The “Little Engine that Could,” Ledgemont Schools continues chugging along and just might make it over the hill after all.
Rep. John Patterson, who spoke to Thompson Township Trustees Wednesday, told them Ohio Gov. John Kasich signed HB 487 into legislation Monday.
Within 487 is amendment HB 216, originally introduced a year ago, which provides debt relief if a school is considering consolidation. This would allow Ledgemont Schools to have their debt forgiven, if they are able to consolidate with a neighboring school district.
There is a fairly wide window of opportunity on the deal, Kasich said. The school must initiate procedures by Dec. 31, 2015.
“If you look at the demographics, our children are leaving and the numbers are shrinking,” Patterson said. “We are growing more mature, which makes it more difficult to pass tax levies.
“So the reality is that our numbers are moving in the wrong direction.”
There are a lot of issues surrounding funding of school districts in Geauga County. One is the reluctance of fixed-income residents to pass more levies.
“I’ve watched the last two levies, I understand, open enrollment has not been good,” Patterson said. “We’re losing kids to many, many districts and with it goes the tax dollars too. The last thing I want to do is to close a school.”
Ledgemont is number one in the state with owing the most debt to the Solvency Assistance Fund, he said.
The state’s solvency assistance fund provides assistance to districts in fiscal emergency. However, the loan funds the state provides have had to be paid back, something Ledgemont has not had the wherewithal to do.
But, earlier this year, the district made a plan to move inside millage to a special fund to pay off its debt. Since reaching fiscal emergency status in 2010, it has received loans from the state solvency fund each year for the past three years, totaling around $5 million. The district still has to pay back over $2 million to the state.
“I was beginning to hear some rumblings that if something wasn’t done, that the state would consider coming in and taking over because the state has to operate in the balanced budget,” Patterson said.
One solution proposed has been for Ledgemont to consolidate with another district, but the debt has been a stumbling block. Neighboring districts are reluctant to pay a debt they didn’t incur.
“It becomes problematic for (neighboring) districts to take on a $2 million debt,” Patterson said. “My vision was to make that go away, so that you could be more attractive, if you so choose, to another district.”
Ledgemont Superintendent Julie Ramos said Thursday the legislation, at the very least, is going to give the district more options and has a realistic timeline.
“Districts weren’t really interested in conversations” with Ledgemont because of its debt, she said, adding a lot of school districts are struggling on their own, let alone having to take on the debt of another district.
Ramos said administrators and Ledgemont Schools Board of Education members are having a work session Monday and this will be one of the things discussed.
“The work session will give an opportunity for them to weigh options … to get ready for the next board meeting,” she said, adding they all should know more after Monday’s work session.
A school that owes more than $10 million doesn’t qualify for the forgiveness, Patterson said Wednesday, adding the legislation is designed specifically for small schools.
Also, the district must already owe at least 33 percent of its operating budget for the current fiscal year to the solvency assistance fund, and have remained in a state of fiscal emergency during the previous two fiscal years, according to www.ohiohouse.gov.
“My argument is, you know best what direction you want to take,” Patterson said. “If it’s (asking for) more levy monies, fantastic, but if that’s not an option, I want to provide you with an option so you can have the local choice.”
Ledgemont has had informal conversations with Cardinal Local School District about a joint collaborative high school. Ledgemont has already had to close their high school building and now has preschool through grade 12 located in the elementary building.