BEREA, Ohio-During the May 13 Board of Education meeting, Berea City School District Treasurer/CFO Jill Rowe presented the May update of the Five-Year Forecast, indicating deficit spending starting in fiscal year 2025. The forecast reveals a shortfall of $2.6 million in revenue versus expenditures, deepening to $3.5 million in FY26, $4.6 million in FY27, and $5.7 million in FY28.
While acknowledging the need to address deficit spending, Rowe highlighted an increase in reserves compared to the previous forecast in November 2023, offering encouragement. Payroll and benefits constitute 80 percent of total district expenses. Expenditures are expected to rise through FY28, partly due to the discontinuation of federal ESSER funds related to the COVID-19 pandemic.
The district must maintain a cash balance of $8.5 million to $9 million, which is projected to be exceeded through FY28. Most revenue is derived from taxes, with only 13 percent from the state. Rowe anticipates a 25 percent increase in property valuations, but potential tax burden reductions, such as a property valuation freeze, are being considered by state legislators. Rowe emphasized efforts to delay the need for a levy to address financial challenges.
