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Kenston treasurer projects surplus this year but deficits beginning 2027; board approves five‑year forecast
Summary
Kenston Local Treasurer presented the district's five‑year financial forecast showing a small surplus this fiscal year, a projected return to deficit spending beginning in 2027, and a recommendation that the district consider an operating levy later in the forecast period. The board voted to approve the forecast and several routine financial and HR
Kenston Local Treasurer presented the district's five‑year forecast during the Oct. 13 board meeting, saying the district closed last year with a $705,000 surplus, expects roughly $346,000 positive this fiscal year, but projects deficit spending beginning in fiscal 2027 that would reduce the general fund cash balance in subsequent years.
Why it matters: the forecast informs staffing, curriculum purchases, and whether the district must seek additional revenue through a local operating levy. The treasurer said the district has gone 16 years since its last operating levy and that the recently passed PI (permanent improvement) levy reduced pressure on the general fund by removing capital projects from general operating dollars.
Key points from the presentation: - The district's general fund is projected to remain positive in the immediate term; a modest surplus is budgeted for the current year. - Deficit spending is projected to begin in 2027 as salary, wages and benefits (81% of expenditures) grow. The treasurer modeled an 8% annual rise in benefits for 2027–2030 as a planning assumption. - Officials repeatedly noted enrollment declines statewide; the district is monitoring local housing developments that could offset part of that decline. - The district identified possible actions: monitor staffing relative to enrollment, pursue grants, analyze third‑party contracts, and continue transparent use of PI levy funds for capital projects.
At the meeting, the board approved the five‑year forecast and several consent financial items. The treasurer emphasized the PI levy (1.0 mill yielding about $1.2 million annually over five years) allowed the district to transfer capital spending out of the general fund in prior years and thereby extend the interval before an operating levy may be required.
The treasurer also reviewed per‑pupil figures, saying general fund per‑pupil spending is about $18,459 (roughly $103 per day for a 180‑day school year) and highlighted ongoing monitoring of legislative proposals that could affect school funding, including bills on property tax reform and county budget commission authority.
Board action: the board voted to adopt the five‑year forecast (roll call recorded as a unanimous approval). The meeting record shows multiple routine approvals tied to the treasurer's presentation; those votes are summarized in a separate "Votes at a glance" article that accompanies this report.
Ending: District leaders said they will continue twice‑annual reporting on the forecast, watch legislative developments closely, continue targeted staffing and procurement reviews, and use PI levy transparency to demonstrate capital spending to the public.
