Board looks at future finances

FORT RECOVERY — Fort Recovery Schools will get the expected increase in funding from the state, but projections also show continued deficit spending.
Fort Recovery’s school board looked at its five-year financial forecast Tuesday during a work session prior to its regular meeting.
The projections show the school system spending more from its general fund than it takes in for each of the next five years, as was the case in fiscal 2013. But even if those projections are accurate, the schools would still be in the black overall thanks to a current balance of more than $2.7 million.
“We’ve had cost-cutting measures in place for a long time,” said treasurer Lori Koch. “As far as the future, I’m sure that’s something the board will continue to look at and keep an eye on things.
“The main thing that we look at is … the balance and making sure we have a healthy balance into the future.”
Fort Recovery schools will get the projected increase in state funding that was expected. The school will receive $4,751,427 from the state this year after getting $4,472,126 a year ago. That number will bump up to $5,127,265 in 2015.
The overall forecast for the general fund shows deficit spending of about $200,000 for 2014, $45,000 for 2015 and $220,000 for 2016. The amounts are larger for 2017 and 2018, but Koch said it is extremely difficult to project that far out and those numbers often look for worse than they are.
“It’s not a deficit balance, but it’s deficit spending. It’s not gloom and doom,” Koch said, noting that the school system always tries to keep at least a three-month reserve. “That’s why we do the forecast, to keep and eye on it.”
Fielding a question from board member Aaron Guggenbiller, Koch said she doesn’t expect changes from the Affordable Care Act (commonly known as Obamacare) to have a significant impact on school finances. The school system already offers insurance to all of its full-time employees.
“We have a couple of people who might be able to go into the exchange,” Koch said. “Is that going to cost us more than it would cost us to offer the insurance? I don’t think so.”
Board members Dave Hull, Ginny Fortkamp, Jose Faller, Amy Bihn and Guggenbiller also heard a report from Second National Bank trust officer Todd Durham about how Fort Recovery Foundation money is invested. The foundation’s portfolio has shown growth of 5.79 percent, which is 0.07 percentage points better than the benchmark, since investment began in 2005.
“We protect the downside risk and we participate in the market growth,” said Durham. “That’s really our objective.”
In other business:
•Learned from Vaughn that the school is ready to build the interior of the student activity structure that is under construction on the southwest side of the high school property. The cost of the interior is currently just under the $300,000 budget.
•Heard a report from FRHS guidance counselor Amy Kaiser, who reviewed aspects of her job such as scheduling college visits, helping with class schedules and assisting with applications for scholarships. She said she’s tried to push students to think about and explore careers in which they might be interested.
“I have seen a major shift in the last few years,” Kaiser said. “We’re getting lots more kids to job shadow, which I like to see.”
•Learned from Vaughn that the school system is working to apply for a pair of grants.
The Straight A Grant, which the school is applying for in a group along with Marion Local, St. Henry, New Bremen, New Knoxville and Minster, is for a one-time, sustainable purchase for things such as technology or textbooks. The six schools can apply for a total of up to $15 million.
The School Safety Grant, which Fort Recovery would apply for on its own, is for up to $5,000 per building and can be used to enhance security.
•Discussed landscaping for the north side of the high school with funds left over from the $3.4 million renovation project that is coming to a close. A price range and specifications will be presented to landscaping firms, who will then draw up plans for the board to choose from.
•Received an update from Vaughn about the Ohio School Board Association’s Capital Conference, which is scheduled for Nov. 10 through 13. Faller, Fortkamp and Guggenbiller plan on attending along with Vaughn.
•Heard from Vaughn that she will be attending the Ohio School Leadership Institute. The first session for this year is scheduled for later this month.
•Approved the consent agenda, which included accepting Amber Heitkamp as a volunteer bowling coach, approving field trips for the Family, Career and Community Leaders of America to the national  meeting Nov. 21 through 24 in Charlotte and the eighth grade trip to Washington D.C. in April and accepting donations totaling about $2,300 for the boys basketball team, Get Real Week, the Kirsten Schlarman Fund, the Washington D.C. trip, the high school cheerleading fund and the purchase of exercise balls.
•Gave permission to allow the purchase of electrical service through the Southwestern Ohio Educational Purchasing Council, a group that helps negotiate lower rates for services.
•Appointed Jack Diller as Fort Recovery Library Trustee replacing Phillip Bauer.
•Approved employing Janelle Braun as a non-teaching employee and Lisa Lennartz, Tammy Leuthold and Barb Sautbine as substitute teachers.[[In-content Ad]]