Bexley Schools’ Five-Year Forecast
Projections Show No Additional Revenue Needed in Immediate Future
During the May 10 meeting of the Bexley Board of Education, Treasurer Kyle Smith provided a report on the school district’s five-year forecast. The five-year forecast, which is updated and submitted to the Ohio Department of Education each May and November, is the primary document used to assess the financial health of the district.
According to the latest forecasted projections and assumptions, the district will have a positive cash balance through Fiscal Year 2027. However, the district is expected to spend into the cash reserves/balance as early as Fiscal Year 2024.
Prior to last week’s Board meeting, Mr. Smith met with the schools’ Finance Advisory Council to discuss the forecast. He said everyone on the advisory council was in agreement that the district had sufficient revenues and would not need to seek additional revenue before the end of the 2023 calendar year.
According to Mr. Smith, “Two key factors have kept us from deficit spending this far past our 2019 levy: the one-time federal dollars related to the COVID pandemic and sizeable increases in School District Income Tax payments.”
Mr. Smith also went into detail about many of the unknowns of future revenue projections, which include flat funding of state support, potential income tax anomalies, and an upcoming property tax reappraisal from Franklin County.
“While it is rare for Bexley to see a reduction in property tax collections and state aid payments, we have experienced reductions in the School District Income Tax payments,” he explained.
In 2022, the Bexley Board of Education passed a cash-reserve policy stating that if the schools’ five-year forecast should have less than 70 days of operating cash within the first four years, the Treasurer shall report such a finding. The forecast presently shows 96 days of operating cash in Fiscal Year 2026, but 33 days in Fiscal Year 2027.
The complete five-year forecast document is available on the district’s website.
Published May 18, 2023 | District Newsletter