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Treasure's May forecast: unexpected TIF revenue eases near-term pressure; board told levy likely not needed until 2029 under current assumptions
Summary
Forest Hills Treasurer Atlanta Carver told the board the district ended fiscal 2025 with an increased cash balance driven in part by an unexpected 1.2 million dollar TIF valuation increase; under current assumptions expenditures outpace revenues late in the five‑year forecast and a future levy would be considered in fiscal 2029.
Forest Hills Local School District Treasurer Atlanta Carver presented the required May update to the district's five-year forecast at the board's May 20 meeting, reporting a stronger-than-expected cash position for fiscal year 2025 and describing key risks the district is watching in state budget proposals.
Carver said the district expects to end fiscal 2025 with roughly $34.6 million in cash on hand and 125 days of cash — 110 days when encumbrances are deducted — an increase driven by larger-than-expected TIF receipts. "TIF revenues increased by $1.2 million this year," Carver told the board, attributing the jump to new apartment valuations coming online in the township.
The treasurer warned the board that while the district's current cash position is solid, assumptions in the forecast mean expenditures will begin outpacing revenues in later years. "Under our current assumptions, expenditures start to exceed revenue in fiscal year 2028 and the first clear net shortfall appears in fiscal year 2029," Carver said. The presentation lists projected increases in salaries and benefits and planned course-of-study adoption costs as drivers that widen deficits in the latter years of the forecast.
Carver and board members also discussed proposed state changes. The treasurer noted House proposals that would cap year-end balances and other budget changes that could reduce state payments. "If the state adopts a 30% ending-balance cap on the general fund, that would affect districts differently; we are taking steps now to reserve funds conservatively," Carver said. Board members asked about transfer strategies to other funds to protect locally raised funds should a cap take effect.
Carver described the forecast as a planning tool that will be adjusted as new state budget information arrives. She said the board should expect further updates and that, given current assumptions, the district would likely need to consider a levy in fiscal year 2029 unless the state funding picture changes.
Ending Carver recommended continued monitoring and asked the board to consider a short one‑pager explaining forecast assumptions for public transparency; several board members supported releasing simpler public-facing assumptions alongside the full forecast.
