Marion board approves fiscal forecast showing roughly $4.3 million deficit; trustees and staff weigh levy and spending options

The Marion City Schools Board of Education voted Oct. 20 to approve the district’s fiscal forecast, which projects a roughly $4.3 million deficit for fiscal year 2026 and shows the district drawing down reserves if revenue and expense trends continue.

Treasurer Jolene (last name not specified) presented the forecast and told the board the district expects to spend about $4 million more than it will collect this year, leaving a projected cash balance near $19 million by year end and a drop in days cash on hand from 139 at the end of fiscal 2025 to approximately 109 in fiscal 2026.

Why this matters: the forecast frames near‑term board decisions about levies, program funding and longer‑range budget reductions. Board members pressed staff for specifics about the deficit drivers and options for balancing future budgets.

What the forecast shows

- A projected operating deficit of about $4.3 million in fiscal 2026 as presented by the treasurer. - The district’s projected cash balance near $19 million at fiscal year end and days cash on hand declining from 139 to about 109. - Personnel costs (salaries and benefits) account for the largest share of expenditures; the treasurer and board discussed that rising salary/benefit costs, higher utilities and lost one‑time federal funds (ESSER) contributed to the gap. - The treasurer warned that pending state property tax reform could reduce local tax revenue by roughly $800,000 in the projection, increasing the deficit to about $5 million if enacted as currently discussed.

Board discussion and next steps

Board members asked for itemized detail on the drivers of the deficit. Member Ratliff pressed staff about where the $4.3 million shortfall originates and whether the board’s prior decisions (for example, salary increases) accounted for the rise. Staff said the budget reflects multiple causes: prior deficit spending, lost federal ESSER funding that previously covered some positions and programs, rising utility and purchase‑service costs, plus certain one‑time contract payments that front‑load expenses in the current fiscal year.

Treasurer Jolene said the state required the district to begin reporting restricted revenue and expenditures in a separate special cost center; that change affects presentation but not the total general fund balance. She also noted the district cannot renew an existing emergency levy under recent law changes and that the current emergency levy collections run through 2027 (tax year 2026, collection year 2027).

Votes at a glance

- Forecast approval: Motion to approve the October forecast was seconded and approved by roll call: Mister Geier — yes; Missus Dyer — yes; Mister Ratliff — yes; Mister Weidling — yes. - Financial approvals and donations: The board approved September checks, fund and financial reports, an amendment to fiscal 2026 appropriations, and a set of donations: $1,000 from the Warren Brown Family Foundation for a scholarship fund, a $1,110.10 in‑kind meal donation from House of Hunan, a $20 gift card for an employee raffle, and $5,000 from the Merle and Peg Hamilton Foundation to a PBIS fund.

Board direction and follow‑up

Board members asked staff to produce a line‑by‑line accounting of major expenditure increases, focusing on purchase services, utilities, special education costs, and the effects of prior ESSER funding expirations. Trustees discussed the need to consider revenue options — such as a replacement levy — and to refine communications to the public about any future request.

The treasurer said staff will provide more detail in upcoming committee meetings and that the board’s finance subcommittee has reviewed the forecast. The board approved the forecast as presented and directed administration to return with further analysis of options to address the projected deficit.