If financial trends stay the same, the will run out of money by 2016, according to .
Aho presented his latest findings at Wednesday's board of education meeting, sharing with the board that by his estimation the district’s cash reserve will be completely depleted and short $12.8 million by 2016. In July 2012 it should have $23.2 million in the reserve.
The five-year forecast is designed to provide the administration, board of education and the public a general indication of a probable future financial position of the district based on information currently available. Aho said these estimates are fairly conservative.
Want more school news? Sign up for our eNewsletter!
For the past few years Aho and the board have predicted budget shortfalls and tried to resolve the financial issues they saw.
“It’s the same thing, but we’re just pushing it out a couple of years,” Aho said.
Over the next five years, the district will lose nearly $5 million in total revenue; from $38 million in 2012 to $33 million by 2016. In that span total expenses could increase by $5 million; $41.5 million in 2012 to $46 million by 2016.
See the data graphic below.
According to the forecast, Twinsburg will steadily lose $2 million over the next five years.
And any new changes from the state could change those numbers all over.
“Next year at this time we could be talking about things that will change our budget again,” Board President Ron Stuver said, adding that the state’s next biennial budget could drastically affect funding to public schools.
“We’re going to be pretty flat lined when it comes to state funding,” Aho said.
State budget shortages and eliminating the tangible personal property tax have been major hits to Twinsburg's financial future, according to Aho.
When the district's fiscal year ends in July, it will be short $3.2 million. Last year the district lost $2.4 million.
Read more on the five-year forecast:
District's Five-Year Forecast2012 2013 2014 2015 2016 Total Revenue $38,323,000 $36,791,000 $35,737,000 $34,729,000 $33,710,00 Total Expenses $41,543,000 $41,890,000 $43,814,000 $45,198,000 $46,611,000 Excess Revenue -$3,220,000 -$5,098,000 -$8,077,000 -$10,469,00 -$12,901,000Cash Reserve Balance$23,210,000$18,612,000$10,535,000$66,517-$12,835,000
**You can view the full five-year forecast with notes in our PDF section above.**