Perry Local board approves five-year forecast as district flags major revenue risks

The Perry Local Board of Education voted to approve the district's five-year forecast after Chief Financial Officer Mrs. Capo told the board the projection includes significant risks tied to state legislation and a large property-valuation challenge.

"First, this draft has already filed a challenge on their valuation. They're looking for a $60,000,000 reduction in their property tax valuation," Mrs. Capo said, warning the board that the county auditor estimates the district should expect to collect substantially less revenue while a settlement proceeds. She said those losses could continue for years depending on resolution.

Mrs. Capo also flagged two pieces of state-level budget legislation she said could materially change the district's revenue picture. She described one proposal that would cap growth at an inflation index and said, "If that were to pass, it would basically wipe away the entire amount of our increase that we just saw," estimating that the cap could reduce collections by roughly $2 million over two years under current assumptions. Separately, she said language in the House version of the budget leaves the district's power-plant reimbursement frozen at 2017 levels through fiscal 2027, a line item that represents roughly one-third of the district's revenue.

To guard against uncertainty, Mrs. Capo said the forecast uses conservative assumptions, phases out some revenues in later years, and includes a $235,000 transfer to the district's severance fund to cover anticipated retirement payouts. She told the board the district still projects a cash balance of about $15,000,000 at June 30 under current assumptions but warned that a proposed state limit on carryover (a 30% cap referenced in the House budget language) would reduce the allowable balance to approximately $8,200,000 and could force districts to return or lose funds otherwise budgeted.

Board members pressed for clarification on estimates and asked legal and administrative staff to schedule a separate work session with outside counsel to review a recent valuation challenge and the district's legal strategy. The board also approved a resolution to engage outside counsel to assist with the property-valuation matter on terms to be negotiated with the firm; board members clarified no dollar amount was committed by the vote approving counsel-on-engagement.

The board's approval of the five-year forecast formalizes the district's conservative planning assumptions but leaves open several variables that district leaders say will require close monitoring and possible future revisions if state legislation or the valuation challenge move forward. The board scheduled a work session with legal counsel to discuss the valuation challenge and related strategy before the next regular meeting.