In November, I presented to the Board of Education a five-year financial forecast for the district covering three years of actual data and five years of anticipated revenues and expenditures. This is a legally required document that is presented to the board for approval and then filed with the state of Ohio.
This document is updated every May and November, providing our district with an important check-in point so that we can keep a clear view on future impacts and needs.
The five year forecast reflects key changes from the May 2023 update, including an increase in investment income and an approximate $2 million annual increase in state aid for the 2023-2024 fiscal year and beyond. The latter is a result of changes made in the Fair School Funding Plan during the state’s biennium budget process.
Even though the Fair School Funding Plan represents a very small portion of our overall district budget, this still represents an increase by approximately 58 percent in our state foundation and additional state aid. Any amount of additional state funding is a positive for our school district and community.
In light of the increase in state funding, the Board of Education took action at their November meeting to replenish the budget reserve to the pre-COVID level of 25 percent, or 90 days’ worth of annual expenditures. Maintaining a budget reserve of 90 days or 25 percent of annual expenditures is a long-standing, fiscally responsible practice in our district, and replenishing our reserves ultimately benefits our community by helping us protect against any unforeseen budgetary constraints or shifts in revenue in the future.
It’s important to note that the new forecast reflects the typical levy cycle of a suburban school district like Upper Arlington. Due to school funding laws in the state of Ohio, generally speaking, suburban school districts like Upper Arlington return to voters every three to four years in order to keep up with inflation and maintain the current level of school operations.
To review the new five year forecast and other financial documents, please visit our website at www.uaschools.org/treasurer.aspx. If you have any additional questions about our district’s finances, you can contact me at [email protected].