POST Wednesday, June 2, 2021 • Vol. 15 No. 2 • FREE
Cardinal Welcomes Rozsnyai as Treasurer
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By Ann Wishart ann@geaugamapleleaf.com
When Julia Rozsnyai accepted the position of Cardinal Schools Treasurer in December, her eyes were wide open. She knew about the district’s fiscal challenges and she accepted the responsibility of meeting them. But Rozsnyai loves a challenge and five months into her new job, she is determined to use her deep wells of experience, contacts and energy to get the district back on a firm financial footing. When she and husband, Frank, came to the U.S. from Hungary in 1997, she knew it would be a permanent move. Frank had won the green card lottery and so they and their family had permanent residency, Rozsnyai said. “I did not speak any English at the time,” she said, adding, however, she was not concerned because she had already learned Romanian See Rozsnyai • Page 6
ANN WISHART/KMG
Julia Rozsnyai started as treasurer for Cardinal Schools in January and is aiming to improve the district’s financial future. The painting on the wall reminds her of her native Hungary.
District Faces Fiscal Issues by 2023 If Levy Fails By Ann Wishart ann@geaugamapleleaf.com Cardinal Schools’ five-year financial forecast looks a little better than it did in November, but Treasurer Julia Rozsnyai said the general fund will be in serious trouble by 2023 unless a 9.7-mill operating levy passes in 2022. Rozsnyai, who became district treasurer in January upon the retirement of Merry Lou Knuckles, presented the forecast to the board of education at its virtual meeting May 12. When creating a five-year forecast, a school district is not allowed to assume a levy will pass, so the revenue from levies due for renewal cannot be included in the revenues section. Cardinal receives less and less money from the state, leaving it up to residents to support the district’s budget of nearly $14 million, Rozsnyai said. “The state is helping us with less than 30% of our total revenue,” she said, adding it is part of a trend
that includes phasing out tangible personal property taxes. The website tax.ohio.gov describes TPP as taxes that are based on the value of the tangible assets used to generate income in a business or rental property, such as furnishings, fixtures, signs, supplies, tools and equipment used in the operation of business. That revenue began to decrease under Ohio H.B. 66, which started to phase out the TPP in 2005, according to the site. In 2011, Cardinal Schools received $2.3 million in TPP funds, Rozsnyai said. Since the phase out began, the district has not received a total of about $10 million it would have received if TPP was in place, she said, adding it is the reason why the district has been facing financial hardship. Rozsnyai estimated the district has lost nearly $400,000 in state revenues over the last two years because of H.B. 66. Overall, the district taxpayers
“We need to reduce costs and increase revenue, long-term, if we are to sustain our current operating level. We must pass the 9.7-mill levy.” – Julia Rozsnyai cover 71% of the district’s budget from property taxes, she said. The district has been assured it will receive the same amount of funds it did in 2019 after taking a revenue decrease in 2020 due to the COVID-19 pandemic, Rozsnyai said, adding Cardinal will receive about $464,000 specifically for student wellness and that will be used to supplement the general fund. Under expenditures, she said she could not include employee raises until there are negotiations, so those remain stable for four years in the forecast, which does not include those teachers and aides who are paid through title
programs and through Student Wellness Funds. Outside services such as those rendered by the Geauga County Educational Services Center account for 26.2% of the budget, Rozsnyai said. Health insurance is expected to go up 3.9% in July and estimated to go up 4% and 5% in the next two years, according to the consortium, she said. Local revenue is not growing as fast as the district’s expenditures even though the district received more from real estate taxes than anticipated. The district was warned to expect See Cardinal • Page 4
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