Canfield Local board hears five‑year forecast showing $1.5M projected deficit in FY2026
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Summary
Treasurer presented a five‑year forecast projecting a roughly $1.5 million deficit for fiscal year 2026, warning that revenues growing at about 1.4% annually lag expenditures projected at about 2.8% and that board policy requires planning if days‑of‑cash falls below 60 days.
The Canfield Local School District board on Feb. 11 heard a five‑year financial forecast showing the district’s general fund balance falling from about $13.1 million on July 1 to roughly $11.6 million on June 30, 2026 — a projected deficit of about $1.5 million for the fiscal year.
Treasurer Mister Marco presented the forecast and emphasized that the gap between revenue and expenses is widening: "we look to have about $11,600,000 in the general fund on 06/30/2026," he said, adding that expenditures are growing faster than revenues. Marco told the board the presentation assumes expenditures rising roughly 2.8% per year while revenue has averaged about a 1.4% annual increase over the past decade.
Why it matters: the district’s model shows revenues remaining largely flat while personnel, medical insurance and maintenance costs increase. The treasurer highlighted several drivers: declining enrollment (about 2,409 students most recently, with a projection toward ~2,300 by 2030), large maintenance needs for aging buildings and buses, and an assumed 10% annual rise in medical insurance costs used in the forecast.
Supporting details: Marco said personnel costs represent about 84% of general‑fund expenditures and noted an example of past budget transfers (a $4 million transfer to a capital projects fund in 2025) that affect year‑to‑year comparisons but do not eliminate the structural gap. He explained board policy 6220 requires the superintendent and treasurer to alert the board and present corrective plans if the district drops below a 60‑day operating cash threshold. "We look to be about 128 days at the end of this year, about 93 days at the end of next year," Marco said, projecting a drop below the 60‑day mark in subsequent years if trends continue.
Board reaction and next steps: Board members asked questions and the superintendent said the administration would present multiple scenarios for addressing the gap in March or April, including potential levy options and other adjustments. Marco said some state legislative changes could further affect districts and that passing levies may become more necessary over time. The board scheduled a finance committee meeting to discuss the forecast and outreach to the community. The board did not take immediate policy action during the presentation.
Sources and context: the presentation cited the county auditor’s levy and rate information and referenced Board Policy 6220 (60 days of operating expenditures). Marco described the forecast as a projection that can change with new data and said the administration will follow up with more precise answers by email if needed.
What’s next: the superintendent and treasurer will prepare corrective scenarios and present them to the board in coming committee meetings; the district also plans community engagement during strategic‑planning activities to gather public input on possible solutions.
