Recordpub.com - Streetsboro schools foresee losing millions in tax revenue

By Miles Jung-Kilbreath

Record-Courier staff writer

STREETSBORO -- Treasurer Todd Puster said the school district is in risk of losing one out of every three dollars out of its current budget, or $6.2 million, by 2018.

"This is a problem we can't take care of by making massive cuts," Puster said.

According to the Streetsboro School District's May update of its five-year financial forecast, the district is set to lose 31 percent of its $20.2 million 2007-08 budget through the phase-out of the tangible personal property tax for $3.2 million and from two tax levies set to expire at the end of 2010 and 2012 for $3 million.

According to the forecast, the district estimates it will spend $24.3 million for the 2011-12 school year with an estimated revenue of $20.1 million. Puster noted a forecast is only a prediction of the financial future of the district and does not need to show a balanced budget outside of the current school year.

Puster said there is currently no plans in the state legislature to replace the tangible personal property tax, which taxes a business's items in inventory, and that the state was "putting the burden of paying for education on the backs of our community."

"The state is expecting the residents to make up the difference," School Board member Andy Lesak said.

Along with the tangible personal property tax phase out, the district is facing the expiration of a five-year, 3-mill current expense levy in 2010 and a five-year, 5.1-mill levy in 2012, which voters had passed in November 2007.

The growing costs that many residents face is also hurting the school district, Puster noted, including the annual inflation of 7 percent to the district's health care costs, which is excepted to be at $4.8 million for all school employees in 2009. He also said that electricity may see a 40 percent increase by the start of the 2008-09 school year, which mean an additional $50,000 would be added to the school's budget.

District Curriculum Director Agatha Van Brocklin said that about 20 percent of the school districts in the state are suffering serious financial problems with the tangible personal property tax phase-out.

She said she believes it will be hard for to convince the state for financial help when a majority of districts won't be affected.

School Board member Cynthia Pennock-Hanish said that the residents and districts facing the tangible personal property tax phase-out need to "make some noise" to show the state legislature the damage the loss of funds means to the schools.

"Property taxes are painful for our seniors," Pennock-Hanish said. "How are we supposed to run our schools on what the state is giving us?"

E-mail:
mjung-kilbreath@recordpub.com

Phone: 330-686-3942

Posted by DOSE OF REALITY May 15, 2008

CONSIDERING THE AVERAGE OR ABOVE AVERAGE EMPLOYEE WORKS 51 OUT OF 52 WEEKS A YEAR / 5 DAYS A WEEK TO EARN AN AVERAGE ANNUAL HOUSEHOLD (STREETSBORO) INCOME OF APPX. 46,000.00 A YEAR. THAT'S WITHOUT A CREDITABLE 401K PLAN AND/OR PENSION PLAN WHICH NETS DOWN TO VERY LITTLE LEFT AFTER TAXES, PERSONAL/FAMILY EXPENSE, HEALTHCARE AND OTHER BASIC LIVING EXPENSES.

NOW THE SCHOOL WANTS TO ENHANCE EDUCATION. CONSIDER THE SCHOOL BOARD / ADMINISTRATION / TEACHERS & EMPLOYMENT PACKAGE. THE SCHOOL SYSTEM SHOULD CONSIDER A PAY AND BENEFITS REDUCTION ACROSS THE BOARD BEFORE THEY DIP INTO OUR POCKETS AGAIN. ENOUGH ALREADY!!

MY EMPLOYER AND I'M SURE THE MAJORITY OF RESIDENTS DON'T HAVE A MATCHING 401K PLAN LET ALONE EVEN A 50% PLAN, PLUS 100% PAY FOR 30% OF THE ANNUAL WORK WEEK SCHEDULE, FLAWLESS HEALTHCARE WITH NO EMPLOYEE CONTRIBUTION AND THEN VACATION TIME ON TOP OF THAT AND STILL COUNTING!!

GET REAL AND GET BACK TO EDUCATION.

Posted by averagejoe May 15, 2008

Whew! THis is gonna be a hard one to pull off. Rumors of gang fights in the schools, building a new school, new superintendent that makes 3 times(why that is important for us to know, I have no idea, but you should hear the talk, they expect miracles.) the average wage of the average resident of Streetsboro. Gas going to $5 a gal, bread $3 a loaf, eggs $3 a dozen, milk $4 a gallon, Mortgages shooting up 100 to $600 a month. And just like puster said, inflation at 7%. Who will we take care of first? The city wants 1% more and when Obama becomes president the average family with an income of $65,000 per year will see a tax increase of $1800 to $2000 per year after he repeals the tax cuts. Electricity going up 40% and natural gas going up 8 to 10%per month. Now what are ya gonna do? Do you see why our previous superintendent retired? How much do you think the residents of Streetsboro can give? Better hope some big businesses move in, or more residents. Or Jesus comes back. Call Strickland he just got $5b in cash from the tobacco people.