Schools

Crisis Averted, For Now: Solon School Finances Remain 'Stable'

Solon Schools faced much bleaker financial forecasts a year ago. But resident action and pro-active cuts by the school board leave the district in a much more stable condition, according to the latest five-year forecast.

When talking about the financial situation of a year ago, Treasurer Tim Pickana doesn't mince words.

"It was terrible," Pickana told the Solon School board on Monday. "It was bottom dropping out, significant reductions, significant changes in the way we educate our children and the programs we provide."

If a year ago, when the school district faced significant state cuts, things were terrible, now they're best described as stable, but delicate, according to the latest five-year financial forecast, approved by the school board Monday night.

Find out what's happening in Solonwith free, real-time updates from Patch.

The board is required to file a forecast -- only an estimate of the district's financial picture for the next five years -- with the state twice each year.

For the second time in a row, in October and now this forecast, things remain stable, Pickana said.

Find out what's happening in Solonwith free, real-time updates from Patch.

According to the projections, Solon is expected to operate in the black in fiscal years 2012, 2013 and 2014, racking up a cash balance of more than $20 million by 2014.

Expenses are projected to outpace revenues in years 2015 and 2016, with a deficit of about $5.7 million in 2016. It's important to note that the projections are based only on the best information available today, and become blurrier the farther into the future you estimate.

Fight for stability

A year ago, Solon Schools stood at the edge of a financial cliff. The school district was battling and the loss of tangible personal property tax money.

At a , Pickana said he projected a deficit of $20 million by 2015.

The funding losses would have meant drastic cuts, including loss of teachers, program cuts and pay-to-play athletics.

But schools officials and residents rallied around the crisis and bombarded state legislator with letters and e-mails asking them to support the schools.

The result is that changes to the budget allowed the school district .

Board Member Julie Glavin, who was school-board president during the funding crisis last year, said the school district has been able to preserve its financial health and its educational excellence through pro-active leadership by school officials and a community willing to fight for its schools.

"We were poised to take action when the time was right," she said.

Spending Cuts, New Teacher Deal

The other part is Solon Schools' efforts to cut expenses since 2010, plus voter approval of a new 6.9-mil levy in 2010.

In that year, the school district shaved $1.5 million in expenses per year, and followed that up with another $2.7 million in annual salary and benefit reductions in 2011.

The school district will save another $2.7 million in 2012 from salary freezes and the reduced salary schedule for new employees and changes in benefits in the latest contract between the district and the teachers' association.

Still, trouble remains. According to Pickana's forecast, it will be increasing difficult for the district to keep its excellent educational programming without a "change in the current state funding structure."

Pickana writes:

"Solon [City School District] is not immune to the rough, economic times the state and nation are currently experiencing. Due to the struggling real estate market, the district is realizing stagnant growth in tax revenues. Solon CSD is in a delicate position continuing to provide an excellent education, and at the same time battling current state economic issues, minimal state funding and devastating tangible personal property tax law changes."


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