Cincinnati Public Schools is in a precautionary financial state, according to the Ohio Department of Education and Workforce (ODEW). The district says it received two letters from the state on Sept. 2 indicating a low fund balance and a projected deficit in the coming years.
In one letter, ODEW says that without new revenue, CPS is projected to have a $44.5 million budget deficit by the 2029 fiscal year. The district must submit a Board of Education-approved financial recovery plan to the department by Nov. 30 that, if implemented, would eliminate the projected deficit.
CPS has a new five-year, 7-mill property tax levy on the upcoming November ballot. If voters approve it, the levy would generate an estimated $64.7 million for the school district annually.
But ODEW stipulates the levy's revenue cannot be counted in the financial plan.
"Obviously, passing a levy on the ballot is the Plan A for the forecast, but we cannot use that in any of this work," Treasurer Mike Gustin told the Board of Education Monday night. "Any of this work can only be items that the Board and administration have full control over."
The school district will likely include sizeable cuts to student programs and its workforce in the written plan to reduce spending by millions. On top of cutting more than 100 jobs district-wide earlier this summer, Gustin says CPS leaders have already eliminated smaller items from the district's budget, leaving few options besides cutting more positions.
"Big savings come from big costs," he said. "We've cut all the paper clips. Those were cut a couple years ago, and unfortunately our most significant cost is staffing."
Gustin adds that cost-saving measures like school consolidation, transportation funding cuts, and adding student pay-to-play fees will also need to be considered to meet the state's financial requirements.
Board members did not go into detail about what they will approve for the written plan because of the possibility of new revenue from the property tax levy nullifying the cuts.
President Brandon Craig told fellow board members the options considered over the next few weeks are only to satisfy the state's request.
"What we report up may not be what actually happens, and I think the challenge with having too much discussion around it becomes that this is assumed to be what will happen as direction for this district, which may not necessarily be reflective of what happens in reality," Craig said.
The CPS Board anticipates approving the written financial plan during its Nov. 23 meeting. Election day is Nov. 3.
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