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Career Center financial forecast: Revenue rising, deficit looms

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The Medina County Career Center is projecting a possible increase in revenue of about $587,000 by 2021, but also shows a deficit by then, according to the school’s new five-year forecast that was approved by its board Wednesday night.

“The five-year forecast is a fluid document that will change on a monthly basis due to the changing of economic conditions as well as our current and future needs,” Treasurer Aaron Butts noted in the report.

The report filed shows the district is estimated to receive $16.9 million in fiscal year 2017, with that amount increasing to $17.5 million by fiscal year 2021. Fiscal year 2018 shows an estimated decline to $16.1 million, but a jump to $16.8 million in fiscal year 2020.

Meanwhile, total expenditures in fiscal year 2017 are estimated to total $15.4 million and increase to $18 million by fiscal year 2021.

“Our revenue reduction is a combination of two items — the proposed biennium (state of Ohio) budget for fiscal years 2018-2019, and a projected reduction in student enrollment (of about 156 students) for fiscal year 2018,” Butts said.

Butts reported about 48 percent of the school’s revenue came from general property taxes. In fiscal year 2017, the school is estimated to receive $7.9 million in that category.

“The forecast projects Medina County real estate property values to increase an average of 1.14 percent for calendar year 2017 through (calendar year) 2021,” he stated in the report, noting the school received $7.8 million in fiscal year 2016.

The financial forecast also assumes an average 2.15 percent increase in career technology funding from the state, Butts reported. In fiscal year 2017, the school is estimated to receive $2 million and in fiscal year 2021 they could receive $2.1 million.

Butts reported the career center received $1.7 million in fiscal year 2016.

“We continue to be good stewards of the funding we receive,” he said in an email Thursday to The Gazette.

“From 2014 through 2016, we have increased the ‘bottom line’ by $1.4 (million). By the end of fiscal year 2017, we are projecting to increase that figure by another $2.3 (million) for a total improvement of $3.7 (million) since 2014.”

The “bottom line” is the balance available after expenses are subtracted from revenues, Butts explained.

Butts said the financial forecast shows a $1.2 million renovation to be completed in the commercial truck and auto technology programs, and a roof replacement in the main building and agricultural building (costing $750,000) by fiscal year 2018.

In fiscal year 2019, the forecast includes a $1.5 million renovation to the landscape and design program.

Contact reporter Halee Heironimus at (330) 721-4012 or hheironimus@medina-gazette.com.

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