Cincinnati Public Schools officials say the district will avoid fiscal caution and deficit spending over the next five years after voters approved its proposed five-year, 7-mill property tax on Nov. 3.
In early September, district leaders received two letters from the Ohio Department of Education and Workforce warning of a low fund balance and a projected $44.5 million deficit in fiscal year 2029. The state asked CPS to submit a Board-approved financial recovery plan by Nov. 30 that would eliminate the deficit.
School administrators did not formally propose any budget cuts to the full Board of Education but said school consolidation, staff layoffs, further reductions to transportation, and the introduction of student pay-to-play fees would be considered if the new levy did not pass.
On Monday night, Treasurer Mike Gustin told the Board that administrators were prepared to present a plan to cut around $30 million in spending this week, but no longer had to.
"Passing the levy gets us a bout $66 million of new revenue every year. That is more than enough to put us out of fiscal precaution and give us a positive cash balance at the end of 2029," he said.
Gustin added that the school board now must vote to approve a fiscal recovery plan that includes projected revenue from the newly approved levy before the end of the month.
"We'll file with the state [and] they will send us a nice letter and say, 'You're out of fiscal precaution. Congratulations.' And we move on," Gustin said.
CPS leaders expect the funding boost to halt years of massive budget cuts that have resulted in over 100 layoffs and the loss of dozens of academic programs and student services.
Board members will formally approve the fiscal plan Nov. 23.
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