Marysville, Ohio, October 9, 2009

Marysville City Schools leaders recently learned that the District's credit rating continues to rank among the highest of Ohio school districts. Such a rating is good news for taxpayers and an indication of the District's stable financial practices. A school district that has a higher credit rating can sell bonds more easily and at lower interest rates, which means taxpayers will spend less to pay back the bonds. Bonds are used to fund renovations, technology, school buses or new schools. Moody's had last rated Marysville Schools in 2006, conducting the update late this summer and maintaining the A2 credit rating for the district.

From the perspective of financial institutions, Fifth Third's Vice President for Public Finance, John Adams, responded to the Marysville update, saying the result for the district is "well done. To hold this rating in this environment is a very good thing."

Moody's Investors Services closely examined the district's tax base and financial management to derive the credit rating. In the update process, Moody's analysts reviewed the age and condition of current school facilities, district financial forecasting procedures and business growth specific to the Marysville school district, as well as the recent financial audit completed by independent auditors and reviewed by the state auditor's office. Additionally, the ratings service also considered the change and impact of the Tangible Personal Property tax replacement for Ohio schools and the Marysville district's decision to renew, rather than replace, the operating levy on this November's ballot.

Treasurer Dolores Cramer said, "With the current economy and the state of school funding, to maintain our current rating is evidence of Moody's confidence in our district."

Board President, Jeff Mabee said the continued high credit rating shows the district's commitment to fiscal responsibility. "It is a daily challenge to maintain such a high credit rating, considering the questions yet ahead in school funding in Ohio and the impact on our students. At a time when many entities are seeing downgrades, from the rating agencies, this is a tribute to our district and community. Our taxpayers can be assured, however, that the District will continue to make responsible financial decisions."

Marysville State Report Card Results: Rated Excellent!!

It is with great pleasure that the Marysville School District announces the results of the State Report Card rating system. Marysville Schools will have an Excellent Rating on the Local Report Card achieving 28 out of 30 state indicators.

"I can not say enough for the students and staff in this district," said Larry Zimmerman, Superintendent of Schools. "Last year was a difficult year with so many funding pressures and district reductions. But, the students and staff stayed focused on our critical and important student achievement goals. We know our kids and we work to maximize their achievement everyday. I am very proud of their accomplishments as should be the entire community. Their achievements not only allowed the district to achieve an Excellent Ranking, but the students did so byhigher than expected achievement growth for the second consecutive year based on State Value Added Scores. A special thanks to our parents for making sure their kids are at school and for making learning a priority."

State of Ohio Value Added scores are a result of comparing past test results and making predictions on "expected" future test results. The district surpassed the "expected results" meaning that students scored better than the State predicted they would. "Taking students further than the State expected them to achieve is again a real tribute to the staff and the students," commented Jeff Mabee, President of the Board of Education. "This is a tremendous achievement for the entire district, from Mr. Zimmerman and his leadership to the great work being done in each building and classroom. You cannot reach this goal unless everyone in the organization is committed to achieving the same level of excellence. It was a total team effort and I cannot begin to show my appreciation for all that they do for the students and families of this community. I also believe this is a clear showing of the return on investment to our community for the support they give us."

The district also met the very difficult Federal Annual Yearly Progress (AYP) goals by achieving 10 out of 10 on district-wide achievement scores for subgroup populations (Special Education, Economically Disadvantaged, etc.). In addition, the District scored its highest ever rating on the State Performance Index with a score of 99.1, indicating that increased number of students scored at the advanced and accelerated levels on state assessments. "Along with the rating of Excellence, the additional recognition of meeting the Federal Annual Yearly Progress (AYP) designation by achieving 10 out of 10 district-wide scores clearly speaks volumes as to the overall quality of education this district provides," added Scott Johnson, member of the Board of Education. "Everyone in the district should be commended on their efforts and congratulated on these successes. Our district is truly one of the premier school systems in this state. As a board member, I am very proud of the accomplishments of this district. As a parent of 3 students in this school system, I am continually impressed with the level of quality education."

Results of State Auditor's District Performance Audit Announced

Marysville School District recently received results of a Performance Audit performed by the State Auditor's office. After unsuccessful levy requests in 2007 and 2008, the district's mandated five-year fiscal forecast predicted a negative balance. The district's financial outlook was further aggravated by the state's elimination of Tangible Personal Property Tax. The audit was requested by the district following submission of the May 2008 five-year financial forecast and also included updates after passage of the 4-mill levy in November 2008.

