Olentangy Local Schools is projecting a $12.7 million anticipated revenue loss by Fiscal Year (FY) 11 due to recent changes in the state funding system. The district will reduce expenditures to match the revenue loss and maintain the community commitment to not be on the ballot until 2011.
“Olentangy Local Schools has a history of strong fiscal responsibility and high academic performance,” said Superintendent Wade Lucas, Ed.D. “We will use this past success to address our revenue losses and find financial reduction opportunities for our community.”
The district lost $4.7 million in FY10 and $8 million in FY11 of anticipated revenue with the recent state funding changes from House Bill 1. Under the old system, Olentangy Local Schools came off a calculation know as “the guarantee” in FY 09. This would have increased the district’s state funding from $7.9 million to $12.6 million then allowed the funding levels to increase with enrollment. However, the new Evidenced Based Model (EBM) funding system does not take this calculation into account so Olentangy will not receive this money. In addition, the new EBM also created a $79,000 actual revenue loss for the district in FY10 and a $158,000 actual revenue loss in FY11.
“When anyone loses anticipated revenue it impacts them and their home,” said Treasurer Rebecca Jenkins. “At Olentangy Local Schools we will continue to ‘live within our means’ and reduce our expenditures to better match our new projected revenue figures.”
Lucas and Jenkins presented this information to the Board of Education during the September 8 regular meeting (Download the presentation at this link). The board will continue this discussion at its September 29 regular meeting when Jenkins presents the five-year forecast for a first reading. The forecast presents the district’s financial picture by looking at current and future financial data. The board holds two readings of this information before voting to approve the forecast as the financial planning document for the district.
During the fall and winter months the district’s administrative team will work with staff members and the Finance and Audit Committee to identify and research possible expenditure reductions. Changes for the 2010-11 school year will be presented to the board and communicated to parents this spring.