Twinsburg board adopts five‑year forecast after treasurer warns of projected 2028 shortfall

The Twinsburg City School District Board of Education voted unanimously to adopt the district's five‑year forecast and related financial reports on Oct. 14 after a detailed presentation by district finance staff warning that expenses are projected to outpace revenues and could drive the district into a deficit in fiscal year 2028.

The forecast adopted by the board estimates roughly $60.2 million in general fund revenue for the current year and projects revenue growth of less than 1% annually while projecting expenditures to grow at roughly double that rate. Treasurer Julia told the board, "we went from negative about $8,000,000 to $730,000 negative. That's great progress," while cautioning that the district still faces a shortfall if further action is not taken.

The forecast package, adopted under Ohio law and cited by board staff as required by ORC 5705.391 and ORC 5705.412, will be submitted to the Ohio Department of Education. Julia said the department reviews district forecasts twice a year and will send a letter if a district shows a negative cash balance in any of the first three forecast years. "Because we are showing that negative $730,000 there on line 1001, they will ask us basically, you not have 0 balance..." she said, explaining the department's early warning procedure.

Why it matters: The presentation framed the forecast against broader state legislative proposals and funding uncertainty, including references to House Bill 96 and other pending bills that could change property tax rules and state school funding. Board members emphasized the scale of local reliance on property taxes (noted in the presentation as roughly 82.1% of district revenue) and urged community advocacy at the state level.

Key points from the presentation and board discussion: - The district reported actual general fund revenues of about $60.2 million for the current year and projected expenditures near $64 million, driven largely by payroll and benefits which together account for roughly 82% of expenditures. - The treasurer noted a long‑term loss of revenue from tangible personal property and the shift of the district from formula to guaranteed state funding this year. - Without further actions or additional revenue, the forecast shows the district dipping into a negative ending cash balance in fiscal year 2028, with a shortfall of approximately $730,000 in the forecast model presented. - The board described steps already taken to reduce pressure on the budget, including attrition (the district did not replace five positions), adjusted hiring steps for replacements, and an early‑retirement buyout administered through a third party. Board discussion emphasized the compounding effect of multi‑year savings or costs on the forecast. - Board members urged parents and community members to contact state legislators about proposed changes to school funding and property tax law, saying statewide policy decisions will affect local district finances.

Votes at a glance (consent and action items approved as read into the record): - H1–H4: Approval of meeting minutes (08/20/2025, 09/03/2025), August 2025 financial reports, August expenditures, and adoption of the five‑year forecast and exceptions (ORC 5705.391 and 5705.412). Outcome: Approved 5–0. (Motion: Ms. Egan; second: Ms. Hamilton.) - I1–I4: Certified and classified staff recommendations, substitute/contract recommendations and supplemental activity contracts (pending satisfactory ORC background checks). Outcome: Approved 5–0. (Mover: Ms. Davis; second: Ms. Travis.) - I5: Additional certified staff recommendation exhibit (personnel) — outcome: Approved 4–0–1 (one abstention recorded). (Mover: Ms. Hamilton; second: Ms. Keegan.) - OHSAA tournament workers recommendations (personnel) — outcome: Approved 5–0. - J1–J14: Routine business items including deletion of media center inventory; amendment to school health services agreement with Akron Children's Hospital for nursing on a student trip (additional cost $2,358, paid from trip funds); contract for professional development with Express Your Self Speech Therapy LLC ($750, Title II A); contract for services for therapeutic supports and homebound instruction (Barnwell) with tuition not to exceed $2,899 plus 33% administrative costs; affiliation agreement with Capella University for practicum placements; and extended overnight athletic trip approvals (cross country, wrestling, basketball) to be paid by boosters where noted. Outcome: Approved; several athletics/trip items passed with a 4–0–1 tally due to an abstention on one personnel/trip vote. - J15: Approval of revised/rescinded board policies and bylaws as presented. Outcome: Approved 5–0. - J16: Approval of a 2% compensation increase for Educational Service Center of Northeast Ohio employees assigned to the district; outcome passed with recorded abstentions (approved with abstentions noted in the minutes).

What the board directed next: Administration and the board will continue to update the forecast as new information becomes available, including any changes from the state legislature or finalized labor agreements. The treasurer and superintendent said they will pursue continued expense reductions where feasible and keep the community informed about the forecast and any recommended policy options.

Context and background: Board members referenced House Bill 96, recent changes to forecast submission timing, and the longer trend of local revenue reliance driven by property taxes. The treasurer recommended continuing to model a five‑year forecast for planning purposes even though state submission rules were adjusted to a four‑year cycle.

Ending: Board members described the forecast as a tool for long‑range planning and thanked staff for identifying savings that reduced the forecasted deficit from earlier projections. The board accepted the treasurer's recommendation to submit the adopted forecast to the Ohio Department of Education and to continue work on balancing the long‑term budget.