At the September 20, 2021 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 J. 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 to prepare for future funding issues of the district in support of its mission and vision.
- A key tool in meeting the district’s priority 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 2021 5-year Forecast
- The financial forecast was prepared utilizing slightly less conservative estimates of revenue and slightly less liberal estimates of expenditures than 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 2022, this 5-year forecast does not include cost of living adjustments (COLA) for staff beyond fiscal year 2022.
- The five-year forecast projects an ending cash balance of $8 million on June 30, 2022 (fiscal year 2024), $4.7 million on June 30, 2023 and $706,000 on June 30, 2024.
Please contact Paul J. Pestello, Treasurer with any questions. Past forecast and assumptions are posted on the district’s Finance page at kenstonlocal.org.