Stow-Munroe Falls treasurer: five-year forecast shows recovery but levy needed to avoid future deficits

The Stow‑Munroe Falls City School District adopted a five‑year financial forecast May 19 showing the district in the black for the current year but projecting significant deficit risk after an emergency levy expires in 2026.

The forecast, presented to the board by Treasurer Patrick Goclano, projects the district will end the current fiscal year with positive cash and said recent emergency levy revenue and other cost‑saving measures helped reverse years of deficit spending. Goclano told the board the district ended a recent fiscal year with roughly $27,000,000 in cash on hand and reported total depositories of about $21,000,000.

The nut graf: the forecast frames the district's near‑term stability as contingent on renewing local levies and on uncertain state action. Without renewal of expiring emergency levies the forecast shows a growing shortfall, with the district projecting a possible $9.3 million deficit in fiscal year 2029 if current levies lapse.

Goclano emphasized the district remains heavily dependent on local property tax levies. He said real‑estate tax levies supply the largest share of local revenue and that state funding growth is forecast to be modest. He noted an emergency levy of $7.9 million passed Nov. 8, 2022, helped stabilize finances and that a separate levy that produces roughly $4.6 million is scheduled to expire in 2026; renewing that revenue is described in the presentation as “very critical to the longevity and financial stability” of the district.

Board members pressed on assumptions and legislative risk. During discussion the treasurer and Superintendent Doctor Gould (superintendent) described current legislative proposals — including multiple bills under consideration at the statehouse and a governor’s budget proposal cited in the presentation — that could reduce state funding or change local levy rules. The treasurer flagged House Bill 96 as an example of proposed legislation that would limit school district carryover balances and alter levy rules; he said outcomes remained uncertain and would be incorporated in the November forecast if enacted.

Board action: the board made a motion to consider and adopt the five‑year forecast and voted unanimously. Roll call recorded Antoinette East Jenkins, Tina Marletti, Carrie Sudolnick and Dr. Wind voting “aye.” The item was listed as the district’s required May filing; the treasurer said the state requires two forecasts annually (November and May).

The presentation outlined steps the district has taken to restrain spending, including limiting replacement hires, shifting some services to contracted vendors, reducing device and cellular costs and cross‑training staff to cover absences rather than hiring temporary replacements. Board members praised the treasurer and superintendent for the turnaround from prior forecasted multi‑year deficits.

Looking ahead, the board and staff said they will continue to plan levy options and scenarios for voters, noting that renewed or new levies will affect the district’s ending cash balance in later forecast years. The treasurer said any major state legislative changes to property tax or foundation funding would be reflected in the November filing when new state data is available.

The vote to accept the forecast was procedural: the board approved the forecast presentation and directed staff to file the May forecast with the state as required.