By Jennifer Mrozowski
Enquirer staff writer

Unless Cincinnati Public Schools cuts tens of million of dollars in expenses, district residents could face a new levy request next year in addition to the levy renewal in November, the district's treasurer said Wednesday.

Michael Geoghegan presented information to the school board Wednesday projecting that the district will have a $61 million deficit in two years, even if the planned five-year, $65 million renewal passes in November. The owner of a $100,000 home now pays $299 a year for that levy.

If the levy fails, the district projects a $24 million deficit next school year and a $146 million deficit for the 2006-07 school year.

Geoghegan said the district should reduce staffing drastically next year to reduce the deficit and stave off the second levy request.

"We are going to cut," he said. "We have to."

Geoghegan said the district should shave at least $40 million from next school year's budget. If that happens, the district could wait two or three more years before asking for a new operating levy.

The bleak financial forecast comes amid a swirl of recent budgetary concerns in the 38,800-student district.

In March, two board members and some community leaders announced they would withhold support for the November levy unless the district changes its operations.

Last month, the district acknowledged it overspent its 2003-04 budget by nearly $22 million and had to tap into its reserves.

Despite dwindling enrollment, the district then increased the projected amount of its 2004-05 budget to $469.4 million - $11.3 million more than it spent last year.

Superintendent Alton Frailey said, "The bottom line is that we not only have to control spending, we have to reduce spending."

He reiterated that he will address the district's financial concerns in the next 90 days through an employee buyout plan and consolidation of more schools and by finding additional ways to increase revenues, such as through grants. The district has already instituted a hiring freeze.

Melanie Bates, one of the two members campaigning against the levy, said the district should sort out its financial problems before asking taxpayers for more money. She again urged her fellow board members to postpone the November levy.

Board Vice President Harriet Russell on Wednesday said the forecast underscores the importance of passing the levy renewal in November.

"The dilemma is getting out and getting the renewal passed, or the hole will be two to three times deeper in 2007," she said.

She urged all board members to support the renewal effort. Without it, the district would deplete its reserves by next school year.

In Ohio, districts generate cash reserves from tax levies, state aid and other funding sources. Because school district levies don't include inflationary growth, districts deplete their reserves every few years.

"The passage of the renewal is absolutely critical to getting our budgetary and structural balance," Geoghegan said. "If it doesn't pass and we have to do all the cutting that will need to be done, that will be so disruptive to the academic program."

---

E-mail jmrozowski@enquirer.com