CPS treasurer warns of tight budget, $5M shortfall risk and potential state tax changes that could cut millions

Treasurer Augustine and the district finance team told the Cincinnati Public Schools board on Oct. 6 that the district faces a tight fiscal year and uncertain state funding, and urged attention to a renewal levy on the November ballot.

The treasurer’s presentation said the current-year budget target is about $634.7 million and next‑year’s planning target is roughly $634.2 million. The district’s cash‑on‑hand position at June 30, 2025, was about 34 days (about $51 million in cash but only about $33 million unencumbered after outstanding purchase orders). Staff said a mismatch between revenue and expenditures could produce a roughly $5 million gap in the current year, though the district has cash reserves that could cover that shortfall if needed.

Why it matters: the forecast shows most revenue is local property tax (about 58% of projected revenue), with state aid about 29% and other sources 13%. The treasurer emphasized that a renewal levy on the November ballot is integral to keeping assumed revenue levels in place; staff modeled the forecast with and without the renewal and said failing the renewal would drive the district into negative balances in later years.

What staff told the board - Kevin Ashley, director of financial reporting, described the filing deadlines the district must meet and recommended using the traditional five‑year reporting approach for the state filing. He said some November data typically used for forecasting are not yet available because the state changed deadlines. - Ashley said the district adjusted local tax and state aid projections downward this month after seeing slower Class II (commercial/industrial) and public utility collections and higher delinquency rates; the current‑year revenue reduction shown in the forecast was about $3.8 million in local taxes and about $3.1 million in state aid compared with earlier projections. - Ashley noted the state budget left certain base cost factors at 2022 levels, reducing the state funding calculation, while the local capacity factors were updated (which can reduce state support by making districts appear to have greater local capacity). - The treasurer and director warned of a pending state proposal (substitute House Bill 186) that could be applied retroactively; staff estimated the substitute as drafted could cut CPS receipts by roughly $14 million in the current year and as much as $28 million in subsequent years if the retroactive language holds. They said CPS would lose more than many other districts because of its size and property value changes.

Board reaction and next steps Board members asked how the deadline changes affect budget timing and stressed the need to hold appropriations to revenues. Several members urged stronger community engagement and advocacy around House Bill 186 and the levy renewal. The treasurer asked the board to approve the forecast and the notes as part of the Treasurer’s Report for filing by the state deadline.

Ending: Treasurer Augustine told the board the forecast will be filed with the Ohio Department of Education and urged planning for multiple possible outcomes if state revenue or local collections shift.