Moody’s Investor Service confirmed the district’s Aaa credit rating. Beachwood Schools is one of only four school districts in the State of Ohio to be awarded this rating. EXPENSES Governmental Activities totaled $39,952,482, a slight increase of 1.7 percent from Fiscal Year 2014 (from government-wide statements), primarily due to relatively flat salaries in Fiscal Year 14 due to the retirement of 11 staff members in 2014 who were replaced by staff members who were hired in lower on the salary scale and a decrease in interest and fiscal charges. 37.4% Support Services 4.2% Debt Service 4.7% Operation of Non-Instructional Services 2.3% Extracurricular Activities 51.4% Instruction LONG-TERM PROJECTIONS Funding for public education continues to be challenging as school choice proponents try to expand voucher programs for all Ohio students irrespective of the quality of their local public schools. Beachwood Schools already receives very little in state funding for education – less than $665 per pupil. State vouchers redirect $5,900 per pupil to charter schools. Ohio’s school choice program is already noted for its lack of oversight of academic expectations and fiscal operating standards. The burden of funding public schools continues to shift from the State back to local public schools. The State’s budget bill, House Bill 64, eliminated the hold harmless provision of the tangible personal property tax, which historically taxed commercial property owners on inventory. The district collected $2.5 million annually via the hold harmless provision. The loss of funding to the schools is $1.3 million commencing FY 17. In December, the legislature enacted a one time subsidy to cover 96% of this loss, but then will continue to eliminate this revenue stream commencing in FY 18. The School District by 2020 will have lost this revenue stream in its entirety. This equates to 3.5 mills in property taxes. Despite losing revenue from the State of Ohio, Beachwood Schools will continue to be innovators and will plan for the future with the focus on students remaining the crux of every decision. March 2016 n Beachwood Buzz 31