NEWS

Woodmore gets $280,000 reimbursement, still seeks levy

Craig Shoup
Reporter

ELMORE – The Woodmore Local School District, which is seeking passage of two levies on Tuesday’s ballot, has been reimbursed $280,000 to correct a 2013 overpayment from North Point Educational Service Center.

Despite the reimbursement, school officials say the district still needs the levy funds — one a renewal that generates $600,000 a year, along with a proposed emergency levy for $1.05 million.

“It helps us,” district treasurer Jaime Pearson said Friday of the $280,000. “It doesn’t change anything for the levy. We are projecting a cash balance of $50,000 as of June 30. That is not good for a $9.5 million (annual) budget.”

While the district called the reimbursement a fiscal “shot in the arm,” it is considered only a short-term boost. The passage of the levies would provide long-term financial help, the school said in a news release.

The levy, a proposed 10-year, 0.75 percent earned income tax levy, was deemed necessary after a major accounting error was discovered, angering residents and forcing the school board to bring in an outside firm to audit the district. That levy would raise $1.05 million annually over the next 10 years.

The district accounting error resulted in the failure to properly phase out $430,000 in tangible personal property tax revenue from Woodmore's May 2014 five-year budget forecast, which forced the district to put the earned income tax levy on the ballot.

One board member, Joe Liszak, has stated publicly that he will not support the passage of either levy until the district is audited by the outside firm and the state auditor’s office investigates how Woodmore reached such a precarious financial situation.

“I’m not going to ask taxpayers for more of their money,” Liszak said.

The reimbursement announced Friday resulted from the school district overpaying for services provided by North Point ESC, according to the news release.

“Over the course of the 2013 school year, it appears that Woodmore paid a portion of ESC contract amount twice — once through the state foundation money and again through direct invoice,” the release said.

Woodmore’s finances show no error in the 2014 financial records.

cshoup@gannett.com

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