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Treasurer: January tax advance far below normal; board warned of tighter cash until February
Summary
Treasurer Craig Wyckoff reported the district received a $1 million January tax advance — well below the usual $2.5–3 million — creating a tighter cash position until February collections; board also discussed state funding uncertainty under the Fair School Funding Plan.
Treasurer Craig Wyckoff told the Brecksville-Broadview Heights Board of Education on Jan. 15 that the district’s January tax advance from the county was $1,000,000 — the lowest January advance the district has received — and that delay stemmed from a late certification at the state Department of Taxation.
“We normally get about $2,500,000 to $3,000,000 in January,” Wyckoff said. “They sent us $1,000,000 today.” He said the shortfall will make the district’s liquid cash position tighter until the larger February payments arrive; he also noted the district can draw on investments but would prefer not to. Wyckoff said the month’s personnel and severance payments increase January outlays: the personnel line includes a three-pay month and roughly $535,000 in severance from retirees.
Board members asked how the possible delay or change in phasing of the state’s Fair School Funding Plan would affect the district. Wyckoff said the district moved from the guarantee onto the state formula recently, which improved revenue expectations in the current forecast, and that if the state fails to continue phasing in the plan the district “would lose money.” He said he could not provide an immediate dollar estimate and that much depends on legislative choices and inputs used by the formula (such as salary and valuation data), some of which are lagged to fiscal 2022.
Superintendent Jeff Harrison also briefed the board on recent state legislation signed by the governor and reported by the district’s OSBA liaison: Senate Bill 54 (an appropriation that includes $250,000 for school suicide-prevention work and other changes) and a newly publicized Parents Bill of Rights requiring parental notice for certain materials and for substantial changes to student services; many of those provisions take effect in April.
Ending: Wyckoff advised the board that the district will monitor cashflow closely and that the February tax payments and updated revenues will determine whether short-term borrowing or draws on investments are needed.
