Understanding Our District’s Finances: Key Takeaways from the November Five-Year Forecast
Ohio law requires every school district to update its five-year financial forecast twice a year: once by November 30 and again by May 31. These forecasts provide a snapshot of our district’s financial health and help us plan for the future. Here’s an easy-to-understand overview of the key points from our latest update.
Where We Stand Financially
- Starting Cash Balance: On July 1, we began the fiscal year with $91 million in cash. By the end of FY25 (June 2025), we expect to have $89.6 million remaining, despite operating at a deficit.
- Deficit Spending: Although we are spending more than we take in during FY25, the passage of the 6.9-mill operating levy in November will significantly help. This levy will generate $15.8 million in new revenue this spring, reducing the majority of the operating deficit we had originally projected for FY25.
Impact of Issue 39
Under the current assumptions, the approval of Issue 39 enables us to meet the 20% cash reserve required by Board policy through FY2029. This proactive planning helps us avoid future financial challenges, like a negative cash balance or fiscal emergency.
Where Our Funding Comes From
- Local Taxes: 68% of our funding comes from local property taxes.
- State Funding: 27% of our funding is provided by the state.
- Other Revenues: The remaining 5% includes payments from businesses like Amazon and TruePointe, which will begin contributing later in this forecast period.
For FY25, total general fund revenues are projected to be $247.2 million.
Key Revenue Insights:
- Property values are expected to grow 1% annually due to new construction.
- The new operating levy will provide $31.6 million in annual real estate tax revenue.
- State funding is anticipated to remain stagnant, even if the state adjusts its base cost formula in the coming years.
How We Spend Our Funds
As a labor-intensive organization, most of our budget goes toward the people who support our students daily:
- Salaries and Benefits: These account for 84% of expenditures. Salaries are expected to increase annually, reflecting cost-of-living adjustments and step increases.
- Other Costs: Purchased services (utilities, transportation, etc.) make up 10%, while supplies and materials represent 6%.
For FY25, total general fund expenditures are projected at $248.7 million.
Key Expenditure Insights:
- Rising healthcare costs are a challenge, with a projected 18% increase in medical insurance costs for 2025. Future increases are expected to moderate to 6% annually beginning in 2027.
- Utility costs are also climbing, with natural gas expected to rise 8% and electricity costs increasing by 25% in FY25.
Why This Matters
Our district is committed to financial transparency and careful planning. By making these forecasts available, we aim to keep our community informed about how we allocate resources to provide a high-quality education for all students.
For more details, you can review the full five-year forecast here or explore archived financial reports HERE.