As school districts in Ohio foresee negative balances in their mandated five-year forecasts, many ask the State Auditor's office to complete a Performance Audit. The sole purpose is to provide a district a tool/report that suggests ways to "assist the Marysville EVSD administration and Board of Education in identifying opportunities for cost savings..." It is important that all readers of the report understand that the State Auditor's suggestions are based on using state minimum standards and its analysis of auditor determined "peer school districts."

"Bottom line", commented Jeff Mabee, President of the Board of Education, "this audit establishes what the State of Ohio feels could be reduced if future expenditures do not match future revenues. The recommendations are deep reductions. Whether our community and our parents want the severity of these reductions requires discussion. If such reductions were made, it would radically change the school district from a program and services standpoint. The reductions would move the district to a bare-bones, minimum offerings, minimum opportunity school district. Ultimately, that decision is the community's and parents' to make. What clearly strikes me as I read the report is that reducing the number of teachers reduces programs; reducing buses reduces transportation service; reducing aides will reduce student supervision and increase our district's liability; and making the extra-curricular programs pay for themselves means eliminating programs or charging a higher participation fee. That is consistent with what we have said all along. The choices are difficult and will definitely require careful examination and discussion."

Specifically, the audit suggested the following cost-saving measures if revenues do not increase:

• Eliminate 24 office or clerical staff; 12-21 regular education teachers in non-mandated programs like technology, business and college prep courses, Vo. Ag., etc.; 10-19 art, music, physical education teachers, librarians and nurses; 28 special education aides

• Reduce extracurricular expenditures by reducing programs or charging higher pay-to-play fees

• Reduce 5 buses from transportation fleet

• Limit future wage increases to 1%

• Modify employee health, dental, and optical insurance premiums

• Delay opening of East and Middle School

"These reductions, especially the staff reductions, would not only eliminate educational programs, but could also place the district in serious liability situations due to reduced supervision of our students," said Larry Zimmerman, Superintendent of School. "A reduction of 12-21 teachers in the special areas like art and music, or technology, etc. would reduce those programs almost 50%. That would be a drastic reduction and eliminate many, many classes."

"Aides monitor before and after school duties, assist in classrooms, supervise the study halls and assist with student tutoring areas," continued Zimmerman. "If those positions are reduced, we will have limited supervision of the students and will need to pull teachers away from instruction. If teachers are pulled from classrooms, we will be forced to offer fewer classes and programs because there will be fewer teachers. Clearly, every decision made will impact another decision. Everyone needs to understand the repercussions. The district is required by law to supervise students, as well as serve all handicapped students and ones with unique health conditions. Whether the reductions as the auditors pointed out could be fully implemented would have to be studied closely. The district could find itself in violation of federal law and potential legal action. Law suits can cost much more than the cost of personnel."

The Performance Audit recognizes that revenue may change depending on the new state budget and other reasons, so some reductions may not be recommended or necessary. None the less, the report recommends a complete study be conducted to thoroughly analyze the data and comparisons found in the report. The auditors also suggested further study into whether their recommendations could be legally followed.

For instance, the audit report suggests eliminating four of the seven nurses working within the district. The auditors looked at the total number of students within the district vs. the number of nurses in the district, and made the recommendation based on averages of the other Peer Districts. The district commented that the auditor's recommendations do not consider the Individual Education Plans (IEP's) and/or critical health conditions of the individual students that require nurses' attention. Before a decision is made to reduce, the auditors expect the district to consider the individual needs of the students within the Marysville school district.

"We fully understand that other districts may operate with fewer nurses, but until we can analyze their student needs vs. our student needs the audit comparison is helpful only in a fiscal sense, not in an operational sense." commented Ellen Traucht, Director of Student Services. "One student may require nursing assistance or care while another student may not. By federal law we must serve each student's health condition. The same is true of the legal requirements the district must consider for the special education students. The district has a high handicapped student percentage and their educational needs are regulated by federal and state law. The district must look at costs but also at the severity of student needs, as they may vary from what is seen in the other peer districts".

"I think the State Performance Audit is helpful as a comparison study", said Dolores Cramer, Treasurer of the district. "We requested the study be done and we will use the data to study our future fiscal operation. I do caution using the report to make snap decisions and judgments because that is not the intent, by the state or by our district. The data is to be used to systematically study, compare and make informed decisions. The recommendations put forth by the auditor's office were a result of much time and study that took nearly a year to complete. Equal time and study must be given to determining if those recommendations should be accepted because there is little doubt that they change the district's services to kids. The suggested measures reduce spending, and spending reduces the district's program offerings and overall service."

