The Marlington Local School District reported a projected $348,932 surplus for the current fiscal year but warned the board that the district could return to multi‑year deficits beginning in fiscal year 2027.

Treasurer told the board on Oct. 9 that the district’s current general‑fund forecast shows a $348,932 projected surplus for the fiscal year ending June 2026. He said later fiscal‑year forecasts project a roughly $547,000 deficit in fiscal 2027 and about $1.2 million the following year under current law and with expected state changes.

The forecast discussion centered on how the district codes transfers to the capital projects fund. The treasurer explained that a routine transfer of pipeline property‑tax revenue to the capital projects fund is treated as an expense in the general‑fund forecast and increases projected deficit spending: “the transfer out that we typically do, which is forecasted in here to take the pipeline money out of the general fund to a capital projects fund, that's considered an expense the way it's coded on the forecast, which plays into this deficit spending.”

Board members asked whether withholding that transfer would eliminate the projected deficit for the general fund. The treasurer said that if the transfer were not made, the general‑fund forecast would not show a deficit, but added that the transferred money is typically spent for building maintenance and capital work and that combining the general fund and capital projects fund gives a fuller picture of overall district finances.

The board approved budget and revenue revisions for October, and approved the fall 2025 financial forecast after the presentation. During the discussion the treasurer noted other recent highlights: a September cash balance of $11,727,280.41 across funds, with a general‑fund cash balance of $9,354,370.47; a capital projects fund showing an apparent unencumbered balance that is reduced by the bond payment due this year; and recent purchases including cafeteria terminals ($12,540) and a security door installation ($4,800).

The treasurer said additional property‑tax receipts remain in the pipeline and typically arrive in two pieces, with the second installment expected in spring. The district will present further details to the board in upcoming meetings and a transfer to capital projects is likely to appear on a future agenda if the board follows prior practice.

The board voted to approve the forecast and the related items in a roll call vote with all members present voting yes.