More cuts could be coming for the Cleveland Metropolitan School District in the coming years, even after closing schools, laying off staff and taking other cost-cutting measures in recent years.
The district’s new financial forecast, approved by the school board Tuesday, shows it running out of cash entirely, about $50 million in the red, in just four years’ time. Chief Financial Officer Kevin Stockdale said rising costs of healthcare and state funding remaining flat are causing challenges for the district as it looks ahead. A recent enrollment study conducted by the state also suggests CMSD, like many public schools, will continue to see declining enrollment over the next 10 years.
Still, Stockdale said CMSD's "Building Brighter Futures" consolidation plan has produced significant savings in its budget. That plan means CMSD is operating 29 fewer schools this fall, but also proceeding with significant layoffs. Those cuts reduced the district's projected deficit spending this school year alone by about $60 million, Stockdale said.
School Board Chair Sara Elaqad said the district's willingness to make tough decisions has put it on a path toward financial stability.
"I think that CMSD is demonstrating that we've shepherded our public dollars really responsibly, and we have that duty," she said. "I know I've heard from my colleagues across the nation that they've seen what we've done, and that they said things like, 'we needed to do that, but we were afraid to weather the criticism.'"
The current forecast approved by the board Tuesday does not include wage increases for staff "baked in" to its expenses, Stockdale said, calling it an "unknown" at this point. The district will be negotiating a new contract with employees in 2027.
Stockdale said the district is predicting health insurance costs to increase up to 10% annually, leading to a $10 million increase in costs in one year alone.
Stockdale added the state has continued to shift the burden of funding schools onto local taxpayers by not providing adequate state support.
"What that causes is more and more districts have to go out more and more frequently for operating levies, as well as making painful cuts," he said.
He pointed to data compiled recently by Ohio State University education policy researcher Vladimir Kogan, which suggests almost 20% of public schools in the state are projecting negative cash balances by 2029, the highest rate since 2012.
CMSD CEO Warren Morgan said reducing expenditures is not a "one and done" procss.
"It's almost like working out. You have to keep doing this. This is not just something that's a one and done, and you never have to look at it (again)," he said. "We have to constantly look at this, because expenses go up over time."
