Bowling Green City Schools may need new revenue in 2024.
Treasurer Cathy Schuller presented an update to her five-year forecast at Tuesday’s board of education meeting.
Board member Ginny Stewart said earlier in the meeting that an operating levy will be needed in 2024.
Schuller said the original forecast was done last fall and remains “a snapshot in time.”
She said average growth in revenue from fiscal years 2020-22 was 0.80%. Her forecasted growth for the next five years was 0.28%.
That number is slightly better than it was in November, Schuller said.
Funding for the district is comprised of 56% from real estate payments and 14% from the income tax.
“The reliance on local sources is remaining steady,” Schuller said.
The average growth in expenses from fiscal years 2020-22 was 0.90% but is forecasted to grow to 5.60% in the next five years.
Salaries now being paid by federal monies will switch to the general fund in fiscal year 2025. Increased salaries from the recent labor contracts and the increased cost of supplies and materials since COVID are contributing to the higher expenses, Schuller said.
The district is expected to spend $1.6 million more than it takes in this year and $10.6 million more in fiscal year 2027.
When revenue is flat and expenses increase, the district will dip into its cash balance to cover the difference.
“Managing our cash flow is crucial,” Schuller said.
The district’s cash balance is $16.7 million this year but is used up by the end of fiscal year 2026. If nothing changes, the forecast shows a negative cash balance of $14.5 million in fiscal year 2027.
The district’s options when deficit spending occurs are to generate a new revenue stream, reduce expenditures or do nothing, Schuller said.
She said the key areas to consider are the Rover pipeline money, which continues to be appealed, and the new state funding formula, which is only guaranteed to the end of June.
Also at the meeting, Superintendent Francis Scruci announced he, Schuller and board member Norm Geer had met with DLR Group, the architecture firm that will be handling the district’s master plan regarding facilities.
“There’s a lot of work ahead and it has to be done in the next few months in order for us to be on the ballot in November,” Scruci said.
He said he was encouraged to see a grassroots trying to garner support for a new high school.
“It’s not going to be an easy task as the economy has played an important factor,” Scruci said. “It’s going to be an uphill battle, but I have faith in Bowling Green and I’m confident the community understands the need for new facilities to meet the needs of our students and staff.”
Also at the meeting, the board:
• Authorized the superintendent to enter into a lease renewal agreement for the two modulars at Conneaut Elementary. The lease is for 36 months at $1,988 per month for a total of $71,928.
• Employed Emily Akuszewski, Cora Radtke and James Jones, all intervention specialists at Kenwood; Skyler Rose, mathematics at the high school; and Kaycee Noe, intervention specialist at the middle school.
• Accepted resignations from Margaret Convery, mathematics at the high school, effective Aug. 12; Miranda Swartz, English/language arts at the middle School, effective Aug. 3; and Sarah Klink, intervention specialist at the high school, effective Aug. 12.
• Transferred $300,000 from the general fund to the severance benefit account.
• Accepted donations of $50 for Crim Elementary and $50 for Kenwood Elementary, both from an anonymous donor; $100 for Jr. Bobcat Basics from the Fite/Waldron family; $500 for After Prom from TJ Maxx; $250 for the Lauren “Flex” Rex Memorial Scholarship from Deb Mathias; snacks valued at $150 to Crim Elementary; an American flag valued at $80 for Crim; snacks valued at $150 for Kenwood, all from VFW Post 1148; snacks valued at $25 and clothing valued at $40 for Kenwood from Shannon Warman; personal care products valued at $60 for Bobcat Basics from an anonymous donor; and school supplies, snacks and toiletries valued at $500 for Bobcat Basics from First Christian Church.
