Five-Year Forecast 2020

Pandemic Impacts Perkins' 5-Year Forecast
Posted on 11/12/2020

The pandemic undeniably has impacted student learning and activities at Perkins Local School District, but it also has had a big impact on the district’s finances, according to Perkins Treasurer Dan Bowman. 

At the Perkins Local School District Board of Education meeting on Wednesday, Mr. Bowman shared with Board members and the public his five-year forecast for the district. The forecast is required by the state of Ohio, which monitors the health of every public school district.

View Mr. Bowman's Presentation

With the district’s current spending and state funding model, Mr. Bowman said the district will continue operating in black ink until the 2023 fiscal year, when he expects expenditures to exceed revenues, and force the district to dip into its reserve funds.

Prior to the pandemic hitting in March, Perkins Schools were looking good Mr. Bowman told the Board: Erie County property tax collections for the first half of 2020 were the “best in a long time,” the state of Ohio was ahead of revenue estimates for the year and underspending, interest rates were up and having a positive impact on the district’s cash reserves, and the economy was stable and growing.

But the pandemic changed that. The total cost of the pandemic to the district is at just over $1 million, so far, Mr. Bowman said.

Among the impacts:

  • The state reduced its foundation funding it provides to the district by $356,821
  • Funding from the state’s casinos dropped by 50 percent, yielding a $51,436 loss
  • Interest rates for the district’s investment dropped to 0.2 percent from 1.78 percent, leading to a loss of $125,000
  • The revenue from the Nexus pipeline tax collections, which are being challenged, decreased to $470,112
  • The online option for students and families who decided not to attend in-person lessons added a cost of $177,874
  • Students leaving the district for charter schools amounted to a $66,220 loss
  • Covid-19 expenses beyond what are covered by federal aid totaled $107,256
  • An additional nurse cost the district $51,900
  • Four additional teachers to cover online classes and substitute positions cost $114,161
Mr. Bowman noted that the district will get $361,912 from the Ohio Bureau of Workers Compensation, which will reduce that total cost of the pandemic to $688,756.

The cost implications are not expected to impact future fiscal years. However, some negative revenue implications will hurt future years, Mr. Bowman said. Finally, the district’s reserves will be sufficient to carry the district beyond this forecast.