Chardon Schools ISSUE 2 Presented by: Citizens for Chardon Schools

1. Chardon Schools ISSUE 2 Presented by: Citizens for Chardon Schools Paid for by Citizens for Chardon Schools 11405 Grey Friar Way, Chardon, OH 44024 Holly Gessel, Treasurer

2. Why Are We Here? • We need your help -- • Last operating levy approved for new revenue was 2006 • Agenda -- • Outline the levy request • Show cost to homeowners • Compare Chardon to its neighbors • Review revenue and expenses • Highlight academic success • Explain plan if the levy fails

3. Section 1 : Levy Facts

4. What are the Basic Levy Facts? ISSUE 2 –May 3, 2011 Ballot • 4.29 Mill Five-Year Term Operating Levy • An operating levy funds the day-to-day operations needed to educate students. • With a 5-year term levy, tax collection would begin January 2012 and expire in December 2016.

5. Levy 101 – Terms Explained • Term Levy – Tax money is collected for a fixed period (5-years) and then would either expire or need to be renewed. • Operating Levy – Would help fund the day-to-day operations of the district such as utilities, supplies, personnel, transportation, etc.

6. How will the money be used? • Operating funds will be used to continue to educate students on a daily basis. • Chardon currently spends $10,297 per student, which is lower than the state average. Below is a breakdown of where Chardon’s dollars are spent.

7. Section 2 : Cost to Homeowners

8. Cost of the Levy • The cost is $11 per month for each $100,000 dollars of market value. • On a home valued at $150,000 the cost will be $16.50 per month, on a home valued at $200,000 the cost will be $22 per month, and so on…

9. Section 3 : How Chardon Compares

10. Comparison of Taxes Paid Conclusion: Chardon’s millage is below average for this area. Source: County Auditors

11. Cost Per Pupil Comparison Chardon’s cost per pupil of $10,297. is below the state average and below that of many neighboring districts. Conclusion: Quality results on a tight budget

12. Teacher Salary Comparison Conclusion: Chardon’s average teacher salary is in line with, or below that of other area districts.

13. Return on Investment • Your investment in the schools is paying off. • The school system is strong - Excellent rating since 1999. • Property values are holding steady. • Taxes are lower than most neighboring communities

14. Strong Schools Protect Property Values • Data shows schools are a top consideration for home buyers—48% of home buyers listed proximity to quality schools as a deciding factor in their home purchase.* • A study of Ohio school districts showed that a 20% increase in the pass rate of school proficiency tests correlated to a 7% increase in home values, even after taking into account other factors that impact house values.** • A USA Today study concluded that normally a house is worth at least 10% more if in a highly rated school district. “In some cases, houses in the best school districts cost almost twice as much as those nearby.”*** *National Assn. of Realtors, “Profile of Home Buyers and Sellers,” October 2008 **Brasington, D. and Haurin, D. R. (2006), “Educational Outcomes and House Values: A Test of ..Journal of Regional Sci. ***Jones, D. (May 15, 1996). “Better Schools Mean Higher Property Values.” USA Today. Money section

15. Section 4 : Revenue and Expenditures

16. Why is a Levy on the Ballot? • Past Levy Revenue Remains Fixed • Operating Costs have Increased • Unfunded Mandates add Increased Strain • Decreased Funding from the State • Even with over $5 million in District reductions and cost containment since ’06….we can’t close the funding gap without a new levy.

17. Reductions & Cost Containment • The district has reduced programs and trimmed costs, saving over $5 million dollars since 2006. Examples include: • All employees hired since 2007 are covered by a high deductible health plan (HSA). • District initiated an energy conservation program which has reduced electric utility expenditures by 27% annually. • Supplies and materials expenditures have been reduced by 18%. • $1.5 million in reductions for the 2010-11 school year including $439,400 reduction in personnel.

18. Revenue Sources Conclusion: The majority of our operating dollars come from local support. Source: CLSD Five-Year Forecast

19. State Funding for Chardon • Revenue from the state has steadily decreased since 2006. • Since revenue from property taxes are fixed, this leaves a significant gap in income for the district. Source: Ohio Department of Education

20. Changes in School Funding 2011-2013 (More Cuts To Come) Source: Plain Dealer, A6, Wednesday March 30th 2011. • Gov. Kasich has announced further reductions to state school funding in his proposed budget. The following charts show the impact on the Chardon school district.

21. Comparison in Funding Reductions

22. The Effect of House Bill 920 • HB 920 is a cap on real estate revenues that go to schools. • Passed in the 1970s at a time of high inflation. • Purpose was to protect homeowners from tax increases due to reappraisals. • With the exception of the 4.5 inside mills the district receives, the income from levies are fixed at the original dollar value they generated in the first year. The income cannot be increased as property values increase – the effective millage falls.

23. Breakdown of Expenses Conclusion: ~80% is related to People Conclusion: ~80% is related to People Source: 5yr Forecast

24. Section 5 : Proven Academic Results

25. Academic Results • Chardon’s 97% graduation rate, 95% attendance rate, and high proficiency test scores give the district its “EXCELLENT” rating. • Chardon’s student athletes have the highest scores on the Ohio Graduation Test in the entire Premier Athletic Conference (PAC). • Chardon’s premier Science Olympiad and Envirothon programs have consistently qualified teams for state and national competitions

26. Accountability • Chardon School’s Strategic Plan guides district spending. • Clean financial audits for fiscal years 2006-2011 • Since inception of the State Local Report Card, Chardon Schools have achieved the “EXCELLENT” rating. • Volunteer community audit committee reviews the district’s budget and financial projections. • State Performance Audit was initiated in 2005 to assess inner workings of our program.

27. Section 6 : It’s a matter of Choice – What happens if the levy fails?

28. With passage of the Levy: • Maintain frugal spending and financial accountability. • Continue to move district forward educationally. • Continue to offer fine arts, technology, business and well-rounded extracurricular programs. • Improve technology resources for student use. • Continue to open our schools and property for community use.

29. If the Levy fails on May 3 • The Superintendent has recommended a plan that reduces personnel, operational, and program costs by approximately $1.3 million. • These reductions (listed below) are necessary to ensure that the treasurer can submit a balanced budget for Fund Year 2012. • Passage of the May operating levy would improve the financial picture of the district, allowing us to reinstate many of these cuts.

30. Reduction Plan for FY 2012 • Reduce one HS Intervention Specialist • Reduce two HS Business Education Teachers • Reduce one HS Math Teacher • Reduce one HS Physical Education Teacher • Replace (two) retiring teachers with new staff • Reduce MS Literacy Coach • Reduce one MS Intervention Specialist • Reduce MS FCS Teacher • Reduce .5 MS Foreign Language Teacher • Reduce .5 MS and .5 HS Media Specialist Secretary • Increased Student Activity Fee • Reductions in Transportation Dept. • Transfer several contracted services from general fund operations to permanent improvement fund • TOTAL SAVINGS: $1.3 Million

31. Community Impact • The children in the system need a quality education • Strong schools equal strong communities. • Residents of Chardon Schools share the responsibility to educate future generations. • Community spirit, community growth and even property values are enhanced by a sound public school system. • School systems cannot be sound unless they are adequately funded.