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Treasurer warns Chagrin Falls could face deeper deficits without corrective action
Summary
The district treasurer told the board the financial forecast shows a small current-year deficit (~$53,000–$54,000) and projected declines in cash reserves that, absent policy changes or revenue increases, could exhaust the general fund around mid-2027 under current assumptions.
The treasurer told the Chagrin Falls Board of Education on Feb. 18 that the district’s latest financial forecast shows a modest deficit this year and a long-term risk to cash reserves that will require corrective steps.
"We are deficit spending not by as much as we were expecting in October," the treasurer said, adding the current-year gap is about $53,000 to $54,000. The presentation showed roughly 79% of the district’s revenue comes from local taxes, about 15% from the state (including an 8% property-tax reimbursement), with personnel costs representing about 79% of expenditures.
The treasurer walked trustees through prior-year transfers and an ESSER-related advance that inflated 2024 figures, which makes year-to-year comparisons less straightforward. He said the state changed reporting requirements — shifting from a five-year to a four-year forecast and moving due dates earlier in the fiscal year — which reduces the amount of available tax-collection data when preparing projections.
The presentation highlighted the district’s "days cash on hand" metric and noted that, under current assumptions and without corrective action, the general fund could be exhausted in a mid-2027 scenario. "By 2027, we would be out of money in the general fund, assuming no other corrective action and assuming what we know now," the treasurer said, while underscoring that the outcome depends on many variables.
Board members asked clarifying questions about the days-cash target and the assumptions behind the forecast. The treasurer said the district’s policy aims for approximately 90 days of cash on hand and that corrective options include increasing revenue, decreasing expenditures, or a combination of both.
The board received the forecast and approved it as part of the meeting’s consent actions. The treasurer said staff can resubmit forecasts during the year if significant events change revenue or expense expectations.
Next steps: trustees did not vote on specific corrective measures during the meeting; the treasurer recommended monitoring and potential policy or budget adjustments if trends continue.
