Lorain City treasurer warns state budget cuts will drive multi‑year deficits; two levy renewals set for November

The Lorain City Board of Education on Aug. 11 received an updated fiscal forecast showing immediate revenue gains from state adjustments but a long‑term decline tied to the state budget and the elimination of a supplemental targeted assistance program.

The update from the district treasurer said the final state budget, which was finalized June 30, reduced some proposed funding included in May projections and eliminated a supplemental targeted assistance program that supported lower‑wealth districts. The treasurer said the district stands to lose “over $3,500,000” because the targeted assistance funding was removed and that other program changes produced mixed impacts, including a roughly $155,000 increase in a per‑pupil supplement and about $170,000 more for threshold (catastrophic) special‑education reimbursements.

Why it matters: The treasurer’s numbers show the district finishing fiscal 2025 with cash balances above the May forecast, in part because of timing differences and one‑time adjustments, but the changes to recurring state aid swing future years into deficits. With levy renewals assumed, the forecast projects deficits beginning in fiscal 2028 and growing to tens of millions by fiscal 2029. Without renewals, the district’s projected shortfalls begin sooner and grow larger.

Key details from the presentation: the treasurer said lines 1.06 through 2.06 revenues closed lower than expected, largely because a previously projected State House funding package for fiscal years 2026–27 did not appear in the final budget. The district recorded lower-than-expected capital outlay spending—about $1.3 million—because a school bus purchase happened in the next fiscal year, and the treasurer described a $7.0 million transfer to the permanent improvement fund that was left in the general fund after counsel advised that recoding individual line items was unnecessary when the transfer is completed in the same fiscal year.

The district is planning two renewal levies for the November ballot: an operating expense levy estimated to generate about $11,000,000 per year and an emergency levy expected to generate about $3,000,000 per year; both renewals were described by staff as “no additional cost to taxpayers.” The treasurer also noted that a $41,000,000 bond issued in 2001 will expire at the end of the calendar year, producing a tax decrease for residents; the 2001 classroom facilities levy (the 034 maintenance fund) already expired at the end of calendar year 2024.

Board action: At the meeting, the board approved consent items grouped as 8.01–8.08, which the chair said included acknowledgements of donor gifts (examples referenced by staff: $1,000 from Ohio State Eagles, $6,000 from American Legion Post 30, $10,000 from Nordson Corporation). The motion to approve those items passed on the board’s roll call.

The treasurer told the board the state will change forecast‑reporting dates (next forecast due Oct. 15; thereafter forecasts due in February and August) and that forecasts will include the current budget plus three‑year projections instead of the previous five‑year format. Staff said they will keep reviewing programs and levy timing as they prepare those required forecasts.

Looking ahead: The treasurer emphasized the forecasts are projections and will change as new state actions (vetoes or subsequent legislation) occur. The district will continue to assess program effectiveness, monitor levies, and keep the public informed.