Treasurer warns of multi-year shortfall; property tax changes and levy limits create uncertainty for Cuyahoga Falls schools

Cuyahoga Falls City School District—s treasurer told the board on Oct. 8 that the district is projecting a multiyear operating shortfall unless revenue increases or expenditure reductions are enacted.

The presentation of the official forecast (the district continues to maintain a five-year planning outlook even though state submission is four years) showed a pattern of expenditures outpacing revenue and projected a revenue gap by fiscal 2029. The treasurer said the district would need either a 4.76% revenue increase or roughly $4.2 million in expenditure reductions to balance the fifth-year projection.

The forecast highlighted three locally voted levies the district relies on: a 9.97-mill levy on the ballot in November, a 4-mill building levy enacted in 2019 that expires with collection in 2029, and a 3.7-mill levy that expires with collection in 2027. The treasurer noted significant policy uncertainty from the state: the legislature recently acted on parts of the governor—s property-tax reform recommendations and the Senate voted to override vetoes affecting emergency-levy renewals, meaning the district may no longer be able to renew certain emergency levies in their current form.

The treasurer also summarized key state-level fiscal drivers: continued phase-in of the Fair School Funding Plan (with some transition guarantees in place), transportation and performance supplements, and the expansion of scholarship/EdChoice enrollments that shifts state dollars to private-scholarship programs at a faster rate than the public-school funding increases.

On one-time resources and capital funds, the forecast assumed a reduced, conservative estimate of proceeds from building sales and noted $3.0—3.5 million of LFI (local facilities improvement) funds and interest that the district expects to be available for capital projects once state closeout and OFCC (Office of Facilities Construction Commission) processes are complete. The treasurer said the district could use those LFI interest proceeds to cover a near-term large HVAC payment if necessary, but cautioned that final closeout amounts and allowable uses will be determined by OFCC.

Key numbers and assumptions cited by the treasurer and staff: - State share per pupil in the forecast drops toward $824 in later years under the formula assumptions used (the treasurer noted guarantees will mitigate immediate losses through the forecast window). - The district projects modest annual revenue growth (about 0.8% in the near term) while expenditures continue to rise, driven largely by personnel costs and volatile medical-insurance claims. - Carryover/cash position is projected to decline to below 1% of operating in the near term and to negative in later forecast years absent action; the district reported 7.75% carryover at the close of the prior fiscal year.

Board members asked about levy timing and public communications; the treasurer said the district will continue five-year internal planning, submit the state-required four-year forecast, and update the board at the February forecast and earlier if legislative changes alter assumptions.

The treasurer recommended a mix of continuing cost-control measures, a previously adopted financial recovery plan and community outreach about levies as the principal paths to a balanced long-term plan.