Dayton Public Schools board members have asked the district’s leaders to find solutions to a declining cash carryover balance, with the district projecting it will run out of cash by the end of the 2028-29 school year, according to the district’s five-year forecast discussion. A cash carryover is the amount of money a district has left over at the end of the school year, and the state requires schools to keep some money in reserve.
Most districts keep at least 60 days of cash on hand. Dayton’s balance has been shrinking because the district is spending more from its general fund — the money that comes from state funding and local property taxes — than it brings in, and board members want plans made now, before the problem worsens.
The two main solutions discussed among board members were seeking a new levy — one member suggested an income tax levy — or cuts. Board members stressed, however, that layoffs are not going to happen immediately. This is not us looking at ways to make cuts tomorrow, said board member Eric Walker.
The district received millions of dollars during the COVID-19 pandemic, leaving it flush with cash between 2020 and 2023. That additional cash helped the district avoid an earlier shortfall, but those dollars are spent and are unlikely to be renewed, leaving the district to operate on its regular mix of state and local revenue.
Treasurer Hiwot Abraha and Superintendent David Lawrence said the district did not get an increase in funding from the most recent state budget. According to the five-year forecast, about 61 percent of district funds come from the state and about 27 percent come from local real estate taxes, a balance the district noted differs from suburban districts, which generally see a much higher percentage of income from local sources. The state kept the district’s estimated foundational aid at between $131 million and $132 million in the next two years, according to estimates from the Legislative Service Commission.
Board President Chrisondra Goodwine noted that a previous budget shortfall, around 2008, led to cuts to music and art teachers across the district, and she pointed out that the district has focused more in the last two years on providing extracurriculars for students and enrichment to encourage them to come to school. Goodwine encouraged district leaders to find ways to cut that do not impact the classroom experience, and said board members need the leadership team and the people in the district to work together and start making these plans.
Board member Jocelyn Rhynard said the board should be cautious if it decides to consider a levy, and encouraged board members to educate themselves about levies and what a levy decision would mean for the board. No levy or cuts were approved in the discussion; the board’s direction was for district leaders to develop options while there is still time before the projected 2028-29 shortfall arrives.