NEW RICHMOND, Ohio — The New Richmond Exempted Village School District has been placed in fiscal caution by the Ohio Department of Education and Workforce due to projected budget deficits in 2027 and 2028.
The designation, announced Thursday, comes after the district submitted its October five-year forecast showing financial shortfalls in the coming years. The district has struggled financially over the last decade since two nearby power plants and major revenue sources closed.
"We are taking this notification seriously and will continue to operate with full transparency," Superintendent Paul Daniels told us. "Our priority remains protecting educational quality, staff stability, and community trust while meeting all state fiscal requirements."
Fiscal caution is the first of three financial warning levels the state can impose on struggling districts, followed by fiscal watch and fiscal emergency.
Watch: What the financial warning means for the future of the district
The district must now submit a detailed recovery plan to the state by Dec. 21 that demonstrates how the school board will reduce expenditures and eliminate the projected deficits. The plan must include specific budget cuts, an implementation timeline and show active board engagement in addressing the financial issues.
The Ohio Department of Education and Workforce recommends implementing any reductions during the upcoming spring and summer to eliminate deficit spending.
New Richmond's financial troubles stem from the closure of two major power plants that previously generated significant tax revenue for the district. The Beckjord plant closed in 2014, followed by the Zimmer plant in 2022. Together, those facilities accounted for about 37% of the district's total revenue, according to Daniels.
The district currently has a 1.25% earned income tax levy on the Nov. 4 ballot. The state considers the levy the district's primary solution, but requires a backup plan if voters reject it.
If the levy fails, the district says it would need to make cuts totaling more than $2 million, potentially affecting staff positions and services like high school busing. The district told us staff costs represent about 75% of their budget, making personnel reductions likely if additional revenue isn't secured.
The district has committed to seeking community input before implementing any major cuts.
