5.17.17
Dear Community Members:
You will be getting two emails today. This email will be devoted to our current and projected financial
position. This is an extremely important email.
I will have another email later which will have a number of announcements.
LATEST 5 YEAR FORECAST
We try our best to keep you as informed as possible when it comes to the district’s finances and give
you our best estimates and plans as we look into the future. Due to what we believe will happen with
our revenues starting next year, it is more likely than ever that we will have to be on the ballot for
operating money sometime in 2019 or 2020. School finances are very complicated, so I am going to do
two things. I am going to give you a summary with simple bullets and facts. I will also describe in more
detail our issues going forward using a series of questions and answers to help organize all of this
information.
SUMMARY
·
Eastwood will likely lose $500,000 in revenue starting next year.
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Because enrollment has climbed in grades K-4 (501 in 15-16 to 543 in 16-17) we have had to
increase staff starting next year costing $240,000 per year.
·
Total impact will be roughly $750,000 starting next year and negatively impact the district’s bottom
line by $3,000,000 by June 30, 2021.
·
Eastwood allowed an Emergency Levy to expire in 2015 saving taxpayers $878,000 per year.
Sometime in the next 2-3 years we will need an operating levy due to overall loss of revenue and some
increases in expenses.
WHAT IS HAPPENING TO OUR SCHOOL DISTRICT REVENUE?
Based on what has been passed through the Ohio House of Representatives and information coming
from the Ohio Senate, we have strong reason to believe that our revenue will be reduced overall by
$500,000 starting with the next fiscal year in July. We will lose money out of three pots, and while we
have one solid number, the other two are estimates based on what we believe will happen based on
information provided to us through meetings and updates.
1. State Funding – According to the Budget passed by the House, we are projected to lose $307,000
starting next year.
2. Income Tax – There have been some changes to the law, and the result is that we are expecting to
lose somewhere in the neighborhood of $100,000 per year. We have already seen evidence of this in the
April settlement we received from the Ohio Department of Taxation.
3. Property Taxes – Many are aware that several years ago, taxes on farm land doubled for a second
time in five years. They also went up dramatically when crop prices dropped substantially leaving many
in that industry in tough financial positions. There is going to be a change in the way the value of farm
land is calculated, and the result will be a reduction in the value of farm land which will impact our
property tax collections. We estimate that our property taxes will come in roughly $100,000 below what
they could have been without the change. It would be far worse for us if we did not see some new
homes going in throughout the district.
All told we are looking at having $500,000 less revenue starting in FY 2018 (starting July 1, 2017) than
what we had been projecting. If you carry that number forward for the next four years, it will have an
overall negative impact of $2,000,000 dollars.
WHAT OTHER FACTORS WILL CONTRIBUTE TO OUR FINANCIAL CHALLENGES?
The budget reductions from the state could not have come at a worse time for Eastwood Schools. We
are losing funding because over the last decade our overall enrollment has declined. The declining
enrollment has allowed us to naturally save money, because we could reduce the size of the staff to
meet lower enrollments. During that time revenue stayed solid, but we were able to manage our
expenses so our balances grew.
This year however, overall enrollment increased by twelve students, but in grades K-4 enrollment went
from 501 in 2015-16 to 543 in 2016-17. We went from have classes of 95-98 to classes of 106-108. Our
individual classrooms went from sizes of 23-25 to sizes of 27-28 which is too big. As a result, we will be
adding a teacher to grades 1-3 (one of the teachers will be re-assigned so we have hired two new
teachers), which will reduce class sizes and allow us to consider open enrollment students who have
been turned away over the last 3-4 years. We will also have to add another intervention specialist to
work with our students with disabilities.
·
Interesting note – In 2008-2009 our enrollment district wide was 1683, and we served 109
students with disabilities. In 2016-17 enrollment dropped to 1,487 students, yet there are 132 students
with disabilities. In order to serve these students and meet their instructional goals, we have had to hire
additional teachers and aides.
The net effect is that we will have four teachers working in grades K-5 who were not in the budget plan
passed last year. We have hired teachers with less experience to help keep the overall increase in costs
down, but this new cost of nearly $240,000 per year coupled with the loss of revenue will swing our
budget around by nearly $750,000 per year. That is a big number for a district our size.
WHAT IMPACT WILL THIS HAVE ON THE DISTRICT’S FINANCES?
Over the course of the next four years, our bottom line will be negatively impacted to the tune of
$3,000,000. It is likely that the district will have to be on the ballot for operating money within 2-3 years.
It has been our goal to stay off the ballot until 2020-2022.
A reminder…in 2015 the district did not renew the Emergency Levy that had been collecting $878,000
per year. We chose not to renew it because farmers had just been hit with the second major increase in
their land values and the associated taxes. At that time we were running strong year over year cash
balances, and the decision was made to reduce taxes district wide. However, we have on multiple
occasions said that we may well need to try to get that revenue back. While our target was 2020-21,
these financial challenges may require us to move this to 2019.
