Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance topic
No spam. Unsubscribe anytime.
Treasurer warns of $23M variance as APS presses voters on Issue 27; board approves September financial report
Summary
Treasure Dr. Thompson told the board revenues may be nearly $4.0M above the May forecast but expenditures are tracking about $23.0M higher, driven by substitutes, ESSER cliff impacts, repairs and textbook adoptions; the board approved the September financial report 7–0.
Treasurer Doctor Thompson presented an updated view of Akron Public Schools' finances on Oct. 21, saying the district expects nearly $4.0 million in additional revenue compared with the May 2024 forecast but also faces roughly $23.0 million in higher-than-expected expenditures.
"We believe that we'll hit almost $4,000,000 in additional revenue," Thompson said, attributing the upside to stronger-than-forecast real-estate tax receipts and state aid. He warned, however, that "our expenditures are trending $23,000,000 higher than anticipated," citing higher employee benefits and salary costs, record substitute spending, purchased instructional services (including Edmentum and APS online) and a growing deferred-maintenance backlog.
Thompson said some costs previously covered by ESSER pandemic-era funds have transitioned back to the general fund (the so-called ESSER cliff), and pointed to large textbook and fine-arts adoptions planned for fiscal 2025 that raise near-term outlays. He also said the district will receive a pair of five-year forecasts (with and without a levy pass) and that a financial stability plan would follow a failed levy.
Board members pressed for clarity on the consequences of a failed levy for North High School, citing a pressing roof issue and other building needs. Thompson described a potential scenario in which a short-term roof repair would cost about $5 million but warned that such repairs are not a long-term substitute for a new facility. Members and administration agreed that the finance committee would discuss recovery and stability plans and present options to the board.
After discussion, the board moved to approve the September 2024 monthly financial report (motion by Deborah Sykes; second by Member Hall). The roll call vote was unanimous and the motion carried 7–0.
What's next: The board scheduled finance committee work sessions and a public discussion about the five-year forecast and potential recovery plans. Thompson said the district must prepare both for a levy pass and a levy failure and that passing a levy would not remove the need for fiscal discipline.
