• Deficit Reduction Plan


    Financial Challenges

    • Since FY2020-21, the American Rescue Plan/Elementary and Secondary School Emergency Relief Fund (ARP/ESSER) has funded a total of $465M in temporary CMSD expenditures.

    • These funds allowed strategic enhancements in health/safety, technology, and other areas.

    • With a 2024 ARP/ESSER sunset and an assumption that 100% of ARP/ESSER expenditures are picked up by the General Fund, the Nov. 2023 forecast projects a 2-year negative cash balance of $168M.

    • Since being placed under a fiscal precaution status by the Ohio Department of Education & Workforce (DEW), District leaders have been working diligently to identify reductions that bring our budget in line with expected revenues/the end of temporary APR/ESSER funds and create a positive cash balance in the next two fiscal years.

    • However, there is much work yet to be done to fully eliminate our deficit moving forward and realize financial health.

    • The Board of Education will review the budget deficit plan and submit to the Ohio Department of Education & Workforce (DEW) by February 29th deadline.



    Deficit Reduction Plan

    Budget Deficit PlanReflecting upon the financial challenges facing the district and the priority to protect school-directed budgets, Dr. Warren Morgan, Chief Executive Officer, and the Cleveland Metropolitan School District Board of Education adopted a goal to reduce central office by at least 10%.  Central office budgets include staff, services, and programs whose budgetary allocation is aligned to a centralized administrative team and not allocated through a specific school’s budget. The district is currently reviewing staffing at 1111 and East Professional Center. Reflecting Dr. Morgan’s commitment to driving savings through central office budgets reductions, the central office budget process began in January – months earlier than is typical – and ahead of the school-based budgeting process, which begins in February 2024. The central office budget process is now midstream and concludes in April 2024.

    As required by DEW, the district will monitor implementation of the plan and may revise the plan if warranted by significant changes in assumptions or priorities, while upholding our commitment to eliminating projected deficits. The spring Five Year Forecast will reflect the finalized and approved central office budgets and school-directed budgets. 



    Opportunities To Close The Gap

  • Expenditure Reductions for School Year 2023-2024

  • Expenditure Reductions for School Year 2024-2025

  • Expenditure Reductions for School Year 2025-2026

Resolution Plan Resources

  • 2.13.24 Board Presentation - Deficit Resolution Plan
  • Resolution Approving Deficit Reduction Plan
  • FY24 Written Plan Workbook
  • Five Year Forecasts and Board Presentations