Groveport Messenger - November 27th, 2022

PAGE 12 - GROVEPORT MESSENGER - November 27, 2022
www.columbusmessenger.com
Financial forecast indicates more revenue needed for Groveport Madison Schools
By Rick Palsgrove
Groveport Editor
Groveport Madison Schools are expected
to face a revenue shortfall of $3 million by
the end of fiscal year 2023.
According to the latest five year financial
forecast, the district’s expenses are
projected to exceed the district’s revenues
by $18 million by fiscal year 2027 if additional
revenue is not generated, according
to the district’s latest five year forecast.
“The district would need to cut its fiscal
year 2027 projected expenses by 16 percent
“A worsening cash balance can erode
the district’s financial stability over time.
A positive cash balance and having
cash on hand gives us time to plan.”
- Felicia Drummey, treasurer
Groveport Madison Schools
in order to balance its budget without additional
revenue,” said Groveport Madison
Treasurer Felicia Drummey.
She added that the district’s cash balance
is positive by the end of fiscal year
2023, but is expected to worsen by fiscal
year 2027.
“A worsening cash balance can erode the
district’s financial stability over time,” said
Drummey. “A positive cash balance and
having cash on hand gives us time to plan.”
According to the forecast, the district
receives 42 percent of its revenue from
property taxes, 40 percent from state funding,
and 18 percent from other sources.
One reason for a decrease in revenue,
according to Drummey, is because a change
in state funding which distributes money
where students attend school, not where
they live. Also, even though property valuations
are growing at almost 5 percent
annually, revenue is at only 1.22 percent
annually because a recent state law
reduces millage to offset inflationary
growth.
Salaries make up 52 percent of expenditures,
benefits are23 percent, and services
are15 percent.
According to Drummey, salary expenses
increase an average of 7 percent annually.
Benefits’ costs are also rising an average of
8.5 percent.
She noted spending has decreased annually
overall since 2018 with one of the reasons
for it being the effect of COVID closures
reducing operating costs.
The district’s most recent operating levy
was renewed by voters in 2019 and it is set
to expire in 2024. That five-year levy was a
“no new taxes” levy and it was the renewal
of an existing levy.
The earliest the district’s existing five
year renewal general operating levy can be
placed on the ballot is November 2023. It is
tentatively scheduled for the November
2024 ballot as that is latest date it can be
approved for the district to start collecting
money in 2025. Drummey noted the levy is
collecting almost 2 mills less than when it
was first approved in 2014 due to changes
in state law.
“We have maintained control of our
spending, but now are seeing the resumption
of normal inflationary trends due to
universal rising costs,” said Drummey. “We
can use the winter months for strategic
planning to determine action steps. Budget
reductions are likely necessary as well as
seeking additional levy revenue. We need
to plan for how best to address overcrowding
and modernization with our facilities.”
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