Treasurer Jennifer Burke provided an update to the Board of Education on the Financial Forecast (Fiscal Years 2026–2030) on October 14, 2025. She provided a comprehensive outlook on the District’s finances examining revenue, expenditures, and cash balances over the period. The report demonstrates cautious optimism showing a strong current cash position but forecasting gradual cash declines due to stagnant revenues and rising expenditures.
Overall Financial Position
As of July 1, 2025, the district’s cash balance was $8.3 million which is expected to remain positive throughout the forecast period which will end at $6.7 million by 2030. Balanced budgets are anticipated through FY2027 and deficits projected to begin in FY2028 as expenditures begin to outpace revenues. The district remains financially stable but due to projected deficits will begin to discuss ways to balance the budget starting in FY2028.
Revenue Trends
Total revenues are forecasted at roughly $21.1 million annually and remaining mostly flat through FY2030. The primary revenue source is local real estate and public utility taxes which account for 49.91% of the general fund. Due to cost inputs not being updated in the Fair School Funding Plan, the State funding is reduced to 44.49%. The Fair School Funding Plan (FSFP) full phase will be completed in FY2027. Due to the State Legislature not updating cost inputs, the District expects a loss of approximately $2.8 million in revenue compared to previous projections. School year 25/26 enrollment has declined by 18 students further reducing funding almost an additional $1M. The forecast assumes steady enrollment of 1,340 students through FY2030. The District anticipates additional income starting in 2028 from Givaudan’s TIF revenue related to the Centennial Industrial Park development from direct business payment and shared payroll taxes with the City of Reading.
Other revenue sources, including tuition, fees, interest income, and donations, comprise about 5.6% of total income. Due to the recent rates, interest earnings have risen sharply in recent years but are expected to normalize.
Expenditure Overview
District expenditures are primarily made up of personnel costs for salaries and benefits account for 66.40% of total spending. Purchased services include contracts for special education requirements, related services educational staff, classroom educational aides, transportation, utilities and facility maintenance represent 28.62%, while supplies, capital outlay, and other expenses make up the remaining 5%.
Transfers and Financial Strategy
In FY2025, in an effort to protect planned cash reserves, the District transferred $6.6 million into Special Purpose and Permanent Improvement accounts for long-term commitments. Therefore, the expenditures have shifted for those recurring costs such as athletic supplementals, severance payouts, textbook replacements, chromebook refresh cycles and debt service payments for the Hilltop COPs debt. These are ongoing expenditures and do not represent new spending.
Conclusion
The Reading Community City School District remains in a strong financial position and maintains a healthy fund balance and disciplined fiscal management. Continued monitoring of state funding legislation and enrollment trends will be essential to preserving long-term financial stability and protecting classroom resources. The District continues to seek cost savings through partnerships, competiitive grants, energy initiatives, and maximizing laddered investment strategies. Legislative monitoring remains a top priority particularly concerning property tax reforms with HB96, HB129, HB309, HB186 and H335 which could create financial uncertainty.
Mrs. Burke provided a summary of the competitive grants the District has received since 2021 which totaled $2.35 million. Additionally she highlighted the District’s investment earnings increased from $77,000 in 2021 to over $900,000 in 2025 totaling over $2.2 million in earnings in a 5 year period demonstrating prudent financial management.
Finally, the District emphasizes ongoing advocacy at the state level, with both the Superintendent and Treasurer actively serving on ODEW, OASBO, and Ohio School Board committees. Community members are encouraged to contact local legislators regarding school funding issues.
If you are interested in joining the Finance Committee, please contact Mrs. Burke. Mrs. Burke welcomes all questions and can be reached at 513-842-5108 or via email at [email protected].