Finance Facts

Dec. 27, 2024

Each November and May, the Solon City Schools submits a Five-Year Forecast to the Ohio Department of Education and Workforce as required by law. This forecast serves as a vital tool to assess and communicate our district's financial health to our community.

As we look ahead through the lens of our latest Five-Year Forecast, the Solon City School district continues to demonstrate why it stands as one of Ohio's best. Our district continues to maintain its legacy of academic excellence—a remarkable achievement accomplished while receiving just 5% of our funding from state sources. The financial foundation of our schools rests primarily on the strong support of our local community.

The forecast does reflect the somewhat encouraging news that occurred on the state funding front this year as our district did benefit from state funding formula changes implemented in 2024-25. Additionally, we are seeing strong investment returns that are expected to continue through 2026. These positive developments help offset some of our funding challenges.

Calendar year 2024 marked our final phase-out of Tangible Personal Property (TPP) tax funding. More than a decade ago, anticipating this transition, our district strategically built cash reserves through spending reductions, benefit changes and salary freezes. While strong community advocacy helped avoid an abrupt funding cut, these reserves were designed to maintain educational quality during the TPP transition. As planned, with TPP funding now ending, these reserves are being directed to facility needs rather than operating expenses.

With state TPP funding now ended, we are executing that facilities plan. Major expenses occurred in fiscal years 2022 and 2023, with remaining reserves allocated for improvements over the next 12 months. Summer 2025 will bring essential updates to HVAC systems, masonry, asphalt and roofing across our facilities, along with projects from our master facilities plan. 

Looking ahead to fiscal year 2027 (July ‘26-’27), we project the first significant net loss and anticipate the need for an operating levy within a few years. Additionally, our strategic planning discussions with the community have highlighted the need for a new high school, which would require a separate bond levy. The need for these levies is not included in the current forecast, but it is important to acknowledge these as likely realities during this period.

As we plan for the future, we're monitoring several financial factors. Healthcare costs show projected annual increases of about 6%, although our participation in the Stark County Council of Governments has helped control costs through lower premiums and optimized, more managed staff benefits. We're also watching potential changes to state-level private school voucher programs that could affect our expenses in the future.

Our financial outlook reflects our commitment to responsible fiscal management while delivering the excellent educational opportunities our community expects and our students deserve. We continue balancing investments in our people and facilities with careful stewardship of community resources. While challenges lie ahead, our strategic planning and careful financial management position us well to continue delivering the high-quality education that defines Solon City Schools.