Beachwood School District's Financial Outlook Through 2028: Stability Amid Rising Costs and Revenue Challenges

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Treasurer Matthew Brown recently updated the Beachwood School District's five-year financial forecast at a Board of Education meeting. This required biannual update shows the district maintaining a positive fund balance until 2028, despite challenges like flat revenues and rising operating costs.

The district's revenue is expected to slightly increase from $38.4 million in 2024 to $38.9 million in 2028. Property taxes, which are split evenly between residential and commercial properties, make up 82.2% of the total revenue. State funding and other local sources, such as interest income and tax settlements, also support the district's finances.

Expenditures are projected to rise from $41.0 million in 2024 to $45.8 million in 2028, mainly due to increases in personal services, employee benefits, and purchased services. The district aims to offer competitive compensation to attract and retain quality staff, contributing to the cost increase.

From 2024, expenditures are expected to surpass revenues, leading to a gradual decrease in the cash balance from $22.5 million in 2024 to $2.4 million in 2028. This deficit spending, influenced by inflation and wage demands, is typical for public schools.