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ROCKY RIVER, Oh. - The Rocky River City School District is projecting notable financial challenges over the next five years, according to the Financial Forecast Report presented by Treasurer Greg Markus at the October 14, 2025 Special Finance Meeting. With expenditures expected to outpace revenue growth and cash reserves declining by more than $17.7 million by 2030, “there are some causes for stress,” officials noted. The district’s cash balance, which stands at approximately $16 million at the start of fiscal year 2026, is projected to drop to just $5.2 million by fiscal year 2029, and fall into a deficit of $1.7 million by 2030 if current trends continue without intervention, officials noted. (See Abbreviated Forecast lines 7.010 and 7.020) Another measure of the district’s financial health -- days of cash on hand -- shows a steep decline. The forecast indicates the district will have just 38 days of cash on hand by the end of the projection period, down from 108 days currently. (Financial Forecast Report, page 4). This metric represents how long the district could operate using only its cash reserves without additional revenue. The financial report indicates that a key factor driving the budget pressure is a dramatic slowdown in revenue growth, according to the report “with the largest contributor to the projected revenue trend is the change in Real Estate.” While the district saw revenue increase by an average of 4.14% annually over the past five years, that growth rate is expected to drop to just 1.54% annually through 2030, according to the district’s latest financial forecast. The forecast does include some positive news in revenue with the Rocky River District high rating on the State Report Card. Markus remarks that the state funding (Unrestricted Grants-In-Aid) line 1.035 on the Abbreviated Forecast, “compared to the last forecast, this is actually a positive, and why our bottom line is moved positive out a couple years. The biggest piece that I see is that in a 4 and 5 star district, there is an increase in revenue per student.” The elephant in the room was addressed when Board Member Addie Olander asked “what we are looking at,” as far as when the district may need to put a levy on the ballot. Members of the Board chuckled with Markus as he joked he was leading up slowly to that point. “So obviously when’s the next levy is top of mind, and I think it’s been well known and communicated we have been targeting 2027 or beyond for a couple years.” The financial forecast does not currently include any new or renewal levies during the five-year projection period. District leaders have been targeting 2027 as the most prudent timing for a levy, though board members questioned whether 2028 might be feasible given some improvements in the near-term projections. Treasurer Markus indicated there could be scenarios where pushing to 2028 is possible, but cautioned that delaying increases the risk of needing a larger levy amount later. “If we don’t go in ’27 or ’28, we’re looking at a 4.9 [mill levy] potentially,” he noted during the discussion, referencing the relationship between timing and the size of levy needed. Any decision to delay a levy beyond 2027 would likely require strategic staffing reductions through attrition -- not replacing retiring staff or replacing them at lower salary levels -- along with careful budget management. Discussion of any levy was deemed pre-mature due to the shifting and unpredictable landscape of education and legislation coming out of the State House in Columbus. Board member Peter Corrigan noted the question doesn’t have to be immediately answered but rather he was “putting it on the table, as was his obligation.” The board will continue to closely watch this forecast as they are “dealing with a moving target,” Olander expressed. Staffing and employment pose an area to be watched. Officials indicated they are exploring different staffing models and partnerships to address these needs while managing costs. The district discussed the option of natural attrition to help manage costs. Officials noted that three certified staff members are anticipated to retire this year, with approximately 15 staff members currently eligible for retirement. However, eligibility doesn’t guarantee retirement decisions. Officials emphasized that the current forecast represents a planning document based on what is known today, with many variables -- including state legislation, enrollment changes and economic conditions -- that could significantly alter projections.
