FR forecast shows budget deficits

Pending state funding changes will impact Fort Recovery Local Schools’ annual budgets in coming years.

Fort Recovery School Board’s review of its five-year financial forecast during a work session prior to its regular meeting Monday focused again on the potential impact of budget changes because of the ongoing coronavirus pandemic. The board and treasurer Deanna Knapke had a similar discussion during their review of the five-year forecast in May.

Fort Recovery Local School finished fiscal year 2020, which ended June 30, with a budget surplus of $351,222, bringing its year-end case balance to $6.85 million. That continued a pattern of budget surplusses over the last several years.

The five-year forecast projects that trend to change beginning in fiscal 2021 with a budget deficit of $156,819. Deficits are expected to continue at $480,208 in 2022, $805,956 in 2023 and more than $1 million each of the next two years. Those deficits would drop the district’s year-end balance to $2.7 million by the end of fiscal year 2025.

Knapke noted that there are is a lot of uncertainty because of the pandemic, as schools are funded in part by the state and local income tax collections. In May, Ohio Gov. Mike DeWine cut about $300 million (3%) from K-12 public school funding for the remainder of fiscal year. That cost Fort Recovery about $168,000 in state funding. Additional cuts in response to the pandemic would impact the financial forecast.

Also Monday, elementary school principal Kelli Thobe said 100% of students finished fall testing within the required five-day timespan, which surpassed her expectations in relation to coronavirus absences. About six mobile hotspots have been purchased using federal funding grants and are available to families in poverty or in low economic status, she added.

Middle school principal Ryan Steinbrunner said numbers have decreased from his last update about the virtual academy. About 20 students are on track with their work, with nine considered behind and five considered “far behind,” he explained.

“So I think over the last month we’re starting to see a trend with students getting a little behind on their work,” he said, indicating that school staff members are working with those students.

Also, superintendent Larry Brown presented four goals drafted by the district leadership team created in response to the new district motto and mission statement. They are to a performance index score of 106.5 and meet 85% of state indicators by the fall of 2024 (Fort Recovery’s performance index score was 100.575 in 2019), remain the No. 1 district in Mercer County for school safety, maintain a minimum of 90 days operational spending reserve in each fiscal year and create a supportive culture reflecting a 98% rate for employment, enlistment and/or further education for graduating students.

School board members did not vote to approve the goals at this point in time but may do so in a coming meeting.

In other business, the board:

•Approved the following: revisions to policies associated with web accessibility, content, apps and services, cost principals in spending federal funds and procurement of federal grants/funds; two memorandums of agreement to deposit public funds in First Financial Bank and Park National Bank, which will serve as public depositories from Jan. 1 through Dec. 31, 2025; designating Sierra Pugh and Tiffany McEldowney as volleyball varsity assistant coaches; school board compensation at $80 per meeting, with a cap of 20 meetings; high school athletic contracts, including for track coach Christy Diller and softball coach Ryan Thien.

•Accepted donations from the Network For Good for FFA ($30) and Mercer County Elks for the athletic department ($900).