In September, the Board of Education approved the five-year forecast and related assumptions for the General Fund. Forecasts are done bi-annually as a requirement of the Ohio Department of Education. One of the primary purposes of the forecast is to identify future years’ deficits to allow districts to plan for those conditions before their arrival and eliminate a projected deficit.
The forecast projected an estimated ending cash balance in the 2025 fiscal year of just under $1.8 million, which falls below 30 days of operating expenses. Therefore, Board Policy 6210 requires a report be made to the Board with options for recovery developed by the Treasurer and Superintendent.
At the December Work Session, we made a presentation, and after discussion and deliberation, the Board came to consensus regarding the future financial strategy and the need to place a Permanent Improvement (PI) Levy on the ballot.
During the December 12th Regular Meeting, the Board of Education took the first step in placing a 1.35 mill Permanent Improvement Levy on the May 2023 ballot. Approximately 90 percent of the districts in Ohio have a PI Levy. PI funds can be utilized for items such as school buses, repairs to roofs and parking lots, boilers, safety upgrades, classroom furniture, technology upgrades and improvements, wireless upgrades, etc., that have a life span of five years or more. Revenue from a PI Levy cannot be used for salaries, benefits, or the school district’s day-to-day operations.
At the January 9th Regular Meeting, the Board is expected to take the second step to approve a resolution placing a Permanent Improvement issue on the May ballot.