Clermont-Northeastern Local School District has released its February 2026 Financial Forecast update, explaining the district’s current financial stability while highlighting the impact of recent state legislation on future revenue growth.
Ohio school districts are required by the Ohio Department of Education and Workforce to file a Financial Forecast annually. The forecast serves as a long-term financial planning tool and reflects current law, known data, and projected trends.
Key Takeaways from the February Update
Revenue Growth Has Slowed
While district revenues increased by an average of 4.66% annually over the past five years, projected growth through 2030 is expected to average just 0.27% per year.
This slowdown is largely due to recent property tax reform legislation (H.B. 186, H.B. 335, H.B. 129, and H.B. 96), which limits how much property tax revenue can grow—even when property values increase.
Expenses Continue to Increase
Although projected expense growth (0.18% annually) is slower than historical averages, key cost drivers remain:
Salaries (43% of total expenditures)
Employee benefits (17%)
Purchased services (including transportation) (22%)
Inflationary pressures and contractual obligations continue to impact the district’s financial outlook.
Strategic Investment in Facilities
As part of its Vision and Mission work and in response to community feedback regarding aging facilities, the district has planned strategic transfers to the Permanent Improvement Fund to support long-term maintenance and capital needs:
FY26: $2.3 million
FY27: $2.0 million
FY28: $1.6 million
FY29: $900,000
FY30: $400,000
These transfers decrease over time as projected excess revenues narrow. Without these transfers, the district is unable to maintain the buildings that we currently have and implement the upgrades needed for our special education population as they advance through the three buildings.
Looking Ahead
District leadership will continue to monitor state funding changes, property tax reform implementation, and economic conditions. As a planning document, this Forecast may evolve as new information becomes available.
“Our goal is to remain transparent with our community while ensuring long-term financial stability for our students and staff,” district leadership stated. “We will continue to make strategic, responsible decisions that support both educational excellence and fiscal responsibility.”
For additional information about the district’s February Forecast, community members are encouraged to visit the district website or contact the Treasurer’s Office (513) 625-1211
