CINCINNATI — Cincinnati Public Schools has been placed in “fiscal caution status” by the state of Ohio. It's projected to have a $44.5 million deficit by 2029, and CPS must submit a plan to correct it by Nov. 30.
CPS Treasurer Mike Gustin presented the warning to the board of education at a meeting Monday night, saying the district needs to begin working on a state-required Fiscal Precaution Plan.
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The Ohio Department of Education and Workforce formally notified CPS of the shortfall on Sept. 2, issuing both a deficit notice and a low balance advisory — signaling that the district's cash reserves are shrinking and its books could go negative within four years without major changes.
"We knew that would trigger some information from the state, which is kind of what we received on September 2nd," CPS Treasurer Mike Gustin said.
Fiscal caution status is different from a fiscal emergency. If the district reaches fiscal emergency status, the state would take control of the district’s money and decision-making.
Gustin told the board the district's current reserve levels fall well short of sound fiscal practice and said avoiding the fiscal emergency status is the goal.
"You know, sound fiscal practice would be around 60. You know, really ideal for us would be around 90, and we're at about half that," Gustin said.
The warning comes weeks after the board scrapped a proposed earned income tax levy, replacing it with a property tax request now headed to voters this November.
But district leaders say the state-required recovery plan cannot factor in the outcome of that levy vote — meaning potential cuts must be planned independently of whether the levy passes.
"This will be a bit of a different presentation. There are no applause lines built into this one," Gustin said.
Among the options on the table as the district designs its recovery plan:
- School consolidations
- Transportation changes
- Athletic fees
- Possible cuts to extracurricular activities
- Technology spending reductions
- Elimination of positions not legally required
Gustin said part of that plan includes hoping voters pass the levy in November. If voters reject CPS' levy in November, the district is looking at roughly $20 million more in budget cuts.
CPS has until November 30 to submit a recovery plan to the state.
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