There is no question that the district could cut back and emerge as a minimum level school district, agree district leaders. But they believe the question of " is that what we want for Marysville children?" needs to be asked. Clearly they see that program and staff reductions will save money, but will do so at the expense of program and services, and ultimately student success.

To quote the audit report, "as school district issues are often complex, users of this report are encouraged to examine the full findings and recommendations found in the detailed sections of the report." "We will take that recommendation seriously and study the Performance Audit over the next several months as we continue to study our fiscal needs vs. our program and student needs." added Mabee. "To just start eliminating program and positions without a full study would not serve the district or community well. Our community has never said they wanted minimum programs and services in the past. We need their input as we consider all aspects of our obligations to our kids. This report is not one that will gather dust on the shelf. We will use this tool. The auditor report suggests delving deeply into those comparisons as a way to further complete our fiscal and program plan, and we will do just that".

Recently, the Ohio School Facilities Commission visited the district. The Commission is in charge of school construction statewide for qualifying districts (although MEVSD is not one of these districts).

The purpose of the visit was to view the section of Bunsold Middle School that is built with ICF (Insulated Concrete Forms) construction. This section is made of solid concrete and Styrofoam forms. The Bunsold building and Marysville High School are the first school buildings in Ohio to use this technology. Although it was not something the architects wanted to do initially, Superintendent Zimmerman and the architects researched the product and decided to use it on the two buildings. They recommended this approach primarily because the product would save the district 45 days of construction time - and substantial savings.

The Ohio School Facilities Commission had been part of an inservice held by the district last year. The district and other architects and contractors demonstrated the solid concrete walls as they were being constructed. That inservice helped the commission approve the technology and add it to their approved list of state construction materials and technology. This was a huge step for the state, because it allows qualifying districts to save construction time and money. The commission's recent visit was a follow-up to see the finished ICF product.

A total of 25 people from the Commission visited, including OSFC Director Mike Shoemaker and his key management team. They were impressed with what the district has done, and praised the creative approach to saving taxpayer money and speeding construction time. The Commission is considering a mandate on the use of ICF to speed projects and to also gain insulating value in buildings (because the ICF product has an R-50 insulating value). Director Mike Shoemaker told Superintendent Zimmerman that they will probably contact the district again as they move toward using the ICF technology on the new Ohio School for the Blind.

It was a good visit and good for the district to be recognized for its leadership and creativity.

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The Union County Chamber of Commerce Board of Trustees voted Wednesday night to support the 5-year, 5-mill replacement levy and the 5-year, 4-mill new operating levy proposed by the Marysville Exempted Village School District in the Nov. 4 election.

The chamber board of trustees encourages residents of the district to support the ballot issues.

"The purpose of both levies is to provide daily operating funds for education, safety and security improvements, textbook and educational material purchases," according to a press release from the chamber.

"The chamber board recognizes that the Marysville Exempted Village School District Board of Education recently cut more than $4.4-million in order to balance its budget," the release stated. "Chamber business leaders spent a great deal of time reviewing the school funding and expenditures to be fully aware of the detail. In addition, the board recognizes if the levies do not pass, additional major cuts in the school district's budget will be necessary including reduction of staff and program expenses which could result in higher classroom size, reduced opportunities for students and a lower credit rating ultimately costing the residents of the school districts.

"Finally, the trustees realize that if the levies are not successful, it is likely we will witness the school district property values decrease negatively impacting business growth and development in Union County."

Representatives of the district and local business leaders have been meeting to develop a better relationship and to improve communication among and between the schools, businesses and community.

"It is imperative that we pass the levy to ensure our future leaders receive the best education possible," said David Thorbahn, president of the Union County Chamber of Commerce.

Marysville High School is one of a small number of high schools in Central Ohio to improve passage rates in all testing areas.

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A last-minute contribution from Real Living HER will allow the Marysville High School and Middle School marching bands to appear in the community's annual Memorial Day parade.

"We've had to make a lot of cuts to the schools because of three consecutive failed levy attempts," said Jennifer Biddinger of the Marysville office of Real Living HER. Biddinger said the bands would not have been able to participate in the parade without the donation to cover expenses.

Retired Lt. Col. Ken Bonnell will serve as parade marshal for the 2008 Marysville Memorial Day parade.

The event, sponsored by Veterans of Foreign Wars Post 3320, begins at 9:30 a.m. Monday at Fifth and Plum streets. Participants will march up Fifth Street to Oakdale Cemetery.

The Marysville Middle School band will perform at 9:30 a.m. at the cemetery, where a 10 a.m. ceremony will be held. The high school and middle school bands will perform together during that ceremony.