APS Closes Much of Its Deficit, For Now

Buying More Time
Posted on 12/02/2020
Image of CalculatorThanks to remote learning and government stimulus money, Akron Public Schools (APS) has brought a projected operating deficit down from $15 million earlier this year to just more than $2 million. This, according to Treasurer and CFO Ryan Pendleton.

The message was part of Pendleton’s updated, five-year financial forecast, which has to be submitted to the state twice annually.

No matter, says Pendleton, the district’s good news is tempered by the ongoing discussion of the need for an operating levy.

Pendleton cautioned that if the district is able to go back to site-based learning this spring, necessary adherence to health/safety guidelines and its requisite equipment will be expensive.

While the average Ohio school district seeks levy funding every three to four years, it has been eight years since APS has approached voters. Pendleton's forecast is looking at a $2 million operating deficit by the end of this year, $12 million by the end of next school year; and, the following year, the district's cash reserves would fall below $30 million.

“If we get to that point,” said Pendleton, “the district will be in violation of its own board policy.” The Akron Public Schools Board of Education policy states it must always have the equivalent of at least 10% of its budget in reserve.
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