LIMA — It’s that time of year when school treasurers across the state knock the dust off their crystal balls and make a five-year forecast of finances for their district. Inflation is unpredictable. School funding is not fully implemented and really not guaranteed past 2023. Funds to help schools recover from COVID are ending.
A five-year forecast also has the uncertainty of the two state biennium budgets. The forecast is based on the estimated revenues and expenses based on the best data available. Property values were reappraised in 2021 and will happen again in 2024.
Perry treasurer Mandy France presented her best efforts to the Perry School Board at their meeting. 51.5% of revenue comes from state sources with 48.5% coming from local sources. At Perry a tax levy will have to be renewed during this forecast that annually collects $500,000. It will expire on December 31, 2024. It was first approved in 2009. An emergency levy can only bring the money that it was approved for so as property values increase, the millage collected decreases. An operating levy which expires on December 31, 2026 will need to be renewed also.
Expenditures are closely evaluated. 51.89% of expenditures goes to salaries, subs, and sick leave. 23.24% is paid to health insurance and pension plans. Perry schools knows that negotiated agreements provide for a 2.25% base increase and step increases of 1.7% increase for the length of the five-year forecast.
Looking into the crystal ball Perry Local Schools is set to have a negative ending balance in 2025. Time will tell how accurate the crystal ball with all its variables will be.
Reach Dean Brown at 567-242-0409
