Worthington Schools May 2011 Newsletter

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Spring 2011 | Vol 4 | Issue 3

News from the Treasurer State Budget debate impacts Worthington Schools The stagnate economy and state budget cuts are having a dramatic impact on school districts across the state. The latest state budget has slashed over $3 billion statewide in funding for public schools. In Worthington, we planned for this tough road ahead as indicated in our five-year forecast from last October. We projected a 10% decrease in funding from the state foundation as well as elimination of the one-time federal stimulus funding. Even with our thoughtful planning, it is still difficult to predict all scenarios. The Governor and legislature have proposed a significant change to the Tangible Personal Property (TPP) Tax reimbursement payments to schools and that proposal has a major impact on our revenues. The state is looking to accelerate the reductions of these direct payments to schools faster than previously planned. This means Worthington will lose almost $7 million over the next two years. Although this is problematic to our bottom line, we are making changes to our budget now to weather this latest financial challenge. The loss of the TPP tax and the shrinking local business tax base are of particular importance to Worthington. No other district in Franklin County is impacted as much as Worthington Schools with the loss of the TPP local business tax. Despite these concerns, current legislative actions are not entirely a story of cuts and reductions. The Ohio General Assembly passed House Bill 30 permitting school districts to continue to charge for all day kindergarten. This will save our district $1 million annually and we plan to continue to offer this very popular and successful program. The legislature is also considering requiring all school employees to pay more towards their pensions while reducing the payments that school districts are required to pay. If approved, this could potentially save Worthington schools a significant amount of money in payroll costs annually.

What will the financial future hold for Worthington Schools? The state budget and pension changes are still being debated through late June and there will cer-

tainly be changes to the current scenario. Despite some unknowns, it is still important that we plan and prepare for the realities we face in the future – particularly around the loss of the tangible personal property tax and the phase-down of payments from the state to help school districts deal with this loss. Looking to the future, Worthington Schools could potentially lose approximately $30 million in state and federal funding from now until the 2014-15 school year. The $30 million loss is due to a reduction in state foundation funding, a loss in federal stimulus dollars, and the continued phase out of the TPP reimbursement payments. The TPP reimbursements, when phased out, will result in a loss of revenue of $15 million annually for the district. Franklin County is also undergoing a major reappraisal of its property tax value on homes and commercial property. Based on the continued slumping economy, the Ohio Department of Taxation is directing counties towards a statewide 10% decrease in property values. Based on an assumption that Worthington’s property values go down only 5%, the district would see an additional decrease in local property tax revenues of $900,000 annually. Due to all these local factors and state policy changes, revenues to our district will continue to decline. In fact, our forecasted revenues for FY 2015 are less than what we received in FY 2006. Here in Worthington, we have diligently planned for these tight times for years and made reductions that made sense. Although it hasn’t been easy, our goal has always been to cut costs and strive for efficiency, while protecting the great work happening in our classrooms. Even with these challenges, Worthington still remains as a one of the top school districts in Ohio thanks to our supportive and engaged community. Together we can ensure Worthington schools will remain an excellent school district for years to come. — Jeff McCuen jmccuen@worthington.k12.oh.us

Financial snapshot

Actions from the state, local and federal level are constantly changing our school budget landscape at all times. Here are current highlights of activities and proposals that are impacting our finances today and into the future: All Day Kindergarten: With the recent passage of House Bill 30, school districts can charge tuition for all day kindergarten. This saves the district $1 million annually. Pension reform: The legislature is considering requiring all school employees to pay more towards their pensions while reducing the payments that school districts are required to pay. If approved, this could potentially save Worthington schools $1.5 million in payroll costs annually. Staff Retirements: Many staff members have announced their retirement at the end of the school year. The district will save significant funds by not replacing some staff positions and hiring some individuals at a lower salary level for the remaining positions. TPP tax loss: Our local tax base is shrinking with the elimination of taxes paid by local businesses. State funding to help districts with the loss of the TPP tax is phasing down. When these state payments are gone in 2019, it will result in a loss of $15 million annually for Worthington School.

Spring 2011 | Vol 4 | Issue 3

Worthington Schools Worthington City Schools Official Newsletter

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eflections on another great year for Worthington Schools. As we approach the end of another school year, I’d like to take this opportunity to share what a great year it’s been for our Worthington schools and students. This year is especially emotional for me as it will be my last full school year as superintendent of our Worthington Schools. Although I am departing as superintendent, I will remain a part of our schools and community. Worthington is known for its schools. In coming here, I was proud to be part of a tradition of excellence. Being here did not disappoint and I am proud to have contributed to taking Worthington to higher and higher levels. Worthington is very special and is one of the Columbus area’s flagship school systems. We have outstanding students, parents, teachers, staff and community. In fact, our own Tim Dove was selected as Ohio Teacher of the Year. This last school year our Worthington schools made numerous academic and fiscal strides. The fiscal road this year has not been easy. Nor has it been for the last few years. Our schools face ongoing challenges due to the economy and to state budget cuts. Despite these challenges, we sought ways of doing business better. Last fall, Worthington sought third-party input into its operations and finances with a state performance audit - a rigorous process few districts in Ohio are willing to go through. After reviewing all of our operations and practices, the audit suggested $2.6 million in reductions – for which many of them were adopted this school year. The audit also showed that with a budget over $100 million, that 98% of our budget was recognized as highly efficient. This is part of Worthington’s ongoing commitment to being good stewards of taxpayer dollars. Community input throughout this process has been key. During the winter, my staff and I have had the pleasure of sitting down with residents to discuss the future of our schools. Through these community conversations, we were able to not only listen to what’s on your mind, but we were also able to share with you some of the initiatives Worthington schools has been working on as well as the challenges we face that impact us all. By sitting down with you in your living rooms, in our libraries and community centers, we were able to share ideas, ask questions and figure out ways we can work together so that our goals can be realized. For the past six years, it is has been an honor and pleasure to serve in this position. I am gratified by the tremendous accomplishments and dedication of our teachers and staff. The commitment of our employees is reflected in the talent and success of our students. From preschool to graduating Seniors, our students are excelling and are being provided with a foundation for a bright future. Above all, none of this would be possible without the support of the Worthington community. We all share a common goal of high quality education, efficient operations and strong community. Thank you for this opportunity to serve as your superintendent. Your commitment to excellent schools makes Worthington a premier community and great place to live and work.

Want to know the latest information on what’s happening around Worthington? Visit the daily blog Worthington Live. This community-based web site shares the latest news from around our community and our schools. From academic achievement in our classrooms, our athletic fields and everything in between, we have a lot to celebrate in our great community and Worthington Live is the place to find out. Check it out at www. worthington-live.com.

2011-2012 The first day of school for next school year is Tuesday, August 23, 2011. Have a safe summer!

Sincerely, Melissa Conrath, Ph.D., Superintendent

Property Reappraisal: Franklin County is undergoing a major reappraisal of its property tax value on homes and commercial property and virtually all values will be reduced. Based on an assumption that Worthington’s property values go down 5%, the district would see an additional decrease in local property tax revenues of $900,000 annually.

www.worthington.k12.oh.us

Check out Worthington Live

Administrative offices Absolute Excellence | Exponential Impact

www.worthington.k12.oh.us

Worthington Education Center 200 E. Wilson Bridge Rd. Worthington, Ohio 43085 614.883.3000


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Worthington Schools May 2011 Newsletter by The Columbus Dispatch/Dispatch Magazines - Issuu