JERRY CITY – Elmwood Local Schools’ roughly $11 million operating budget is expected to stay in the black
for the next three fiscal years before climbing expenses and steady revenues put the district in the
hole, according to the five-year financial forecast.
The board of education passed the Fiscal Year 2010 five-year forecast during its Monday meeting with
member Dale David absent. Although there was no comment on the projected budget during the vote,
Superintendent Steve Pritts said after the meeting that the district’s financial future is actually more
ambiguous than the forecast shows – since the state government has yet to give districts any clear
direction on future income.
"The five-year forecast is basically a requirement by law that is basically being projected with no
realistic data from the state," he said.
According to a summary provided by Treasurer LuAnn Vanek, federal stimulus money – which the state used
to meet requirements for funding school districts – is not guaranteed past 2011. However, the forecast
assumes that the state will find a way to replace the stimulus money and that funding will continue at
the FY 2011 level.
The forecast shows $11,022,092 in total revenues for next fiscal year with $2.1 million coming from real
estate taxes, $1.5 million coming from two income taxes and $6.5 million coming from state aid.
The district is projected to finish FY 2010 with a balance of $4,489,954.
That balance is predicted to gradually decrease during the next three years and dip into the red before
July of 2013. However, the fate of two income tax renewals will dramatically affect the district’s
financial health.
If voters renew the 0.5- and a 0.75-percent income taxes, which expire in 2010 and 2011 respectively, the
forecast anticipates a debt of only $465,073 in fiscal 2013 and $2.7 million in fiscal 2014. Without the
levies, however, the district would show a negative $2.9 million in fiscal 2013 and $6.9 million the
following year.
"Basically, the income tax has produced a substantial carryover balance for the general fund along
with the parity aid received from the state through the foundation program," Vanek wrote. "The
income tax levies comprise 14 percent of the school district’s total income. Renewal of these levies is
of vital importance to the financial wellness of the district."
Although Elmwood’s real estate tax revenue increased in 2009, the state tax commissioner has projected
property values to gradually decrease and then flat-line in 2012. The commissioner also recommended a
decrease in expected income tax revenues next year and then a gradual increase over the next couple of
years followed by regular growth.
Vanek stated that it would be difficult to forecast state funding but planned for it to remain steady.

"So, in a nutshell, our revenues are going to pretty well flat-line while our expenses are going to
continue to rise," she said, when reached for comment by telephone this week.
Vanek said the district is already being proactive and that she and the superintendent have already had
some preliminary conversations about options for conserving expenditures.
"We’ve just kind of been waiting to see what the state’s going to do, but we’re still looking and
preparing to come up with a plan. We just have not done that yet," she said.
The district predicts spending $11.9 million for fiscal 2010, with creeping expenses reaching $13.7
million in fiscal 2014.
Pritts said he recently attended a Buckeye Association of School Administrators meeting in Columbus and
that there is some uncertainty about the school funding formula. He acknowledged that, based on the
five-year forecast, the district will need to do more with less.
"It’s hard for me to say, ‘Oh, we’re going to be great in five years’ (or) ‘we’re going to be
hurting in five years,’" Pritts said. "We just don’t know. We have no idea at this time, other
than the fact that we have to base it on the old state formula."