At the September 19, 2022 Board Meeting, the Kenston Board of Education approved the five-year forecast and related assumptions for the General Fund, which is both a short-term and long-term projection of the district’s finances. Treasurer, Paul Pestello, annually submits the forecast and assumptions to the Ohio Department of Education by November 30th and May 31st. A revised five-year forecast may be submitted anytime during the year if, and when, substantial changes occur that affect the projections. The five-year forecast is a “snapshot” in time and is only as accurate as the information that was available at the time it was prepared. Utilizing historical trends and realistic assumptions, the five-year forecast is prepared utilizing conservative estimates of revenue and liberal estimates of expenditures.
The primary purpose of the forecast:
- A planning tool for the district’s Board of Education and administration to use to identify and prepare for future funding issues of the district in support of its mission and vision.
- A key tool in meeting the district’s priority is to respect the investment of taxpayers by providing responsible management of resources as we continue our commitment to student success.
- To serve as a basis for determining the Treasurer’s ability to certify that funds are available when entering into contracts.
- To provide a method for the Ohio Department of Education and the Auditor of State to identify districts headed toward financial difficulties.
Highlights of September 2022 5-year Forecast:
- The financial forecast was prepared utilizing slightly less conservative estimates of revenue and slightly less liberal estimates of expenditures than in past years in an effort to present a more realistic representation of the district’s long-range financial outlook.
- With labor contracts expiring in fiscal year 2024, this 5-year forecast does not include the cost of living adjustments (COLA) for staff beyond fiscal year 2024.
- The five-year forecast projects an ending cash balance of:
- $8.1 million on June 30, 2023 (fiscal year 2023),
- $5.2 million on June 30, 2024, and
- $1.8 million on June 30, 2025.
Note: The estimated ending cash balance is not an unencumbered or unobligated balance. Meaning, the district has contractual payroll and benefit obligations (among others) in July and August.
Based on the 2022 Forecast, Assumptions, and Board Policy 6210, it is projected that the Board would need to consider asking voters for additional operating and/or permanent improvement funds within the next two years.
Please contact Paul Pestello, Treasurer, with any questions. Past Forecasts and Assumptions are posted on the district’s Finance page at kenstonlocal.org.