Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Forecast topic
No spam. Unsubscribe anytime.
Treasurer warns of near‑term deficit and state‑level risks as board amends appropriations
Summary
Treasurer Patrick Gallano presented a five‑year forecast citing House Bill 96 and other pending property‑tax proposals as risks to local funding, reported a projected FY26 deficit of roughly $600,000 (October forecast) versus a May cash position, and the board approved an amendment to appropriations to align with the current forecast.
The Stow‑Munroe Falls City School District board on Oct. 14 approved an amendment to fiscal‑year 2026 appropriations after Treasurer Patrick Gallano presented an updated five‑year forecast that showed a tightening cash position and several significant state and federal risks.
Gallano told the board the October forecast projects a roughly $619,845 deficit for the current year (a swing of about $1.3 million to $1.4 million compared with the May forecast), driven by higher purchase‑service costs (including utilities and contractor substitutes), rising substitute and class‑coverage costs, and other pressures. Federal grant funding of approximately $1.9 million was noted as at‑risk if federal enforcement or oversight activities change; the treasurer said state‑level proposals including House Bill 96 and several companion bills could further reduce local property‑tax receipts or change levy structures.
The treasurer identified specific fiscal items and timing: utilities are trending from roughly $700,000 last year toward a projected total over $1 million for the current year; purchase services increased in the forecast by about $1.38 million from May to October; the district is roughly 70% locally funded and 29.5% state funded in the current revenue mix. He also described an expiring levy (a renewal set to lapse Dec. 31, 2026) and noted that if the renewal does not pass, the district could lose $2.5 million next year and face accelerated cash depletion; in the worst‑case scenarios he described, the district could face zero cash balance earlier than previously projected.
Board members pressed for concrete comparisons between May and October numbers and asked for scenario analysis (best/worst/medium cases) tied to the pending state decisions. Gallano said staff are working on a levy analysis and department‑level budget reviews and that he would provide more granular source documents and an options timeline. The board voted by roll call to amend appropriations to match the current forecast.
Ending: The forecast presentation set a near‑term budgetary agenda item for the board: staff will prepare more detailed levy scenarios, department spending reviews and contingency plans for an a/b/c scenario so the board can weigh programs, staffing and potential new‑money or renewal levy options in coming months.
