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5-year forecast for Career Center

The Washington County Career Center has achieved a large measure of financial stability over the last several fiscal years and continues to have surplus balances through fiscal year 2019, according to a five-year forecast presented to the Career Center board Thursday.

“This year our enrollment is at 485 students, which has caused an increase in our revenue from this fiscal year into fiscal year 2017,” said Treasurer Joseph Crone.

In fiscal year 2017, the Career Center is expected to receive additional revenue due to enrollment growth. With $6,302,739 in revenue, WCCC plans to have $6,011,311 in expenditures leaving them with a surplus of $291,429. This pattern of additional surplus continues through 2018 with $6,061,516 in expected revenue and $5,840,180 in expenditures leaving $221,336 in revenue surplus.

Through 2019, the Career Center is predicted to have $5,953,331 in revenue while spending $5,947,844, leaving $5,847 in additional revenue.

However, for years 2020 and 2021, WCCC will have deficit spending, according to the forecast. Revenue in fiscal year 2020 is said to be around $6,020,636 with spending at $6,114,806. The trend continues the following year.

Crone said the deficit spending is mainly due to Affordable Care Act requirements but that a budget carryover of more than $4 million will cover the additional spending.

Operating revenue is expected to grow an average annual rate of 0.09 percent over the extent of the five-year forecast.  The biggest change from the previous five years is state funding, said Crone. This change is tied to the enrollment increase that the Career Center experienced from 2015 to 2017. State aid is a total of 58 percent of total revenue in 2016 and is estimated to decrease by 1.7 percent due to an increase in real estate revenue.

Another change is the decrease in public utility personal property which is a result of the AEP Muskingum River Plant closing last year.

Washington County taxable value decreased by $10,128,770 which resulted in a total revenue loss of $18,230 for the Career Center.

In 2018 up to 2021, the estimated valuation of the Career Center is estimated to have a slight increase due to new construction. Energy Optimizers has brought a project plan to the board to replace all fluorescent lights to be replaced with energy efficient LED lights in the upcoming year.

“This will reduce overall operating costs and essentially save money,” said Rusty Bookman, account executive for Energy Optimizers.

The energy savings service agreement has not yet been approved by the board but is planned to be discussed and approved by next month’s meeting.

Next meeting

≤ The next meeting will be held at 6 p.m. Nov. 10 at in the Annex Boardroom.

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