Five-Year Forecast

Lakota's Financial Health: Short and Long-Term

Annually, in November and May, the district is required to file a five-year forecast with the Ohio Department of Education and Workforce (ODEW) as described in Ohio Revised Code 5705.391 and Ohio Administrative Code 3301-92-04. The forecast includes three years of history (actual data) and five years of projections. It is not a crystal ball; rather, it’s a deliberate process grounded in data, analysis and prudent judgment. Five-year forecasts are a tool used to assist in planning the path forward by addressing the financial implications of questions such as:

• What educational shifts might occur?
• How likely are they?
• What factors influence student success?
• What factors influence the district’s funding?

The five-year forecast is utilized by the administration and Board of Education as a management tool for short- and long-term planning. This forecast provides Lakota with advanced warning of financial challenges so that the District can impact the future with decisions in the short-term. Things that we predict or anticipate happening in coming years may or may not occur, but we must make reasonable assumptions and plan for the future.
 
The financial stability of the district has drastically improved through a combination of $20 million in expenditure reductions and the passage of the combination operating and permanent levy in November 2013. We have operated on a balanced budget from FY13-FY24 and during that period, our cash balance increased significantly. Cost containment practices, which were implemented during our expenditure reduction phase, have remained in place; however, deficit spending is forecasted and will be closely monitored.  We assess and prioritize needs and are always looking for ways to reallocate our resources instead of increasing costs.
 
Our levy request was strategic and targeted, and we are following through on our commitments. Below you will find the corresponding assumptions as submitted to ODEW.