At the May Regular Board Meeting, the Kenston Board of Education approved the five-year forecast for the General Fund which gives a long-term view of the district’s finances. The Treasurer annually submits the forecast to the Ohio Department of Education in October and May and makes updates during the year as information changes. The five-year forecast reflects conservative projections based on historical trends and assumptions for the future known at a moment in time and presents a snapshot financial report.
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 district funding issues in support of its mission and vision.
- A key tool in meeting the district’s priority of respecting taxpayers’ investment 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.
- As information changes, the forecast will be updated.
- To provide a method for the Ohio Department of Education and the Auditor of State to identify districts headed toward financial difficulties.
Highlights of May 2023 5-Year Forecast:
- 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 district’s cash balance is positive at year-end in FY 2023 and is projected to worsen by FY 2027. A worsening cash balance can erode the district’s financial stability over time.
- In FY 2023 a revenue shortfall is expected. This means that expenditures are expected to be greater than revenue by $999,382 in FY 2023. By the last year of the forecast, FY 2027, the district is expected to have a revenue shortfall where expenditures are projected to be greater than revenue by $3,311,095. The district would need to cut its FY 2027 projected expenses by 7.19% in order to balance its budget without additional revenue.
The five-year forecast projects an ending cash balance of:
- $8.9 million on June 30, 2023 (fiscal year 2023),
- $7.6 million on June 30, 2024,
- $5.6 million on June 30, 2025,
- $2.9 million on June 30, 2026, and
- (-$411,015) on June 30, 2027.
Please contact Ryan Pendleton, Treasurer, with any questions.