School Finance Resources

Financial Update: Understanding Our 5-Year Forecast

In November 2024, Ross Local School District submitted its required 5-year financial forecast to the state of Ohio. This forecast is a vital planning tool, but it’s important to note that it’s based on the most current information available and is subject to change. For example, the state provides funding for only two years at a time, and property valuations—another key factor—will be reassessed in Butler County in 2026, potentially impacting revenue projections.

Where We Stand Today

Thanks to strategic decisions and proactive measures, Ross Local School District is in a much stronger financial position than it was two years ago when a levy was necessary. Although increased property valuations have boosted revenue, key decisions have gotten us where we stand today.

Key actions include:

• Utility Savings: Negotiating utilities contracts coupled with efficiency upgrades, the district is saving $228,000. 

• Insurance Savings: Switching to a different medical benefits carrier, resulting in significant cost savings.

• Staffing Reductions: Strategic staffing reductions over the years, primarily through attrition, have been maintained, with only essential positions restored.

These strategic decisions have allowed the district to maintain its financial health while continuing to prioritize teaching and learning, which remains our core mission.

Projected Deficit Spending

Despite our current financial stability, deficit spending is projected in the 5-year forecast.  This is due to a common challenge for public schools: expenses typically grow at an average of 5% per year.  Meanwhile, revenue is projected to increase by only 1.85% per year, creating a gap in the long term.

Additional challenges include:

• State Funding Reductions: From FY 2024 to FY 2025, the district lost $470,000 in state funding due to the funding formula’s reliance on property valuations and income levels in our community. While property values have risen, the funding formula has kept our state revenue flat. Please see the State Revenue per pupil graphic that compares RLSD to similar districts and the state average.

• State Biennium Budget: The state budget is set through July 2025, but beyond that, future funding remains uncertain.

• State Fair Funding Formula: The state has been phasing in a new funding formula in three phases; the third phase is set to begin in 2025-2026.  We’ll find out for sure after the Governor’s proposed budget is released in February, but it’s looking like that third phase will not come to fruition, further complicating how well we are able to forecast our revenue and expenses.

• Private School Vouchers: Despite $1.5 billion allocated to private school vouchers by the state, our state funding has not increased to match rising costs.  With the income threshold being virtually eliminated as a qualifier for EdChoice vouchers, of the students residing in Ross Local School District who already attend a private, parochial or charter school, 205 of the 222 are now receiving taxpayer dollars to attend those schools.  This is a 1,200% increase.  Each K-8 student receives $6,166, while each 9-12 student receives $8,408 per year.  Please see our State Report Card which shares this information linked on our website under School Finance Resources.

How We Spend

Ross Local School District continues to focus its resources where they matter most—teaching and learning. Our administrative expenditure per pupil remains lower than comparable districts, while spending on teaching and learning is higher, demonstrating our commitment to supporting students and classrooms.

Instructional expenditure per-pupil at RLSD is 59.5%, which is the same as comparable districts, but higher than the state average at 57.1%.  RLSD Administration expenditure per-pupil is $1,521.73 (or 11.9% of our total per pupil expenditure), whereas similar districts’ spend $1,646.61 (or 12.4% of total per pupil expenditure) and the state average is $2,083.42 (or 13.5% total per pupil expenditure) on administration.

To find this data that compares the RLSD revenue and expenditures to similar districts and the state average, find the FY23 CUPP report provided by the State of Ohio linked below.

Looking Ahead

The district is dedicated to maintaining responsible financial management while ensuring the delivery of high-quality education to our students. As the 2026 property reappraisal approaches, we will carefully assess all factors that may affect revenue and adapt our plans as needed.

Thank you for your continued support as we navigate these challenges and opportunities together. Our goal remains clear: to steward taxpayer dollars wisely while prioritizing the success of our students.

 

Resources:

State Report Card Presentation to the Board of Education

State Report Card District at a glance

CUPP Report - scroll down to “Click Here to Access the Report” then type in Ross Local Schools