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Wooster City Schools treasurer says $23 million moved back to general fund to ease operating shortfalls and delay levy
Summary
Amy Welty, treasurer of Wooster City Schools, told the board the district moved $23 million back from its capital projects fund into the general fund after a March 17 resolution so the district can cover operating deficits and postpone a potential operating levy from about 2027 to 2029.
Amy Welty, treasurer of Wooster City Schools, told the school board that she brought a financial forecast to the March 17 meeting and proposed returning a prior transfer of $23 million to the general fund to cover operating needs. "About a year ago, we transferred through board approval $23 million to our capital projects fund due to the fact that state legislation was threatening to take that money from us because it exceeded 40% of our expenditures," Welty said.
Welty said the board approved a resolution at the March 17 meeting to rescind the capital-projects designation and move the funds back into the general fund. "The good news is that there was no law passed in terms of the cash balance provision policy," she said, explaining the district therefore opted to reverse the earlier transfer.
Welty framed the change as a response to the district's fiscal picture. She said the district is in "deficit space spending," meaning revenues are flat while expenditures are rising, and that the general-fund cash balance will be used over the next few years to meet operating expenses.
Welty also said restoring the funds will postpone the district's need to ask voters for an operating levy. "It takes us from maybe asking in 2027 and moves us out to 2029," she said.
She closed by saying the district remains committed to reviewing revenues, expenditures and cash-balance provisions to make sound decisions "that are good for our kids and good for our community."
