Solon Board approves five-year forecast, details use of reserve for construction and furniture upgrade

The Solon Board of Education approved the district's required five-year forecast May 5 and discussed how previously accumulated reserves will be spent on construction and facility upgrades as the district phases out transition payments from state tax changes.

Treasurer: "We are still reporting consistent with what we did in November of '24," the district treasurer told the board, describing that the forecast shows the June 30, 2025 cash balance near the mid-20 percent range and projected declines over the next two fiscal years as planned capital spending is realized. "It's really a matter of what the timeliness of payments" related to construction billing, the treasurer added.

The board's action approved the official forecast the district must file with the state under the Ohio Revised Code. Board members approved the submission by motion (moved by Mr. Heckman; second by Mrs. Barksdale) and recorded the vote as approved.

Why it matters: District leaders said the cash reserve was built intentionally years ago as a buffer while the state phased out tangible personal property (TPP) payments and related tax changes. Treasurer comments at the meeting explained the reserve's purpose: to preserve promised educational programming if the district faced an abrupt loss of TPP-related revenue, then to spend the funds on capital needs once the phase-out was complete. The treasurer summarized that plan: "What we decided as a district was to build a cash reserve specifically for the education of our kids" and, once the buffer was no longer required, to spend the dollars on capital improvements and infrastructure needs.

Board discussion noted the timing risk: whether construction invoices will fall in fiscal 2025 or spill into 2026 affects the year-to-year cash balance. The treasurer said current forecasts show roughly 24 percent cash at June 30, 2025; about 23 percent at June 30, 2026; and a projected drop around June 30, 2027 as planned spending continues.

Capital spending authorized: At the meeting the board also authorized a K–6 student furniture replacement and upgrade project to buy and install desks, chairs and stools at Lewis, Parkside and Roxbury elementary schools and Orchard Middle School through a cooperative purchasing contract not to exceed $612,000. The board described the purchase as part of the district's plan to spend reserve funds on infrastructure rather than operating costs once the TPP buffer is no longer needed. The authorized purchase is through a national cooperative contract (Interlocal Purchasing System) and district officials said some of the old furniture will be auctioned with proceeds offsetting costs where possible.

Other budget notes: The board earlier approved payment of bills totaling $41,074.92 and took routine personnel and program votes that appear in the meeting record. Officials emphasized that the five-year forecast and the capital plan were developed through the district's strategic planning process and that the board has sought to be transparent with the community about the timing and purpose of the reserves.

What the board decided and next steps: The board approved the forecast submission required by the Ohio Revised Code. Administrators said they will continue to track construction invoices, update the forecast if timing changes, and communicate to the public how reserve dollars are being used to complete planned infrastructure projects. The board also said it will continue advocacy with state leaders about how cash-balance thresholds in the state budget could affect districts that set aside reserves for planned capital work.