Kings Local treasurer warns of long-term deficit; board approves updated five‑year forecast and personnel MOU

Kings Local School District officials told the school board that projected revenues are flat while expenses are rising with inflation, prompting an updated five‑year forecast and administrative steps to reduce future budget pressure.

Treasurer and staff presented a forecast that showed district spending rising while state and property‑tax revenue growth remains limited. The presentation noted the district spent “just over $14,000 per student last year,” compared with a state average “just below $16,000,” and that Kings expects to finish the fiscal year with roughly 66 days cash on hand. The report said recent county property‑value growth (about 25 percent) produced only a roughly 2 percent revenue increase to the district under Ohio law.

Officials told the board the state’s funding formula reduced the district’s state aid by about $270,000 in the current year and that the governor’s initial budget proposal could further reduce funding by $800,000–$900,000 next year if enacted as proposed. The presentation also listed recurring federal revenues of about $1.8 million (including IDEA and Title I funds) and roughly $2.0 million in food‑service reimbursements.

To address the forecast, the board was presented with a package of cost‑management steps the administration has been pursuing: reviewing open positions before hiring, strategic hiring to reduce salary cost, transportation schedule changes, building budget reductions (7 percent over two years), a personnel‑savings plan that rehired eligible retirees at a lower pay rate, and health‑insurance initiatives. The board and administration said these steps have produced or identified approximately $7.2 million in savings or additional revenue to date and aim to grow that amount toward $8.0 million.

Two forecast changes were highlighted in the resubmission to the Ohio Department of Education: reducing the placeholder for additional staff due to growth (from five teachers and two support staff down to two teachers) and assuming no base wage increases for all staff in fiscal 2026–27 under the forecast scenario. The district said those two changes helped avoid being placed under a formal “precautionary written plan” with the department.

The board approved routine consent items that included the treasurer’s financial items, assistant superintendent HR/business items (which included the personnel savings MOU), and assistant superintendent educational program items. The personnel savings plan (an MOU with eligible retirees rehired at a reduced rate to allow them to draw retirement while continuing to teach) was described as having saved “north of $900,000” over recent years. The meeting record shows motions and seconds for the approvals and recorded “Yes” votes during roll call; the transcript records unanimous approval without a detailed roll‑call list mapping every vote to a specific name.

Why it matters: the forecast signals a long‑term budget gap unless the district increases revenue, implements additional cost reductions or both. District leaders are engaging community and county partners to pursue advocacy at the state level and continuing local cost‑containment efforts ahead of upcoming contract negotiations.

Ending: The board also voted to enter executive session to consider the compensation of a public employee; the meeting adjourned after executive session.