In fiscal year 2009, the Versailles Schools took in $11,401,352. In fiscal year 2011, the school took in $10,777,065, a decrease of $624,287 dollars. There seems to be a misconception in the district that our total revenue has increased. This article will try to clear this issue by explaining our schools’ funding situation.
Our school takes in revenue from many sources. The table on the right illustrates these sources and the revenue they generate.
As state above, our school takes in revenue from many different sources. State, local, and recently, federal sources. Our largest fund is called unrestricted state grants-in-aid. This money comes directly from the state. Our second largest revenue source is generated by local property taxes. The state mandates a certain amount of revenue be generated by property tax. The third largest is income tax. This rate is controlled locally. There are also two restricted grants. This money comes from state and federal sources, but can only be used on certain expenditures. This federal money was distributed to states to help close budget gaps. Forecasts indicate it will evaporate in 2012. The other revenues fund is generated by donations, class fees, rentals, etc. Finally, we see tangible personal property tax and property tax allocation. Property tax allocation comes from the state to compensate the school for losses suffered from property tax rollbacks. As a district, we have control over two funds - income tax and general property tax. We are at the mercy of the state concerning the majority of our revenue.
As one can see, some funds went up, some went down. Perhaps this is where an “increase in revenue” misunderstanding can arise. Adding all of the numbers,one will find an overall decrease in revenue. This, coupled with the loss of federal funds next year, creates a difficult forecast. These numbers can be confirmed by going to the Ohio Department of Education website.
This article is the first in a series designed to inform residents of the Versailles Exempted Village School district about our financial situation.
Dr. Steven Ruhenkamp is a Versailles School Board Member. Viewpoints expressed in these opinion pieces are the work of the author. The Daily Advocate does not endorse these viewpoints or the independent activities of the author.