The district’s five-year budget forecast shows a carryover balance at less than 10% of a year’s spending, which is the lowest in the region. That forecast projects the district to run out of money in 2028.
The Warren County Auditor’s Office is in the process of certifying the new tax levy resolution to verify the millage. Hawley said it should be about 6.3 mills, similar to the last levy. The final vote to put the levy on the ballot will be on the agenda for the board’s Jan. 27 meeting.
“Franklin City Schools last had a new money levy pass in 2014. The board at that time promised that it would last eight to 10 years. It has been 11 years since that levy passed,” Hawley said. “The board has taken actions the last three years to cut costs in order to make that levy last as long as it has.”
A PowerPoint presentation shared at the November school board meeting showed that as local property values increase, the level of state funding decreases for a see-saw effect.
The district has been deficit-spending for the last six years.
The budget forecast a negative cash balance in January and February, so the board asked for tax advances and issued debt for short-term cash needs to cover payroll.
“Although the district ended the year with a positive cash balance, there might not be enough money in the bank to cover obligations due to the timing of tax payments from the county,” Hawley said. “Having a cash balance at the end of the year is imperative to the financial health of the district.”
The board is still working on determining what cuts would be needed if the levy were not to pass.
However, Hawley said it is important to note that funds from the bond issue passed in November 2020 used to build Franklin High School, new elementary buildings and renovate the old high school into a middle school do not support day-to-day operations because the two levies are for different needs.
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