Board approves reduced budget for Akron schools

The Akron school board agreed today to spend nearly $ 300 million for operations this fiscal year – about 3 percent below last year, thanks largely to layoffs by the closure of five schools last year. However, the budget includes about $ 8 million in federal incentive money that was involved in the overall state aid of Akron. Will likely be the same number for the upcoming school year. ''Now, the problem with this is that in 2012, federal dollars are supposed to disappear, leaving the state have to make up that difference,''said Treasurer Jack Pierson. Complicating matters is the decision of the Supreme Court of Ohio last week to shelve plans for the State to authorize video slot machines at racetracks, which is estimated to raise between 850 million U.S. dollars and $ 933 million for public schools over the next two years. Pierson will be the potential deficit into account when presenting its proposed budget for five years in late October. ''If that happens, there is great possibility that our state aid will be cut,''said Pierson. ''For every one percent that our state aid is reduced, it loses about $ 1. $ 5 million. ''But after tonight, the district's finances look solid for this school year and probably next year, said Pierson. He attributed about $ 6 million reduction of $ 9 million savings from staff reductions. Other savings include a reduction of 3 percent in health insurance premiums, a reduction in projected 2 million U.S. dollars in utility costs since last year and changes in how the Ohio Bureau of Workers' Compensation calculates Akron costs, which produced $ 1 a year. 5 million savings this school year. The total of all funds for this fiscal year, including the $ 139. 5 million for capital projects is $ 568. 6 million, down 7 percent from last year's total appropriation of about $ 611. 5 million. The employee salaries and benefits represent about 73 percent of the spending plan for operations. All unions in the district whose contracts were to expire in 2009, reached a tipping than a year without an all-the general wage increase. The spending plan also represents the replacement of nearly $ 3 million of the 15 district-year-old's computer systems for student information and administrative information. The manufacturer of the computer system to support current composition of the software in June 2007, which affected the district's ability to develop modern applications.