Wooster schools to move $23 million to capital fund after state budget changes

The Wooster City School District Board of Education approved amended fiscal-year 2025 appropriations and a set of fund transfers that include a $23,000,000 transfer into the district’s 070 capital projects account after changes in the state budget, board members said Tuesday.

The action, approved as part of the treasurer’s report, adjusts the district’s amended appropriations to $93,057,123.10 and moves excess operating cash into the capital projects fund to comply with a state budget cash-balance provision. The treasurer’s presentation said the transfer would move the district to a 40% cash balance as described in the conference committee version of the state budget and that the governor has until July 1 to line-item veto portions of the bill.

District Treasurer Amy (identified in the meeting transcript by her first name) told the board the transfer is reversible if the governor vetoes the provision: “Yes. We can transfer that back to general fund.” She also described the transfer as administrative: the money will be held in the capital projects account and “it’s not like we have to spend that within this fiscal year,” and any spending plan would be developed over the coming months.

Why it matters: The transfer is intended to preserve operating capacity while allowing the district to set aside funds for capital projects. Board members said the district will evaluate facility needs and present options to the community, aiming to have clearer plans “by around the first of the year.” The treasurer noted the transferred funds must be spent within 10 years under the budget language the district is following.

In addition to the classroom-facilities transfer, the board approved year-end advances totaling $273,679 from the general fund to cover temporary negative balances in grant and other funds that are awaiting state reimbursement. The treasurer explained these negative balances are timing issues tied to encumbrances and reimbursement requests: “It’s just bookkeeping. It is timing.”

The board also approved other interfund moves requested to close the year, including a permanent transfer to cover an athletic fund shortfall and a $350,000 transfer to the termination/ severance (termination benefits) fund to cover retirements. A transfer requested by Heidi Haas, principal at Edgewood, moved small remaining balances from the Edgewood school store fund into her administrative fund; the principal requested the transfer because the school store fund is no longer used.

Trustees approved temporary appropriations for fiscal year 2026 that give the district spending authority starting July 1, 2025. The temporary FY2026 appropriations total $70,901,833; the treasurer said the amount is provisional and will be updated in October after more complete information is available. For the capital projects fund the treasurer initially set $3,000,000 as temporary authority while the district develops a longer-term spending plan.

Board votes: The motions on amended appropriations, advances, transfers and temporary appropriations were each moved and seconded and recorded with board members voting in favor. During roll call on multiple motions the transcript records votes as: Goodwright Yes; Starcher Yes; Austin Yes; Kleinhenz Yes; (a roll-call entry also records Whitehead Yes for one vote). No opposing votes or abstentions were recorded in the transcript excerpts for these items.

Background and next steps: Board members and administrators said they will use the next several months to refine capital planning and to determine how best to deploy the newly available funds while preserving operating stability. The treasurer said the district will revisit any vetoed items at the July 15 meeting if the governor takes action.

The board approved these fiscal items during its regular meeting without further public comment on the measures.