ST. PARIS – Graham Local Schools may face a significant shortfall of funds in the 2020-21 school year if it does not find another source of revenue or cut spending.
The Graham Local Schools board approved the five-year financial forecast at its Monday meeting, which detailed the estimated deficit. The forecast, prepared by Treasurer Judy Geers, is required to be produced in May and October by Ohio law.
Revenues are estimated to end the current school year at $17,476,215 and next school year at $17,611,627. Revenue is estimated to increase slightly to $17,815,795 for the 2020-21 school year.
Revenue is estimated to mostly stay the same with slight increases due to flat state funding and only slight increases in property tax revenue, the forecast assumptions document states.
Expenditures are estimated to end the current school year at $18,195,023 and next school year at $19,327,383. Expenses are estimated to increase to $20,937,111 for the 2020-21 school year.
Expenses are estimated to increase over the forecast due to the addition of staff, additional personnel services and curriculum needs. Salaries are expected to increase 1 percent for certified and non-certified staff throughout the forecast. Health insurance costs are estimated to increase 8 percent per year, and dental and vision insurance is estimated to increase 3 percent per year from school year 2017-18 to 2020-21. There are increases built in for supplies and equipment.
The district is anticipating a deficit of $718,808 for the current school year and $1,715,756 for the next school year, though they would be covered by cash reserves. Cash reserves are estimated to be used up in the 2018-19 school year. The deficit is estimated to increase to $3,121,316 for the 2020-21 school year, leaving a $4,670,601 shortfall.
Casey S. Elliott may be reached at 937-652-1331 ext. 1772 or on Twitter @UDCElliott.