Forecast projects deficits starting in 2021

FORT RECOVERY — Deficits are now projected to start in 2021.

Fort Recovery School Board on Monday approved a five-year financial forecast that shows a budget surplus for the current year followed by deficits for the next four.

The forecast marks a change from the May outlook, which projected surpluses through fiscal 2022 before a significant deficit in 2023.

Treasurer Deanna Knapke presented the forecast that shows a budget surplus of $344,179 in 2020 followed by deficits of $109,448 in 2021, $520,344 in 2022, $865,176 in 2023 and $1.25 million in 2024. Fort Recovery had a surplus of $139,513 in fiscal 2019, which concluded June 30, that pushed the year-end cash balance to just over $6.5 million.

If forecast numbers come to fruition, the balance would climb to about $6.85 million at the close of the current year and then slip to $4.1 million by the close of fiscal 2024. May’s forecast had called for the year-end cash balance to climb to more than $8 million by 2023 before deficits took effect.

As was the case in May, the shift to spending deficits is because expenses, mostly in the form of salaries and benefits, are expected to climb at a rate of 4 percent per year while revenues increase at about 1 percent annually. (Knapke projected funding from the state to stay flat over the five-year period, though that could change as the legislature approves its two-year budgets.)

High school principal Bill Overla also informed board members Greg LeFevre, Nick Wehrkamp, Mitch Ervin, Mike Grube and Jose Faller that the track resurfacing project that began this summer resulted in additional work. Issues with drainage were discovered at the southeast corner of the track, leading to new tile being installed.

“That’s only going to help that whole area,” said Overla.

A new pole vault system was also installed in that area.

In other business, the board:

•Honored senior Olivia Patch for earning commended status in the National Merit Scholarship Program. Overla also noted that the marching band earned a berth in the state competition, though it could not attend because of a previously planned trip to Florida.

•Heard from first-year superintendent Larry Brown that he will be working on a new strategic plan for the district. The last strategic plan covered 2015 through 2018.

•Learned from Overla that boys and girls bowling have been added as Midwest Athletic Conference recognized sports.

•Approved the following: a two-year contract for treasurer Deanna Knapke; indoor track as a club sport; and keeping board compensation at $80 per meeting.

•Was reminded by elementary school principal Kelli Thobe that the school will host breakfast with Santa on Dec. 1 and that the second grade Christmas program is set for 7 p.m. Dec. 12.

•OK’d contracts for the following coaches: Brian Reichert (track and volunteer indoor track) following his resignation as assistant track coach, Holly Gann and Christy Diller (assistant track) and Harold FIely (assistant baseball).

•Accepted donations, including $10,000 from Fort Recovery Athletic Boosters for a pole vault system.