Franklin School District discusses budget challenges and revenue growth strategies

The Canal Winchester Local School District Board meeting held on July 14, 2025, focused on the district's financial outlook, highlighting both revenue increases and potential challenges ahead. The discussions were led by Miss Reynolds, who emphasized the strategic decision to incorporate DPIA funding, which has contributed positively to the district's revenue despite a decrease in state funding.

The board noted that while real estate values have risen, this growth may be stunted by the consolidation of the emergency levy into the 20-mill floor. Currently, the emergency levy is separate, allowing for some growth; however, if it is merged, the district could face limitations on future revenue increases. The board expressed concerns that the emergency levy’s decrease would not significantly impact the overall financial floor, potentially leading to stagnation in revenue growth.

In terms of specific financial figures, the district reported an increase in income tax revenue by 9.5%, amounting to $637,000. However, the board anticipates that this year may be the last for substantial property tax growth, projecting a stable revenue of approximately $64 million for the foreseeable future. The board also discussed the implications of the Community Eligibility Provision (CEP) program, which allows all students to receive free meals. While this program has resulted in a net gain of $2.4 million, it is expected to incur losses in food service funding moving forward.

Expenditures were also a key topic, with the board acknowledging an increase in salaries due to the return of $3.5 million from ESSER funds and adjustments to salary schedules. The district has managed to save costs by bringing mechanics in-house, resulting in a $450,000 savings. Overall, the board aims to maintain stability in the budget without impacting educational values, despite the anticipated financial constraints.

The meeting concluded with a review of the district's cash position, which stands at $93.2 million, bolstered by $14 million in borrowed funds. The board highlighted the importance of maintaining cash balances to avoid significant revenue losses from interest earnings, which could have a more detrimental effect than cuts to state funding.

In summary, the Canal Winchester Local School District is navigating a complex financial landscape, balancing revenue growth with potential challenges from state funding changes and the consolidation of levies. The board remains committed to ensuring that educational values are preserved while managing the district's financial health.