The five-year financial forecast for the district was approved Wednesday evening by the Napoleon Area City Schools Board of Education.
Treasurer Michael Bostelman reported the district’s finances are stable, but noted the district enters into deficit spending in fiscal year 2019 and remains there throughout the life of the forecast.
“I would still say our finances are stable, but we are entering a period of deficit spending, and that’s always a trigger to the board,” Bostelman said.
However, Bostelman said he is closely watching budget discussions at the state level. If the governor’s proposal is enacted, the district’s funding will remain the same as the past two years.
“I still think we’re going to pretty much be flatlined on state revenue unless something else gets thrown in there,” Bostelman said. “Our biggest obstacle is declining enrollment and we did receive some funds from the pipeline that came through, so in the state’s eyes, we’re looking richer and richer, which means they’re going to give us no more.”
Bostelman said an alternative school funding proposal, presented by State Reps. John Patterson and Robert Cupp, has been moved to the side for more research.
“I don’t know if the state thinks they can actually fund it, so the governor’s proposal seems to be moving forward a little bit,” Bostelman said.
The projected cash balance by the end of fiscal year 2023 is $9.97 million. However, Bostelman noted expenses in fiscal year 2023 are projected at $25.3 million.
“It goes fast once you start spending into it,” he said.