'The need is not going away.' Perry voters will see operating levy on May ballot
PERRY TWP. – When township voters head to the polls May 2, they will be asked to approve new operating money for Perry Local Schools.
The Board of Education had planned to put the tax issue on the November ballot but pulled back after a backlash from voters. Officials decided the community needed more education about the plan before putting it in their hands.
Voters will be asked to approve a five-year, 7.3-mill emergency operating levy that will generate $6.2 million annually. The tax would cost the homeowner of a $100,000 home $256 per year.
Superintendent Nathan Stutz and school officials spent the past few months hosting public meetings to explain the need for the levy, as well as how the district go to this point.
Voters have been vocal about why the district is seeking more money when they approved a bond issue three years ago. That funding was earmarked to build new elementary schools and address facility maintenance at the remaining schools.
Why is Perry Local Schools seeking more money now?
In 2020, voters approved a combined bond issue and permanent improvement levy to fund the district's share of the project and pay for state-funded portions until the money is received from the Ohio Facilities Construction Commission. The 3.9-mill bond issue will generate $58.3 million over its 35-year term. The 1.5-mill improvement levy will generate $18.9 million during the life of the bond issue.
Stutz explained that funding is earmarked for the project and cannot be used for anything other than that.
"The reason is it is illegal," he explained. "That is part of the reason we tried to be clear when pursuing it that we would be coming back for new money."
Officials looked at three things when making the decision to seek new operating money, he said.
They looked at long-term planning and the district's financial history, as well the district's fiscal responsibility to taxpayers. School officials have been discussing the need for additional funding for years and placing the tax on the ballot represents phase two of the district's long-term plan, Stutz said.
New Perry schools:'It is still awesome.' Perry Local shrinks plan for new elementary schools
New Perry schools:New Perry elementary schools to feature art, railroad and agriculture themes
The district last passed a new operating tax measure in March 1996.
School leaders, Stutz said, had hoped to hold off for a few years before needing to turn to voters for the operating levy but things changed in early 2020 as the COVID-19 pandemic ramped up.
In 2020, the district went into deficit spending, with the five-year forecast predicting the district operating in the red through 2023 despite an injection of federal Elementary and Secondary School Emergency Relief Fund dollars.
Talks about the operating levy began to ramp us as the district was required to submit a plan in early 2021 to the state describing how it would get out of the deficit shown in the third year of its financial forecast.
ESSER funding helped bottom line
In February 2021, things started to look up as additional state funding resulted in positive balances in the district's five-year spending plan through fiscal year 2023. Things improved even more when additional ESSER funding came the district's way, pushing its positive fiscal outlook to 2025.
"We got all the ESSER funds — around $8 million — we were basically able to buy some time," Treasurer Jeff Bartholomew explained. "But we knew we would have to look at the levy at some point."
Stutz pointed out the ESSER funds were used to reimburse the general fund for personnel expenses, leaving the district with a positive balance through fiscal year 2025. But he said the district cannot wait until then to seek the new tax dollars.
Stutz pointed out that in the 27 years since they asked voters to approve new operating tax dollars, they have continued to offer a high level of programming and services, experiences and opportunities for students.
In order to be good stewards of tax dollars, the district has done a number of things to reduce costs. Since 2018, it has eliminated 13 positions largely through attrition, saving the district about $3.35 million.
The district also conducted a performance audit about two years ago.
"We wanted to see where our staffing levels are compared to our peers. What we found was some of the staffing is very much in line and some are less so," Stutz said. "We've already started addressing some of those differences and we will continue to take some of the findings of the audit as make decisions moving forward."
Stutz said he believes community members understand it's been nearly three decades since the district saw new operating tax dollars and understand some of the reasons why they have come to this point, but he acknowledged not everyone is going to support it.
"Each of our community members and families has to make a decision in the best interest of their family," he said. "I accept and acknowledge their opposition but want to make sure they have the information necessary to make an informed decision. I always believed in respecting individual rights and choices and the community's voice."
What happens if the levy doesn't pass?
If the levy doesn't pass, Stutz said voters will see it on the ballot again and again until it is approved.
"The need is not going away," he added. "I'm not going to threaten anything but the fact is 80% of our budget is personnel. There are two ways of addressing it. Doing it passively or aggressively. Passively is through attrition. Aggressively is a RIF (reduction in force)."
Voters can send questions or comments about the levy to PerryFAQ@perrylocal.org. They can also get levy information at the school's website, on the district's Facebook page and in the Perryite.
Reach Amy at 330-775-1135 or amy.knapp@indeonline.com
On Twitter: @aknappINDE
This article originally appeared on The Independent: Perry Local voters will see new 7.3-mill operating levy on May ballot