Canfield Local School District Treasurer Ben Marko presents the school board three options to deal with a deficit of cash on hand in the five-year forecast. Staff photo / J.T. Whitehouse

CANFIELD — The Board of Education received three options from Treasurer Ben Marko this week to consider to resolve a looming deficit problem.

The presentation covered five-year financial forecast data, but the one telltale sign of problems was found in the “calendar days-cash on hand” or the number of days the district could continue to operate with what is left in the pot. From 2022 to 2024, the numbers were at 223 days, 206 days and 217 days, respectively. In 2025, the days dropped to 132 and this year it is projected to drop to approximately 127. Marko added the 2027 number would be 93 to 99 days, and after that, it would drop in 2028 to 44 to 54 days.

“When our five-year forecast shows a drop below a 60-day supply of cash to operate on, we are required to make a presentation to the board and the public,” Marko said. “We have reached that point, so here we are, giving the presentation.”

He said the forecast shows 2029 barely breaking even, and in 2030, the numbers are in the negative. That means the district could no longer function as it would have no funds to work with, no funds to pay salaries or make repairs, and no funds for utilities to run the school buildings.

Marko said it is his job to inform the board and offer ways to deal with it. He pointed out actions Canfield has been taking to be fiscally responsible, including staff reductions.

Superintendent Joe Knoll said many who leave a position in the district are not replaced. Since 2020, those numbers include four certified staff, eight classified staff and five retire-rehires. Knoll said most of the classified staff reductions are bus drivers who were not replaced and routes that were combined to save money.

“We are spending taxpayer money very efficiently. We put our money where it should be, on education,” he said.

He said the district still has to deal with a lot of the issues that local property owners deal with, such as utilities and maintenance for school buildings that Knoll said are not getting any cheaper, and the district has to cover it.

While staff reductions and other cost-saving items have helped the budget, the bottom line is the district is deficit spending and heading toward not having enough funds to survive more than 60 days, Marko said.

“My goal tonight is to present three options on how to deal with a five-year forecast deficit,” he said. “We can focus 100% on reduction of expenditures, focus 100% on increasing revenue or focus on a mixture of both.”

He said in option 1, the district would have a year to prepare and would have to be close to a 10% reduction in staff. If that were done, by 2030, the district would be hitting the 60-day mark. Beyond that period was not looked at as the district must only deal with the five-year forecast.

In option 2, the district would need to pass a new operating levy in November. He said that would give the board a short time to figure out the amount. A decision to place a levy on November’s ballot means passing it in two meetings such as May and June, or June and July at the absolute latest.

“If we asked for a 5-mill levy it would cost $175 per year on a valuation of $100,000 of auditor’s market value,” Marko said. “It would give us over 60 days cash on hand in all five years of the forecast.”

The final option would combine options 1 and 2, but would still need to meet the timelines for a levy this year.

“These options are not a ‘set it and forget it’,” Marko said. “We will constantly have to revisit (the five-year forecast). I did not give a 20-year fix. I only did what is required and that was to stay above the 60-day mark. We also don’t know what direction the state will be going in the future.”

Canfield Board of Education President Steve DeMaiolo said, “As a board and community, we need to get together and lay out a game plan. We need to focus on what we can pass, and we need to hear from the public on what they will support.”

The board decided to move quickly and agreed to set a special meeting at 6 p.m. Wednesday to begin the process.

In other business, board members Katie Elford and Jill DeRamo announced the district’s first teacher of the month honors. The first recipient is high school math teacher Stacy Madison, who was nominated by Adrianna George for his hard work and caring when working with students to help them achieve.

“He constantly goes above and beyond to help all students,” George said. “He stays for hours after school creating new problems and adjusting his lessons to help each student learn. Not only does Stacy work at CHS, but he is a member of the Canfield Fair maintenance team and spends endless hours during the spring, summer and early fall prepping for the fair and then tearing it all down for the winter. He is a ‘Canfield Man’ through and through. I am proud to have had him as a teacher and now having the ability to co-teach with him.”