Northern Local board warns proposed state cuts could force reductions or a new levy

At a regular meeting on Feb. 20, 2025, Northern Local Schools Treasurer Jennie Clifton told the board the district faces steep reductions under the governor’s initial biennial budget proposal. Clifton said the district would lose an estimated $518,000 in state funding in fiscal year 2026 and an additional $942,000 in fiscal year 2027, a two‑year loss she said would total about $1.46 million.

Clifton said that without changes, the cuts could produce a projected negative cash balance in excess of $2.5 million by FY29, and that the district would have to consider reduction measures or seek a new operating levy to close the gap. She said staff prepared a letter for distribution to employees and community members asking stakeholders to contact state legislators and to request updates to base cost input factors, which Clifton said remain at FY22 levels.

Clifton also presented current revenue and fund balances to illustrate the district’s near‑term position. She reported that 50.3% of property taxes for the fiscal year had been received, casino revenue was at 58.2% of estimates, and restricted state grants were at 151.6%—a figure she attributed to increased DPIA funding tied to qualification for Community Eligibility Provision (CEP). General fund interest earnings for the year were $219,622.34, Clifton said.

Superintendent Mrs. Gussler joined Clifton in describing the implications for programming and staffing if the projected cuts materialize. Board members pressed for further detail on possible reduction measures and alternatives; no final decisions were made at the meeting. Clifton and Gussler said the district will continue evaluating cost‑saving measures and additional revenue options and will update the board as the state budget process progresses.

Next steps: the district plans community outreach to legislators and further internal analysis; no formal reductions or levy resolutions were adopted at the Feb. 20 meeting.