Marlington Local projects balanced budget next year; approves $3.2 million pipeline transfer for capital projects

Marlington Local School Board on May 8 approved the district's five‑year forecast and a set of transfers that move one‑time pipeline settlement proceeds into capital projects to pay planned construction and a high school roof replacement.

The move follows a presentation by Ryan Gazzini, who summarized the forecast and the near‑term budget picture. "The district is looking to have a balanced budget next year," Gazzini said, adding the district expects an operating surplus in 2026 before returning to a projected deficit in 2027. "Part of the difficult thing...is there is a lot of different legislation out there, in regards to property taxes, property values, how the appraisal works," he told the board.

Why it matters: the board and district leaders said the one‑time pipeline funds let the district address multi‑year capital needs without increasing taxes, but they emphasized the longer‑term outlook depends on state budget outcomes and future enrollment and staffing decisions.

Most important facts first: the board approved a set of budget actions including the five‑year forecast and transfers moving about $3.2 million of pipeline settlement money into Fund 070 (capital projects). Superintendent Dan Swisher (listed in the meeting as Dan Swisher) said the district's total pipeline receipts for the year will be roughly $3.8 million and that the fall 'first half' settlement had been about $686,000. "Moving forward...we're just gonna be on a set cycle of about $1.8 to $1.9 million a year," Swisher said of ongoing pipeline receipts.

Board action and votes: the five‑year forecast and the transfer resolutions were approved on roll call with all voting members recorded as "yes." The board also approved the district's forecasts and supplemental appropriation changes necessary to move the pipeline funds into the capital projects fund.

Supporting details: Gazzini walked the board through drivers behind the forecast changes: higher than expected transfers into capital due to the pipeline settlement, severance payouts this year for recent retirees and anticipated salary savings next year as several positions are not being filled. "Part of your deficit spent this year is being offset by the savings for next year," Gazzini said. Superintendent Swisher said the district has not recommended replacement for 24 positions in the last three years, which he quantified as roughly $2.2 million in salary and benefits savings to date.

Officials flagged a pending state budget provision under discussion in Columbus that would cap allowable cash carryover for school districts. Swisher and Gazzini described the House and governor's proposals as different; the House proposal in their presentation included language that would limit districts to roughly 30% cash balance and could trigger adjustments to property tax millage calculations. "That does not apparently apply to the district," Gazzini said about one provision, but he warned that the senate's final version and the conference committee outcome will determine the ultimate effect.

Capital plan and timing: administrators said the largest near‑term project funded by the pipeline transfer is the high school roof, with other building projects included in a multi‑year capital improvement plan. Swisher said the board and administration expect to spend roughly $3.2 million on capital projects in the coming cycle, with the roof accounting for a substantial portion of that total.

Next steps: district staff said they will continue to monitor state budget negotiations, update the five‑year forecast as new information arrives and post capital project details to the board's public documents. The board authorized the transfers and asked administration to report back if legislative action changes the forecast assumptions.