Forecast still shows renewed trouble ahead

ELYRIA — A $9 million reduction plan has given Elyria City Schools additional time before facing possible state fiscal caution, but the district’s latest forecast continues to show deficit spending and declining cash reserves.

Treasurer Colleen Aholt presented the district’s budget and three-year forecast during the Elyria Board of Education’s Aug. 19 meeting.

The reductions lowered projected fiscal 2027 spending from more than $96 million to approximately $89 million. The remainder of the savings will appear during fiscal 2028 because the district’s July-to-June fiscal year does not align with the schedules of some employment and service contracts.

Aholt said the district previously was projected to fall below the Auditor of State’s benchmark of 90 days of cash on hand during fiscal 2027, potentially placing it in fiscal caution.

Following the reductions, the district is projected to have 118 days of cash on hand during fiscal 2027 and 97 days during fiscal 2028. The possibility of fiscal caution has been pushed back until fiscal 2029.

“That shows the $9 million reduction and what it did for us,” Aholt said.

The district is still expected to spend slightly more than it receives during fiscal 2027, although Aholt projected the deficit at less than $1 million.

Cash reserves are expected to remain slightly above the district’s policy requiring a balance equal to 30% of expenditures during fiscal 2027. That figure is projected to fall to approximately 27% during fiscal 2028 before declining further in subsequent years.

Aholt said the forecast remains preliminary because the district had not yet received its county property-tax settlement information. Complete payroll information for the new school year also was not available when the forecast was prepared.

The projections are based on historical trends and recent legislative changes. Aholt said district revenue is expected to decline slightly because of property-tax changes and decreasing enrollment.

Salaries and benefits account for approximately 75% of district expenses, while purchased services, including contracted transportation, account for another 19%.

Reductions affect staffing, services

The district’s reduction plan eliminated 45 teaching positions, 12 substitute positions, nine tutors, five student-support positions and 12 administrative positions. Classified employee hours also were reduced.

Other changes included reducing supplemental contracts, instructional software, classroom supplies, field trips and contracted services. Class sizes were increased, while transportation eligibility was reduced to the state minimum of 2 miles from a student’s school.

Superintendent Ann Schloss thanked employees throughout the district for helping administrators identify savings and adjust to the reductions.

“Everybody’s made concessions, no matter what their position is,” Schloss said. “Everybody helped on this, and it was noted, and we appreciate everyone.”

The district has placed an 8.9-mill current-expense levy on the Nov. 3 ballot. If approved, it would generate an estimated $11.6 million annually for teachers, support staff, technology, transportation, utilities and other operating expenses.

The levy would cost property owners approximately $312 annually, or $26 per month, for every $100,000 of county auditor-appraised property value.

Aholt said the additional revenue would eliminate the projected deficit spending and improve the district’s ability to remain above state financial benchmarks. Without new revenue, the district has said another $8 million in reductions could be required.

Board handles other business

Board members unanimously approved the forecast and its assumptions. All five members, Elaine Seguin, Michael Gebhardt, Annie Carstarphen, Len Howser and Brent Parker, were present.

The board also approved the July financial report, accepted several donations and authorized an agreement with Paladin Protective Systems for fire-alarm upgrades and monitoring.

Personnel actions included retirements, resignations, leaves of absence, recalled employees, substitute teachers, tutors and supplemental contracts.

The board approved Demetrius ‘DJ’ Graham as a long-term substitute physical education teacher at Westwood Middle and as Elyria High School’s head boys basketball coach.

Schloss also recognized operations employees for preparing the district’s buildings for the new school year despite working with fewer staff members.

There were no public comments during the meeting.

First-day photos can reveal too much