Euclid City Schools' newest financial forecast shows the district spending more than it takes in every single year through fiscal 2030 — even if voters approve a new operating levy next month. The Euclid Board of Education has adopted the updated five-year forecast, which for the first time builds in projected revenue from a new levy in amounts that closely match Issue 5's yield; Issue 5 is the 6.75-mill continuing operating levy headed to the November 3 ballot.
According to Cleveland.com, the board authorized treasurer Patrick Higley to submit the forecast to the Ohio Department of Education and Workforce, with the figures assuming roughly $3.45 million in new-levy revenue in fiscal 2027 and about $6.9 million annually from fiscal 2028 through 2030. Even with that cash baked in, the district still projects a revenue deficit of about $3.78 million in fiscal 2027, growing to $10.30 million in fiscal 2028, $16.50 million in fiscal 2029, and $23.03 million in fiscal 2030.
Those growing shortfalls would eat through the district's cash reserves fast. The outlet reports Euclid's ending balance is projected to fall from about $32.1 million in fiscal 2027 to $21.8 million in 2028 and just $5.3 million in 2029, before turning negative by roughly $17.7 million in fiscal 2030.
What Issue 5 Would Actually Cost and Raise
If approved, Issue 5 would generate approximately $6.87 million annually for day-to-day district operations, according to Euclid City School District. For homeowners, that translates to about $19.67 a month, or $236.04 a year, for every $100,000 of appraised property value. The same source also discusses restrictions on advocating for or against ballot measures.
The numbers have shifted noticeably since the board's prior forecast adopted in February. Per the same account, the projected fiscal 2027 gap actually improved slightly, moving from about $7.30 million in February to $7.23 million in September before new-levy revenue was factored in. But the outer years worsened: the fiscal 2028 gap grew from $10.46 million to $17.20 million, and the fiscal 2029 gap widened from $16.18 million to $23.42 million. The February comparison ends at fiscal 2029 because that's where the state's February filing window closes.
Rising Costs Are Driving the Widening Gap
Behind those bigger numbers are climbing cost assumptions. February's forecast had projected expenditures increasing an average of just 0.22% annually through fiscal 2030, with revenue declining 1.86%. The September forecast's math looks very different: expenditures are now projected to climb 3.94% annually while revenue is expected to decline 4.08%, the article notes. In dollar terms, fiscal 2029 salaries alone are now projected about $6.56 million higher than the February forecast assumed, with benefits up $1.30 million and purchased services up $1.97 million.
Enrollment also declines in the forecast. The September forecast projects unrestricted state aid dropping from about $32 million in fiscal 2027 to roughly $25 million by fiscal 2030, alongside a decline in district-educated students from 3,908 to 3,593 over the same period. Ohio's Fair School Funding Plan uses district-educated enrollment for per-pupil funding. District officials said, per officials cited in the report, that additional reductions likely would be needed if Issue 5 fails, potentially touching extracurricular activities, elective courses, transportation beyond state minimum requirements, class sizes, and specialized programs. The forecast itself is not a budget and not a list of cuts the board has already approved, the outlet reported, and officials caution that variables built on historical trends and current factors can change during the fiscal year.
A Deficit Rooted in a 2022 Board Decision
Euclid's current squeeze traces back to a choice the school board made in November 2022, when it let a $5.2 million emergency operating levy expire without seeking renewal and promised to relieve taxpayers if Ohio fairly funded schools, according to the Euclid Observer. That bet didn't fully pay off. Ohio's FY2026-2027 state budget, enacted in mid-2025, added $281.9 million in new K-12 funding over FY2025 levels — $2.75 billion short of the $3.04 billion increase required to fully implement the funding formula, per Policy Matters Ohio.
Euclid is far from alone. Filings submitted in spring 2026 show that 605 of Ohio's 660 public school districts — about 92% — project general fund operating deficits by fiscal 2029 in pre-levy scenarios, according to Chardon Local Schools.
Local homeowners are weighing Issue 5 against an already sharper tax backdrop: Cuyahoga County's 2024 sexennial reappraisal pushed residential property values in Euclid up 44%, according to The Euclid Shore Sentinel. The district's academic performance adds another layer to the debate — Euclid City Schools earned a 3-star overall rating on the state's 2026 report card, though the Sentinel notes individual schools like Arbor Elementary recorded just 40% proficiency in reading and 37% in math.
Should the forecast's deficit trajectory continue unaddressed, state law gives the Ohio Department of Education and Workforce authority to place a district in fiscal caution once multi-year forecasts project a deficit balance within three fiscal years, a status that can escalate to fiscal watch or fiscal emergency, according to the Ohio Association of School Business Officials. Euclid's Issue 5 also isn't an isolated local ask — it lands on the same November 3 ballot as a levy push in Cleveland Heights-University Heights, where that neighboring Cuyahoga County district is seeking its own multi-million dollar operating levy to address similar projected deficits.
