Dayton Public Schools board approves four-year financial forecast amid warnings of a future deficit

The Dayton Public School Board approved a four‑year financial forecast and its underlying assumptions on Feb. 28 after a presentation from district finance staff that warned the district is spending more than it is bringing in and could show a deficit in the fourth forecast year. Treasurer (as addressed in the meeting) summarized revenue sources—state foundation, property tax and state/federal grants—and said the district is heavily dependent on state funding.

The presentation explained how the district organizes funds (general, special revenue, debt service, capital projects, enterprise, internal service, trust and agency) and stressed that appropriations cannot exceed estimated resources. The treasurer highlighted recent state legislation cited in the forecast (HB 129, HB 186, HB 309 and HB 335) and said those bills could affect revenue calculations and local levy outcomes; the treasurer warned that some changes “could be implemented unequally statewide” and that one bill, HB 335, “caps revenue growth… This is very bad,” as stated during the presentation.

Board members asked for clarifications about changes since the October forecast; the treasurer said the February update had minimal changes (less than $200,000) and noted the district will continue to monitor state actions that could affect future revenue. The treasurer also walked members through key operating assumptions, the district’s reliance on state foundation funding, and the requirement to submit forecast updates under Ohio law. The board voted to approve the forecast and assumptions by roll call (7 yeses recorded).

Votes at a glance - Approval of four‑year financial forecast and assumptions: approved (roll-call tally recorded as 7 yeses). The treasurer moved the recommendation and the board adopted it following discussion and member questions. - Superintendent recommendations E and F (grouped by the superintendent for action): approved (7 yeses recorded). - Superintendent personnel recommendation tied to a post–July 10 resignation: motion failed (tally recorded as 2 yes, 5 no). - Travel and other treasurer recommendations presented on the consent/approval list: approved (7 yeses recorded). - Motion to enter executive session under ORC §121.22(G) to consider employment of a public employee: approved by roll call (7 yeses recorded).

What the forecast means The treasurer’s slide deck showed the district’s general fund appropriation and a breakdown of revenue and expenditures, with wages and benefits the largest expenditure categories. The presentation included a stated general-fund appropriation figure for the current year (presenter cited $280,000,000 as the district’s appropriation figure during the overview) and a reminder that appropriations must be aligned with estimated resources. The treasurer said the district expects to remain solvent through the near term under current law but identified rising expenditures and uncertain future state funding as risks that could require cuts or a levy if revenue declines.

Board and staff next steps Board members asked for further detail on personnel numbers and certain fund balances; staff committed to follow‑up (for example, reconciling differences in reported field teacher positions across documents and providing additional detail on principal-managed funds versus agency funds). The meeting record shows the board directed staff to continue committee analyses and to report back with additional budget clarifications. The board then recessed into an executive session to consider personnel matters.

Key quotes “Most of our money is state foundation—59.1%—and we are spending more than we are bringing in,” the treasurer said during the forecast presentation. “If the state reduces funding or our ability to raise local funds is limited, our district will need to make cuts or pass a levy.”

The meeting concluded with the board approving the forecast and several agenda items and moving into executive session to discuss a personnel matter. Additional line‑item appropriations, contract renewals and capital‑project updates were discussed during the public meeting and will return in committee or on a future agenda for any required follow‑up votes.