CANTON ‒ Despite overcoming a $17.7 million deficit last year, Canton City Schools officials are looking at another daunting financial outlook.
The school’s Board of Education on Aug. 10 approved a bleak financial forecast for fiscal years 2027-2030.
“It’s not good news,” Treasurer Jeff Gruber told board members. “This is the worst forecast myself and my team have put together since I have been here.”
In fiscal year 2029, the district projects a negative balance of $11.5 million. By 2030, that number is expected to climb to $25 million, he said.
There are underlying factors surrounding how the district’s finances got to this point, Gruber said.
State funding has been reduced. Unrestricted state grants and aid provided by the state is projected to be $74.5 million, $8.2 million less than over the last three fiscal years.
Restricted state grants and aid will be nearly $1.7 million less this fiscal year with around $12.1 million in funding.
“We have lost almost $10 million in operating money per year from the state,” Gruber added.
The district’s base cost will also be reduced by $652,000 for an estimated loss of students.
Transportation funding is expected be reduced by $170,000. The district will receive $34,000 less for student wellness and $263,249 less for disadvantaged pupil aid.
The district, however, will receive $275,485 in formula transition support so no district will receive less in fiscal year 2027 than it received in fiscal year 2021.
Gruber reminded board members when they filed the fiscal report to the state in last October that included a deficit balance in the first three years of the forecast, the Ohio Department of Education and Workforce required they create a corrective action plan prompting the district to eliminate $11.5 million from the budget.
That was done by cutting more than 100 positions, closing schools and reducing other costs such as transportation.
Gruber anticipates when the latest financial forecast is submitted with another deficit, the state will seek another corrective action plan.
“It’s going to be my recommendation this calendar year or the next that we are going to have to go to taxpayers and ask for their support,” Gruber said. ‘We made staffing reductions of 170-plus positions over the last three-plus years. It’s just come to a point if we continue down the path we have taken over the last three years, I am not sure we are going to recognize this place anymore.”
Superintendent Jeff Talbert pointed out the district was facing a $17.7 million negative balance in fiscal year 2028 and they were able to bring that number to a $1.8 million positive cash balance.
“I believe we touched everything we could touch without reducing programming,” Talbert said. “I agree we have to go back to the ballot. We’ve closed buildings. Eliminated 107 people this year. Something has to give and it’s either more funding for public education or we are going to have to seriously look at what we offer our students.”
Reach Amy at amy.knapp@indeonline.com.
This article originally appeared on The Repository: Canton City Schools facing bleak financial outlook, may pursue new tax
Reporting by Amy L. Knapp, Massillon Independent / The Repository
USA TODAY Network via Reuters Connect
By Amy L. Knapp, Massillon Independent | USA TODAY Network
