CANFIELD — Though the Canfield Local School District will not be out of money by 2029, it will see a diminishing cash balance over the coming years.

“The good news is we have a carryover balance,” said board President Nader Atway.

At a special meeting Tuesday, the Canfield Board of Education approved a five-year forecast as required by law.

The district will end 2024 with a $17.9 million carryover. According to the forecast, the income is set at $31.0 million with expenses at $29.6 million.

Deficit spending will begin next year when the forecast income is $31.3 million. Expenses in that year come in at $32.0 million knocking the carry-over down by $689,134.

In 2026 revenue is expected at $31.5 million with an expense of $32.9 million for a deficit of $1.39 million. In 2027 the income is $31.8 milllion with anticipated expenses of $33.7 million for a loss of $1.9 million. In 2028, the revenue is set at $32.0 million with expenses at $34.6 million for a deficit of $2.5 million.

In the final year of the forecast, the estimated revenue is at $31.0 million with an anticipated expense of $35.6 million. Those numbers show a deficit of $4.5 million. All the deficit spending years will see the $17.9 million carryover reduced to $6.7 million.

Ryan Ghizzoni, of Front Line Education, attended the meeting and offered some insight into the changes in education funding in Ohio. He told the board Canfield was one of the 50-plus districts in Ohio that has been placed on the 20-mil guarantee. He said it is a complicated system of state funding, but Canfield will not see any significant increase in state funds. Schools not in that group will receive more state funds.

“There will not be an increase in state funds, but supplies and textbook costs will rise, health care costs will increase and inflation will outpace revenue,” he told board members.

Superintendent Joe Knoll said some of the factors the state considers are property values, high income levels and other calculations.

“I can say there won’t be a windfall coming to Canfield,” he said.

Board member Matt Campbell said, “It seems the more successful you are as a school district, the more you get the shaft.”

Atway said the district is doing nothing different, the costs are simply going up. Knoll agreed and said he was paying $123,000 for a new bus, but next year that same bus will be $130,000.

Treasurer Pattie Prince said the district has a big carryover from being fiscally responsible with district funds.

Those carryover funds have helped keep the district running and have helped get things done. She said $500,000 of the carryover was used with the permanent improvement fund to help pave the high school parking lot and build secure vestibules at the other school buildings.

The permanent improvement fund comes from a levy that brings in $600,000 annually.

Knoll said the PI fund can go quickly when just two buses are purchased. He said the present goal is to replace two buses per year to keep the fleet in good shape.

Everyone agreed having a carryover in the fifth year is a good development, but with deficit spending, it is being eroded away.

“We either increase our revenue or decrease our expenses,” Knoll said.

After a brief discussion, board members Atway, Campbell, Traci DeCapua and Steve DeMaiolo voted 4-0 to accept the five-year forecast. Board member Betsy Ahlquist was unable to attend.