State budget costs Lorain Schools $3.5M for upcoming school year

LORAIN — Lorain Schools lost $3.5 million in state funding ahead of the upcoming school year. With classes set to start in less than two weeks, school board members heard an update on the district's financial forecast since the state biennial budget passed June 30. The final budget cut some targeted supports for low-income districts, costing Lorain Schools $3.5 million for fiscal year 2026 —– the 2025-26 school year. The district also lost $900,000 it budgeted in its May forecast based on the Ohio House version of the budget, but that revenue was not included in the final version. The state notified the district of its revenue loss well after the June 30 deadline for reductions in force of many personnel, Superintendent Jeff Graham said late last month — meaning the district will have to sustain the 2025-26 school year with lower revenue than initially projected and not be able to cut much of its expenses. Treasurer Tia Kearney's updated budget presentation at Monday's Board of Education meeting included new cash balance projections. While the district finished fiscal year 2025 (the 2024-25 school year) with a bit more cash on hand than originally projected, fiscal year 2026 is now anticipated to be lower than Kearney's spring projections. The loss in state funding plays a large part in the district's cash balance dip this year, but it also purchased 10 new school buses at the start of the fiscal year when it planned to make the $1.3 million purchase at the end of fiscal year 2025. The new buses will allow the district to eventually move all of its transportation services in-house, as it currently contracts out transportation services for children living in the district's boundaries who attend charter schools. It will take about three years for Lorain Schools to see those new buses pay for themselves in cost savings, Mary Mayse, executive director of operations, said at a special July 29 meeting when Board of Education members approved the purchase. Beyond the current school year, Kearney's projections anticipate the school's cash balance dipping into the negative in fiscal year 2028, the 2027-28 school year. The district hits a negative balance a year earlier than originally projected in May. How far that cash balance may plummet depends on whether or not the district passes its two renewal levies this fall, according to Kearney's projections. Up for renewal is a 23.85-mill current expense levy that generates about $11 million per year; and a 3.14-mill emergency levy that generates about $3 million per year. The larger of the two levies, if passed, would be continuous; while the emergency levy renewal would be for 10 years. If the issues do not pass, the district has two more tries — May and November 2026 — until they come off property tax collections. With the levies, Lorain Schools faces a $10.5 million negative balance in fiscal year 2028, and a $28 million negative the year after that. Without the levies passing, the district would only have $1.3 million in cash at the end of next school year; and a $29.5 million negative balance in fiscal year 2028. That negative balance could balloon to $43 million in fiscal year 2029 if Kearney's projections without the levies' passage stays true. The proposed deficits are not close enough to trigger the district being under fiscal watch by the state auditor yet. Kearney cautioned the district's financial status could still change if efforts to overturn Gov. Mike DeWine's vetos from the budget, or other state legislation targeting property taxes, move forward. Behavior and attendance Other district administrators gave the board an update on procedures to handle behavior and attendance issues in its schools. In the spring, teachers and community members filled board meetings to decry behavioral problems largely at the district's elementary buildings. Those sessions sparked meetings within the district to discuss how better to connect teachers and students with available supports, Graham and others explained at Monday's board meeting. Stephen Sturgill, executive director of wraparound services, explained the process, with interventions escalating if a child's behavior changes or intensifies. The plan, Sturgill outlined, includes tiered supports based on a child's need. The system would start if a teacher or other staff member refers a student for behavioral interventions. That referral goes to the building principal, who would bring in supports like wellness or behavioral coaches, Sturgill said. If that does not remedy the behavior, or if the child requires additional services, an intervention plan is created to determine what that student needs; then staff implement and monitor progress on that plan. If a child's behavior continues to be a problem, or declines while on the intervention plan, the student could be referred to more intensive supports through the district's special education services. Missy DeAngelis, director of data and testing, provided a similar structured update to the school's attempt to tackle chronic absenteeism and poor attendance. According to the district's 2024 state report card (using data from the 2023-24 school year), its chronic absenteeism rate stood at just over 60 percent. Chronic absenteeism, defined by the state as missing 10 percent of a school year. If a child misses about two school days a month, they are on track to be chronically absent, DeAngelis said on Monday. DeAngelis said building secretaries will be the "front line" in engaging families, knowing students and making sure the school's attendance data is accurate. From there, the approach targets creating relationships and building connections with families to address why their child may not be coming to school, or may be habitually tardy. If the problem persists beyond 38 hours absent, a plan to address the issues must be put in place under state law; if that plan remains in place for three months without a child's attendance improving, the district could file a complaint in juvenile court. DeAngelis and others said the attendance system is not meant to be punitive, but to help solve problems with families so children attend school on time every day. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chorniclet.com.