Groveport Madison’s five year financial forecast

By Rick Palsgrove
Groveport Editor
Groveport Madison Schools’ most recent five year financial forecast is positive.

“The Groveport Madison community puts a lot of faith in us to be good stewards of our community’s tax dollars,” said Groveport Madison Treasurer Adam Collier. “We have greatly improved our standing in this category by weighing the cost/benefit of certain expenses and utilizing opportunistic grants.”

Collier cited the line in the forecast entitled, “Excess Revenues and Other Financing Sources over (under) Expenditures and Other Financing,” as sign of financial stability. It shows the following amounts for the district for the upcoming fiscal years: $9.9 million for 2024; $3.8 million for 2025; $315,996 for 2026: $4.7 million for 2027; and $9.5 million for 2028.
The forecast also shows these cash balances for the upcoming fiscal years: $45.6 million in 2024; $49.4 million in 2025; $$49.1 million in 2026; $44.4 million in 2027; and $34.8 million in 2028.

“This is our actual cash balance,” said Collier. “With this line showing roughly $45 million (for 2024), this is at 52 percent of our expenses, which is a figure that positions us to have six months worth of cash. This is a universally comfortable level where school district treasurers like to live.”

State revenue
In his report to the Groveport Madison Board of Education, Collier stated the district is in line for a 12.6 percent increase in state funding in 2024 and a 2.8 percent increase in 2025. Last year there was a 2.5 percent increase in state funding.

“For fiscal years 2026 to 2028 I assume a 1 percent increase (in state funding),” said Collier. “Projected growth is 68 students per year. Our biggest concern is always with State Foundation revenue and how much we are going to increase per year.”

Expenses notes
The forecast assumes an 8 percent increase in district employee wages and an 11 percent increase in benefits in fiscal year 2024.

Regarding purchased services, Collier is predicting a decrease of $1.2 million in fiscal year 2024.

“This is most transportation costs,” said Collier. “It is also savings from all departments on being fiscally responsible for their budgets and what they spend it on.”

In fiscal year 2025 Collier is expecting a 6 percent increase in purchased services and estimates fiscal years 2025 to 2028 will also see 6 percent increases.

“This increase is due to an increase in utilities, Franklin County Education Services Center costs, and other large items that are mostly out of our control,” said Collier.

Regarding supplies and materials, Collier said, “We are going to keep the supply budget fairly constant with a modest 3 percent increase each year.”

Added note
Collier added it’s important to note that, at the board’s May 1 meeting, the district moved forward with the Ohio Facilities Construction Commission building project.

“Those monies have no bearing on this five year forecast and are two different ‘pots of money’ so-to-speak,” said Collier. “We do not use general fund money for building construction.”

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