NORTH BALTIMORE – Forecasted expenses for North Baltimore Schools go up more than $1.5 million in the
next five years, while revenue drops nearly $1 million.
What that will do is have the district dipping into its cash balance to offset the differences until that
balance is gone in fiscal year 2018.
The figures Treasurer Eve Baldwin gave the school board Tuesday for her five-year forecast were her
"best guesstimates" at this time.
"There may be many changes to these estimates during the course of the fiscal year. …" she
said.
She keeps property tax collections constant through fiscal year 2019, which ends June 30 of that year.
She projects that tax collection at $2,242,986 for the next five years.
She estimated income tax collection at $727,143 for this year and next year, then drops to $363,571. That
collection disappears in fiscal year 2019 as the five-year tax expires.
State aid is expected to remain constant at $4 million for the next five years.
She predicts a drop in revenue from incoming open enrollment students plus special education students,
and Medicaid reimbursements. That number drops from $458,000 this fiscal year (FY2015) to $263,00 for
the next four years.
She expects total revenue to be $8,162,222 this fiscal year, and dropping to $7,242,079 in fiscal year
2019.
For expenses, salaries are expected to be $4,155,344 this year, increasing to $4,788,352 for fiscal year
2019.
The increase is to cover step increases, the agreement with the union, and severance payout for staff
retiring.
Benefits also will increase, mostly to cover medical, dental and vision trends which are also on the
rise. She has that item at $1,571,611 this year and $1,748,383 in fiscal year 2019.
Also increasing are purchased services, which she increases 13 percent for each year.
This year’s increase is to cover possible additional costs in case of bad weather plus repair/service
costs which are increasing as well. The loss of open enrollment students also falls into this category.
"Students leaving our district has become a real issue because of all the options that the (state)
has implemented," Baldwin stated.
Superintendent Ryan Delaney said he expects to see many of those students return as the district
increases the number of college credit and elective courses at the high school.
Baldwin has purchased services at $1,417,032 this year, and $2,310,433 in fiscal year 2019.
Total expenditures are set at $8,473,987 this year and $10,247,148 in fiscal year 2019.
The district will start dipping into its cash balance this year to the amount of $311,765 to cover the
imbalance of expenditures over revenue. That balance at the end of this year is expected to be
$3,735,554.
That cash balance dwindles to $1,144,683 at the end of fiscal year 2017, negative $893,841 in fiscal year
2018, and negative $3,898,910 in fiscal year 2019.
"Many unknown factors affect both revenues and expenditures," Baldwin stated. "But I
believe, based on the most recent available information, these are good conservative estimates."
