BELLEFONTAINE – Ohio Hi-Point’s fiscal outlook is solid due to stable funding and manageable expenses, according to its five-year financial forecast.
The forecast was approved at the Hi-Point school board’s Oct. 28 meeting. Five-year financial forecasts are required to be developed in May and October each year by Ohio law.
Revenues are predicted to end the current school year at $12,481,416 and next school year at $13,050,000. Revenue is estimated to increase to $13,889,000 in the 2019-20 school year.
Revenues are estimated to increase due to real estate tax returns, according to the five-year financial forecast assumptions document prepared by Treasurer Eric Adelsberger. Real estate tax revenues are estimated to grow 2 percent each year, which reflects past trends. Hi-Point’s funding largely comes from a 2.0-mill continuing levy voters approved in 1977. Other large revenue sources include investment earnings and an annual donation from the Sloan Trust. Donations from the Sloan Trust are estimated at $175,000 each year, as has been the typical donation in the past.
Revenues are estimated to decline in state subsidy payments related to tangible personal property. The forecast does not predict further subsidy payments beyond the current school year.
Expenses are estimated to end the current school year at $12,307,579 and next school year at $12,713,873. Expenses are estimated to grow slightly to $12,746,873 in the 2019-20 school year.
The largest portion of a budget tends to be salaries and benefits, and the forecast builds in salaries based on existing salary schedules and experience steps. Expenses are estimated to stay relatively balanced by replacing retiring staff with less experienced staff members, who tend to have lower salaries, the forecast document explained. Health care costs are estimated to increase 10 percent each year of the forecast.
The forecast predicts a surplus of $173,837 at the end of the current school year, and a surplus of $336,127 next school year. The surplus is estimated to grow to $1,142,172 in the 2019-20 school year. Hi-Point has a predicted $12,723,943 cash balance at the end of the 2019-20 school year.
Casey S. Elliott may be reached at 937-652-1331 ext. 1772 or on Twitter @UDCElliott.