Treasurer's June 2020 Update

During our June 8 Board of Education meeting Rossford Schools Treasurer James Rossler Jr. gave a financial update to board members and the community. It boiled down to three main points coming from the pandemic economic turmoil: our state funding is uncertain at best; we need to keep a close eye on residential and commercial real estate; and that the five-year forecast is good, but beginning to show long-term distress.
 

State funds rely on tax revenues to function, and with a large reduction in sales, fuel, casino and income taxes from the pandemic the state is looking at a large reduction in revenue. The pandemic will lead to state reductions, Mr. Rossler said. Rossford Schools funding was cut by roughly $360,000 this year already, but Mr. Rossler is expecting a much higher percentage cut next year. Funds could be cut by $750,000, or 25 percent of what the district receives from the state.

Mr. Rossler also talked with the County Auditor and others about possible losses in residential and commercial taxes through delinquencies which typically occur during economic struggles. The last recession in 2008 led to a 4 percent delinquency rate. If that happened again that would lead to a delayed collection of as much as $680,000.

Prior to the pandemic Rossford Schools was anticipating having revenues exceed expenditures until 2024. But in light of the cuts listed above, and possible additional costs ensuring safety for our students during the pandemic, our expenditures should exceed our revenues by 2021. Then by 2024 we could be seeing a $2 million annual deficit.

"At that rate it won't take long to devour any carryover balance," Treasurer Rossler said.

Mr. Rossler will continue monitoring future revenues to see how the pandemic's economic downfall effects Rossford Schools and work to continue the district's strong fiscal health.

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