School District’s Finances Better Than Expected This Year
But the five-year financial forecast still predicts that the district will run out of money in a couple of years.
The district ended this fiscal year in a better position than expected, and its revenue actually exceeded its spending.
Treasurer/Chief Financial Officer Karen E. Obratil gave a financial update to the Brecksville-Broadview Heights Board of Education during their meeting on Tuesday. The report was for June 2012, the last month of the 2012 fiscal year.
The district ended the year with a surplus of about $119,000—not a large figure, but good news nonetheless, Obratil said. For the past few years, the district has been spending more than it brought in.
Here’s a breakdown of the numbers, based on Obratil’s presentation:
- The district’s total revenue for the year was $46,695,586, a decrease of about $85,000 from fiscal year 2011.
- The state provided for 25 percent of the district’s funding in fiscal year 2012; it had been responsible for 28 percent the previous year. Local taxes made up 70 percent of the revenue this year.
- On the expenditures side, the district cut costs in fiscal year 2012. The total expenditures were $46,576,119: that’s about $1.5 million less than fiscal year 2011.
- The biggest expense was salaries at $30,130,684 for fiscal year 2012. Salaries made up about 65 percent of expenditures.
- Costs for both salaries and benefits went down in fiscal year 2012. The report attributes most of the related decreases to staff reductions.
The full presentation can be found on the district’s website.
But the surplus won’t really affect the district’s five-year financial forecast, Obratil said. According to the forecast, the district is expected to be operating at a deficit by fiscal year 2015. During a school board meeting in May, Obratil gave an updated report on the district’s five-year financial forecast, noting that fiscal year 2012’s revenue was better than expected due to a higher tax collection rate and a payment in lieu of taxes from Broadview Heights.
The most recent version of the five-year forecast can also be found on the district’s website.