At a meeting on Monday, Oct. 13, the Lorain City School Board heard an October financial forecast showing multi‑year budget shortfalls that could trigger state oversight if revenues are not secured.

The district’s finance presenter told the board that recent state budget changes and local tax decisions have cut expected revenue by millions and that projected deficits grow from about $18 million to $34 million by fiscal year 2029. "The key message is that we still have time to act," the staff member said, urging attention to levy renewals and expense management.

The forecast showed total revenues declining from roughly $96.6 million in fiscal year 2026 to about $87.2 million in fiscal year 2029, while expenditures rise from about $115 million to $121 million over the same period. The presenter said the purple line on the forecast chart — the gap between revenues and spending — widens each year. Ending cash‑balance shortfalls are projected to begin in fiscal year 2027; with no levy renewals the presenter said the district’s ending balance could fall to about negative $79 million by fiscal year 2029 and to about negative $65 million even if levies are renewed.

Officials attributed revenue losses to multiple items: the final ESSER transfer to the general fund, the elimination of supplemental targeted assistance (about $3.5 million per year), roughly $900,000 in state house funding that did not appear in the enacted budget, and three additional changes the presenter called out since August totaling about $1.6 million. Those additional changes include the Lorain County commissioners’ approval of homestead and owner‑occupancy "piggyback" exemptions (about $1 million annual revenue reduction), House Bill 186 (about $200,000), and House Bill 129 (about $400,000).

On the expenditure side, the presenter said capital outlay was about $1.3 million lower than expected because a bus purchase shifted into the next fiscal year, and the district processed a $7 million transfer to the permanent improvement fund in a way staff described as compliant and consistent with legal advice. The forecast also includes $3.95 million in severance and incentive payments for certified staff who participated in the early payment contract and about $3 million in other personnel changes, including negotiated pay increases, additional paraprofessionals, a net reduction of seven teachers from the prior year, and new hires in transportation.

The presenter described Ohio’s three levels of fiscal oversight — fiscal caution, fiscal watch and fiscal emergency — and said that under current projections the district may enter fiscal caution in fiscal year 2026, fiscal watch in fiscal year 2027, and fiscal emergency in fiscal year 2028 absent new revenue or spending changes.

Board members and staff noted that two levy renewals appear on the November ballot: an operating expense levy that generates about $11 million per year and an emergency levy that generates about $3 million per year. The presenter said both renewals are at no additional cost to taxpayers and that the district’s emergency levy currently qualifies for homestead and rollback tax exemptions that give homeowners an estimated 12.5% property tax discount reimbursed by the state; the presenter warned that if the renewal fails and state laws take effect, the district could lose that funding and homeowners could lose the exemption on that levy.

After the forecast presentation the board proceeded through consent and personnel agendas. The board approved minutes and multiple consent items and personnel and operations bundles by roll call. Where noted during roll calls, abstentions were recorded for specific items.

Votes at a glance
- Approval of minutes of the Sept. 22 meeting — approved by roll call.
- Items 8.01–8.03 (consent agenda) — approved by roll call.
- Personnel item 9.01 — approved by roll call; one abstention recorded.
- Personnel items 9.02–9.04 — approved by roll call.
- Personnel items 9.05–9.06 — approved by roll call; one abstention recorded.
- Personnel items 9.07–9.19 (supplemental contracts and annual personnel matters) — approved by roll call.
- Operations items 10.01–10.18 — approved by roll call.
- Motion to adjourn — approved by roll call.

During recognition and public remarks, Julie Garcia, identified as LEA president, announced community and volunteer activities including an alumni mixer after the homecoming game on Oct. 17, the re‑opening of the district Titan shop for orders through Oct. 24, participation in the homecoming parade and a district trunk‑or‑treat Oct. 29, and a pancake breakfast fundraiser in March. Garcia also said the LEA will support local ballot measures (identified in the meeting as Issue 21 and Issue 22) at upcoming events.

The presenter and board emphasized outreach to voters and continued forecasting work: the presenter said future forecasts will be submitted in February and August under the new state schedule and will include three‑year projections. The board left the meeting having approved the listed consent, personnel and operations items and with continuing work planned on levy outreach and budget adjustments.