Indian Hill families who sent kids back to school Aug. 13 face a financial warning from the district: without new revenue, the school system's cash reserves will shrink from 99 days to just four by fiscal year 2031.

Treasurer and CFO Mick Davis presented the district's required Five-Year Financial Forecast to the Board of Education at its Tuesday, Aug. 11 meeting. The district published the update Monday, Aug. 17.

The headline numbers: recurring expenditures are projected to exceed recurring revenues in every year from FY27 through FY31, and the forecast assumes no new operating revenue during that span. Projected days of cash on hand drop from 99 in FY26 to 77 in FY27, 59 in FY28, 42 in FY29, 20 in FY30 and four in FY31.

The gap is structural.

"This is not a decision that should be made hastily," Davis wrote of the board's need to evaluate future revenue options. "Nor should it be delayed until our financial flexibility has disappeared."

What's driving the squeeze

A new state law compounds the pressure. Ohio House Bill 186, effective March 20, caps revenue growth for districts on the 20-mill floor at the cumulative three-year rate of inflation after property reappraisals. Indian Hill operates within that floor, meaning the district previously received increased income as property values rose. HB 186 slows that growth and introduces a tax credit for property owners, according to the Ohio School Boards Association.

The district's current expense levy also expires at the end of 2026, a factor Davis identified as making the next several years a critical planning window.

Cost controls so far

Davis noted the district has saved taxpayers more than $9.4 million, including $8.5 million through bond refinancing, more than $588,000 in grants and partnerships, $150,000-plus generated annually through energy savings and $430,000 in annual administrative savings through operational efficiencies.

Still, Davis cautioned that declining reserves reduce financial flexibility, increase cash-flow risk and can affect how rating agencies view the district's fiscal health. He wrote that cost controls alone may not close the gap without eventually affecting programs, staffing or the educational experience for students.

Levy talk ahead

Board President Bear Tullis acknowledged "ongoing tax and financial challenges" at the Jan. 13 board meeting and said the board planned work sessions to distinguish between financial needs and wants. The district's Operations Committee discussed an anticipated Phase 4 bond levy during facility planning sessions in spring 2026.

Davis wrote that the board will need to evaluate "sustainable revenue options and the appropriate timing for future conversations with the community."

The next regular Board of Education meeting is Tuesday, Sept. 15 at 6:30 p.m. at the Indian Hill Board Office Community Room, 6855 Drake Road, Cincinnati.