Increasing staff costs and textbook adoptions are part of the reason Urbana City School’s future budgets face deficits, according to school officials.
The school board approved the district’s five-year forecast at its Tuesday meeting. The forecast is developed in May and October each year, as required by state law.
Revenues are estimated to end the current school year at $23,973,051 and next school year at $23,408,511. Revenue is estimated to decrease to $20,476,393 in the 2020-21 school year, according to the forecast.
Treasurer Mandy Hildebrand said the district may see a slight increase in revenue from state funding, according to the latest budget proposal from the Ohio legislature. But overall revenue is estimated to decline over the next five years depending on property tax receipts and the loss of tangible personal property revenue.
Expenses are estimated to end the current school year at $23,933,589 and next school year at $23,600,269. Expenses are estimated to increase to $25,860,263 in the 2020-21 school year.
Expenses are estimated to increase because of staff salaries and insurance costs. There are also textbook adoptions planned for future years, and costs for all types of services the district purchases are estimated to increase as well, Hildebrand said.
The forecast predicts the district will end the current school year with a $39,461 surplus and next school year with a $191,758 deficit. The shortfall is estimated to grow to $5,383,869 in the 2020-21 school year, though it will be covered by cash reserves.
Casey S. Elliott may be reached at 937-652-1331 ext. 1772 or on Twitter @UDCElliott.