Although Athens City School District administrators had some success balancing their budget during the summer months, state budget cuts have darkened the district’s financial forecast — and could lead the district to close one of its five elementary schools.
Because of loss of revenue, ACS projected a budget deficit of nearly $550,000 for the 2011-2012 academic year. The district received $1.2 million from the “tangible personal property tax” in fiscal year 2011, a revenue source it can no longer expect to tap into to balance the books in the future.
The original plan was to phase the tax — which is levied on any equipment or inventory used by businesses — out by 2018, but Gov. John Kasich accelerated the process as part of his efforts to attract business to the state. Now, the tax will be lifted by 2013.
ACS will receive about $800,000 in 2012 and $200,000 in 2013 from the tax.
Overall, state funding for education will increase by about 2.5 percent, or $150 million by 2013, but this year, the state education budget is already 6 percent lower than in 2011.
The state classifies ACS as “Urban/Suburb - High Income,” while every other district in the county is classified as “Rural/Agriculture – Low Income.” However, 34 percent of ACS students were considered economically “disadvantaged” by the state in 2011.
Because of ACS’ high classification, it receives the least amount of state money per pupil in the county. In 2011, ACS received almost $3,700 per pupil — 50 percent less funding than the next-closest school district, which was Federal Hocking at $5,452.55 per pupil.
To stay solvent, ACS brings in millions every year through an Emergency Replacement Levy and a 1 percent income tax. If either the levy or the tax were ever to be voted down, ACS would have to make drastic cuts to its budget, district administrators said. These cuts could include extensive teacher layoffs or the closing of an elementary school.
In the early 2000s, ACS Superintendent Carl Martin and District Treasurer Matt Bunting developed a 10-year financial plan for the district.
“We built up a reserve to help us get through lean times, and we are in lean times now,” Bunting said. “We have to make budget reductions, and we are in the process of doing that.”
Martin says the district has handled the $550,000 deficit without firing any teachers, however one custodial position at Athens High School has been cut.
The district chose not to fill five open positions from faculty who had retired or resigned.
The district is also weighing the option of closing one of its five elementary schools.
“I think there is a good potential for moving to four elementary schools from five,” Martin said, adding the decision would not be made hastily.
District leaders say student demographics, housing and bus routes all would be studied in detail before a decision was made.
“Several of the elementary (schools) need work,” Martin said. The consolidation would mean potentially looking for four “good, modern facilities” that are more energy efficient, he added.
Bunting said public meetings concerning district budget cuts will happen, giving citizens a chance to weigh in on what they believe should be cut.
“Our goal was to make cuts through a process of attrition (without firing teachers and cutting programs), but that’s harder to do with a seven figure cut,” Bunting said.
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