Jonathan Alder continues to be in a good place financially as the five-year forecast numbers came in higher than last year’s projections.
Treasurer Mark Ingles updated the board of education Monday on the district’s outlook saying that apart from some uncertainty regarding state funding, Alder’s numbers are “very healthy.”
As mandated by the state, this is the second update for this school year, the first being in November 2023, and “not much has changed,” Ingles said.
“Overall, I do want to stress that, in this forecast, we’re structurally balanced, which means we’re bringing in more revenue than we’re expending, which is good,” he said. “We’re living within our means. We do have surpluses that we do have options for. Really, what we want to do is use those surpluses to save for tomorrow.”
According to the treasurer’s report, revenues show the district being mostly on target with original estimates for this point in the year and where changes do occur, it’s mainly in a positive direction. General fund revenues are estimated to be $30.4 million, more than $1.3 million more than the November forecast.
That money comes from a mixture of property tax, income tax and state money among other sources, with real estate tax being the most significant source of the funds. And while Alder is benefitting from increases across the board, the rise in property value is helping those numbers stay strong.
Union County, which accounts for roughly 45% of the district’s property value makeup, had a reappraisal update in 2022, which showed that values assessed increased by nearly $70 million.
Property values also come from Madison County (54%) and Franklin County (1%) and those counties saw updates last year that began collection this year, showing an increase of $105 million or 20%, according to the report.
Madison and Franklin will see another update in 2026 to be collected in 2027 and estimates show that increase by $30 million.
While that is a benefit to the school district, it might mean a reduction in state funding looking forward.
“We do have a dip though in state foundation and the reason for that is that under the state formula, basically when our local wealth goes up, we are expected to pick up more of the base cost of the students,” Ingles said. “So, what that means is that we’re looking to have a decrease of about $436,000 in state aid because the state is looking at our numbers and saying ‘you can pick that up locally and we’re not going to kick that in.’”
Ingles said there is also the uncertainty around the state’s ongoing Joint Committee on Property Tax Review and Reform. Members of the Ohio legislature are currently looking at potentially changing the way values are reappraised as well as the 20-mill floor, which sets a minimum millage level for school districts that can’t be passed. He said the district will continue to watch those discussions.
As was the case in November, the district’s largest expense continues to be wages and benefits. Ingles said projections show it will likely go up next year as well.
“For expenses, wages are expected to go up about $940,000, about 40% of that is due to new staff,” he said. “The majority of this increase is the 2% base increase that was negotiated in our last collective bargaining agreement with our unions.”
Wage costs also will go to some grant-funded staff member salaries returning to the general fund. Additionally, benefits will go up with that and the district has seen an increase in insurance costs in the “double digits, year over year,” Ingles said.
Looking forward, the district budgeted for two new full-time employees to help handle enrollment growth, he added.
While the district is in good shape financially, Ingles said, similar to November, there is a hope that the levy will be renewed.
Alder has a 0.75% income tax levy that is set to come off the forecast in 2027. Residents will likely see that on the ballot in the future.