Kent schools report first deficit year since 2014; investments and interest yields fall

Deborah A. Cruz, treasurer and chief financial officer for Kent City Schools, told the board on July 22 that the district closed fiscal year 2025 with a shift into deficit spending, the first such year since fiscal 2014. Cruz said general fund revenue came in at 101.13% of the September 2024 estimates and expenditures were 98.75% of appropriations, but that compared with the May five-year forecast the district’s actual revenue was 98.92% and expenditures 99.48% without the year-end transfer. She said the district began deficit spending in FY25, which will continue under current projections. Cruz reported $1,900,000 invested in a bank certificate of deposit yielding 4.35% that will mature Dec. 19, 2025, and noted the district’s STAR Ohio interest rate had declined about one percentage point over the past year (June yield cited at 4.44%). Cruz said an expected compact service charge payment was delayed and would arrive in the new fiscal year. The board voted to approve the financial reports for the June fiscal-year close. Board members conducted a roll-call vote and approved the item.