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Strongsville City Schools projects $12.2 million shortfall for FY2026, will draw on reserves
Summary
Strongsville City Schools estimates $83.1 million in revenue and $95.3 million in expenditures for fiscal year 2026, creating a $12.2 million gap the district plans to cover by drawing on cash reserves; officials warn the deficit could widen to a $12.9 million shortfall by 2029.
Strongsville City Schools expects $83.1 million in revenue and $95.3 million in expenditures for fiscal year 2026, leaving a projected $12.2 million budget gap, Treasurer George Agnostu said on the district’s Financial FastFax podcast. The board approved the annual budget and the fall five-year forecast at its Sept. 25 meeting.
Agostu said the decline in revenues for FY2026 — about $3.5 million, or 4% lower than the previous year — stems largely from the expiration of a 2019 renewal levy, which he said reduced annual revenue by $9.9 million. "This $9.9 million reduction accounts for the substantial revenue decrease in fiscal year 26 and will continue to impact future years," he said.
The treasurer reported that only $9.5 million, or roughly 11% of total revenues, comes from the state funding formula, while nearly 78% is drawn from local property taxes, making the district highly reliant on voter-approved levies. Agostu also noted a separate renewal levy currently generating funds for the district is scheduled to expire at the end of 2027 if not renewed; the episode describes that levy’s annual yield as approximately $8.4 million.
On the expenditure side, the district projects FY2026 spending of $95.3 million, a 6.2% increase driven by additional staff for enrollment growth and student needs, competitive salaries, rising health-care costs, higher utilities and general inflation in goods and services. "Our district is entering a period of deficit spending where annual expenditures will exceed revenues, requiring us to draw down cash reserves," Agostu said.
The forecast projects an ending cash balance of about $33.9 million for FY2026, which the treasurer said represents roughly 35.6% of expenditures, but continued deficits would reduce reserves and produce a projected cash deficit of about negative $12.9 million by FY2029.
For full forecast statements, assumptions and the board presentation, Agnostu directed listeners to the treasurer’s web pages at scsmustangs.org and invited community questions to the treasurer’s office at 440-572-7021. The board has not attached a public timeline to replenishing reserves; future action will depend on levy renewals and any ballot measures the board pursues.
