Kent City Schools reviews five‑year financial forecast; officials warn of deficit spending and potential $710,000 loss if county implements piggyback tax credit

Kent City Schools' treasurer presented a revised five‑year financial forecast at the Feb. 17 board meeting and emphasized the district is monitoring several near‑term fiscal risks as it prepares for a May levy.

The treasurer reported that the district is 58% through the fiscal year and has spent roughly 55% of its budget to date. Investment yields have fallen — STAR Ohio returned about 3.84% in January versus 4.53% a year earlier — which, combined with other assumptions, keeps the district in deficit spending in most forecast years. Under the forecast assumptions presented, the district’s unencumbered cash balance is projected to fall below the Government Finance Officers Association’s recommended 60‑day operating threshold in fiscal year 2028.

Officials also called attention to a provision in House Bill 96 that allows county commissioners to grant a second ("piggyback") homestead/homeowner tax credit; if Portage County or another county elected to implement that secondary credit, the district could lose an estimated $710,000 annually. The board heard that Portage County declined to implement the piggyback credit last fall but that the law’s language allows the county to revisit the decision year to year.

The treasurer said the district engaged K‑12 Consulting to review finances and provide a second set of eyes for the community and board as they plan for the levy. The update was approved by the board.

Key figures reported

- District is 58% through the fiscal year and has spent about 55% of its budget to date. - STAR Ohio investment rate in January: 3.84% (down from 4.53% last year). - Potential annual loss if a piggyback homestead credit is implemented: approximately $710,000. - Forecast projects deficit spending in most years and predicts the district could dip below the 60‑day cash threshold in fiscal year 2028 unless revenue assumptions change.

What the board did

The board voted to approve the revised forecast; administration said it will continue monitoring revenue and expense assumptions, provide additional historical comparisons, and report back at subsequent meetings.