Three Rivers Local forecasts $1.7 million deficit; board discusses cuts and tax-abatement risk
Summary
The Three Rivers Local School District board reviewed a four-year forecast showing about $27 million in revenue and $28 million in expenses, producing a projected $1.7 million deficit; trustees discussed cost-saving measures, reserve days remaining, and a five-year tax abatement tied to a local power-plant conversion.
Presiding officer (unnamed) said the district’s finance committee reviewed a multi-year forecast showing roughly $27,000,000 in anticipated revenue against about $28,000,000 in expenses, creating a projected $1,700,000 deficit for the coming school year.
The board was told that some of the pressure stems from rising special-education costs and other categorical demands: 42% of students qualify for free lunch and 334 students in the district are designated as gifted, figures the presiding officer cited when outlining budget drivers. "Our total deficit that's forecasted for this school year is 1,700,000.0," the presiding officer said.
Treasurer Missus Reisenberg presented the board’s current fiscal position, reporting a cash balance of $10,397,332 and noting that, at current burn rates, the district has about 143 days of operating reserves (the presiding officer summarized that as about 43 days of runway without new revenue under more constrained scenarios). Reisenberg said year-to-date revenue was up about 1% through October while expenses rose roughly 7%, and that categorical funding was down about $50,000 year-to-date. She also said base aid had increased by about $92,000 compared with the prior year and that the district had not yet received Medicaid reimbursements this fiscal year.
Board members flagged a separate local revenue risk: the presiding officer said a planned conversion of a nearby power plant, spurred by recent legislation referenced in remarks, is expected to generate a five-year tax abatement for the facility’s owners. "They get a 5 year tax abatement," the presiding officer warned, adding the district intends to discuss the conversion with township officials and plant operators to limit local revenue loss.
The board discussed possible cost reductions and operational changes. The presiding officer said the finance committee has identified roughly $500,000 in potential savings without layoffs or academic cuts and that the district would continue evaluating transportation and other operational costs for additional efficiencies.
What’s next: the board said it will monitor the lighting-upgrade grant application (decision expected within weeks) and continue coordinating with township officials on tax-abatement conversations. The treasurer will return with updated revenue and categorical-funding figures at the next reporting cycle.
