Wednesday, May 11th, 2011
Parkway forecasts a deficit in FY 2012
By Amy Kronenberger
ROCKFORD - Parkway Local Schools' five-year forecast shows a possible deficit of $869,654 by 2015.
Treasurer Debbie Pierce presented the financial outlook to school board members Tuesday during a regular meeting.
Fiscal year 2011 begins in July and is expected to have a surplus of about $42,741. Total revenue is estimated at $9.7 million, with expenditures at $9.68 million.
Deficit spending of $348,016 is predicted to begin in fiscal year 2012 and continue to increase, Pierce said. The figures are conservative due to the uncertainty of the state budget, she said.
Some of the lost revenue includes tangible personal property tax, state funding, federal stimulus money and income tax due to the economic downturn, Pierce said.
Income tax revenue is expected to be higher in fiscal year 2011 than 2010; however, it remains lower than amounts collected prior to 2010. Federal stimulus money of $310,486 was granted only for fiscal year 2010 and '11.
House Bill 66 is phasing out tangible personal property tax, which taxed inventory and equipment in businesses and utilities in businesses and homes. The state has promised to reimburse the lost funds, but only through tax year 2011, Pierce said.
Pierce did not increase state funding amounts for 2014 and '15 due to the uncertainty of state funds, and the district plans to cut costs through attrition and other savings if it reaches the predicted deficit levels.
In other action, the school hired Will Snyder as the new varsity head basketball coach. Snyder is a graduate of Parkway and lives in Rockford. He was the junior varsity coach at New Knoxville and teaches at Wapakoneta High School.
Superintendent Greg Puthoff said Parkway does not have any open teaching positions, but he hopes to offer Snyder a position when available.