Office of the Treasurer
Written by: Paul Shaw

School District Breaks Even Financially in Fiscal Year 2012

For the seventeenth (17th) year in a row, the Logan-Hocking Local School District has
finished its most recent fiscal year “in the black” – but not by much. Treasurer Paul
Shaw reported to the Logan-Hocking Local Board of Education that General Fund
sources exceeded uses by a mere $37,661 in the fiscal year ended June 30, 2012 (FY
2012). Revenues remained relatively flat for the fourth year in a row. Despite great
efforts to control, expenditures continued to grow largely due to pre-recession negotiated
agreements with employees’ unions (that have now been re-negotiated) and an
unanticipated increase in tuition expenditures for resident students attending school
outside of Logan-Hocking.

General Fund operating revenues for the fiscal year totaled $33.6 million. The State of
Ohio provided 64% ($21.6 million) of General Fund revenues. This includes payments
through the school foundation program and payments of rollback and homestead taxes for
local taxpayers. Local taxpayers provided $9.2 million in real estate and personal
property taxes to the General Fund (27% of total). Federal funds provided $1.2 million
(4%), including nearly $1.0 million in Education Jobs funding, $78,000 in E-Rate and
$158,000 in CAFS reimbursements. Other sources provided the balance of $1.5 million,
(5%) including tuition from non-resident students ($931,000), investment income
($322,000), preschool / before care / after care tuition ($263,000), and other sources.

General Fund operating expenditures for the fiscal year totaled $33.5 million. As a
service industry, salary and benefits accounted for the majority of expenditures ($28.5
million, or 85% of the total). Purchased services, including utilities expense, community
school tuition, and other contracted services totaled $3.7 million (11%). Materials and
supplies, including fuel cost and bus parts, totaled $.9 million (3%). Other expenditures
totaled $.4 million, including county auditor & treasurer fees, payments to Muskingum
Valley Educational Service Center, and to other miscellaneous items.

Shaw noted that he had previously forecasted a surplus of $317,086 for the year. The
actual surplus was $279,425 lower than forecasted. Shaw attributed $204,000 of this
difference due to timing issues - $151,175 of Ed Jobs funding that will be received in FY
2013 versus 2012 and advances to other funds of $53,108 paid in FY 2012 that will be
repaid to the General Fund in FY 2013. These negative variances in FY 2012 will be
positive variances to be applied against the previous forecasted deficit of $787,383 for
FY 2013, the current school year.

Shaw pointed out that the annual reliance on local taxpayers for funding day to day
operations of the School District has been reduced from 39% (FY1993) to 32% (FY
2012). State and Federal sources are providing more and more of the balance.
Shaw commended the School Board, administration, employees, employee unions,
parents and community for working together to weather the current economic storm.
“These have been some of the most challenging financial times we have faced. The road
ahead will continue to challenge us. We must continue to work together to provide the
most effective, efficient, and economic school system we can for our communities.”

The School District has operated in the black for the last 18 out of 20 years, yet Shaw’s
most recent financial forecast reflects anticipated deficits for upcoming Fiscal Years
2013, 2014 and 2015. Carryover reserves will be used to weather the enduring economic
storm to the extent possible. The School District’s last local operating tax levy was
approved by voters in November 1981 – over thirty years ago – almost unheard of in the
State of Ohio.

For additional information, contact: pshaw@lhsd.k12.oh.us

PFS: Fiscal Year End Financial Report Issued for Logan 08.9.12