But Tecumseh officials say they’re concerned because after three straight years of finishing in the black (revenues exceeding expenditures), the current school year is projected to end that trend ... with bigger deficits forecast for upcoming years, paired with a recent drop in enrollment.
“Anytime we begin deficit spending we need to start taking a look at any other areas we can make cost containment measures,” Superintendent Paula Crew said.
Budget, staffing cuts planned
Tecumseh Local Schools will soon be making staff cuts for next school year, and officials say they’ll have to cut deeper if the upcoming tax levy on the May ballot doesn’t pass. That levy is a five-year, 7-mill renewal of an emergency levy for operating expenses. The levy would keep the existing tax rate the same, while extending it for another five years.
The school board talked earlier this month about a budget reduction plan that will be in place for the next three years, over three phases.
“Our goal is to make the reductions that will have the least impact on our students, although we know that any reduction has impact on our students,” Crew said.
“This is a challenging and uncertain time as we continue to extract every possible savings from a shrinking pool of resources,” she said. “Unfortunately, all cost containment measures have a negative impact on our students and staff. The measures we will implement at the end of this school year, as well as those anticipated in the future, will have a significant and lasting effect on our students, staff and community.”
The traditional pool of resources hasn’t shrunk yet, as the “total revenue” Tecumseh listed on its five-year forecast went from $31.6 million in 2021-22, to $33.2 million in 2022-23, to $34.7 million in 2023-24. The forecast projects this school year’s revenue to increase again, to $35.7 million.
But the federal COVID relief funding that the district received in recent years no longer exists. Crew said that money was “strategically used” over the past few years to offset some of the district’s current salaries. Now Tecumseh is dependent on its general fund for all salaries.
The cuts to be made for the 2025-26 school year, totaling $871,413, include a guidance counselor, physical education teacher at the middle school, one classroom teacher each at Donnelsville and New Carlisle elementaries, three classroom teachers each at the middle and high school, a contracted nurse from the Clark County Educational Service Center, two Title 1 teachers, and professional development programming.
Crew said some things can’t be cut, including special education, while other cost increases are out of the district’s control —electricity, gas, fuel, health insurance, workers compensation and snow removal.
Enrollment issues
Tecumseh’s enrollment went from 3,000 students in 2019 to 2,575 students this year for reasons including open enrollment, and students leaving for College Credit Plus (CCP) programs and the Springfield-Clark Career Technology Center (CTC). Crew said Tecumseh has more students attending the CTC than any other district.
The district loses funding for every student that doesn’t attend classes in Tecumseh buildings, even part-time, and also has to pay for the CCP program.
“This is very sobering ... I’m disappointed that it’s come to this, and this is how we have to go forward,” said Board President Sue Anne Martin. “The necessity is we all know that things are not getting less expensive, that everything we touch is going up in cost, and that directly impacts everything we do.”
Tax levy process
In November, Tecumseh voters approved the simple renewal of a school facilities levy. But in that same election, the school district also asked voters to combine two existing tax levies for day-to-day operations into a substitute levy (which could have created additional revenue for the district in the future). Voters said no, by a solid 59% to 41% ratio.
In response, the district changed its approach. For the May 6 election, Tecumseh is asking voters only to renew one of those two existing tax levies — a $2.1 million renewal levy — at the same rate. The second levy, a $791,000 renewal, can’t be on the ballot until May 2026 because it doesn’t expire until 2027.
If the renewal levy doesn’t pass in May, $646,000 in cuts will be made at the end of the 2024-25 school year. These include one elective class each at the middle and high school, music and art at the elementary level, and one classroom teacher at the high school.
“We don’t have a lot more that we can do away with that is not going to affect students in a big way,” Crew said, adding that if the levy doesn’t pass in May, the district will put it back on the ballot for another try in November.
Overall finances
The district has continued to analyze its spending with a goal to refrain from deficit spending as long as they can by looking at reductions when possible. From 2019-25, Crew said the district saved nearly $1.1 million by making cuts.
The district projects spending to rise from $33.98 million last school year to $36.13 million this year, and $37.8 million next year. The financial forecast document shows more than half of those increases come from salaries, health insurance and other benefits.
Crew said that’s not the only issue.
“The cost of equipment, materials, school buses that used to be $80-90K is now up to $135K, times 38 school buses,” she said. “We’ve also seen all of our gas, electricity, etc. go up exponentially in the last five years.”
“Our district has a long history of making reductions over the past two decades to compensate for the lack of additional funding at the local level. Since the beginning of this period, Tecumseh has implemented nearly $7 million in cuts,” Crew said.
A third round of cuts, bringing the total to more than $1 million, could potentially be made depending on the outcome of the two renewal levies and a new operating levy. These would include the middle and high school FFA program, the ROTC program, athletics, middle and high school music and band, and two contracted nurses.
The total cuts in all three phases, if implemented, would be $2,537.413.
The goal, Crew said, is to refrain from deficit spending as long as they can. She said that’s becoming more difficult because of cost increases over the past 30 years.
District officials said Tecumseh voters haven’t approved a new levy for additional operating funding since 1995.
The state legislature is in the process of deciding the two-year budget, which includes the state portion of funding for schools. Crew said Tecumseh has been working with State Sen. Kyle Koehler to share Tecumseh’s financial story.
“Gov. DeWine’s budget, it has to go through the Senate and the House, but there were some things in there that could be detrimental to some school districts,” Crew said. “... We need to find a better way to fund public education. We shouldn’t have to rely on our voters, many of whom struggle financially as well, in order to provide a robust education for our students.”
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