After the Five-Year Forecast, the MLSD board completed other business. pictured above are MLSD Superintenent Brian Rau and Board President Rick Foster. (By Ashley McCarty)
By Ashley McCarty
People’s Defender
Manchester Board of Education met on Nov. 10 to discuss the Five-Year Forecast and other board business.
A motion by board member Troy Thatcher to approve the agenda as presented was seconded by board member Dana Thornburg, the board agreed.
“The Ohio Department of Education requires that I report that Manchester Local District is complying with state and traditional guidelines. Finally, an update regarding the roof project. They did deliver the panels and have begun the installation,” said Superintendent Brian Rau.
Treasurer Eva Elliott presented the Five-Year Forecast to the board and attendees.
“The first chart you see is the summary of the Five-Year Forecast presented to you. I will tell you that this was probably the most difficult one I have ever done,” said Elliott.
— Fiscal Year 2022
– Beginning Cash Balance: 6,874,211
– Revenue: 8,843,787
– Expenditures: -9,233,951
– Ending Balance: 6,484,047
– Revenue Surplus or Deficit: -390,164
— Fiscal Year 2023
– Beginning Cash Balance: 6,484,047
– Revenue: 9,640,853
– Expenditures: -9,534,057
– Ending Balance: 6,590,843
– Revenue Surplus or Deficit: 106,796
— Fiscal Year 2024
– Beginning Cash Balance: 6,590,843
– Revenue: 9,724,755
– Expenditures: -10,107,072
– Ending Balance: 6,208,526
– Revenue Surplus or Deficit: -382,317
— Fiscal Year 2025
– Beginning Cash Balance: 6,208,526
– Revenue: 9,848,885
– Expenditures: -10,177,343
– Ending Balance: 5,880,068
– Revenue Surplus or Deficit: -328,458
— Fiscal Year 2026
– Beginning Cash Balance: 5,880,068
– Revenue: 9,990,182
– Expenditures: -10,340,847
– Ending Balance: 5,529,403
– Revenue Surplus or Deficit: -350,665
The Revenue Surplus or Deficit above shows deficit spending with more expenditures than revenues each fiscal year except for 2023.
The biennial budget for fiscal years 2022 and 2023 begins the six-year phase-in of the Fair School Funding Plan formula. The Ohio Department of Education projected the district should receive an additional $983,202 for fiscal year 2022 and an additional $1,100,047 for fiscal year 2023. It is uncertain if the phase-in of the Fair School Funding Plan will continue in the next biennial budgets for fiscal years 2024 and 2025 and fiscal years 2026 and 2027.
Over the future years, the revenue sources that influence the forecast will change as the loss of local valuation significantly reduces the amount of local tax dollars and more state funds are received to support the district.
“This is our General Property Tax. Our property tax will come in at about $1 million a year,” she said.
— Public Utility Personal Property Tax
– 2017: $4,829,484
– 2018: $2,949,790
– 2019: $1,711,778
– 2020: $913,675
– 2021: $493,312
– 2022: $502,252
– 2023: $503,315
– 2024: $503,567
– 2025: $503,819
– 2026: $503,819
“If you were able to illustrate prior to 2017 back to 2007, it’s all above $4-5 million, which is why we have [our facilities] paid for, all from this Public Utility Personal Property Tax,” said Board President Rick Foster.
With HB166 Biennial Budget, districts received the same amount of state funding as was received in fiscal year 2019. For fiscal year 2020, state revenues declined due to the nationwide shutdown caused by COVID-19.
In fiscal year 2020, HB164 was passed to offset the loss of property taxes when the power generations stations were sold. The district received $2,433,436 in additional funding in June 2021 for fiscal year 2021.
HB110 Biennial Budget estimated the district should receive an increase of $983,202 in state aid for fiscal years 2022 and an increase of $1,100,047 in state aid for fiscal year 2023.
Additional amounts in Unrestricted State Funding would be from tuition reimbursement, preschool special education funding, special education transportation funding and any miscellaneous reimbursements from the state.
Restricted Grants-in-Aid funds include Economic Disadvantaged, Career Tech Education funding and Catastrophic Aid reimbursement when received.
The Economic Disadvantaged Funding increased when the district began participating Community Eligible Provision (CEP), which allows all students to eat free. The district is eligible to participate in CEP when the poverty level is over 40 percent in the district.
For fiscal year 2022 through fiscal year 2026, it is projected that the district will continue to be a CEP district due to the high poverty rate and continue to receive the Economic Distadvanataged Funding at the current rate.
“The Electric Deregulation Reimbursement money is in this, and it will end by fiscal year 2027,” said Elliott.
— Projected Revenues
• 2021
– State Funding: 66.6 percent
– Property Tax Allocation: 12.7 percent
– Other Operating Revenue: 6.7 percent
– Real Estate: 9.4 percent
– Public Utility: 4.5 percent
– Income Tax: 0 percent
– Other Sources: 0.2 percent
• 2026
– State Funding: 71.5 percent
– Property Tax Allocation: 7 percent
– Other Operating Revenue: 6.1 percent
– Real Estate: 10.2 percent
– Public Utility: 5 percent
– Income Tax: 0 percent
– Other Sources: 0.2 percent
“This could all change in December because that’s when we should get our foundation money,” said Elliott.
