Trending
SALEM -- The Salem City School District is projected to remain in the black for the next three years before trending into the red amid ongoing funding uncertainty for Ohio's public schools.
Each year, Ohio school districts present and approve a five-year forecast in the first half of the school year, and a second revised forecast in the second half. When those forecasts must be filed was updated with the approval of House Bill 96 in June 2025, which required the first half to be filed by Oct. 15 and the second half at the end of February in fiscal year 2026.
The filing deadline for the first half of the forecast has been shifted earlier still in fiscal year 2027 to Aug. 31; however, the deadline for the second half will still be the end of February each year.
During the board of education meeting Monday, Treasurer Mike Douglas presented the board with a forecast which continues to project a mixed financial future for the district. However, Douglas stressed that as always, the five-year forecast is best thought of as a "snapshot of where we are today" that will be adjusted as new information becomes available.
Douglas listed the ongoing effects of House Bills 129, 186, 309, and 335 last year, ongoing efforts around the state to reduce or eliminate property tax collection in Ohio, and legislative changes that will accompany the states biennial budgets for fiscal years 2028-2029 and fiscal years 2030-2031 as major factors which will shape the district's finances over the next five years.
The district ended fiscal year 2026 with a final balance of $9,612,128, an approximately 16.7% increase from fiscal year 2025's final balance of $8,238,074. The forecast projects that figure to rise over the next three years with annual increases the district's end of year cash balance before dipping in the final two years of the forecast.
Fiscal year 2027, 2028, and 2029 are expected to trend upward with projected final balances of approximately $10,988,752, $11,477,612, and $12,321,849, respectively. However, the balance is expected to begin a decline in 2030 as expenses begin to outpace revenues with a projected final balance of $10,705,039 which will continue in 2031 with a projected balance of $8,780,790.
The board of education will meet next at 7 p.m. on Sept. 21.