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Canfield board adopts three-year financial forecast, flags deficit spending and levy choices
Summary
The Canfield Local Board of Education adopted a three-year financial forecast showing deficit spending driven by personnel and rising health-care costs; trustees discussed levies, state tax-reform uncertainty and the need to educate voters about school finance.
The Canfield Local Board of Education voted Oct. 8 to adopt a three-year financial forecast that projects ongoing deficit spending unless the district increases revenue or reduces expenses.
Board members approved the forecast after a presentation from district finance staff showing the two principal revenue streams are property taxes and the state foundation. The forecast, which covers the current fiscal year plus three forecast years, assumes negotiated 3% payroll increases and healthcare cost increases the presentation estimated at 7% for 2025 and 10% in subsequent years.
"We are deficit spending at this time," the finance presenter said, adding the district is using carryover cash to operate. The presenter noted a roughly $140,000 performance supplement tied to the district’s 2025 report card that will flow into the forecast under current law. The board recorded a roll-call vote in favor of the forecast and adopted it as presented.
Trustees used the discussion to surface longer-term choices: increase revenue via a levy or reduce expenses. "We have to either increase our revenue or decrease our expenses," one board member said during the discussion, and members emphasized that payroll and benefits account for the majority of district expenses.
Board members also noted external uncertainty. Finance staff warned that pending state property-tax reform legislation could materially change the district’s outlook. "The forecast we presented is based off current law, which could change any day now," the presenter said.
What the board did: in addition to adopting the forecast, trustees earlier in the meeting approved routine business including minutes, the treasurer’s report and personnel items. The board did not vote on a levy Oct. 8; several members said a public education campaign about school finance will be needed before asking voters to consider new or renewed operating levies.
The board said next steps include public engagement and monitoring state legislative changes that could affect revenue assumptions. The district did not provide a detailed timeline for placing any levy on the ballot; a board member noted the next renewal opportunity referenced in the forecast is 2028.