— Projected Expenditures
• 2021
– Benefits: 21.3 percent
– Purchased Services: 20.6 percent
– Supplies and Materials: 1.6 percent
– Capital Outlay: 0.3 percent
– Intergov and Debt: 0 percent
– Other Objects: 12.1 percent
– Other Uses: 0.9 percent
– Salaries: 43.1 percent
• 2026
– Benefits: 24.5 percent
– Purchased Services: 20.6 percent
– Supplies and Materials: 2.3 percent
– Capital Outlay: 0.2 percent
– Intergov and Debt: 0 percent
– Other Objects: 1.9 percent
– Other Uses: 0.5 percent
– Salaries: 50.1 percent
“In summary, the district is in deficit spending most years. A cautious approach to spending is warranted to keep the deficit spending in check as much as possible to avoid staffing cuts. Staff is our biggest asset, but they also take the biggest chunk,” said Elliott.
A motion by Thatcher to approve the minutes of the regular board meeting minutes on Oct. 13, 2021, was seconded by board member Dave McFarland, the board agreed.
A motion by Foster to approve the October 2021 financial reports (cash summary, receipts, expenditures, appropriations, investments and consent items) was seconded by Thatcher, the board agreed.
A motion by Thatcher to adopt the Five-Year Forecast 2022-2026 as presented was seconded by Thornburg, the board agreed.
A motion by Foster to enter into executive session as per O.R.C. 121.22 for the purpose of (G-1) to consider the appointment, employment, dismissal, discipline, promotion and compensation of public employees was seconded by McFarland, the board agreed.
A motion by McFarland to approve the Resolution to Expand Employment of Substitute Teachers Pursuant to Ohio Senate Bill 1 was seconded by Thornburg, the board agreed.
Pursuant to the authority granted in Section 4 of Senate Bill 1 of the 134th General Assembly, signed by Governor DeWine on or about October 28, 2021, and deemed immediately effective under the General Assembly’s emergency powers, the Manchester Board of Education authorizes the employment of substitute teachers, as-needed, who do not hold a post-secondary degree, as otherwise required pursuant to Ohio law and regulations, including Ohio Revised Code 3301.071, 3319.226, 3319.30, and 3319.36, Ohio Administrative Code Section 3301-23-44, and/or Board Policy, provided that all other applicable requirements and procedures, including but not limited to successful completion of a criminal background check and evidence of a non-renewable temporary substitute teaching license issued by the Ohio Department of Education, have been satisfied. Furthermore, all applicants must possess the equivalent of an Associate Degree (60 semester hours) and be at a minimum of 21 years of age.
This is a temporary resolution of the Manchester Board of Education, and the authority granted by this resolution extends from the effective date through June 30, 2022.
A motion by McFarland to approve the 2021-2022 Local Education Agency Agreement with the Adams Brown Head Start Program was seconded by Thatcher, the board agreed.
A motion by Thatcher to the following out-of-state and/or overnight field trips for the 2021-2022 School Year (High School Academic/Envirothon Team: November 8th-9th, 2021, YMCA Camp Kern and High School Softball: April 8-10th, 2022, The Ripken Experience) was seconded by Thornburg, the board agreed.
A motion by Thornburg to approve the following volunteers (Kyle Roehling, Gage Kinhalt and Aaron Rowland) for the 2021-2022 school year was seconded by McFarland, the board agreed.
A motion by Thatcher to accept the following resignations of Classified Staff (Debra Winn and Clara Caldwell) was seconded by McFarland, the board agreed.
A motion by Thornburg to employ Brandi Thomas as Jr. High Academic Team Advisor at Cat V Step 1 on a one-year limited supplemental contract for the 2021-2022 school year was seconded by Foster, the board agreed.
A motion by Thatcher to employ the following classified employee (Ida Conley) as a Paraprofessional Aide on a limited contract effective November 8, 2021, for the 2021-22 school year was seconded by Thornburg, the board agreed.
A motion by Thatcher to approve employing the following substitute classified employee (Lisa Purdin) for the 2021-22 school year to be paid at $16.00 for bus driver and $15.00 for all other classified substitute positions on an as-needed basis was seconded by McFarland, the board agreed.
A motion by McFarland to employ the following part-time classified employee (Donna Gray) as a part-time cook/cashier effective November 9, 2021, for the 2021-2022 school year was seconded by Thornburg, the board agreed.
A motion by Thatcher to approve adjusting the salary of the following teacher (Jesse A. Stamper) effective for the 2021-2022 school year was seconded by Thornburg, the board agreed.
A motion by Thatcher to approve the Addendum with the Adams County Health Department for Nursing Services for the After School Program paid through the 21st Century Afterschool grant for the 2021-22 school year (nurse to be paid at $24/hr) was seconded by McFarland, the board agreed.
A motion by McFarland to amend the hourly rate effective October 18, 2021, for the following 21st Century Grant Directors (Site Coordinator from $35 to $44/hr and Program Manager from $35 to $44/hr) was seconded by Thornburg, the board agreed.
A motion by McFarland to approve setting the salaries (2 percent increase) of the Non-Union Administrators effective for the 2021-2022 School Year was seconded by Thatcher, the board agreed.
A motion by McFarland to approve setting the salaries (2 percent increase) of Dr. Brian Rau, Superintendent and Eva Elliott, Treasurer effective for the 2021-2022 School Year was seconded by Foster, the board agreed.
A motion by Foster to adjourn was seconded by Thornburg, the board agreed. Meeting minutes will be approved by the board at the next meeting, subject to revisions.
