Conneaut SD projects $628,258 shortfall for 2026–27 as health‑care costs drive long‑term deficits

Miss Cranakota, the district finance officer, presented the Conneaut SD proposed final budget for fiscal year 2026–27 and said trustees will vote on the plan at the June 10 meeting. She told the board the presentation was informational and that the district was not voting at the work session.

Cranakota said the preliminary budget approved last month showed a May 2026 shortfall of $558,574, but after updates to revenues and expenditures the proposed final shortfall is now $628,258. "After all of the dust settled, we did see an increase in our deficit just under $70,000," she said.

She highlighted three main drivers of the district's fiscal picture: health‑care claims and prescription trends, rising pension (PSERS) contribution exposure, and constrained revenue growth. On health care she provided detailed claims data through April 30, 2026: 49 claimants and 500 GLP‑1 prescription claims year‑to‑date (compared with 48 claimants and 491 claims the prior full fiscal year) and an average prescription cost listed at $856.74. Based on trends, she said projected GLP‑1 spending through June 30 could be about $514,000, compared with roughly $371,000 for the prior full fiscal year.

"If this projection of $514,000 holds true, it's going to represent approximately 26½% of all claims in the district," Cranakota said, adding that total district claims for 2025–26 are projected at about $1.94 million (an 11.4% increase versus last year).

Cranakota reviewed revenue composition, noting about 97% of district revenue comes from local and state sources: roughly 42% local and about 55% state, with current real estate taxes making up most local revenue. On expenditures she said roughly 90% of spending (about $40.9 million) is concentrated in regular instruction and support services, and about 59% of expenditures by object (about $27.4 million) are salaries and benefits.

Using a set of five‑year scenarios, staff projected that under the base case with high health‑care inflation the district could face a $750,000 deficit next year and multi‑million deficits by 2030–31. A scenario that imposed a $10,000 cyber‑charter tuition cap and assumed 100 students would save roughly $475,000 annually, but staff said that alone would not eliminate long‑term shortfalls. A one‑time 1–2 mill tax increase in 2027–28 produces substantial near‑term relief in modeling but does not fully negate the long‑term risk if health‑care inflation remains elevated.

Cranakota stressed that the board's decision to move general funds into capital projects is permanent and would affect the general fund balance. On capital items for 2026–27 she listed asphalt repairs (~$50,000), visitor‑side architect fees (~$32,000), a maintenance box truck (~$40,000) and CAMS lockers (~$132,000). She noted a facility improvement grant opportunity would require a 25% district match and that the capital total on the slide ($864,980) assumed the maximum match; if the grant is not awarded the capital budget would decrease to $256,730.

The finance officer said insurance quotes may reduce costs before the June 10 vote and invited trustees to contact her with questions.

The board schedule calls for a formal vote on the final 2026–27 budget at its June 10 meeting.