Treasurer: Brooklyn City schools' five‑year forecast shows reserves now but projected deficits starting in 2029

Mister Shearhart, the district treasurer, told the Brooklyn City School District Board of Education on Sept. 16 that the district begins the fiscal year with a cash balance of about $10,000,007 and expects roughly $25 million in revenue against $21–22 million in expenditures this year.

"That will leave us with a positive cash balance for the year of 3,200,000.0," Shearhart said, noting the carryover will be added to reserves that the district can draw on in later years. He warned the formal five‑year model shows the district moving to deficit spending in 2029 and a much sharper reserve decline in 2030 unless assumptions change.

The treasurer described the revenue mix as about 69% local taxes, 16% state funding derived from the state foundation formula and per‑pupil allocations, and the remainder from investment and other revenue. Personnel costs account for roughly 78% of current expenditures, he said, and one large 2025 expenditure reflected a transfer into the O70 fund that affected that year’s figures.

Shearhart emphasized that the forecast is a working projection. "The five‑year forecast is a living, breathing thing," he said, adding that state actions (including an expected legislative vote) and local levy outcomes would change the numbers. The formal forecast model, he said, assumes levies will not pass for prudence, which reduces revenue in the projection but can be updated when results are known.

He also highlighted a county delinquent‑tax assessment (DTAC) that charges the district 10% on delinquent tax receipts and gave a recent example in which $149,000 in delinquent taxes generated a $14,900 fee. "We have a choice. That's state law that the counties can charge us 10%," he said, and warned that a single late payment by a large taxpayer can cost the district significant revenue.

Board members asked for clarifications about tri‑annual property tax timing, the treatment of open‑enrollment students (the district reported 84 open‑enrollment students this year), and per‑pupil spending history (post‑COVID ESSER funds affected prior years). Shearhart said he uses conservative assumptions — understating revenue and overstating expense — to avoid surprises and that the district revisits forecasts in May and as new data arrive.

What happens next: the board received the forecast and asked staff to continue monitoring revenue and expenses; the treasurer said he will update the model as state decisions and levy results become known. The board’s next regular meeting is scheduled for Oct. 7 at 6:15 p.m. at the new Early Childhood and Family Resource Center.