Monroe Local board approves $13.6 million in year‑end transfers as state budget uncertainty looms

The Monroe Local Schools Board of Education on June 23 approved a package of year‑end financial moves, including creation of a termination benefits fund and establishment of a $12 million capital reserve fund, as district officials said a pending state budget could force quick changes to how school carryover balances are regulated.

Treasurer Amy Moore told the board the measures were prompted by language in the state budget and a proposed 50% limit on carryover balances that could be applied to school districts. "We don't know which numbers they plan to use," Moore said, explaining the district must move funds now to comply with multiple possible interpretations of the pending rules.

Moore recommended an initial transfer of $1,572,300 into a newly created termination benefits fund to cover accrued compensated absences and severance liabilities and to prepare for an expected increase in retirements. The board also approved establishing the Capital Reserve Fund (070) and an initial transfer that includes $12,000,000 to support planned capital projects already in the district forecast, Moore said. She noted planned uses already budgeted: a $2,900,000 transfer for the gym infill project, multi‑year debt support for the new high school and other permanent improvement work.

Board members moved through the consent items in a series of roll‑call votes. The motion to establish the termination benefits fund was moved by Mr. Leeds and seconded by Mr. Grant; the motion carried on the roll call. The capital reserve fund motion was moved by Mr. Fulham and seconded by Mrs. Hagedorn and also carried. The board subsequently approved a June update to the district's five‑year forecast, the final appropriations for fiscal year 2025 and additional cash transfers; those votes were recorded as passed.

Moore and board members discussed the limits on carryover that the legislature might adopt and the practical implications for encumbrances and operating cash. Moore said the capital reserve fund is the most flexible vehicle the district can use: "If for some reason, anytime during that 10 years, something's not gonna come to fruition or we just decide not to go with it, we can rescind that fund, and whatever the balance is at that moment in time will go back to general fund." She added that transfers authorized tonight must be executed as approved unless the board calls a special or emergency meeting before the fiscal year close.

Discussion: Board members repeatedly expressed frustration with the pace and content of the state budget process and urged residents to contact legislators; however, the board did not propose local policy changes in response, instead authorizing the transfers as a conservative step to reduce exposure to an uncertain state rule.

Decisions: The board approved (a) creation of a termination benefits fund and a $1,572,300 initial transfer, (b) establishment of Capital Reserve Fund 070 and authorization of a $12,000,000 initial transfer, (c) a June five‑year forecast update, (d) final fiscal‑year 2025 appropriations, (e) additional fund cash transfers, and (f) initial temporary appropriations for fiscal year 2026.

Why it matters: The actions move district reserves into legally specified funds and earmark money for capital projects and employee liabilities. Moore and the board said the moves are designed to respond to pending state budget provisions that could force districts to limit or reclassify fund balances on short notice.

What’s next: Moore said some transfers already have been made where appropriate and that the district will continue to monitor guidance from the Ohio auditor and the Ohio Revised Code for final clarity on the 50% carryover calculation. The board may call a special meeting if the legislature finalizes language that requires adjustments.