Meeting in a special session Tuesday, the Lake school board has approved a revised five-year forecast that includes more than $1 million in spending cuts for the fiscal year starting July 1.

A major portion of the spending cuts will be realized through attrition of personnel and a new contract with the Wood County Educational Service Center, which provides the district with services for its special education program.

Jeff Carpenter, district treasurer, said three teachers who are retiring won’t be replaced for the 2011-12 school year.

Lake superintendent Jim Witt was one of several Wood County superintendents to jointly press the ESC for reductions in the center’s fees for its services, Carpenter said, adding the superintendents had left open the option of not contracting with the Wood County ESC.

Overtime pay for work on Saturdays will also be axed, he said, and a vacant van driver position won’t be replaced.

According to Carpenter, Lake schools stand to lose almost $1.1 million the coming fiscal year and another $1.15 million in the next year in federal and state revenues.

Federal stimulus funding alone accounts for about $653,000 the district is losing in the fiscal year starting July 1.

The state’s proposed budget for the next fiscal year includes provisions for an accelerated schedule to phase out reimbursements to school districts for lost tangible property tax revenues that have been replaced with a commercial activities tax.

The Lake general fund will take a $250,000 hit in the next fiscal year due to the loss of tangible personal property taxes, Carpenter said, and another $40,000 in state funding that would have gone to the district’s permanent improvement fund.

In addition, the district is losing about $130,000 in public utility tax revenues.

The Lake board recently approved a resolution to place a 4.75-mill continuing operating levy on the August ballot.

“In essence, we’re replacing with this levy with what we’re losing,” Carpenter said. “Obviously back in October, when we had to prepare the five-year forecast, we didn’t know everything we do now about the revenues.”

Tim Krugh, board president, said it will be the first time the board has sought additional millage since 2006

Cuts in funding from the state make the levy request necessary, Krugh said, adding the additional millage will cost the owner of a $100,000 home about $145.47 a year. The levy can only be used for operating expenses and not for expenses related to the construction of a new high school building.

The Lake board had already approved about $400,000 in spending cuts during the current fiscal year, Carpenter said.

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