Mission:
The mission of the Strongsville City
Schools, an “Excellent” school district with
a tradition of nationally recognized students
and staff, is to ensure all students reach
their fullest potential, through challenging
curriculum and activities, provided by a
highly qualified, motivated staff, in a safe,
supportive environment, with up-to-date
facilities and technology - in partnership
with the community.
District Goals:
Our all encompassing goal is to maintain our excellence
in the face of continuing financial uncertainty.
1) Student Achievement
Preserving Academic Excellence
2) Fiscal Stability
& Responsibility
3) Update Strategic Plan
Student Achievement
1) Ohio Improvement Process
2) Response To Intervention
3) State Report Card
9 years of excellence
Fiscal Stability
& Responsibility
Mr. William Parkinson
Treasurer
Strongsville City Schools
HOUSE BILL 920 & PROPERTY TAXES
STATE FUNDING
PROACTIVE FISCAL DECISIONS
UNCONTROLLABLE FACTORS
CURRENT FINANCES
HOUSE BILL 920 & PROPERTY TAXES



Property tax rates are defined as mills where 1 mill =
1/10th of $0.01 or $1.00 of taxation for every $1,000 in
property value.
Property taxes have historically accounted for 71% of
the total General Fund Revenue budget.
This line item, by law, never changes regardless of
property values, unless an additional levy is passed.
HOUSE BILL 920 & PROPERTY TAXES


§12.02 of the Ohio Constitution
“With respect to each voted tax authorized to be levied
by each taxing district, the amount of taxes imposed
by such tax against all land and improvements
thereon . . . shall be reduced in order that the amount
charged for collection against all land and
improvements . . . in the current year . . . equals the
amount charged for collection against such land and
improvements in the preceding year.”
HOUSE BILL 920 & PROPERTY TAXES


No matter if property values rise or decline, the
amount of dollars generated from any particular levy
remains exactly the same.
Since 1976, the year HB 920 was enacted, property
values have grown by 751%.
HOUSE BILL 920 & PROPERTY TAXES


In 1976, property values were about $169,452,000
and generated about $5,300,000 from 31.8 mills
Today, property values are estimated to be
$1,442,739,000 and generate $5,300,000 from 31.8
mills.
1,442,739,000
169,452,000
5,300,000
5,300,000
HOUSE BILL 920 & PROPERTY TAXES

34 levy attempts since 1985 (including debt &
permanent improvement requests).

12 have passed (35%)

22 have failed (65%)

30% of Cuyahoga County School Districts are on the
May ballot; 70% project a deficit by 2014.
HOUSE BILL 920 & PROPERTY TAXES



No other public organization’s primary revenue
source is governed by these set of rules.
Not cities, not townships, not villages, not counties,
not even the State.
These organizations may receive some funding from
property taxes, but none are dependent on it as
schools are as a primary revenue source.
STATE FUNDING



Is governed primarily by two factors, enrollment and
property values.
As enrollment rises and falls, state funding rises and
falls.
As property values rises and falls, state funding falls
and rises (contradicts HB 920; referred to as
“phantom revenue”).
STATE FUNDING



As property values rise, the State assumes the
District has become more property “wealthy” and
is/should be less reliant on State Funding
Since 1976, property values have grown by 751%.
The result? Our school district is “less reliant” on
State funding.
STATE FUNDING



FY10, the State transitioned from SF-3 funding
model to Ohio Evidence Based Model funding model.
Under this new funding model, the State took into
consideration “proven” educational criteria and
funded those areas. As a result, funding to schools
was declared “adequate”.
The new funding model still makes a distinction
between “wealthy” Districts and “poor” Districts (i.e.
those declared wealthy must rely more on local
funding and less on state funding).
STATE FUNDING



What does this mean for Strongsville?
Strongsville is considered to be property “wealthy”,
and therefore, under the funding model, the
Strongsville resident must provide the majority of
funding.
As a result of the funding model, the State’s share of
funding responsibility in Strongsville is far less than
that of the local property owner.
STATE FUNDING


Since the last levy was passed, funding from the
State has declined by 10%.
Part of the District’s planning process is being
prepared as best as possible for further funding cuts
that may be proposed and adopted as part of the next
State biennium budget.
STATE FUNDING (GOVERNOR'S PROPOSAL)

Foundation Funding Formula



FY13
0%
0%
appears to continue as constituted under HB1
Tangible Reimbursements

FY12
(-)37%
(-)34%
proposing to accelerate phase-out of payments
Transportation
(-)5%
(+)1%
PROACTIVE FISCAL DECISIONS (COMPENSATION)

District bid out its insurance plan

133 Employees RIF’d / retired and not replaced

includes the closing of Allen Elementary

OAPSE negotiations in FY10

SEA negotiations in FY11

savings effective beginning July 1
PROACTIVE FISCAL DECISIONS (COMPENSATION)

