Thanks to a new teacher evaluation system in place, the Cleveland Hill School District is in line to maintain a significant portion of state funding, but a revised policy on building aid may hurt the district anyway.
Cleveland Hill Business Manager Dennis Corsaro explained during a Board of Education meeting Wednesday night that since the state approved the mandated new teacher evaluation program, the district would not be penalized with decreased revenue in the coming 2013-14 budget year.
Cleveland Hill could have lost up to $576,347 in state aid if teachers and the state did not approve the evaluation program.
Corsaro said that the state’s recently approved revised method of determining building aid may cost the district 7 percent to 16 percent of total revenue beginning this budget year.
Since 2002, Cleveland Hill has received aid for building improvements, including an energy efficiency program and a $28 million capital project begun a decade ago. During that time, the state offered a 4.5 percent interest rate to help the district pay off the debt.
The interest resulted in an additional $2.15 million in district revenues, however, the state law determining the interest rate must be renewed every 10 years. When state officials renewed the law last month, they dropped the interest rate nearly in half to 2.37 percent.
District officials are still trying to determine exactly how much Cleveland Hill could lose in aid, but Corsaro estimated it could range from $142,379 to $344,852.