Finance Facts
State Budget Process Still In Flux; Board Approves Five-Year Forecast
June 2, 2025
As of today, we are still in a holding pattern regarding the state budget process. We are anticipating the most pertinent amendments regarding school funding to drop in the Senate Finance Committee this week (June 3). We are continually in contact with our state association representatives in Columbus as well our legislators Representative Phil Robinson and Senator Jerry Cirino advocating for what is best for Solon Schools and our Solon and Glenwillow residents, families and students. Sen. Cirino met in May with area school district treasurers, including Solon Treasurer Tim Pickana. He articulated an understanding of the issues of most concern to our district and a willingness to be open to solutions and flexibility. Although we are cautiously optimistic, there are never any guarantees in this complex fast-moving budget process.
School may be out of session for students, but we will be directly connected to the state budget process and ready to contact you if grassroots messaging to the lawmakers becomes necessary. It will be important to pinpoint the messages to the specific amended budget bill that emerges through the process. Currently, the only thing that is certain is that there is no consensus about exactly how to provide the promised tax relief to Ohio property owners.
We will provide updates via our district messaging system to you as well as the School Funding: How You Can Help page on our district website.
This month, the Board of Education approved the district's Five-Year Forecast. The forecast is required to be submitted to the State of Ohio twice a year in May and November and provides a forward looking lens of district finances. The forecast shows the district plans in process for spending down the cash balance that had been accrued as a Tangible Personal Property (TPP) insulator in case past legislatures accelerated the phaseout of TPP replacement funding. As a reminder, the district lost nearly 20% of our revenues when the TPP business tax relief was implemented.
The forecast projects the district will gradually spend down its cash reserves from $25.5 million in FY 2025 to a deficit position by FY 2028, primarily due to the complete elimination of TPP tax reimbursements, stagnant revenue growth from minimal state funding and HB920. Despite these challenges, the district plans to maintain its high educational standards while managing significant capital outlay expenditures of $18 million in FY 2025 for facilities projects, followed by more modest maintenance levels in subsequent years.
You can review the May 2025 Solon City Schools Forecast here. Many of the planned facilities projects, which are part of our facilities master plan, are already under way and will continue through the summer.