WHAT HAS BEEN DONE TO MANAGE THE BUDGET?
As part of our efforts to manage expenses, the district put several things into place before this year and
is continuing that plan into next year.
·
Personnel – We have reduced or eliminated multiple positions starting with the current school
year moving into next year. Thankfully, we have had multiple retirements that have allowed us to move
people internally so they did not have to lose their jobs. We have also saved significant dollars in salary
by having several staff members do a retire/rehire for this year and next. Personnel changes have come
at all levels.
·
Medical Insurance – Our employees agreed to changes in our insurance which will help us contain
cost increases in our premiums. We will see very favorable rate increases next year and hopefully in the
following year.
·
Maintenance and Repairs – Having a new building will save significant dollars on repairs and
maintenance.
·
Technology – We have cut the cost of our 1:1 program by 40% annually by adopting a different
device which is still providing us with the service and quality our kids need.
WHAT IS THE PLAN AND WHEN CAN WE EXPECT SOMETHING?
Over the course of the next six months we will be meeting with groups to discuss the best approach.
BASED ON WHAT WE KNOW NOW, Eastwood Schools will need to pass an operating levy sometime in
the next 2-3 years. The final amount and timing will be impacted by any number of things both positively
and negatively. The first chance residents will have to share some thoughts is at our Business Advisory
Council Meeting set for June 5th at 7:00 PM in the Bus Garage. We hope you will come and share your
thoughts and learn more about where we stand.
Please also know that we are working to find additional places to make reductions. Every dollar
we save now gets multiplied by four when you add it up over the next four fiscal years. We have
been and always will be governed by the metaphor of the target. Those programs and expenditures
most closely aligned with student achievement are at the center of the target. Programs and expenses
not at the center of the target will be examined when we look at budget reductions.
If you made it this far, thanks for doing so! We will continue to provide you with the best information
possible.
Dear Community Members:
As promised, here is the second email with the normal announcements etc.
I know that many of you do not have a Twitter Account, but if you do, the best way to stay current is to
follow us @els_eagles.
SPRING SPORTS TEAMS
Mr. Hill does an outstanding job of keeping everyone current with the achievements of our athletes. It
has been another outstanding Spring for our student-athletes. Here is a brief rundown:
SOFTBALL – Has won their 30th consecutive NBC game and clinched another NBC title (4th in 6 years!).
They play tonight at Rolf Park in Maumee at 5:00 PM in the District Semis. They have had an outstanding
year to this point!
BASEBALL – Won their Sectional last week and play tomorrow at 7:00 PM at Carter Park in BG in the
District Semis. They are one game out of the lead in the NBC with a couple of games to play. Starting to
hit their stride.
BOYS AND GIRLS TRACK – Won their mind-boggling 17th consecutive league crowns last weekend. Girls
had an outstanding day besting their rivals Lake and Woodmore. The Boys won by an astonishing 128
points scoring 221 overall points. They are competing in the District Meet this week. Girls had their
prelims last night at Oak Harbor doing well and the Boys start tomorrow at Gibsonburg. The Girls finals
are Friday and the Boys areSaturday.
JH TRACK – The Boys won the NBC meet with terrific depth and a strong team performance and the Girls
finished second having their best meet of the year. Thanks to the coaches for working with such large
groups and doing such a great job!
This has been an outstanding Spring for our student-athletes!!
GIRLS BASKETBALL CAMP
The Eastwood Girls youth basketball camp will be held on June 13th-15th from 9:30-11:30am. The camp
is available for girls that will be entering 4th-7th grade. To be guaranteed a camp T-shirt please have
your registration in by the June 4th deadline. There is a flyer attached.
SAVE THE DATE - BOYS BASKETBALL CAMP
The Boys Camp is scheduled for July 24-27. We will have more information on that later.
BLEED FOR THE BAND!
The Eastwood Band Boosters will be hosting a blood drive on June 17th, at Bethlehem Lutheran Church
from 9am-3pm. They are calling it, "Bleed for the Band." The band will receive $10 for each donation
paid to them by the Red Cross. This is a great fundraiser, as it benefits both the band and the Red Cross.
The band is actually in the Fireman's parade the same day as the blood drive, so they are hoping to get
as many non-band members, staff, parents, etc as possible to fill all the spots.
To schedule an appointment, please visit redcrossblood.org and enter sponsor code:
EASTWOODBAND or call 1-800-RED CROSS.
Any questions can be directed to April Schuerman, Brian Myers, or Cindy Musteric.
CHILDRENS THEATER WORKSHOP
Auditions for the Children’s Theater Workshop at the Pemberville Opera House will take place this
weekend. There are flyers attached with information. You can also visit the Opera House website
at www.pembervilleoperahouse.org for more information.
ESSL ARSENAL SOCCER TRYOUTS
Attached is a flyer for Arsenal Soccer tryouts.
I think this is it. I hope I caught everything. If not someone will let me know!