The bill, as passed by the Ohio House, provides for a $555 million increase in state aid for public schools over the next two years, but simultaneously requires that school districts carryover a balance no greater than 30% of the previous year’s operating expenses in reserve for the next school year.
House Republicans estimate 486 of Ohio’s school 600-plus districts would be impacted, and they say the move would provide $4 billion in property tax relief in those districts.
However, Xenia’s school board members say it will do exactly the opposite of property tax relief.
“It really does punish those districts who are trying to be more frugal with their money,” said board member George Leightenheimer at a special meeting Thursday night.
Xenia’s school board approved a new five-year financial forecast from the district’s treasurer earlier this month. It projects the district will end this school year with a balance of about $31.6 million, just over 50% of the year’s total expense amount. They list $10 million of that carryover amount as a budget reserve, and say another $3.9 million is already “encumbered” for future expenses.
In a letter to DeWine and the Ohio House and Senate budget committees, Xenia schools said if the state budget provision is passed, they would see more than a 50% decrease in property taxes collected for one year, while Xenia cash reserves diminish.
But they say that would be immediately followed by a large property tax increase, once Xenia returns to collecting at its prior levels.
School administrators argue that the measure would make planning the district’s budget more chaotic, and represents the state taking away fiscal control from local governments.
“It’s a state-level overreach into a local jurisdiction,” board member Joshua Day said. “Our citizens vote for the taxes they’re willing to pay or not pay, and it’s up to them to approve it. It’s not up to the state to tell them, and to regulate our community on what they’re willing to do.”
Xenia’s cash reserves allow them to take on additional operating costs and other projects without having to go back to the taxpayers, cap in hand, administrators say. Some stadium renovations, the Benner Fieldhouse, and security improvements to the schools have all been done by having sufficient money in the bank account, Day said.
Credit: Bryant Billing
Credit: Bryant Billing
While Xenia voters approved a bond issue to pay for construction of a new middle school in 2021, the district hasn’t had to go back to the taxpayers for new day-to-day operating money in over 20 years, according to Xenia Treasurer Thomas Massie.
“That’s something the community should be very proud of, that we are able to do what we need to do with the money, the budget they’ve given us,” said Day. “We haven’t gone back for more, and we have no plans to go back for more for a significant amount of time.”
The letter to DeWine’s office asks the governor to line-item veto the 30% rollover limit. The district plans to send the same note to the House and Senate budget committee.
The operating budget, passed every two years, is almost always the legislature’s biggest project. The Senate has not yet passed their version of the budget bill, and there has been some vocal opposition in the Senate against keeping this particular school funding provision.
About the Author
