FHSD Presents Fall 2025 Financial Forecast

graphic that reads "Financial Forecast Report Fall 2025" with icons showing a chart, dollar sign and school building

During the September 17, 2025 Board of Education Meeting,Forest Hills School District Treasurer Alana Cropper presented the district’s annual Financial Forecast Report. This document provides detailed information about the finances of the General Fund, which accounts for approximately 80.4% of FHSD’s total annual budget.

Responsible Financial Planning

Due to changes in state law approved with the most recent biennial budget bill, changes to the annual financial forecast are already going into effect. This school year, the fall version of the forecast is required to be submitted to the state of Ohio in mid-October, which required the district to present the forecast for Board approval in September. The document used to be called the Five-Year Forecast and was traditionally presented to the Board of Education every November and May.

The report serves as a planning document to assist with fiscal management and accountability by showing historical and projected revenue and expenses.

The forecast is designed to adjust over time to reflect changing factors that impact the district’s finances, which is why the report is presented twice every school year. For example, this version of the financial forecast takes into account all additional data that has become available since the previous update was presented in May 2025.

You can click the following links to view the official copy of the October 2025 Financial Forecast Report and related materials:

You can find additional information about the financial forecast by visiting the district’s dedicated webpage to the document here. In completing the Financial Forecast Report, FHSD, like other public school districts in Ohio, follows specific parameters and requirements laid out by the state of Ohio. You can learn more about the process on the state’s website here.

This forecast summary shows the anticipated changes to revenue and expenditures over the next five fiscal years.

Updates from Most Recent Forecast

Treasurer Cropper provided a summary of revenue and expenditure variances between the current Financial Forecast Report and the most recent version. It indicates a net cumulative impact between fiscal years 2025-2029 of variance at approximately 1.14%—a positive net change of $6,114,011. This total impact can be attributed to an increase in state foundation funding, slight increases in other revenue sources and a decrease in projected salary costs over the forecast period.

The change in projected state funding comes after Ohio lawmakers completed the biennial budget process over the summer. In May, when public discussions about changes to state education funding were ongoing and in process, it was impossible to include that unknown data in the forecast. FHSD will see an increase in state funding, and that finalized and confirmed data is now reflected in the current version of the forecast.

The updated forecast projects relatively consistent General Fund revenues between fiscal years 2025 and 2030. With expected increases in expenditures due to inflationary increases in the cost of items like food, fuel and energy, and negotiated cost of living adjustments in salary and benefits, the forecast projects the General Fund cash balance to begin to see a decrease between the 2027 and 2028 fiscal years. General Fund expenditures could exceed revenues as early as fiscal year 2028. Based on the projected ending cash balance values, the district does not anticipate a need to request a new levy during the timeframe covered by this report.

chart detailing "revenue and expenditure variances - current compared to prior forecast" — This chart from the Financial Forecast Report details the variances in projected revenues and expenditures between the current forecast compared to the previous forecast.

How the Forecast is Created

The district’s General Fund, which is the primary focus of the financial forecast, is used to pay for things like staff salaries and benefits, purchased services from outside contractors and supplies and materials that support classroom education, supporting the majority of the day-to-day operations for FHSD. Other funds include permanent improvement, food service, bond retirement and more (and these funds are NOT included in the financial forecast as stipulated by state law).

In creating the Financial Forecast Report, Treasurer Cropper evaluates past trends for known data points, adjusts calculations to match known historical data and makes predictions for key variables that could impact future finances. The report contains information about those key assumptions and provides additional notes when such predictions are utilized. Some specific items entirely outside the district’s control that can have a noticeable impact on the forecast include changes to the amount of state funding, property valuations and revisions, legislative mandates, economic inflation and more.

It is important to remember that any changes or adjustments at the state level in regards to school funding can rapidly change projections in the forecast between updates. A prime example being the changes in projected state foundation aid between the May financial forecast and the current version.

The forecast is simply the district’s best estimation as to what might happen in the future. Many variables that affect the financial forecast are currently unknown and out of the district’s control (i.e. state funding and economic inflation), and the forecast will be updated as those unknowns become known. Despite those challenges, Forest Hills School District remains committed to responsible fiscal planning and regularly evaluates internal processes and procedures to find ways to operate as efficiently as possible.