Operating levy looms in future for Highland 

by Chris Studor 

Nov. 18 school board meeting 

With deficit spending projected for fiscal year 2025, members of the Highland Board of Education is set to weigh several financial options – to cut expenses or seek additional revenue, or some combination of the two. 

No formal decision has been made as District Treasurer Neil Barnes presented the five-year financial forecast at the Nov. 18 board of education meeting.

Barnes shared the report in accordance with Ohio Law, which requires school districts to submit a five-year forecast. 

The five-year forecast was approved by the board for the forecast period from July 1, 2024, through June 30, 2029. The forecast is used as a management tool in various decision making process including future levy requests, budget restrictions and negotiations.

Barnes reported that in fiscal year 2025, operating revenues and other financing sources are projected to be $40.6 million. He said revenues “are projected to be relatively stagnant throughout the forecast, gradually growing to $40.8 million by fiscal year 2029. 

“Anticipated property tax revenue increases are expected to be substantially offset by decreases in investment income as investable reserves shrink due to deficit spending and interest rates decline,” said Barnes. “Property taxes and property tax related reimbursements from the state make up about 80% of the district’s operating revenue.”

Total operating expenditures and other financing uses are projected to be $43.3 million for fiscal year 2025, a number that will steadily increase to $52.5 million by fiscal year 2029. The rise in projected expenditures from fiscal year 2025 to 2029 amounts to approximately 5% annually and is attributed to inflation, costs associated with contractual commitments and the exhaustion of the one-time ESSER (COVID-related funds). 

“These estimates have been formulated in a conservative manner,” said Barnes. “Historically, the district has experienced favorable forecast variances on the expenditure side, most notably with respect to fringe benefits.”

Barnes said overall, the district has been able to build healthy cash reserves and extend the levy cycle considerably through sound financial management. 

“Unfortunately, deficit spending, inevitability for all school districts, is projected to commence in fiscal year 2025,” he noted. “The situation will need to be addressed in the near term though infusion of new revenues, whether by a new levy and/or budget reductions which are difficult given Highland’s already low cost per pupil. It is important to note that the forecast is based on many assumptions about the future and actual results will vary.”

Superintendent Catherine Aukerman said the board will continue to monitor district finances but it is too soon to tell when an operating levy may be placed on the ballot.In other business, the board the accepted the following donations: High School Thespians, $3,000 for Black Box Lighting from Mark and Glenna Jackson; High School Athletics, $400 from Carl Albright; Highland Middle School, $450. for Power of the Pen from Highland Middle School PTO; High School SADD, $572 for Red Ribbon Week from Wadsworth City SchoolDistrict; High School Baseball Club, $5,925 from parent donations; High School Basketball Club, $1,672 from Parent Donations; High School Football Club, $241 from D & M Wrecking; High School Bowling Club, $250 from the Dunne Family; High School Girls Soccer Club, $4,000 from Bill Zufall; and High School Girls Soccer Club, $400 from Andy Bellavia.