School District Breaks Even in FY 2016
Office of the Treasurer
School District Breaks Even in FY 2016
Once again, the Logan-Hocking Local School District finished its most recent year operating in the black. Treasurer and Chief Fiscal Officer Paul Shaw reported to Board of Education that General Fund revenues exceeded expenditures by $96,400 in the fiscal year ended June 30, 2016 (FY 2016). General Fund operating revenues and expenditures remained virtually unchanged from the prior year (FY 2015), increasing 0.6 % and 1.2% respectively.
General Fund operating revenues for the fiscal year totaled $34.2 million. The State of Ohio provided 67% ($22.9 million) of General Fund revenues. This includes payments through the school foundation program and payments of rollback and homestead taxes for local taxpayers. It also includes casino revenues of $196,000. Local taxpayers provided $9.4 million in real estate and personal property taxes to the General Fund (27.5% of total). Federal funds provided $354,000 (1%), including $55,000 in E-Rate and $299,000 in Medicaid CAFS reimbursements. Other sources provided the balance of $1.5 million, (4.5%) including tuition from non-resident students, investment income, preschool / before care / after care / latchkey tuition, and other sources.
General Fund operating expenditures for the fiscal year totaled $34.0 million. As a service industry, salary and benefits accounted for the majority of expenditures ($28.9 million, or 85% of the total). Purchased services, including utilities expense, community school tuition (ECOT et.al.), 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 deficit of $270,000 for the year. The actual surplus of $96,000 varied favorably by $366,000. Revenues were $130,000 greater than anticipated, much of which was due to timing differences. Expenditures were $236,000 less than forecasted. Personnel costs were $257,000 (1%) less than anticipated while purchased services were $84,000 (2%) greater (tuition paid other school districts up $55,000, net utilities expense up $36,000). These differences will be incorporated into the updated five year financial forecast that will be filed with the State of Ohio in October 2016.
Shaw pointed out that the annual reliance on local taxpayers for funding day to day operations of the School District has been reduced from 35% (FY1996) to 32% (FY 2016). State and Federal sources are providing more and more of the balance. He noted however that he feels recent legislative changes will result in more and more reliance on local property taxes for school funding in the future.
Shaw commended the School Board, administration, employees, employee unions, parents and community for working together to weather the recent economic storms. “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 21 years. Shaw’s most recent financial forecast reflects deficits for the next five years, including the current year’s deficit of $879,000. The Board and administration work daily to reduce the shortfall. Carryover reserves will be utilized when necessary to cover annual deficits. The School Board’s intent is not to incur deficits on a long term basis. The School District’s last local operating tax levy was approved by voters in November 1981 – nearly thirty-five years ago – almost unheard of in the State of Ohio!
For additional information, contact:
firstname.lastname@example.org or www.loganhocking.k12.oh.us
PFS: Fiscal Year End Financial Report Issued for Logan 08.26.16
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