NILES, Ohio - The Niles Board of Education has approved the mandatory five-year financial forecast that includes a projected deficit of $821,000 in Fiscal Year 2023. Such deficits are prohibited for districts in a state-declared fiscal emergency as has been the case for Niles since February 2019.

Treasurer Rhonda Amorganos told the board, which met virtually on the Zoom conferencing app Thursday, the forecast did not come from her office, but from state auditor local government services as required for districts in fiscal emergency. The treasurer warned that the forecast is likely to change due to a number of as yet unknown variables, in particular, whether Gov. Mike DeWine imposes more cuts to foundation funds.

His first statewide reduction of 1.8 percent due to loss of revenue from the coronavirus shutdowns cost Niles Schools $317,000 and led to the layoffs of a fiscal specialist and an administrator. Additional cuts are likely to be far more costly. “1.8 percent of state aid reduction through each year (amounts) to $1,964,000 through the life of the forecast,” Amorganos said.

The treasurer said she does not anticipate a higher percentage of foundation cuts to Niles because of the economics of the community. “According to the current methodology, Niles poverty level is up higher than many districts,” she explained. “If we’re cut any additional funding, it’s going to be on the lower end.”

“There’s a lot we don’t know,” Amorganos said, especially about the next school year such as the impact of social distancing on transportation, if lunches will be reduced to “grab and go” and the status of open enrollment tuition. She is hoping for a clearer picture by the end of June.

In the midst of the issues of uncertainty and the projected deficit, the treasurer described a few positives. One example—the shutdown saved the district $120,000 in electric bills. Another property tax allocations are projected $129,000 higher than anticipated last November. That, however, is not enough for the treasurer. “I’m not comfortable with the (forecast) with us in fiscal emergency,” she told 21 News after the meeting.

The forecast is likely to come up for discussion when the fiscal commission that oversees the schools’ recovery from fiscal emergency meets May 26.