Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance Forecast topic
No spam. Unsubscribe anytime.
Board approves permanent appropriations, monthly finance report and five-year forecast as treasurer warns of midterm deficits
Summary
The Akron School Board approved the permanent appropriations resolution, the August financial report and the district's five-year forecast. Treasurer and staff projected growing deficits by 2028 without cost reductions; presenters recommended early action and a performance audit.
The Akron Board of Education on Monday approved a package of financial items including the permanent appropriations resolution for fiscal year 2026, the district's monthly financial report for August and an updated five-year forecast — votes that followed brief committee review and presentations by the treasurer.
Treasurer Michael Bowers (board transcript reference: Mr. Bowers) said the early months of the fiscal year showed stronger-than-expected revenue tied to a new levy and modestly lower expenses, producing a short-term cash benefit. "So far this year, we are up $18,400,000 in revenue and expenses are down $6,500,000," the treasurer reported during the meeting.
Why it matters: despite early-year positive cash flow driven largely by the new levy, the district's long-range model showed deteriorating reserves without further cost reductions. The five-year forecast presented by the treasurer projects cumulative deficits and a potential cash shortfall by fiscal 2028 unless the district reduces expenses, reexamines contracts and addresses enrollment trends.
Forecast highlights and risks - Projected shortfall: The forecast projects operating deficits that could result in a negative cash balance around June 30, 2028, if current trends continue; the presentation estimated a multi-year overspend of roughly $160 million across five years and an end balance dipping into deficit in 2028 on the current path. - Drivers: the projection attributes the trend to expenditures outpacing revenue growth, slow enrollment declines (about 1% annually), and rising personnel and fixed costs. - Recommended actions: staff recommended earlier review of the district footprint, contracted services, overtime and other expenditure lines; the treasurer noted a performance audit was underway to identify additional savings.
Board action and vote tally (procedural) - Permanent appropriations resolution (in accordance with Ohio Revised Code): moved by Member Sykes, second by Member Hall; roll call approved 7-0. - Monthly finance report (August): motion to approve moved by Member Sykes, seconded by Vice President Alexander; roll call approved 7-0. - Five-year forecast (fall submission): motion to approve moved by Member Sykes, second by Member Hall; roll call approved 7-0.
What officials said: Treasurer Bowers urged urgency: "On the current path the district is on, we'll be facing some serious financial difficulty in the 2028 school year. It isn't too late to make decisions that will positively influence this path, and I recommend that we start doing that now." Board Finance Chair Member Sykes said the finance committee is reviewing options and acknowledged difficult choices ahead.
Next steps: the board approved the documents and directed continued committee work and the forthcoming performance audit to identify savings. No hiring or program eliminations were announced at the meeting; board members said further decisions will follow the audit and budget-process discussions.
Votes at meeting: the items above were approved by roll call votes; full vote records and supporting documents were provided to the board and placed in the meeting packet.