3 year salary freeze for all employee groups
applies to fiscal years ‘08 / ‘09 / ‘10
 SEA / Admin through 2012 / OAPSE through 2011




Reduction of W/C premiums through better risk
management
Eliminate Camp Y-Noah / D.C. trips / Outdoor
Education
TOTAL SAVINGS
$5,094,900
PROACTIVE FISCAL DECISIONS (PURCHASED SERVICES)




Closing of Allen Elementary (fixed costs)
Reduction of liability insurance premiums through
better risk management
Reduction of non-transportation costs / non-special
ed. costs / employee travel costs
TOTAL SAVINGS
$987,900
PROACTIVE FISCAL DECISIONS


Reduction of instructional & library supplies
Reduction of repair & maintenance / facilities /
vehicle / equipment supplies

Reduction / delay of textbook adoptions

TOTAL SAVINGS
$586,300
PROACTIVE FISCAL DECISIONS


Eliminate / delay school bus purchases
Eliminate / delay technology hardware / software
upgrades

Eliminate / delay facility upgrades & maintenance

TOTAL SAVINGS
$874,200
PROACTIVE FISCAL DECISIONS



Eliminate SCS-TV
Closing of Allen Elementary (costs not associated
with purchase services or supplies)
TOTAL SAVINGS
$262,600
PROACTIVE FISCAL DECISIONS

TOTAL REDUCTIONS FROM ALL CATEGORIES
$7,805,900
UNCONTROLLABLE FACTORS

Declining collection rate ($0.96 / $1.00)

Rising delinquencies


Ohio Constitution keeps school funding flat
regardless of valuation changes
Tangible Tax eliminated under HB66
UNCONTROLLABLE FACTORS

Declining enrollment

Declining State funding



specific impact from recent budget proposal unknown
Declining interest earnings (5.18% to 0.11%)
Bottom line => the District does not have any ability
to change its revenue and is completely subject to
outside influences
UNCONTROLLABLE FACTORS

