s finances at 4:30 p.m. May 24. The next regular meeting is scheduled for 6 p.m. June 26 at Lake Elementary School cafetorium

Patricia Faulhaber

This article originally appeared on The Repository: Lake Local school board hears five-year financial forecast update