By 1812Blockhouse
Mansfield City Schools is staring down a financial abyss. According to the November 2024 Five-Year Forecast, the district is projected to face a negative cash balance of $2,621,795 by June 30, 2026. This looming deficit has forced administrators and the school board to make difficult decisions about the future of education in the community.
This look resulted in the adoption Monday night of a difficult plan to cut costs and move toward a fiscally viable future as the Board of Education faces reality. While adopting a plan, action items will still require future votes.
The crisis comes amid rising costs in nearly every sector, from staff benefits to operational expenses. The district’s health insurance costs are particularly burdensome, with family plans currently costing $38,800 and single plans at $18,000—figures that have steadily increased over the past decade.
Immediate Action: Tightening the Belt
The district has wasted no time implementing immediate measures to address the financial shortfall. A hiring freeze has been instituted, allowing staff numbers to decrease through attrition while also planning for a more formal reduction in force. Classrooms throughout the district will see increasing sizes as administrators look to maximize teaching resources.
Departmental budgets are feeling the squeeze as well. Every department has been instructed to identify non-essential expenses that can be eliminated, while purchased service contracts are being reviewed and renegotiated where possible.
Perhaps most significant among the immediate actions is the exploration of alternative health insurance options. The district plans to hire an independent insurance consultant to identify lower-cost alternatives to the current expensive plans, a move that could potentially save hundreds of thousands of dollars annually.
The district has also increased transfers to the food service and athletics funds from $250,000 to $280,130 for fiscal year 2025, recognizing the need to support these essential student services despite the overall financial constraints.
The Restructuring Blueprint: Departments and Staffing
At the heart of the district’s long-term financial recovery plan is a major restructuring of departments and staffing. The Human Resources Department faces complete elimination, with its four positions being cut for an annual savings of approximately $487,000. HR functions will be redistributed among remaining administrators or outsourced.
The Academic Services Department will also be eliminated, cutting two positions and saving roughly $230,000 annually. Special Education Pupil Services will lose two positions, while the Transportation Director role will be reduced to part-time (three days per week) without insurance benefits.
The Fiscal Department will operate with one fewer position, and four additional administrative roles will be eliminated or reduced. These administrative changes represent just the beginning of the broader staffing adjustments planned.
The most substantial savings will come from teaching and support staff reductions. The district plans to minimize the impact of 17 certified and 4 classified staff retirements by limiting replacements. Five retired/rehired teacher contracts will not be renewed, and three teacher resignations will not be replaced.
Most dramatically, a Reduction in Force will eliminate 29 certified and 7 classified positions. The Adult Education program will be completely eliminated, and Career Technical Education will lose five teaching positions. Various supplemental payments not covered by collective bargaining agreements will also be cut.
Future Planning: Levy Hopes and Revised Projections
Looking ahead, the district is pinning significant hopes on a levy planned for the November ballot. While the amount and type have not yet been determined, administrators acknowledge that additional cuts will be necessary if voters reject the measure.
The district has revised its state funding projections based on January payment information, and the outlook isn’t promising. While FY2025 shows a modest increase of $64,076, subsequent years show concerning decreases: $434,253 less in FY2026 and annual reductions of $942,549 for fiscal years 2027 through 2029.
There is a small bright spot in the financial clouds, as interest income projections for FY2025 have been increased by $75,000 due to higher interest rates. However, this positive adjustment is more than offset by increased staffing costs projections, including salary increases of $331,590 in FY2025 with additional increases in subsequent years.
The only significant cost reduction identified outside of staffing comes from a reduced worker’s compensation payment for FY2026, thanks to an existing cash balance in that fund.
Financial Impact and Accountability: Measuring Success
The district’s comprehensive deficit elimination plan projects significant savings, with total salary reductions of approximately $3.5 million in FY2026, increasing in subsequent years. Benefit savings are expected to reach approximately $2.2 million in FY2026, with higher savings in later years.
There will be one-time costs associated with the restructuring, including approximately $650,000 in unemployment compensation in FY2026 and an increased severance fund transfer of $400,000 total that same year.
To ensure accountability and transparency throughout this challenging period, the Board has committed to monitoring plan implementation through monthly reviews of financial documents. These include annual spending plans, bank reconciliations, cash position reports, and check registers.
Though the plan projects positive cash balances through FY2029, district officials acknowledge they will still fall short of the Government Finance Officers Association’s recommended 30-day true cash reserve. For now, the focus remains on immediate financial survival while preserving as much educational quality as possible in challenging circumstances.
The full plan can be viewed here.
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