MECHANICSBURG – Mechanicsburg Exempted Village Schools’ five-year financial forecast predicts declining revenue will lead to deficits, though they will be covered by cash reserves.
The Mechanicsburg school board approved the five-year forecast at its Monday meeting. The forecast, prepared by Treasurer Scott Maruniak, is required to be submitted in May and October each year by Ohio law.
The district’s revenues are predicted to end the current school year at $10,220,881 and next school year at $10,095,613, according to the forecast. Revenue is estimated to decline to $9,980,093 in the 2020-21 school year.
Revenue is estimated to decline due to decreased state foundation funding and continued decline in personal property tax receipts, states the forecast assumptions document prepared by Maruniak.
The district’s expenditures are predicted to end the current school year at $9,141,725 and end next school year at $9,830,477. Expenses are estimated to increase to $11,558,686 in the 2020-21 school year.
Expenses are estimated to increase due to staff salary increases, health insurance cost increases and replacements for technology, the forecast assumptions document states. The district’s One-to-One Chromebook program will need to be paid from the general fund instead of the Permanent Improvement levy funds because they are not lasting the required five years to use those dollars.
The forecast predicts the district will end with a $1,079,156 surplus the current school year and a $265,136 surplus next school year. Deficits are estimated to begin in the 2018-19 school year and grow to $1,578,593 in the 2020-21 school year. The deficits are predicted to be covered by cash balances, putting the district at $2,568,377 in the black in the 2020-21 school year.