Lorain Schools plans to reduce spending, anticipates reduction in force

LORAIN — Lorain Schools' plan to reduce spending ahead of a looming budget deficit is headed to the Ohio Department of Education and Workforce. The Lorain Board of Education passed the plan unanimously, a required part of Lorain Schools' status under fiscal precaution as it tries to reduce its spending ahead of a projected multimillion-dollar deficit in the next two years. There was no discussion during the regular meeting. The schools' five-year forecast in May predicted an $11 million negative cash balance by fiscal year 2026 — the 2025-26 school year, and spending against its cash balance every year before then. The plan, which includes budget reductions made after that spring update, as well as changes to this school year and each year thereafter, now projects Lorain Schools to remain in the black through fiscal year 2027 — the 2026-27 school year. Even with the plan in place, Lorain Schools will need a levy or change to the state's school funding to combat the deficit, Treasurer Tia Kearney said, adding a sentiment often shared by Superintendent Jeff Graham: Lorain Schools cannot cut its way out of the jam. As students get ready to start back to school in the next few weeks, there will be little outward change to school operations, Kearney said. Staff reductions for fiscal year 2025 were made through attrition — eliminating unfilled vacancies or retirements — while facility projects were pushed out to reduce that line item by about $1.5 million per year. Fiscal year 2026 — the 2025-26 school year — will see reductions in force, according to the plan, across the schools' eight unions and its non-represented staffers. Those proposed reductions include: One building administrator 25 teachers; with an additional 25 anticipated retirements 14 paraprofessionals or personal attendants Three school nurses Three safety officers or compliance officers Three cleaners Two maintenance workers It also projected changing some of its technology vendors. Changes in fiscal year 2026 will save an anticipated $10.2 million, according to the plan. Fiscal year 2027 anticipates another 25 teacher retirements. For both fiscal year 2026 and 2027, those retirements may be replaced with younger teachers who have fewer years of experience — thus costing less money in salaries. Even with the proposed reductions, its fiscal year 2027 budget could see a $7.5 million deficit, projected to grow to about $22 million the year after. Outside of the district's new spending plan, it is campaigning for a permanent improvement levy on the ballot this November. The five-year, 4.97-mill permanent improvement levy will generate about $3.5 million per year to fund maintenance costs at its 14 buildings. The money cannot be used on salaries or personnel costs. In anticipation of the levy, the district reduced its budget for building repairs from $5 million to $3.5 million, Kearney said, lengthening out the time line for some projects. The $1.5 million difference will remain in the schools' general fund, she said, and while it can be used for other costs, it is not enough to make a dent in its overall expenses. The last time Lorain Schools came this close to a financial deficit was in 2021, Kearney said, but an unexpected bump in enrollment, change to the state funding formula and $58 million in Elementary and Secondary School Emergency Relief funds, rolled it back from a financial cliff. Lorain Schools' next scheduled fiscal update will be in November with the fall five-year forecast submission. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.