Treasurer warns of multi‑year deficits; board to consider levy and options

Orange City School District officials on Sept. 29 received a five‑year fiscal forecast showing the district trending toward multi‑year deficits under current assumptions and discussed timing for potential voter‑approved levies.

The district treasurer (identified in discussion as Gary) told the board the FY2026 general fund appropriation is listed at $66,100,000 and projected revenue for FY2026 is just under $61,000,000. He said the forecast shows deficit spending continuing through fiscal 2028 and noted that the projection for 2026 shows ‘‘the deficit spend, just shy of $3,000,000’’ under current trends and before any new revenue or levy is considered.

The presentation emphasized that approximately 75% of the district’s revenue comes from general property taxes and that salaries and benefits account for roughly 83% of projected expenditures (about 58% salaries and 25% benefits). The treasurer outlined several uncertainties that could affect the outlook, including proposed state legislative changes to property tax and levy rules, reappraisals, enrollment shifts, and rising health care costs.

Board members discussed options and timing for a potential operating levy; the treasurer said a draft assumption in the forecast modeled a 5‑mill levy in 2026 for planning purposes but no formal board decision had been made. Board members agreed to continue the conversation at the upcoming board retreat and finance committee meetings with more data.

The treasurer said the forecast and supporting documents will be posted with board materials on the district website and are scheduled for formal approval at the next meeting.