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Cincinnati Public Schools must submit a financial recovery plan to the state by Nov. 30 after Ohio officials projected a $44.5 million deficit by fiscal 2029 without new revenue. CPS has already closed a projected $58 million budget gap for fiscal 2027 through spending and staffing reductions. The district is also seeking approval of a five-year, 7-mill property tax levy that CPS estimates would generate about $66.3 million annually.
The Cincinnati Public Schools (CPS) must submit a financial recovery plan to the state after officials projected a $44.5 million deficit by fiscal year 2029 without new revenue.
The Ohio Department of Education and Workforce notified CPS in two letters dated Sept. 2 that the district is in a precautionary financial state because of a low fund balance and projected future deficits.
The district must submit a Board of Education-approved plan to the state by Nov. 30. The plan must identify steps that would eliminate the projected deficit.
CPS has until Nov. 30 to submit its plan
The state requires the financial recovery plan to show how CPS would address its projected financial shortfall.
CPS Treasurer Mike Gustin told the Board of Education that the plan cannot rely on revenue from a proposed property tax levy that Cincinnati voters will consider in November.
That means the district must identify spending reductions or other measures that CPS administrators and the Board can directly control.
The Board currently expects to approve the plan at its Nov. 23 meeting, WVXU.reported.
Also read: Cincinnati Public Schools approves $325M amid looming CPS budget deficit
Proposed levy would generate more than $66 million annually
CPS is asking voters to approve a five-year, 7-mill operating levy on the Nov. 3 ballot.
The district’s latest information says the levy would generate approximately $66.3 million annually if approved, with collections beginning in January 2027.
The figure is slightly higher than the $64.7 million estimate cited in the state’s financial discussion and recent WVXU reporting.
The proposed levy would cost the owner of a home with a $100,000 market value an estimated $245 per year, according to CPS.
However, state officials have told CPS that the potential levy revenue cannot be included in the financial recovery plan.
District already cut nearly $58 million from budget
CPS has already taken steps to balance its 2026-27 budget.
The district says it closed a projected $58 million budget gap through staffing and non-personnel spending reductions, furlough days, hiring restrictions, service reorganizations, outside funding and limited one-time resources.
CPS adopted a balanced $634.6 million General Fund budget for fiscal year 2027.
Those measures addressed the district’s immediate budget but did not eliminate the longer-term gap between recurring revenue and expenses.
More cuts could affect staffing and student programs
CPS officials say additional reductions could be needed if the district cannot close the projected gap through recurring revenue.
Potential measures discussed include additional position reductions, school consolidation or closures, transportation cuts and student participation fees for athletics and other activities.
Gustin said staffing is the district’s largest expense, limiting the savings available from smaller operational cuts.
CPS’s own financial information also identifies possible future impacts such as larger class sizes, fewer teaching positions, reduced student support, reduced transportation eligibility and cuts to extracurricular programs. The district says these are potential impacts, not final decisions.
CPS also projects an $89 million FY2030 cash deficit
The state’s $44.5 million projection is not the only deficit figure CPS has released.
CPS says its five-year financial outlook projects an $89 million cash deficit by fiscal year 2030 if the district maintains existing operations without recurring revenue or additional reductions.
The two figures refer to different projections and time frames. The state has specifically directed CPS to address the $44.5 million FY2029 projected deficit in its required financial recovery plan.
The proposed levy is intended to provide recurring operating revenue that CPS says would help address the longer-term financial pressure.
November brings key decisions for CPS finances
CPS plans to continue developing its financial recovery plan ahead of the Nov. 30 state deadline.
The Board is expected to consider the plan on Nov. 23, three weeks after the Nov. 3 election on the proposed property tax levy.
If approved, the levy would provide approximately $66.3 million in annual recurring revenue for five years, according to CPS.
The state-required plan, however, must identify actions CPS can control independently of that potential new revenue.
FAQs
Why does Cincinnati Public Schools need a financial recovery plan?
The Ohio Department of Education and Workforce identified a projected $44.5 million deficit for CPS by fiscal 2029 without new revenue. The state requires the district to submit a plan showing how it would eliminate the projected deficit.
How much money would the proposed CPS levy generate?
CPS says the proposed five-year, 7-mill operating levy would generate approximately $66.3 million annually if approved by voters. Collections would begin in January 2027.
Has CPS already made budget cuts?
Yes. CPS says it closed a projected $58 million FY2027 budget gap through staffing and spending reductions, furlough days, hiring limits, service reorganizations, outside funding and limited one-time resources.
How much would the proposed levy cost homeowners?
CPS estimates the levy would cost about $245 annually for a home with a $100,000 market value. The actual amount varies based on the property’s market value and applicable tax factors.
