Financial-FAQ’s
Q: I have heard a lot this year about cuts in state funding. Exactly how much has Westlake Schools lost in funding?
A: Over the last eight years, Westlake Schools has cumulatively lost over $11m in State funding through a combination of
losses in State Aid, personal property taxes, utility deregulation and other public policy decisions. For purposes of
illustration, the loss of this magnitude is equivalent to 7.29 mills.
Q: Why does Westlake Schools receive under $600 per student in basic aid from the State when I have heard the basic
aid is $5,745 per student?
A: There are over 600 school districts in the State of Ohio. Each district receives a portion of its operating resources from
the State through a funding formula. In determining the amount each school district receives, the formula considers
factors such as a district’s typology, taxable valuation and average daily membership. The result of this calculation
determines the amount of State aid the district receives. In Westlake, the School District receives less than 6% of its
operational revenues from this type of aid. As a result, additional resources are required from the community to operate
our schools.
Q: How is Westlake Schools managing its finances and is it accountable?
A: National rating agencies Moody’s and Standard and Poor’s have indicated the District’s fiscal oversight is strong, and
District financial practices are good. The Government Finance Officers Association has recognized the District for 20
consecutive years for Excellence in Financial Reporting. The Auditor of the State has recognized the District with an
Award of Distinction recognizing the past five years of perfect audits.
Q: What has Westlake Schools done to cut the cost of its operations?
A: The Board of Education and administration have continued the long-standing process of benchmarking their costs
against comparable peers to better understand how efficiencies may be obtained. To address the most recent loss in State
funding, the Board enacted over $5m in staffing and programmatic cuts and reductions to the budget.
Financial-FAQ’s
Q: How has the Westlake Board of Education responded to recent economic times?
A: The Board has successfully renegotiated labor agreements with both the support staff and teacher unions. The
support staff and teachers agreed to a pay reduction which included a pay freeze and reducing the teacher wage scale by
2.5% while also increasing health insurance contributions by 50%. In fact, Westlake teachers made more concessions than
any neighboring district, and Westlake was the only district in Ohio last year to reduce its wage scale and increase health
insurance contributions to that magnitude according to data from the Ohio School Boards Association.
Q: How does Westlake Schools’ tax rate compare to other school districts?
A: Westlake Schools is a good steward of the community’s tax dollars and has remained in the bottom 25% of school tax
rates in the county.
Q: How does Westlake compare to other school districts in the amount they spend on administration per pupil?
A: Westlake has continued to spend less per pupil on administration at 9% compared to our border districts ranging
between 10-15%. The State average is 12.2%. This means Westlake dedicates more dollars to student instruction, and
those dollars are aligned with the core mission of providing educational excellence.
Q: Are the funding challenges in Westlake similar to other Ohio school districts?
A: Yes. Due to HB920, the economic downturn and reductions in funding from the State and Federal sources, all school
districts in Ohio have been impacted. This can be evidenced by graphing several comparison school districts throughout
the State of Ohio as was presented to the Westlake Board of Education in July 2011. In fact, the Ohio School Boards
Association reported more than 1/3 of the school districts in Ohio were on the ballot for additional resources in 2010.
Financial-FAQ’s
Q: If an operating levy is set at a certain millage, why would it collect less money over time?
A: The amount of money a levy collects is reduced by factors such as taxpayer delinquency, late payments, reduction in
tax valuation or changes in tax policy. The District experienced this phenomenon most recently with the downturn in the
economy and the elimination of the Tangible Personal Property tax.
Q: The last operating levy, a 6.9-mill tax, was passed in May 2006. The last one prior to that was a 5.5-mill
replacement levy in March 2000. How often are new operating levies needed?
A: Due to how Ohio schools are funded, all school districts must petition their local communities for operating levies. As
such, additional resources are needed from time to time due to many factors such as reductions in State funding,
increased State and Federal mandates, and changes in student population or academic programming decisions driven by
the community. The main reason schools often come back to their communities to ask for additional resources in the
form of a levy is a direct result of HB920 which essentially restricts growth on voted levies enacted in a community.
Unlike a municipality, it is important to note there is virtually no inflationary component to the school district’s revenue
stream even though there continues to be an increase in fixed costs of its operations. Therefore, the actual timing of levies
can vary from district to district, but are a result of non-inflationary increases in the district’s revenue stream to keep pace
with ongoing expenses.
Q: Some individuals have expressed alarm that the District is projecting deficits beginning in 2013. Was this
anticipated and communicated to the public that the last operating levy passed in 2006 would not be sufficient to fund
the District indefinitely?
A: School districts must go back to their constituents from time to time for additional resources. In fact, the community
was informed back in 2006 the District would need to seek additional resources within the next four years. The District
has actually surpassed that commitment by reducing its operating costs and extending that commitment to seven years.
Financial-FAQ’s
Q: So it’s typical that, late in a levy cycle, a district will spend more money than it collects in revenue, correct?
A: That is correct, but the timing of that will vary from district to district. In fact, this phenomenon is acknowledged by
the National investor rating agencies of Standard and Poor’s and Moody’s, who have continued to indicate Westlake
Schools has strong fiscal oversight and good fiscal management practices.