Sylvania Schools projects $8 million gap over five years; treasurer to submit midyear forecast

Sylvania Board of Education Treasurer Adam Polk told the board on May 19 that the district's midyear five-year financial forecast projects revenue rising from about $104 million in fiscal 2025 to roughly $106 million by fiscal 2029 while expenses grow from about $110 million to $118 million, producing an $8 million-plus gap over the five-year window.

Polk said the district expects an ending general-fund balance of a little more than $31 million at the close of fiscal 2025 but projected that balance will decline over the forecast period if current revenue and expense trends continue. "We're still slated to get over $2,000,000 in interest revenue," Polk said, noting that a high fund balance and strong investment returns helped the district this year but that interest receipts are likely to decline in coming years.

Why it matters: the forecast shows expenses rising faster than revenue and identifies special education costs, salary-and-benefit increases and certain one-time timing effects as primary drivers. Polk told the board that salaries and benefits account for about 80% of district spending and that special education expenses have grown substantially over the past six years. "It isn't so much that the population is growing," Superintendent Dr. Vince Motley said during the discussion, "but more that the needs are more intense, and those are more costly."

Most important details

- Revenue and reserves: Polk presented $104 million in forecasted revenue for fiscal 2025 and an ending fund balance just over $31 million. He forecast modest revenue growth of roughly 1% annually on average over the five-year period, arriving at about $106 million by fiscal 2029.

- Expense drivers: Polk said salaries and benefits remain the largest expense (about 80%). He identified rising special education costs (roughly a $3 million increase from 2018 to 2024), transportation (about a 27% increase since 2018), IT services, student support and utilities as significant growth areas.

- One-time timing and collections: Polk said district valuation rose about 29% this year but that Ohio's House Bill 920 reduced effective rates, so property-tax revenue rose only about 2%. He also reported a delinquent public-utility payment of roughly $3.35 million that reduced collections this year but should produce extra receipts next fiscal year when those funds are collected.

- Savings and reserves: Polk attributed roughly $9.4 million in avoided costs over two years to a change in health-insurance arrangements, and he said the district is transferring $6.7 million in fiscal 2025 into a new capital projects fund as a reserve for roofs, vehicles and other capital needs. The district also plans to transfer $900,000 annually to a severance fund beginning in fiscal 2026 to cover anticipated retirements.

Board discussion, planned actions and constraints

Polk outlined cost-cutting measures the district is pursuing, including staffing reductions via attrition and targeted cuts to contracted services and supply budgets to realize roughly $2 million in savings next year (about $1.7 million from staffing and $175,000 from materials and supplies). He said negotiated labor agreements run through July 1, 2026, and noted a recent change in retirement-eligibility rules that could increase retirements in the coming year.

Polk said he took a conservative approach in the forecast and flat-lined state unrestricted and restricted aid because the Ohio state budget remained unsettled; he intends to update the board in July after the budget is finalized. "I'll definitely update in July with the state budget," Polk said.

Formal action: The board voted to approve and submit the financial forecast by May 31, as required. The motion carried unanimously.

Context and next steps

Polk said the district will publish the presentation and detailed notes on its website and will revisit the forecast in July and again with a full update in November. Board members thanked Polk for the clarity of the presentation and for the graphics used to make complex budget information more accessible. Dr. Motley praised Polk's work: "You take some pretty complex information and make it easier for Joe Public to understand revenue [and] expenses," Motley said.

Polk warned that the forecast relies on assumptions that could change with the final state budget and with the timing of certain collections, and he said staff will continue to pursue efficiencies and monitor enrollment and program costs.

Ending

The board approved submission of the forecast and will revisit the figures in July after the state budget and again in November as part of its routine forecasting cycle.