Independence school board addresses financial outlook, comes to terms with adjusted commencement plans – cleveland.com

INDEPENDENCE, Ohio -- Tuesday mornings (May 19) regular board meeting, again held online, focused on finances and commencement plans, while also addressing entrance fees for sporting events and the ongoing search for a high school principal.

Eric Koehler, chief financial officer for the district, first addressed current financial realities, relating the figures to the overall five-year forecast. Koehler cautioned that forecast models for future months and years could be dramatically reshaped by the coronavirus pandemic, continued school closures and an unpredictable economy.

There are a lot of what-ifs? he said.

Deficit spending could potentially be an issue in the next five years. The district will have just over $12 million in cash reserves at the end of June, which represents 232 days of operations. With expenses outpacing revenue, Koehler projects the district will have only $4 million as of June 30, 2024, representing 67 days of operating costs. District guidelines call for maintaining 90 days worth of cash reserves.

The district is also facing state funding cuts that have led to a spate of misinformation, particularly on social media.

Some of our residents are getting the impression that its 50 percent or 51 percent of what were receiving in our revenues, commented board president Lynne Laski.

Koehler said the district will lose slightly more than half of the $612,000 the state provides the district each year, but explained that state funding constitutes only about 4 percent of our total funding.

The affluent district primarily relies on property taxes to fund operations and, while Koehler does not expect a drop in such revenue, he anticipates the income will remain relatively flat.

Its tighten-up time, said Superintendent Ben Hegedish. We are looking at some smart cuts.

According to Hegedish, the district recently collaborated with coaches to negotiate reduced salaries for the shortened spring season. Although coaches logged hours in preseason and with remote workouts during the closure, most accepted a reduction in pay.

In the end, the board voted unanimously to accept the five-year forecast and assumptions.

Sports and other activities were a topic during the board roundtable. Several board members argued for free admission for all students. Hegedish, though open to exploring the idea, explained that he has tasked Athletic Director Annie McGhee with examining the realities of such a proposal. Hegedish plans to reveal the results at a June 30 board meeting.

Class of 2020 commencement

Board members unanimously -- though somewhat reluctantly -- signed off on modified commencement plans for 2020. Graduating seniors and their immediate family members are being filmed. The results will hit the big screen at a June 5 drive-in movie event. The compilation will also be streamed online.

Hegedish remarked, Nobody wanted this, though he and various board members maintained that the format makes the best of a bad situation.

Laski agreed, though she added an emotional appeal: I just pray and hope that everything is back to normal at this time next year.

Hegedish revealed that the district is making progress in its online search for a high school principal. The districts choice to become the new head of the school will likely be made public at a June 4 special session of the board.

Bill McGuinness, the current principal, will retire at the end of July. He plans to return to the classroom to teach his beloved history courses.

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Independence school board addresses financial outlook, comes to terms with adjusted commencement plans - cleveland.com