In the Upper Arlington Schools, we are committed to providing our community with a clear and transparent communication about our district’s finances and the factors that will impact our financial situation in the coming years.
This spring, we released the 2021-2022 Financial Update, which details the sources of our funding, how that money is used and other topics that may affect district finances. You can find this report at www.uaschools.org/treasurer.aspx. As with all district publications, we welcome feedback so we can continue to refine the report each year.
In May, I will go through the process of updating the five-year forecast, a legally required report that covers three years of actual data and five years of anticipated revenues and expenditures. Every November, I present a new five-year forecast to the Board of Education, and then in May I update the forecast, helping us keep a clear view on our financial outlook and the impact of future needs.
At a special meeting in March, I shared a preview of the five-year forecast update with the Board of Education as they consider how to address the district’s future financial needs. As I’ve shared, we are keeping a close eye on several things that may impact our finances — historic inflation, enrollment growth and the decision to delay an operating levy for two years as a result of the pandemic and the economic situation.
As of this fall, it will have been five years since we last went to voters to request additional operating funding. Over the past two years, in the absence of new operating funding, we have creatively stretched our financial resources by reducing our budget reserve; seeking out approximately $4.6 million in cost reductions, primarily through a three-year hiring freeze on new positions; and utilizing additional COVID-related funding made available to school districts.
Even with the proactive steps we have taken, our expenditures are already outpacing our revenue. This is a typical levy cycle for a suburban school district, and it’s why school districts like Upper Arlington usually go back to voters every three years to request new operating funding.
The Board of Education will be considering how to move forward with our district’s financial situation in the coming months.
If you would like to learn more about the district’s finances, please visit our website, www.uaschools.org/treasurer, or contact me at [email protected].