By JAN McLAUGHLIN
BG Independent News
Bowling Green Board of Education mulled over two ways Tuesday evening the district can avoid deficit spending. Neither are simple solutions.
- Growing income by putting another income tax levy on the ballot next May.
- Cutting expenses by $3.5 million that could mean the end of all athletics and extra-curriculars, or the loss of many staff members.
“Unfortunately, we have to have this discussion,” Treasurer Matt Feasel said during a special school board meeting.
The district’s attempt to pass a 0.75% income tax for a continuing period in November failed by 108 votes (7,174 to 7,282.)
If a repeat levy is passed next May, the district won’t have to implement cuts. But Superintendent Ted Haselman said voters need to know what is at risk if it fails in May.
“If it doesn’t pass, we need to look at how many millions need to be cut,” Haselman said. “We have to live within our means.”
On Tuesday, Feasel walked the board through different scenarios if future levy attempts fail. Calculating in the district’s policy of having at least 105 days of true cash on hand, the results showed the district facing an average deficit of $3.5 million.
“It’s going to impact people immensely,” Haselman said. “Our district won’t look the same.”
Board President Tracy Hovest said voters need to realize that the levy request really will pay for needs – not niceties. “That has not changed,” she said.
If voters again reject the levy, and substantial cuts are not made, the district would quickly wipe out its reserves, and be in dangerous deficit spending, board member Ardy Gonyer said.
“If it passes in May, we would not have to make these cuts,” Haselman said.
Board member Ryan Myers put it bluntly.
“I’m just going to say it. We’d be able to save jobs and programs,” he said.
“We’ve all heard people say before, ‘They’re just threatening,’” Myers said. “This is legit. We don’t have money for what we want to do.”
And that includes offering a wide selection of classes, athletics, extra-curricular activities, and busing.
“Many of those things just mentioned will be gone,” Haselman said. “You can’t reduce $3.5 million without a major impact.”
“Every child, every community member will be impacted,” Hovest said.
“We would not be a destination district if we have to make these cuts,” Hovest said.
“We’re not as bad off as Perrysburg,” board member Peggy Thompson said about that school district facing severe cuts after repeated levy failures.
“We will be if this doesn’t pass,” Hovest responded.
The board discussed options such as changing how pipeline revenue is used by the district. The taxes from Rover pipeline have been irregular, with the pipeline continuing to challenge their payments in court. The district has been using the pipeline funds for repairs to buildings.
The district averages $2 million to $4 million in building repairs each year, Feasel said. The pipeline revenue averages $1.3 million annually.
“If we deplete that, how do we pay for a boiler when it breaks down?” Haselman asked.
Hovest pointed out that repairs at the district’s three old elementary buildings will only become more expensive.
“Aging buildings are not going to become any cheaper,” she said.
The board voted to request certification of tax rates for an income tax, with the goal of raising $6.5 million a year. The board agreed to ask for projected outcomes of a levy lasting five years, 10 years, and a continuing period. To appear on the May ballot, a levy must be certified by Feb. 5 by the Wood County Board of Elections.
The board’s regular monthly meeting is next Tuesday at 6 p.m., where discussions on a levy will continue. Haselman asked the board to give him guidance on cuts if the levy fails.
“Give us some marching orders,” Haselman said.
Feasel agreed it’s vital that voters know the consequences of not passing the operating levy – “before they walk into the ballot box.”
“I’m hopeful we can get the information out,” Haselman said. “This is a need. This has been shown time and time again. Costs have continued to increase. We need to have these dollars.”
When asked after the meeting about a possible levy attempt, Thompson said she would prefer if the district would consider other options for raising revenue – at least until the economy improves.
Thompson noted the large donations made to Bowling Green State University projects by local community members, and suggested those people may want to consider the needs at Bowling Green City Schools.
“I know it’s needed,” Thompson said of the additional funding. But she doesn’t like the idea of more taxes on district residents. “Surely there are more options to consider,” she said.
