Marietta City Schools took another financial hit this week as the 2002 district property tax revenues came in lower than expected.
The tax revenues are about $650,000 short of what the district estimated in October, Marietta schools financial officer Dave Combs said. The approximate $11.7 million in taxes to the school district are based on the total valuation of the Marietta City School District, which only increased by 0.2 percent this year from $399,456,670 to $400,315,770.
Lower-than-expected tax revenues is yet another setback for a school system already digging into the couch cushions for extra cash. The October 2002 budget update revealed a $730,000 cost increase for health insurance benefits. Anticipated increased utility costs this cold winter aren't helping, either. In its five-year plan, the district has proposed closing two elementaries, redistricting students, reducing staff and selling property to avoid an impending deficit.
What puzzles many citizens is that Marietta City Schools just passed an 8.5-mill operating levy in May 2002. The five-year levy continued about $2.8 million a year from taxpayers and added $609,000 a year. It left many citizens with the impression the district's finances were sound, and it has been among the top questions debated during recent public meetings which continue next week.
"It was pretty apparent last year when we started the levy campaign that the levy was a Band-Aid effort," said board member Kenneth Schilling.
"I felt we should have gone for more millage, but I'm realistic and I don't think it would have been prudent to go for more, because I don't think any more would have passed."
Voters passed the levy by a 55 percent margin in May. School officials say the unexpected costs started rolling in a few months afterward.
"We didn't know about the monumental insurance increase until the fourth quarter," Schilling said.
"That really took the wind out of our sails."
In 2002, Marietta paid more than $5 million in insurance and retirement benefits.
The expected shortfall in tax revenue means Combs is recalculating the entire $23 million budget to figure how much the district needs to cut or raise within the next four years to stay afloat financially. In October 2002, the district had estimated that $2.6 million was that magic number- it may now rise to around $3 million, Combs said.
"I'm still waiting for all the numbers, so I can present the most accurate budget possible," Combs said. "There are so many variables ... we could lose some money here and gain some money there."
For example, funding from the state's special education fund will increase this year because the district saw an increase in special education student enrollments. However, total student enrollment has continued to decrease at Marietta (down 78 students to 3,223 in 2002), therefore decreasing school funding from the state.
"Just like anyone at home, our finances are getting tight," board member Peg Littler said.
"Some of the board members have jokingly asked 'Are we allowed to play the lottery.' Truly, we need that kind of miracle."
Combs said he will present the new budget figures to the school board members before they vote on the district five-year plan.
Reno parent Kurt Harrison is hoping to sway board members not to close Reno and North Hills elementaries next school year.
"Let's not say the sky is falling because of one bad year," Harrison said. In his alternate plan, Harrison will propose that the school board give voters the chance to pass an emergency levy to continue operating all six elementary buildings.
Marietta City Schools is not unfamiliar with budget troubles. In 1987, an operating levy failed, forcing the school board to reduce the budget by $1 million. The board cut administration and teaching positions, closed Marion (1987) and Fairview (1988) elementaries, and ceased school funding of athletics and extracurricular activities. The athletics and extracurriculars continued, but only through the support of parents and boosters.
Marietta school levies failed again in 1988 and three times in 1989. Voters did pass a bond issue in 1990 to pay for renovations mostly at the middle school. And when Marietta finally passed its operating levies in 1992, 1997 and 2002, the district slowly reincorporated the student activities into the budget.
Marietta City Schools Superintendent Greg Backus said he disagrees with cutting student programs because of the budget troubles on the horizon.
"Education is much more than reading, writing and arithmetic," Backus said. "It's school's responsibility to fund those activities. If we can't provide those opportunities, then people aren't going to come to our schools."