By: Health Insurance
Submitted: 2009-10-13 09:28:58 | Word Count: 505
The Akron school board agreed today to spend nearly $300 million for operations this fiscal year — about 3 percent less than last year, thanks mostly to layoffs from the closure of five schools last year.
However, that budget includes about $8 million in federal stimulus money that was tucked into Akron's overall state aid. That probably will be the same number for the next school year.
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''Now, the problem with that is that in 2012, those federal dollars are supposed to go away, leaving the state having to make up that difference,'' Treasurer Jack Pierson said.
Complicating matters is the Ohio Supreme Court decision a week ago sidelining the state's plans to authorize video slot machines at horse racetracks, which were estimated to raise between $850 million and $933 million for public schools over the next two years.
Pierson will take that potential shortfall into account when he presents his five-year budget forecast at the end of October.
''If that happens, there is a very good possibility that our state aid will be cut,'' Pierson said. ''For every one percent that our state aid is reduced, we lose about $1.5 million dollars.''
But as of tonight, the district's finances appear sound for this school year and probably next year, Pierson said.
He attributed about $6 million of the $9 million reduction to savings from staff reductions.
Other savings include: a 3 percent reduction in health insurance premiums, a projected $2 million reduction in utility costs from last year and changes in how the Ohio Bureau of Workers' Compensation calculates Akron's expenses, which produced a one-year $1.5 million savings for this school year.
The total appropriation of all funds for this fiscal year, including the $139.5 million for capital projects, is $568.6 million, about a 7 percent decrease from last year's total appropriation of about $611.5 million.
Employee wages and benefits account for about 73 percent of the spending plan for operations.
All of the district's unions, whose contracts were set to expire in 2009, agreed to a one-year rollover without an across-the-board salary increase.
The spending plan also accounts for the nearly $3 million replacement of the district's 15-year-old computer systems for student information and administrative information.
The current computer system's manufacturer ended support for the software in June 2007, which has hobbled the district's ability to develop more modern applications.
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