Talawanda looks to future with five-year forecast, slew of policy changes

The Talawanda School District is projecting a balanced budget through fiscal year 2028.

During a Board of Education meeting Nov. 21, Treasurer Shaunna Tafelski presented an updated five-year forecast for the district during the meeting. State law requires districts to submit five-year forecasts twice a year in May and November. The most recent forecast shows an increase in revenue of $1.7 million from the May forecast, though Tafelski said there are some pressures that require caution. Based on the current forecast, expenses are likely to exceed revenue in fiscal year 2029.

Mike Malone, director of Human Resources, also proposed changes to dozens of district policies and bylaws during the meeting. Among those changes are clarifications to board processes, new language regarding student use of artificial intelligence and a restructured cell phone use policy.

Dozens of teachers, parents and locals attended the meeting Nov. 21 after two teachers were placed on administrative leave for separate incidents. Ten teachers spoke during public comment to highlight positive developments at their schools, while multiple parents and others criticized the district's handling of one incident involving a teacher's political social media post.

Five-year forecast

Each May and November, Treasurer Tafelski presents an updated five-year forecast for the district. The forecast looks at the district's general fund only and continues through fiscal year 2029. Talawanda's fiscal years begin on July 1 of the year prior to the fiscal year.

Compared to this year's May forecast, Tafelski said the district is estimating that it will be better off by $1.7 million, including a recent one-time payment from a state settlement with Rockies Express Pipeline.

Several factors including Ohio's state budget and property valuations which are beyond the district's control may impact the accuracy of the forecast. While Talawanda's revenue currently exceeds expenses, the forecast shows that the trend will reverse in the long-term.

"A forecast is just a forecast," Tafelski said. "It is not set in stone but needs to be treated for what it really is: an extremely fluid document that could change and will change."

The district's expenditures spiked in fiscal year 2023 due to a bus and maintenance construction project. When a 2022 levy failed to pass, the board voted for a three-year plan of cuts including a change to busing which led to a decrease in expenditures in fiscal year 2024. Then, a change in property taxes this year increased the school's revenue, so the board voted to role back some of the cuts.

Despite increasing expenditures, Tafelski's forecast shows the district's remaining cash balance staying steady above $30 million for the next five years. Talawanda is required to maintain a 90-day cash balance of $11 million.

Tafelski said the district is facing less inflationary pressures than it has in the past few years, but the cost of supplies and materials remain high. Competition for employees is also putting pressure on the district, especially staff and substitute teacher shortages.

One of the biggest pressures facing the district is the end of federal pandemic relief funding, Tafelski said. The district had relied on American Rescue Plan Act and other funding since 2020 to help pay for new technology. Now that the funding has run out, those technological expenses will return to the general fund.

On the revenue side, Tafelski said 76% of the district's income comes from local sources including property taxes, interest and a local income tax passed in 2004. The remaining 24% comes from state sources. Salaries and benefits make up 74% of the district's expenses, meanwhile.

Board member Pat Meade said he looked back at each five-year forecast from 2014 onward and found that the district was better off each time than the treasurer predicted. He suggested that the district should consider investing more money in educational initiatives over the next five years. Based on the current forecast, the district would have more than 250 days worth of cash reserves left in fiscal year 2029, almost three times the 90-day requirement.

"Building up a bank account, we aren't gonna get a prize for that at the end," Meade said. "The prize is educating our students to the best of our ability, so I would suggest we have money to invest in our students."

Among potential investments, Meade suggested hiring another gifted teacher and more elementary school teachers to reduce class sizes. He requested proposals from Tafelski and Superintendent Ed Theroux to show what further educational investment could look like.

Tafelski cautioned the board to rely too heavily on the forecast, particularly beyond the first two years. Board member Matt Wyatt said he worries that the state legislature could push for lower taxes and budget cuts in future years which could impact Talawanda, though the district's emphasis on local revenue could help.

Mike Dittman, a Hanover Township resident who has attended board meetings for more than a decade, said during public comment he hopes the district will be fiscally responsible. He disapproved of recent administrative raises and said the district spends more money per pupil than other districts in the area like Ross and Edgewood.

"Talking about adding extra costs now just because there appears to be more money doesn't seem to be a good way to go ... Just because we have a balance, doesn't mean we need to spend it," Dittman said. "We need to be wise with spending and look to the future."

Policy changes

Malone presented 44 changes to district bylaws and policies on Nov. 21, including several new policies. Each proposed change is available online on the through the meeting agenda.

Malone summarized only the 14 bylaw changes, which focus on the Board of Education, at the meeting. The revisions will clarify board processes including the appointment of a board president, notifying the public of meetings and more if passed.

The policy changes which Malone did not summarize include an overhaul of the personal communication device policy for students. Under the new policy, students in Pre-K through 8th Grade would be prohibited from using personal communication devices except when authorized by the principal, while in school vehicles or at school-related events like after-school and extracurricular activities.

High school students would be allowed to use personal devices in the same circumstances as younger students, as well as when authorized by teachers, during lunch breaks and between classes.

The new policy would also clarify unacceptable technology uses including invasions of privacy. Students would not be permitted to use devices to capture sound or images of other people on school property without permission and aren't permitted to use devices at all "in locations and circumstances where a student may be changing clothes or in any state of undress."

During the meeting, board member Dawn King said she was concerned that prohibiting students from recording entirely could pose safety issues. She asked Malone if the updated language would mean that kids who record if they're being bullied or threatened could then get in trouble for filming as evidence. Malone said he will return with an answer at a later time.

The proposals also include new and updated policies regarding the use of artificial intelligence. "The Superintendent is authorized to support  the use of AI technology when its use is consistent with the District's mission, goals, and operational integrity," according to one new policy.

Students would be permitted use AI tools with teacher permission in limited circumstances under the updates. Acceptable uses with permission include research assistance, data analysis, language translation, writing assistance — though not writing for students — and accessibility.

The board will vote on the proposed changes at its next regular meeting at 7 p.m. Dec. 19 in the Talawanda High School Performing Arts Center.