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Worthington board adopts five-year forecast and builds universal all-day kindergarten into budget model
Summary
The board unanimously approved a five-year financial forecast presented by Treasurer TJ Cusick that shows heavy reliance on local property tax revenue, a projected funding gap by 2028 without new levies, and modeling that incorporates universal all-day kindergarten (about $1.2M'$1.4M in expenses offset by roughly $600,000 in state funding).
Treasurer TJ Cusick presented the Worthington City School District's five-year forecast and the board voted to approve it at the regular meeting.
"We are a locally funded school district," Cusick said during his presentation, noting that more than 80% of district resources are local and roughly 75% of revenue is from property taxes. Cusick told the board the forecast was prepared with three years of historical actuals and five years of projections, and that the district's revenue picture is heavily tied to local property taxes and the state funding formula.
Key numbers and assumptions: Cusick said local property taxes amount to roughly $135,990,000 out of about $186,000,000 in total budget lines referenced in the presentation. State funding was cited at about $24,000,000; Cusick also pointed to investment income and noted that interest-driven investment returns produced a recent spike, then a projected decline. He explained the forecast includes enrollment-based staffing (27 additional staff over four years and four staff for universal kindergarten), and current collective bargaining settlements through 2026.
Universal kindergarten: The forecast incorporates administration's recommendation to provide universal all-day kindergarten next year. Cusick estimated the budgetary impact as roughly $1,200,000'$1,400,000 in additional expenses and forecast about $600,000 in additional state funding as a partial offset. "If we did it today, that's what it would have been," Cusick said, while also noting the final state funding result will depend on how the funding formula is updated.
Longer-term outlook and levy planning: The presentation showed a near-term surplus but a structural gap that grows after several years if additional levies are not approved. Cusick told the board that the modeled long-term gap equates to roughly $9 million per year by 2028 (about 3 mills), although his goal is to return to voters with a lower incremental target nearer 2.25 mills in keeping with recent community practice.
Board action: After questions about STRS contribution scenarios, federal funding sensitivity and enrollment assumptions, the board moved, seconded and approved the five-year forecast as presented.
