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Akron board approves 5-year forecast and $30 million bond issuance resolution as treasurer warns of deficits
Summary
Facing projected multi-year deficits and the risk of state receivership, Akron Public Schools’ board unanimously approved the district’s five-year forecast and a bond issuance resolution to fund North High work. The treasurer warned the board the district could face fiscal watch or emergency if structural changes are not made.
The Akron Public Schools board on May 27 approved the district’s five-year forecast and a resolution authorizing the issuance of bond anticipation notes tied to the voter-approved construction program.
Treasurer staff presented the forecast and an analysis of district revenues and expenditures, noting personnel costs make up roughly 81% of the general fund. The treasurer summarized the forecast’s main risks: continued enrollment declines, rising construction costs and the potential for deficits that could trigger state intervention. “Leaving things exactly as they are, we project in 2029 we would be in state receivership,” the treasurer said.
The board voted 6–0 to approve the five-year forecast after a motion by Member Sykes and second by Member Harrison. The same margin approved the April 2025 financial report and a bond issuance resolution that authorizes the district to pursue up to $30 million in bond anticipation notes to fund North High work; staff said the notes are part of the $85 million program voters approved and that pricing will be set during the July offering.
Key elements of the forecast presented to the board included an assumed wage placeholder of 1.75% in the near term, health-insurance escalation assumptions, and planned permanent expenditure reductions of $10 million in fiscal year 2026 and again in 2027. The treasurer also reviewed Ohio’s fiscal intervention triggers: fiscal caution, fiscal watch at an 8% deficit threshold, and fiscal emergency at 15%.
Board members said they had reviewed the forecast at committee and called for continuing cuts and other actions to avoid state fiscal oversight. Member Sykes, the finance committee chair, said the board must make expenditure reductions to avoid “deficit spending” and noted the board would need to find more than the initial $10 million in next-year savings.
The bond issuance resolution passed on a 6–0 vote. The treasurer said the district expects to sell bonds in July and will aim to keep interest rates low to reduce debt-service costs.
