MANSFIELD — Treasurer Tacy Courtright said the state of the Mansfield City Schools’ finances is moving in the right direction.
“We’re looking at all our costs and trying to streamline those. We’re having lots of good discussions,” she said.
Courtright recently released the district’s November 2021 five year forecast, which provides a snapshot of projected revenues, expenses and fund balances in the district.
All Ohio school districts are required to submit a five year forecast to the state department of education twice each year. Most Richland County schools do so in November and May.
Courtright and other school treasurers say the May 2022 forecast will provide a clearer picture of how the Fair School Funding plan will impact their districts. The plan was included in the last biennium budget, which was passed by the legislature in June and affects fiscal years 2022 and 2023.
When asked whether the new funding model would have a significant impact on the district, Courtright said it’s possible — but she doesn’t want to jump to conclusions.
“I think it probably will but until I see some numbers I don’t want say,” she said.
State estimates of the final funding amounts from the Fair School Funding plan won’t be released until December.
“I think it’s still going to be a little fuzzy because we had to use last year’s simulations (of the Fair School Funding plan),” Courtright explained. “We haven’t still seen the full effects of that.”
This month’s forecast shows slightly lower operating deficits in fiscal years 2022 through 2025 compared to the May forecast. Projected expenditures have dropped, but so have revenues.
“We are looking at our expenses very carefully. I treat this budget like I would treat my home budget,” Courtright said.
Treasurers are not allowed to factor levy renewals into their five-year forecast. The district has two upcoming levy renewals — a $3.9 million issue in 2022 and a $4 million one in 2024.
The school board may decide to combine the two levies for a vote in 2022, so that residents don’t have to vote on levy renewals as frequently.
Courtright said the two levies generate approximately 48 percent of the district’s tax revenue, but passing them would not likely stave off deficit spending after 2023.
Nevertheless, Courtright said she does not anticipate asking voters for new money in the near future.
The district’s unreserved fund balance is projected to remain positive for the next five years, with a forecasted balance of $4.4 million in fiscal year 2026.
In May, Courtright projected a negative fund balance of almost half a million dollars by 2025.
Courtright added that the projected expenses for the district reflect current expenditures and staffing. Personnel costs could go down as senior staff retire.
“The forecast is based on a point in time and will change as more information becomes available,” she said.
Courtright said the district is using its ESSER funds, which Courtright called a “once in a lifetime” opportunity for schools, for things that will have a lasting impact, such as updated curriculum.
Supt. Stan Jefferson described school finance as a balancing act — schools have to live within their means while still providing the best opportunities to students.
“Obviously we have challenges. I think there will continue to be economic challenges for school districts,” he said. “I think in the big scheme of things, we just want to work within in our confines.”
To see the November 2021 Five Year Forecast for Mansfield City Schools, click here.
