CLARKSVILLE — In a detailed presentation led by Superintendent David Moss and Treasurer Carrie Bir on Monday evening, the Clinton-Massie Local School District outlined the significant financial challenges it currently faces, emphasizing the urgent need for additional funding to maintain operations and avoid severe cuts.

The presentation provided a comprehensive overview of the district’s financial situation, the impact of state and local funding, and the potential consequences if a new levy is not passed in November, according to district officials.

Understanding School Funding: State and Local Contributions

The presentation began with an in-depth explanation of how school funding works, with a particular focus on the district’s operating revenue, which is essential for covering daily expenses such as staff salaries, supplies, bus fuel, and utilities. The district has faced a decade-long freeze in state funding, which accounts for 47% of its revenue. Despite this freeze, the state guarantees that the district will not receive less than the previous year’s funding, based on the Governor’s Budget Bill, which is re-evaluated every two years.

To supplement state funding, the district relies heavily on local property taxes and a 0.5% earned income tax, officials said. The presentation highlighted the challenges for some school districts posed by House Bill 920, enacted in 1976, which effectively freezes the district’s revenue from voted millage at their original levels, even as property values rise. However, Clinton-Massie has been at the “20 mill floor” for over a decade, so it has seen a $2 million increase since the last property tax levy in 1988. As property values are adjusted every three years, the treasurer plans on these increases in the five-year forecast.

Current Financial Strain and Cost-Saving Measures

Moss and Bir detailed the district’s financial situation, emphasizing that staff salaries and benefits make up 78.3% of its expenses, a common ratio for most school districts. As the largest employer in the district, with roughly 210 staff members, managing these costs is critical, officials said. Despite these expenses, the district has managed to keep staff raises to 1% this year—the lowest since the 2018-2019 school year—while also increasing the medical insurance deductible for staff to control expenses.

In response to the financial strain, the district has implemented several cost-saving measures. These include reducing the staff by 12 teaching and administrative positions for the 2024-2025 school year, which saved $1.2 million, according to officials. Additionally, the district has reinstated transportation fees for extracurricular activities and ensured that field trips are budget-neutral. The district is also exploring the potential for outsourcing personnel services as a further cost-saving strategy.

Potential Future Cuts and Their Impact

If the district is unable to secure additional funding, officials said further cuts will be necessary, potentially affecting the quality of education and services offered. Some of the proposed reductions include:

– Elective Course Offerings: The district may reduce the number of elective courses available, and there is a possibility of lowering graduation credit requirements from 23 to the state minimum of 20.

– College Credit Plus (CCP) and Gifted Services: In-house CCP options might be limited, and services for gifted students could also face reductions.

– Operational Changes: The district may need to reevaluate preschool and kindergarten programs, limit literacy support to only Title I and 3rd Grade Reading Guarantee, and shift more programming to external providers such as Great Oaks.

– Increased Fees: Pay-to-participate fees, transportation fees, and building rental fees may see increases. The district is also considering charging all renters for building use to generate additional revenue.

Levy Passage and the Risks of State Takeover

District officials said the reason the November election is critical is because the district’s current 0.5% earned income tax levy expires on Dec. 31, 2024. This levy has been crucial in generating $1.6 million in revenue during the 2023-2024 fiscal year and represents 8% of the district’s operating revenue. Without any income tax collection, the district faces a severe budget shortfall, according to officials, which will lead to more cuts and potentially push the district into a state of fiscal emergency.

The district is currently in Fiscal Caution, due to a November 2023 projected negative cash balance by FY2026. If the levy is not passed, the district risks moving into Fiscal Watch or Fiscal Emergency, where the state would take control of financial decisions, officials said. Under state control, the district would be forced to implement additional cuts, and all financial decisions would go through a state-appointed steering committee, reducing local control.

The presentation also provided specific dates for returning to the ballot—Nov. 5, 2024, and May 6, 2025—each with its own implications. The earlier date would allow revenue collection to begin in January 2025, preventing any lapse in revenue and facilitating better planning for the 2025-2026 school year. The later date would delay new revenue until April 2026, making additional cuts imminent and increasing the risk of state takeover.

What the District is Doing

The district is placing a 1% earned income tax levy on the Nov. 5, 2024 ballot. If approved, the additional funds from this levy would be allocated to sustaining existing educational programs, advancing the district’s strategic plan, providing for permanent improvements (which currently lack a revenue source), and addressing increasing operational costs. According to the Board of Education and district leadership, this levy is important for preventing potential budget cuts and ensuring financial stability.

Engaging the Community and Next Steps

Moss and Bir concluded the presentation with a call to action, encouraging the community to stay informed and engaged in the upcoming decisions that will shape the future of the Clinton-Massie School District. The district has made several resources available on its website, including a Frequently Asked Questions (FAQ) section and detailed financial reports. For more information and to view the online presentation, visit www.cmfalcons.org/levy.