In the heart of Ohio, the Orange City Schools district has found itself in a unique financial predicament. With a per-student expenditure of $30,716 in fiscal 2025, it ranks fifth among the state's traditional public school districts. This high spending is largely attributed to the district's commitment to experienced teachers, with an average salary of $103,987, the highest in Ohio. However, this comes at a cost, as the district's main operating reserve has taken a hit, declining by nearly 28% in just two years.
The financial strain is evident in the district's recent decision to place a 5-mill operating levy on the November 3 ballot. This move is a direct response to the growing gap between expenses and revenue. From fiscal 2023 to 2025, operating expenses increased by a substantial 14.4%, while revenue rose at a much slower pace of 6.3%. The primary drivers of this gap are rising salaries, employee benefits, and outside service costs, including utilities and maintenance.
One of the most striking aspects of Orange's financial situation is the significant portion of its budget dedicated to staffing. In fiscal 2025, the district spent approximately $36.1 million on salaries and $14.8 million on employee benefits, accounting for a whopping 81% of its operating expenses. This heavy investment in personnel is a clear indication of the district's commitment to its teachers and staff, but it also underscores the financial challenges it faces.
Despite efforts to contain costs, such as revising the teacher salary schedule and joining group purchasing programs, the district's expenses continue to outpace its revenue. Health insurance costs, in particular, have been a significant contributor to this trend, with a notable increase of 13% in October 2024 and a further 11.5% in October 2025. This highlights the broader challenge many institutions face in managing healthcare costs.
The district's financial forecast for the next few years is cause for concern. From fiscal 2026 to 2030, Orange projects a continued widening of the gap between revenue and expenses, with expenses increasing at a much faster rate than revenue. This has already led to the district tapping into its reserves, with a notable decline in its main operating fund from $26.67 million in June 2024 to $19.23 million in July 2026.
If the proposed levy is not approved, the district has indicated that it may need to make significant cuts to various services, including its renowned 15-to-1 student-teacher ratio, technology resources, and extracurricular activities. This potential reduction in services could have a profound impact on the educational experience of students in the Orange City Schools district.
In my opinion, this situation raises important questions about the sustainability of high-spending school districts. While Orange's commitment to its teachers and staff is admirable, it highlights the delicate balance between providing quality education and managing financial resources responsibly. It will be interesting to see how the district navigates this challenge and whether the proposed levy receives the support it needs to maintain its current level of services.
