Lexington, Ohio, October 19, 2025
The treasurer of Lexington Local Schools has reported a troubling financial outlook, highlighting budget shortfalls and rising operational costs. These challenges pose significant risks to the district’s ability to sustain its programs and facilities, prompting officials to call for strategic planning to secure educational quality for students. The situation underscores the need for careful financial management and innovative solutions to maintain the standards of education within the district.
Lexington Local Schools Faces Projected Operating Deficit by 2027
Lexington, Ohio – Lexington Local Schools is facing a significant financial challenge, with projections indicating that operating funds could be exhausted by the end of the 2026-2027 school year. Financial forecasts presented by Treasurer Jason Whitesel reveal a trend of increasing operating deficits and reduced state funding over the next few years.
Projected Financial Shortfalls
By the end of fiscal year 2029, the district anticipates a projected operating deficit of approximately $7.34 million. Additionally, the fund balance is expected to show a deficit of about $14.53 million by June 30, 2029. These projections do not include potential new or renewal levies, as such forecasts cannot assume their passage.
Declining State Funding and Operational Costs
For the past three years, Lexington Local Schools has been operating at a deficit. The operating deficit was recorded at $1.48 million in fiscal year 2025 and is expected to rise to $2.95 million by the end of fiscal year 2026, eventually reaching $4.39 million by fiscal year 2027. The district’s share of state funding has dwindled to 30%, marking a decrease from previous years.
Impact of the 20-Mill Floor
The district has reached the 20-mill floor, which is the minimum level to which a district’s total tax collection rate can decline. While this may encourage some growth in property tax revenue, the overall impact could be influenced by future changes in state legislation.
Historical Context and Levy Information
The last new operating levy for Lexington Local Schools was passed in 2011. Although voters have approved funding solely for the construction of new buildings since then, these funds cannot be utilized for general operating expenses.
Frequently Asked Questions (FAQ)
What is the projected operating deficit for Lexington Local Schools by 2029?
By the conclusion of fiscal year 2029, the district anticipates an operating deficit of approximately $7.34 million. The projected fund balance for June 30, 2029, indicates a deficit of about $14.53 million. These projections do not account for potential new or renewal levies, as forecasts are not permitted to assume their passage.
How has state funding changed for Lexington Local Schools?
Over the past three years, the district has been operating at a deficit. In fiscal year 2025, the operating deficit was $1.48 million, which is expected to increase to $2.95 million by the end of fiscal year 2026 and $4.39 million by fiscal year 2027. The district’s state funding share has decreased to 30%, down from a higher percentage in previous years.
What is the 20-mill floor, and how does it affect the district?
The district has reached the 20-mill floor, the minimum level to which a district’s total tax collection rate can decline. This situation may lead to growth in property tax revenue, but potential changes in state legislation could affect this outcome.
When was the last new operating levy passed for the district?
The last new operating levy was passed in 2011. Voters have since approved a levy to fund the construction of new buildings; however, funds passed for construction cannot be used for general operating expenses.
Key Features of the Financial Forecast
| Feature | Details |
|---|---|
| Projected Operating Deficit by 2029 | Approximately $7.34 million, with a projected fund balance deficit of about $14.53 million by June 30, 2029. |
| State Funding Share | Decreased to 30%, down from a higher percentage in previous years. |
| 20-Mill Floor Status | Reached the 20-mill floor, the minimum level to which a district’s total tax collection rate can decline. |
| Last New Operating Levy | Passed in 2011; subsequent levies have been for construction purposes, not general operating expenses. |
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