What happens if the 9.7 mill renewal levy fails?

More drastic cuts will be required, more than if the May levy had failed. According to the State, the District most likely will be in "Fiscal Watch" or "Fiscal Emergency" as of December 2018. The State would demand more cuts be made to balance the budget. Cardinal has already made many cuts over the past few years so more drastic cuts would be keenly felt by students and families in the school system. The District would have to pass a 10 mill new or replacement levy to cover revenue loss from the failed renewal. Cardinal can't be fiscally solvent without it. 

The state rollback credits, rescinded on all new and replacement levies in 2013, have been left in place for renewal levies. If this renewal levy fails taxpayers will lose the rollback credit that has been in place with this renewal. That is a loss of up to 12.5% savings for taxpayers. Cardinal can't operate without this renewal levy. Renewal levy passage is imperative for the school district to be fiscally solvent. The State may loan a District money, but that loan must be paid back and the local District must pass more millage to operate the schools in the black. This is in no way a bail-out or quick fix situation.

Some things to consider:

New home buyers ask about the quality of the local schools before they buy your house. Good communities need good schools.

Many Cardinal School alumni look back and value the education they received, and are saddened by today's situation.

There are many new and exciting things happening at Cardinal and it would be a shame for those programs to cease operations due to lack of funding.

Students are earning college credit while attending Cardinal Schools, this is a cost savings to the parents as their children head toward college.

Career readiness is a new avenue the District is undertaking - to ensure the students are making decisions and connections for their future job employment.

Your support is supporting the future and the growth of our community and the children who will grow up to be a part of our community.

Prepared by Supporters of Cardinal Schools

What will the money from the 9.7 mill renewal levy be used for?  

This levy will generate $3,100,000 per year. It will enable the District to have money in the bank at all times to meet financial obligations. It will upgrade Cardinal's position with the bond holders to a more stable environment worth their investment dollars. It will enable the District to see a much-improved bond rating with Moody's since their main concern was the low cash balance on the books at the end of the fiscal year. Please remember the bonds are tax based bonds and paid from the debt service funds but the ability of the District to pay their bills in a timely manner from the General fund is important to the District's survival and financial outlook with these vendors and bondholders.

With the uncertainty of future health care costs and increases in other operating areas this additional money will enable the District to continue to operate at a comfortable but reasonable level. The District will be able to pay the bus leases from this money and purchase much needed new buses and vans for the transportation department. Most important - the District will be able to have a decent cash balance each month and at the end of the fiscal year. They will be able to meet all obligations in a timely manner.

The District currently has 1 mill of inside millage in the Permanent Improvement fund to cover any repairs and upgrades to our buildings, parking lots, roofs and equipment needs. 1 mill is the equivalent of $272,168 in tax revenues, $34,792 in homestead and rollback revenues and $12,118 in TPP make-up payments for a total of $319,072 in revenues in FY 2016. We currently have a list of repairs for the District with an estimated cost of over $1 million. Since the 2 mill PI levy failed in November 2015, at least 1 mill of this levy money would be used to help take care of the needed repairs and upgrades to the District buildings and infrastructure.

What has the District done to deal with the cash flow issue they are currently facing?  

For the last three years the District has been operating on a needs-based budget practice. That has "shuffled the deck chairs" within the operating pot of money until there is no more flexibility. This has caused a cash flow concern for the District. In order to continue to operate and provide a quality education for our students, the District has reviewed the revenues expected and the three main cost areas to make adjustments to begin the next school year. Personnel costs account for over 67% of the District budget. The Board has approved a reduction in force to eliminate 17 positions within the District - ranging from administration to teachers to classified staff members. Health care benefits account for nearly l5% of the District budget. The District received a l4% increase in costs for FY 2015 and a 22% increase for FY 2016. They are looking into various options, including joining a consortium, to reduce these costs. Special education services account for l4% of the budget. There have been many meetings to work on a reduction of these costs and still provide the needed services. In total, an estimated $1 million in cuts are in place to begin FY 2017.

So what's this RENEWAL levy that's coming up?

The 9.7 mill RENEWAL levy on the ballot Nov 8, 2022, is not a new levy. This renewal levy was passed in 1992 and has been renewed by Cardinal residents every five years since then. This levy is expiring on December 31, 2022.

9.7 mills are equal to $3,100,000 in revenue for Cardinal's general fund annually. This revenue is crucially important to Cardinal's financial stability.  The General Fund is the main operating fund for the District. While the District does receive some Federal funding they received over $200,000 less this year than last year, adding those costs back into the General Fund. The District needs to have money in the bank to operate and pay all bills in a timely manner. The largest source of revenue is the tax settlements received in August and March. The District pays out over $1 million per month to operate but does not receive $1 million a month in revenues to pay those obligations. The timing of when money is received and when it has to be paid has created the current cash flow issues and future concerns. Costs are increasing and yet our State funding and other revenue sources are flat-lining or decreasing. Sound fiscal management suggests keeping the amount of one month's worth of bills in your bank account at all times. This is not always possible at home or in the District. The District would need to have approximately $1 million in the bank at aII times, with at least $500,000 of that in the General Fund, to meet this suggested philosophy.

What is driving up the costs?

AII Ohio public schools operate on the amount of millage approved by the district's voters. Millage is a set amount of money that does not increase with inflation, similar to a fixed income. As costs increase, a school district must ask for an increase in millage. That's why districts keep coming back to the voters with more levies. One of the reasons for these increasing costs is the unfunded No Child Left Behind mandates for special education. These purchased services costs for special education cost this District $714,958 for Fiscal Year 2008 and have increased to $1,926,739 for Fiscal Year 2016, a 169% increase in eight years. Purchased services include therapies of various types, special education teachers, aides and programs mostly provided through the Geauga County Education Service Center, and whatever special accommodations students require to attend our public schools. Some costs are outside of the ESC programs. These costs are in addition to the classroom instruction and transportation provided by our employees.

Why is this happening?

Our state government is gradually taking away more of our tax money that has traditionally helped fund our local schools. The local business taxes that directly supported schools for many years have been taken away by the State and schools have received limited hold-harmless payments at hundreds of thousand dollars to millions of dollars below what they previously received. Many State and Federal mandates remain unfunded. The way the State funds public schools has been found "unconstitutional" by the Ohio Supreme Court four different times yet, our Legislators have not fixed the problem. Therefore, Iocal school districts have no recourse but to seek increased local revenues just to maintain current offerings for their students.

The District currently receives about $2,200 per pupil in school foundation monies as the basic State support. BUT if a student in this District leaves to attend another nearby school, an online school or a charter school the State gives that school $5,900 per student out of our foundation monies. Each student leaving our District costs us $3,700 in lost revenues - 37 students are costing us $218,300 this year alone.

What has the District done to save on costs in the past?

Due to the District's failure to pass previous operating levies, past cuts have included: moving all Parkman and Huntsburg students to school buildings in Middlefield, instituting a "pay to participate" policy for all extracurricular activities, eliminating high school busing, reducing course offerings, and reducing support staff, teachers, and administration. In FY 2012 the District moved to one bus route for all students in kindergarten through eighth grade, saving the district additional monies. Both union associations agreed to a base pay freeze and an increase in their insurance premium contributions and deductibles resulting in substantial savings for the District.

With a slight upswing in monies, retirements and various cost-saving measures the District was able to bring busing back to all students, bring back aII day, every day kindergarten and restore our music programs.

1/24/2017

What's happening to our schools?

Nearly every school in Ohio is cutting staff and programs as the five-year forecast predict deficits in their near future. Without the support of local taxpayers, students in our schools will not have the same quality of education that their parents received.