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Little Miami treasurer warns of growing deficits and says renewal levy is critical to avoid sharp cash shortfalls
Summary
At an Oct. 6 special meeting, the Little Miami School Board heard an October financial forecast showing a roughly $911,000 current-year operating deficit and projected larger shortfalls; the treasurer said a renewal levy passed in 2011 supplies pivotal revenue and that pending state legislative changes could reduce receipts further.
The Little Miami School Board on Oct. 6 heard an October financial forecast that showed the district is operating at a current-year deficit and faces increasing shortfalls without continued levy revenue.
The treasurer/CFO, presenting the district’s October update to the financial forecast, told the board the district is “operating current year at a deficit, of about less than 1,000,000, about 911,000” and that projected deficits grow across the forecast horizon. She said the submission is the district’s online 23-page forecast summary and warned state legislative changes could alter assumptions.
Why it matters: Little Miami’s finances rely heavily on a renewal levy passed in 2011 that supplies roughly $10.6 million in operating revenue. The treasurer said that levy makes up an estimated 16% of operating revenue and that if the district loses the renewal credit the levy would effectively cost taxpayers more in future elections. She cautioned that legislative changes — including the naming and filing-date changes from House Bill 96 and other bills referenced during the presentation — make forecasts uncertain.
Board members asked about timing and amounts of new property-tax receipts tied to recent reappraisals. The treasurer said partial collections are received before the full fiscal-year effect and estimated “about $7,000,000” in increased receipts tied to those changes, with the full effect expected in the next school year cycle.
The presentation also covered the district’s funding status under the state formula. The treasurer described Little Miami as a “guarantee district,” meaning the district receives a guaranteed minimum based on fiscal-year 2020 amounts rather than formula increases; she said the district is “buried on the guarantee by over $3,000,000” and will not come off of that guarantee unless the funding system changes.
She outlined expenditure drivers: salaries and benefits account for about 81% of expenditures, purchased services about 14% (including special-education services provided by outside providers), and enrollment growth (averaging roughly 155 students per year) continues to raise staffing and transportation costs. The treasurer showed projected days of cash on hand falling materially by 2029–2030 if the levy were not in place.
Board action and next steps: A board member moved to approve the October update to the forecast (motion noted in the meeting). The treasurer said she will bring updated forecasts as legislative action continues. The board did not adopt any new levies at the meeting; members discussed alternative revenue approaches, including an earnings-tax model used in another district.
The board closed the item by scheduling further discussion as needed and asking staff to provide more specific timing and collection figures for the property-tax increases.