Increasing utility costs

Increasing diesel fuel costs

Increasing costs due to State mandates

Increasing fees paid to County
CURRENT FINANCES – FY11 BUDGET
REVENUE
EXPENDITURES
PROPERTY
46,958
SALARIES
40,659
TANGIBLE
213
BENEFITS
21,233
STATE
9,852
PURCHASED
4,966
REIMBURSE
6,445
SUPPLIES
1,537
ROLLBACK
5,831
CAPITAL
OTHER
4,978
OTHER
5,824
TOTAL
74,277
TOTAL
74,439
220
CURRENT FINANCES – FY11 BUDGET
ENDING CASH BALANCE
PROJECTED BALANCES
REVENUE
74,277
FY11
(+) 60
EXPENDITURES
74,439
FY12
(-) 7,348
FY13
(-) 19,767
FY14
(-) 38,509
FY15
(-) 60,613
NET REVENUE
(-) 162
CASH BALANCE (7.020)
(+) 60
8.0
7.0
6.8
Estimated Mills
6.0
How Was the Levy
Determined?
5.0
4.0
3.0
2.1
2.0
1.0
1.0
0.0
Projected Deficit / County
Auditor Advances
Estimated State Funding Estimated Increases in Fixed
Reductions
Costs
What Will the
Levy Pay For?
$0.85
$0.08
Operational
Costs
$0.02
$0.01
Utilities, Property Bus Fuel,
Debt Service
Insurance,
Instructional
Transportation & Supplies, Repair
Special Ed.
& Maintenance
Costs
$0.01
$0.03
Capital
Expenditures
County Fees,
Liability
Insurance,
Auditing,
Banking Fees
THANK YOU
Strongsville City School District
State of the Schools Address
March 2011
Important District
Financial Information:
www.strongnet.org
Strategic Plan
• Initiated in 2006
Key to Decision Making
Process Oriented
Builds Partnerships with Stakeholders
• Comprehensive Overview
Curriculum
Teaching/Learning
Facilities
Operations
Technology
Student Activities
Communications
Strategic Plan
• Status Review
Reviewed Initial Plan (2006)
Conducting Internal Audits by Dept.
• Moving Forward
Re-evaluating District Priorities
Working Document
Proactive vs Reactive
Collaboration with Stakeholders /
Community Involvement
Facilities
Aside from our employees, our
facilities are our most important asset.
832,149 sq. ft. Educational Space,
Plus BOE, Transportation, P.S.
Most built in ‘50s & ‘60s, with 22
additions.
Facilities
1) Preventive Maintenance
2) Unplanned Maintenance
3) Planned Repair
4) Capital Replacement
The more $ spent on preventive
maintenance, the less spent on other
costs, as well as lower utilities.
Facilities
As the financial situation has become
more challenging, we have made some
tough decisions.
General fund custodial & maintenance
budgets decreased.
Permanent Improvement fund used for
capital expenditures.
Five Year Plan
PI fund provides $1,000,000 for capital
expenditures each year.
PI funds used for facilities, buses,
technology needs.
To balance district’s needs, we must
use common sense, ‘biggest bang for
the buck’.
Strongsville High School Major Projects List
Project:
Rational:
Replace windows in
4 classrooms
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Beyond
Water intrusion
Hall doors for ASAP Education need
$ 1,591
Clean univent coils
700s/800s
$ 21,410
No heat
Replace roof sections
Door replacement
$ 750,000
In need
Failing doors
$ 7,502
$ 5,000
$ 5,000
$ 5,000
Catan Stadium heating
RR & vending
$ 20,000
Parking lot repaving
Cracks & holes
$ 125,000
Overdue
$ 25,000
Duct cleaning
Replace clocks
Not working
Fire suppression fix
Fire inspection
$ 2,125
Back flow preventer
upgrade
Out of order
$ 2,450
Totals
$ 19,151
$ 69,229 $ 755,000
$0
$ 5,000
$ 5,000
$ 170,000
Major Projects List Summary
Project:
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
Beyond
$0
$ 5,000
$ 5,000
$ 170,000
$0
$ 915,000
$ 9,500
$ 75,000
$ 90,000
$0
$ 265,000
Strongsville High School
$ 69,229
Albion Middle School
$ 67,706
$0
Center Middle School
$ 13,030
$0
Chapman Elementary School
$ 71,225
$0
$0
$ 23,500
$0
$ 485,000
Drake Elementary School
$ 69,800
$0
$0
$0
$0
$ 750,000
Kinsner Elementary School
$ 402
$0
$0
$0
$0
$ 160,000
Muraski Elementary School
$0
$0
$0
$0
$0
$ 135,000
Surrarrer Elementary School
$ 832
$0
$0
$0
$0
$ 20,000
Whitney Elementary School
$ 25,000
$0
$0
$0
$0
$ 298,000
Zellers Elementary School
$ 3,800
$0
$0
$0
Early Learning Preschool
$ 6,215
$0
$0
$0
Support Services Complex
$ 364,120
$0
$ 24,500
$ 50,000
$ 38,500
$0
$ 15,000
$0
Board of Education
District Wide
$ 755,000
$ 663,000
$ 224,000 $ 245,000 $ 49,000
$ 410,000 $ 465,000
$0
$ 160,000
$ 315,000 $ 1,715,000
$0
$ 165,000 $ 260,000
$0
$ 160,000
$ 953,859 $ 1,000,000 $ 751,500 $ 1,248,500 $ 999,500 $ 4,858,000
Five Year Plan
Next five years = OK, 2015 to 2025?
Reconvene Facilities Committee,
Present a Strategic Plan for Facilities.
Additional Priorities
1) Partnership with the City
- Quality of life
2) Communicating with Stakeholders
3) Use of Technology to Enhance
Student Achievement
4) Professional Development for
our Staff
5) Collaborative Approach to
Decision Making
Management of Change
Vision
Organizational
& Personal
Capacity Bldg.
Skills Bldg.
Culture Bldg.
Incentives
Resources
Action Plan
CHANGE
Capacity Bldg.
Skills Bldg.
Culture Bldg.
Incentives
Resources
Action Plan
CONFUSION
Incentives
Resources
Action Plan
ANXIETY
Resources
Action Plan
RESISTANCE
Action Plan
FRUSTRATION
Vision
Organizational
& Personal
Vision
Organizational
& Personal
Capacity Bldg.
Skills Bldg.
Culture Bldg.
Vision
Organizational
& Personal
Capacity Bldg.
Skills Bldg.
Culture Bldg.
Incentives
Vision
Organizational
& Personal
Capacity Bldg.
Skills Bldg.
Culture Bldg.
Incentives
Resources
FALSE STARTS
Killer Phrase
n. 1. a knee-jerk response that squelches new ideas;
2. a threat to innovation
• “It won’t work”
• “Let’s form a committee”
• “If it ain’t broke, don’t fix it”
• “The boss will never go for it”
• “Put it in writing”
• “We don’t have time”
• “They won’t accept it”
• “It’s too old”
• “You don’t understand
our problem”
• “We’re too small for that”
• “It sounds good, but …”
• “Here we go again”
• “Don’t move too fast”
• “I don’t see the connection”
• “It’ll just mean more work”
• “I have a problem with that”
• “We don’t have the training”
• “You gotta be kidding”
Keeping things in perspective.
Questions?
440-572-7010
lampert@strongnet.org