The Canfield Local Board of Education on Oct. 8 adopted a three-year financial forecast that projects the district will rely on carryover cash to cover operations and identified two paths to fiscal balance: increase revenue or reduce expenses.

The superintendent presented the forecast and the treasurer’s office noted the district received the second half of the 2025 real estate tax settlement, producing a marked month-to-month increase in general fund cash. Officials also reported higher monthly expenses tied to a three-pay payroll month, outstanding purchase orders including a $552,007.31 pavement contract for the high school parking lot and a $153,009.85 annual property/fleet/liability insurance payment. The board voted to adopt the forecast unanimously.

Why it matters: the forecast shows personnel costs — salaries and benefits — drive 83–87% of spending and that contractual salary increases and projected health-care inflation are principal pressures. The treasurer and district staff stressed the forecast assumes current law; pending property-tax reform bills in the Ohio legislature could materially alter the numbers.

Supporting details: the district budgeted contractual salary increases of 3% for fiscal years 2026–2028 and a 7% health-care increase for the coming year with 10% increases projected thereafter. Staff said the district is currently “deficit spending,” meaning it is drawing on carryover balances rather than operating revenue to meet expenditures. The treasurer reported sweep interest of about $85,000 for the month and highlighted several capital-related purchase orders, including a $33,308 walk-in cooler and a transit van purchase to support special-education transportation.

Board response and next steps: board members discussed the need to educate the community about school finance and the timing of any levy request. The district noted it has not gone to voters for operating funds in 12 years and that facilities remain a priority, but that action is paused because of the upcoming board election and ongoing facilities planning. Officials said they will continue to monitor state legislative activity and consider whether to pursue renewal or new levies to address structural shortfalls.

The board adopted the forecast by roll-call vote with all members voting yes. The district plans additional public engagement about the forecast and cautioned that legislative changes could require updates to the plan.