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Treasurer presents five-year forecast showing multi-year deficit risk
Summary
The district's financial presentation reported an April ending cash balance of $11,543,798.70, monthly receipts of $5,498,787.96 and projected overspending of roughly $1.3M (FY27), $2.2M (FY28) and $3.3M (FY29) if debt-service reenters the general fund; board discussed insurance and HRA options as mitigations.
The treasurer presented a five-year forecast at the Martins Ferry City School Board meeting on May 13, reporting an April ending cash balance of $11,543,798.70 and total receipts for the month of $5,498,787.96 while warning of multi-year deficit risk if certain debt items return to the general fund.
During the report the presenter described revenue drivers (real estate tax increases due to reappraisal) and areas of uncertainty (declining tangible property tax tied to oil and gas, and other revenues). The forecast includes assumptions about personnel-service reductions for FY26 tied to a reduction-in-force and assumes step increases in later years. The treasurer noted assumed insurance cost increases of roughly 17% for FY26 and an additional 15% in subsequent years as part of the projection.
Under the scenario presented, once previously deferred debt service returns to the general fund the district would face projected overspending of about $1.3 million in FY27, $2.2 million in FY28 and $3.3 million in FY29 unless additional revenue or cost changes intervene.
Board members discussed possible mitigation strategies during and after the presentation, including negotiating benefits and investigating Health Reimbursement Arrangements and Medicare conversion options for eligible employees. One board member gave a rough estimate that converting eligible employees and using HRAs could save "as much as $750,000" if implemented with union agreement; board members agreed to explore these options with legal and union input.
Why it matters: The forecast frames the board's staffing and policy decisions: projected deficits were cited as the central rationale for the reduction-in-force and other cost-saving measures.
What happens next: The board approved the treasurer's report and asked staff to continue exploring insurance-driven savings and to include the forecast in the five-year submission to the state (deadline referenced in meeting materials).
