New Philadelphia City Schools treasurer warns five-year deficit; board approves fund transfer, contracts and personnel items

New Philadelphia — The New Philadelphia City Schools Board of Education heard a presentation from the district treasurer on the district's five‑year financial forecast and then approved a multi‑item consent package that included a transfer from the special education fund (Fund 28) into the general fund, several vendor agreements and routine personnel actions.

The treasurer told the board that homeowner property values are assessed at 35% of appraised value for tax calculations and that state reimbursements (homestead and rollback) reduce many taxpayers' final bills. The presentation included an example tax card and a demonstration of the county auditor's online tax calculator to show how the assessed value, local effective tax rate and state reimbursements interact.

Why it matters: the treasurer's forecast shows structural pressure on district finances. The presentation projected that, absent changes, the district's fund reserve would be negative by about $8.3 million over the five‑year forecast period. The treasurer said the forecast is “what we know today,” and warned that legislative changes at the state level could alter assumptions used in the projection.

Key figures and drivers cited by the treasurer included: that the county's triennial property reappraisal produced a 23.7% increase overall and the district conservatively projected an 18.224% increase for its budget planning; negotiated raises of 2.75% for certified staff and 3% for classified staff; an estimated 17.2% increase in employee health insurance costs for the upcoming year; and ongoing changes to state aid formulas (including phased reductions in disadvantaged pupil impact funding) that reduce future unrestricted grant amounts.

During discussion board members asked about the mechanics and timing of the triennial update, the role of state reimbursements and the plan to close Fund 28. A staff member explained the district's longstanding practice of depositing Medicaid reimbursements into Fund 28 while expenditures were paid from the general fund; state officials requested that those receipts be aligned with the expenditures, so the district will transfer the balance from Fund 28 into the general fund and close Fund 28.

The board approved the consent agenda by roll call vote. Items listed on the agenda and approved included: an additional charge for chemical disposal to EnviroServe (amount listed in the agenda), an agreement with ECO ESC for vision‑impaired services at $79 per hour plus administrative fees, removal of a chairlift at the high school, an abatement contract for 312 Dawson, excess flood insurance for the Quaker Dome, contracts related to special education placements and services, an engagement letter for the auditor of state for fiscal‑year 2025 audit services, multiple memoranda of understanding for student placements and teacher credentialing, the resolution to transfer and close Fund 28, approval of the presented five‑year forecast, and addenda to the superintendent, assistant superintendent and treasurer contracts. The board also approved routine personnel items including retirements, resignations, hires, supplemental contracts and volunteer approvals.

Votes: the roll call on the consent items recorded four yes votes by board members present (Mister McMath, Miss Fontana, Mister Galentine and Mister Rickwick) and the motion carried.

What stays unresolved: the treasurer repeatedly noted that the forecast is dependent on current law and that pending or potential legislative changes could materially affect revenue assumptions. The board did not take separate, additional action on levy placement or new tax measures at this meeting; the treasurer stated the district will continue to monitor legislative developments and will provide updates.

The board took the actions at the end of the treasurer's presentation and moved on to the remainder of the agenda.