Despite agreement that Niles City Schools are making substantial progress in getting out from under fiscal emergency, members of the Financial Planning and Supervision Commission are still concerned about future state revenue shortfalls. Those concerns stem from anticipated significant reduction of school funding due to the impact of the COVID-19 pandemic and the loss of tax revenue to the state.

With the district in a state-declared fiscal emergency since February 2019, the commission oversees the district’s Financial Recovery Plan and compliance to eventually qualify for release from the declaration. Bob Foss, commission chairman, said the plan requires “positive fund balances and no deficit spending” in the first three years of its current five-year forecast. “The plan meets that, but eventually there will have to be a discussion of what’s next for the district.”

While current projections indicate positive balances for the schools to FY 2022, at least one commission member thinks the district will have no option but to revise its forecast later this year. “I’d like to be optimistic, but I don’t see how there aren’t further reductions in Fiscal Year 21,” Jack Pierson of the Ohio Office of Budget and Management told his fellow commission members Monday. “Payroll taxes aren’t coming in like last year (and) I think there will be a substantial reduction,”  Pierson said it is too early to revise the forecast, but changes could be likely by November. Foss agreed.

“We’ll see how things are going,” the chairman said. “We’re in a position to monitor the plan (and) see if more action is needed or if we have come to a point for release.”

In addition to its unanimous acceptance of the district’s response, the commission also approved retirement incentives worked out by the district and the unions representing teachers and non-teaching employees. “These are very beneficial to the district and its employees,” Foss said. “It doesn’t take long to pay for itself and help the bottom line.”