Guest Column: ‘Standing Strong and Fighting for a Better Educational Future’
During last year’s campaign for Newbury School Board winning candidates Terry Sedivy, Kimya Matthews and Maggie Zock promised to audit the district’s finances before deciding whether to approve the placement of two renewal levies on the May 2018 ballot. These levies, with a combined millage of 14.74, expire at the end of 2019.
Based on an independent review last year of the five-year forecast by two local accountants, it became apparent the forecast created by the school treasurer, and approved by the previous school board, was inaccurate and misleading.
Our newly elected board members realized the finances need to be reliable and accurate prior to re-opening consolidation negotiations with another school district.
Our new board, which took office this past January, quickly contracted with the State of Ohio Auditor to fully audit the finances of Newbury Schools and review and compare the district’s October 2017 five-year forecast with their own findings.
The State Auditor completed their work and presented the revised forecast to the school board and the public on March 20, 2018. These are some of their findings:
Newbury School Board Ohio State Auditor
Year 2020 fund balance w/o levy renewals: $3,733,383 – surplus $3,992,000 – surplus
Year 2022 fund balance w/o levy renewals: ($2,673,271) – deficit ($299,000) – deficit
Year 2020 fund balance w/ levy renewals: $4,782,167 – surplus $5,316,000 – surplus
Year 2022 fund balance w/ levy renewals $3,271,161 – surplus $6,045,000 – surplus
While both 2020 forecasts are reasonably similar, the 2022 forecasts are mind-boggling, polar opposite of each other.
How can these forecasts be so different? The school board’s 2022 forecast is incorrect by nearly $3 million — and keep in mind the total annual budget is around $9 million.
According to the Ohio Department of Education CUPP Report, as of 2017, Newbury Schools has a surplus of $8,834 per pupil, which is the largest of any public school system in Ohio, and which is expected to balloon to over $20,000 per pupil by 2022 if both levies are renewed. The average surplus for all Ohio public school systems is $2,266 per pupil.
The state uncovered several irregularities perpetrated by the old board. First, they budgeted for employee pay increases before they were negotiated — or even requested — by the staff and their union representatives. I strongly believe in paying a good teacher a great salary, but our old board was giving away the store.
The Ohio Auditor stated how unusual it is for the school board to undermine their own contract negotiations by automatically awarding pay increases in the future.
The most shocking conduct uncovered by the state auditor was the practice of quietly budgeting millions of dollars for future facility repairs and renovations, even though these improvements were never voted on by the board, never researched in depth or scope, never discussed at a public meeting, never presented to Newbury residents for their opinions, and never officially bid out. Basically, they reserved funds for a secret “back of the napkin” wish list of improvements. The state auditor chastised the old board and the treasurer for budgeting funds for projects that never existed.
These are the types of accounting practices the old board had been using to partly justify the need for the 2014 levy.
Some of the renovation items under consideration involved $1.4 million for new windows, replacing the entire brick facing on the front of the high school building, new roofs, bus garage repairs, new asphalt pavement and much more.
Upon losing the election last November, the old board quickly approved the construction of a new stadium at a cost of almost $250,000 before their terms ended and the new board members had a chance to stop it. It’s likely this stadium will only be used one or two years before Newbury Schools consolidates, leaving a legacy of misspent public funds.
A state facilities study in 2013 estimated it would cost in excess of $20 million to fully renovate the facilities and bring them up to modern standards. It would be a senseless undertaking to renovate a school built to effectively serve 1,100 pupils that now only educates 370 pupils in the same space, leaving much of the renovated space unused or under-utilized. Total school enrollment is forecasted to drop under 300 students (kindergarten through 12th grade) by 2022.
Its clearly evident the two levies up for renewal in 2019 can — and should — be allowed to expire. Our school district will enjoy a large surplus through the year 2021, allowing ample time to negotiate a consolidation. This will immediately reduce the tax burden on Newbury property owners approximately $600 annually for a property valued at $200,000, and still provide a comfortable financial cushion to offer during the upcoming school consolidation negotiations.
Last winter leftover board members Marty Sanders and Kirk Simpkins, along with a group of anti-school merger residents, attempted to pressure and bully new board members Maggie Zock, Kimya Matthews and Terry Sedivy into putting the renewal levies on the May 2018 ballot. Fortunately, this did not happen. Maggie, Kimya and Terry are standing strong and fighting for a better educational future for our children, lower taxes for Newbury property owners and a permanent solution for our school’s rapidly declining predicament.
Chris Yaecker
Newbury Township
